A construction company being sued by a Manitoba First Nation over an uncompleted housing project has accused the community of wrongfully barring it from finishing the work.
Winnipeg lawyers Faron Trippier and Tracy McMahon filed the statement of claim on behalf of Dakota Tipi First Nation against Bison Modular Homes and several associated companies in Court of King’s bench in September.
The First Nation hired the Indigenous-owned company to build 20 housing units in 12 housing complexes, but alleged in its court filings the company “abandoned” the project before it was completed and prolonged the reserve’s housing crisis.
The homes, which Dakota Tipi claims were to be constructed using steel shipping containers, were to add “desperately needed” housing to the reserve, the claim said. Bison says the complexes were actually to be constructed with insulated metal panels.
In a December 2021 agreement, Bison agreed to build an assortment of single-family units, duplexes and triplexes in 2022, but Dakota Tipi alleged it built only four usable units.
In a statement of defence and counterclaim filed on Bison’s behalf by lawyer Meghan Ross in late December, the company claims it was, in fact, the community that reneged on the contracts and project, not the other way around.
The defence filings claim Dakota Tipi instructed Bison to vacate the community in February 2023, wrongfully removing it from the project and either breaching or repudiating the contract.
“(Bison) remained willing and prepared to fulfil its obligations under the contract until such time as the plaintiff improperly repudiated the contract, or in the alternative, wrongfully terminated the contract,” Bison’s court papers say.
Bison has asked the court to dismiss the community’s suit, and in its counterclaim seeks damages from Dakota Tipi for alleged breach of contract and failures to pay what’s owed.
Bison’s contract was to be paid with monthly bills as the construction progressed.
The company alleges it was paid about $4.2 million with a deposit and via three of four monthly bills. The company alleges Dakota Tipi has yet to pay the third of the four bills it issued, with approximately $500,000 outstanding.
The project was to be funded via federal housing money and contributions from Dakota Tipi.
The First Nation alleged it began to have concerns about the “quality of modular housing units being provided and the delay in completing the construction” around the time the third instalment was to be paid in June 2022.
Bison alleges that third payment was never made, as claimed by Dakota Tipi, though the fourth and final bill was eventually paid.
The community alleged it is still owed two, single-bedroom duplexes. It also claims the modular housing complexes installed by Bison have “defects and deficiencies,” including: improperly constructed concrete slabs; deficient plumbing, electrical and HVAC systems; damaged windows and doors; and other issues. The company has denied those allegations in its court filings.
As a result, the units are “uninhabitable” and “pose a real and substantial danger” to the community, Dakota Tipi claimed.
Dakota Tipi said it has been ineligible to apply for further funding initiatives due to the unfinished project.
But Bison claims it conducted a “thorough walk through and inspection” of the units in January 2023 with a Dakota Tipi band councillor, with no major problems found.
“During this walk through, a 30-point completion inspection was performed and no substantial issues were noted on the quality of the modular housing complexes,” reads Bison’s statement of defence. “Any minor issues identified during the walk through and inspection were promptly addressed by Bison.”
Then, Bison alleges, Dakota Tipi instructed the company to leave the community in February 2023, as it was still finishing the work.
The company claims that if any work is incomplete or deficient, it’s the fault of Dakota Tipi for breaching the contract.
erik.pindera@freepress.mb.ca
Erik Pindera
Reporter
Erik Pindera is a reporter for the Free Press, mostly focusing on crime and justice. The born-and-bred Winnipegger attended Red River College Polytechnic, wrote for the community newspaper in Kenora, Ont. and reported on television and radio in Winnipeg before joining the Free Press in 2020. Read more about Erik.
Every piece of reporting Erik produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.
Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber.
Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.