Winnipeg Free Press - PRINT EDITION

Mayor sued for alleged breach of contract

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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 was to 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 say.

The statement of claim says 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 when the defendants failed to make any payment of fees due and owing.

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

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.

Wow Hospitality president Doug Stephen declined to comment.

-- staff

Republished from the Winnipeg Free Press print edition December 11, 2012 A7

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