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Wow Hospitality sues Mayor Sam Katz

By: Staff Writer

Posted: 12/10/2012 11:45 AM | Last Modified: 12/10/2012 4:02 PM | Updates

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Mayor Sam Katz (BORIS MINKEVICH / WINNIPEG FREE PRESS ) Photo Store

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Wow Hospitality has launched a lawsuit against Mayor Sam Katz, Hu's on First and the Winnipeg Goldeyes baseball club for allegedly failing to pay fees owed from a former contract.

According to a statement of claim filed in the Court of Queen's Bench, Wow Hospitality agreed to manage the food and beverage operations at what was then Canwest Global Park in February 2000. Court documents allege Wow Hospitality would be paid a basic management fee, plus an additional five per cent of gross sales of certain food and beverages.

Wow Hospitality later entered a contract with Encore Developments, a company owned by Katz, to manage and operate Hu's on First, court records said. The statement of claim said Encore agreed to pay Wow Hospitality a development fee of $25,000 and a management fee of $5,000 a month.

The contract was terminated in December 2006, and Wow Hospitality claims the terms of the contract were breached after the defendants failed to make any payment of fees due and owing.

Katz denied the contract was terminated improperly and wondered why a lawsuit was filed six years after the fact.

"Why anybody would wait that period of time if they didn’t agree with what was done, I certainly can’t explain it," the mayor told reporters.

No statement of defence has been filed and the allegations have not been proven in court.