UQSUQTUUQ/GJOA HAVEN
A Gjoa Haven company is accusing the hamlet of blocking it from obtaining work and expanding in the community.

CAP Enterprises Ltd. manager Charlie Cahill stands in front of a piece of his company's equipment. Cahill says Gjoa Haven's senior administrative officer is preventing his company's two businesses from operating and expanding. - photo courtesy of Charlie Cahill

CAP Enterprises Ltd., an Inuit-owned business, has filed a civil lawsuit with the Nunavut Court of Justice against the hamlet and senior administrative officer Shawn Stuckey.

In the statement of claim, CAP accused the hamlet of providing services and facilities as well as municipal equipment to carry out private work that competes with private businesses.

Specifically, the nine-page document states that around June 2014, the hamlet arranged to provide accommodation services to NDL Construction, a southern company, in a house owned by the hamlet, directly competing with CAP's Gjoa Haven Bed & Breakfast. The document also claims the hamlet loaned or rented out loading equipment to NDL for approximately four days in direct competition to CAP, all of which did not receive ministerial approval.

For these actions, CAP Enterprises and the Gjoa Haven Bed & Breakfast said they have suffered a total loss of profit of approximately $160,000.

The Hamlet Act states the minister's approval is required when the work of the municipal corporation result in competition with similar services provided by the private sector.

Hamlet SAO Stuckey declined to comment on the lawsuit.

Since filing the suit last October, CAP's manager Charlie Cahill said his company hasn't been able to bid on multiple projects, as the hamlet sole-sourced all of them without any public tenders.

Stuckey said it's not true. "We do use CAP for repairs, we used them last summer for excavating work and backhoe work, stuff like that," he said. "As far as I know, the development permit went to the next council meeting for council to vote on. I also believe CAP is scheduled as a delegate for the council meeting."

When asked about why CAP hasn't had its business licence renewed this year or been granted its development permit, Stuckey said it was because the company submitted one cheque for all of its payments instead of separate cheques. Stuckey also said CAP's development permit isn't finished due to an incorrectly submitted application.

"They'll get their permit or licence as soon as they need it," he said, adding that his director of finance is currently away. "All I can say right now is I'll look into it."

But Cahill said he had been in business since 2002, and this additional step regarding cheques was just one way for Stuckey to continue to make things unnecessarily difficult.

"Like everything we do in the hamlet, it just get bottled up in administration," he said. "It takes 10 or 15 minutes to make up a licence."

Deputy mayor Paul Puqiqnak said he was unable to comment on the matter. Mayor Joanni Sallerina said he had not seen the lawsuit and that council only handled applications.

"Any lawsuits are dealt with through our lawyer," he said.

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