Tow-truck company claims preferential treatment in $10-M suit against city

A tow-truck company has filed a $10-million lawsuit against the City of Winnipeg, the latest development in the legal odyssey over the awarding of municipal towing contracts.

Bison Towing Ltd. filed the claim against the city in the Court of King’s Bench late last week, claiming the municipal government improperly awarded two contracts to Tartan Towing last year.

“The ongoing litigation between Tartan Towing and the city should have resulted in Tartan Towing being disqualified from the bid process,” Bison Towing argues in its new court filing.

Tartan renewed deals to continue to provide towing services for the Winnipeg Police Service last year and the Winnipeg Parking Authority earlier this year.

The WPS contract to tow and store vehicles ticketed by police was first signed in 2019, with options to renew once a year for four additional years. The WPA contract to tow and store vehicles was first signed in 2020, with an option to renew every year for five additional years.

The City of Winnipeg filed a lawsuit against Tartan Towing in June 2023, claiming the firm overcharged the city by $1.1 million. That suit remains before the court.

A lawsuit Tartan filed against the city in 2021 is also waiting to be heard. Pre-trial hearings are set for each lawsuit later this year.

Bison claims it spent more than $100,000 upgrading its yard in 2024 in anticipation of the renewed WPS towing contract going to tender, its court papers say. The contract went to tender in June last year. Bison also expanded an indoor space.

Bison bid for the contract in June 2024, offering the lowest price, the court filings say. It claims a city contract administrator visited its yard on July 23 and said Bison’s space fit the requirements.

The court papers allege the same city administrator visited Tartan Towing’s lot the same day and found its fencing wasn’t compliant with the city’s requirements.

One of Tartan’s principal owners, Satnam Brar, told employees July 24 in a WhatsApp message that their firm was to be awarded the contract, Bison’s court papers say.

The city awarded Tartan the WPS contract on July 26. The suit alleges the contract administrator told Bison it did not have enough indoor space at its yard and refused to provide further information.

The police towing contract is expected to go to tender again later this year. City officials said in November, as controversy swirled over the awarding of contracts, that Tartan would not be awarded the renewed contract with the police this year. Tartan filed another lawsuit against the City of Winnipeg and Coun. Janice Lukes in January over that announcement, arguing the city breached the contract.

The city published a tender for the parking authority towing contract in January, which Bison bid for in February. Bison claims in its new lawsuit the bid offered the lowest price and was the most advantageous for the city.

But in April, the city told Bison it awarded the parking authority contract to Tartan. Bison argues the ongoing litigation between Tartan and the city should have disqualified Tartan from the process.

Bison argues it should have been awarded the contracts, as per city tender rules, as it was the lowest bidder. It claims the city has given Tartan preferential treatment.

Bison says it has lost out on about $2 million in yearly revenue by not winning the WPS contract, the $100,000 it spent on upgrading its yard, and $300,000 of lease expenses over five years.

It claims it lost out on about $2.2 million in yearly revenue by losing the parking authority contract, plus $306,000 in lease expenses over five years.

“The denial of both towing contracts to Bison has also caused Bison to suffer a loss of business reputation in the towing community,” the court papers argue.

Bison was founded in October 2022 by Zakria Shoaib and Masood Khan.

Lukes and Shoaib raised concerns about the police towing contract with Tartan to the media last fall. Tartan responded by launching two lawsuits, both of which remain before the courts.

The company called some of Lukes’s statements to the media defamatory in the two separate lawsuits filed against her, Bison Towing, and Shoaib in November.

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.

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