In 2003, an arbitrator condemned CITSO to pay $1.6 million to the CAN bus company that was providing public transport to the Chateauguay region.(Photo archives)
$900,000 loan settles CITSO saga
Le Soleil de Châteauguay - 9 avril 2005
Actualité > Faits divers
The City of Chateauguay is going to borrow some $900,000 to put an end to the CITSO saga once and for all. That amount could have been higher, but the provincial government finally decided to do its share to settle the case.
In 2003, CITSO was sentenced by an arbitrator to pay $1.6 million to the CAN bus company which at the time held the public transport contract for this region. CITSO had paid the amount due and City members Chateauguay, Léry and Beauharnois were to subsequently reimburse CITSO. Well, the time to pay up is now.
The municipalities believed that the provincial government, which subsidizes public transport, was going to pay part of the outstanding sum. They waited for the government to establish its share before paying their own contributions.
"We were told that if we had retained the arbitrator's method of calculation at the outset, our grant from Quebec would have been much higher," explained Mayor Sergio Pavone at last Tuesday's City Council meeting in Chateauguay. We asked but we got no for an answer. Then the government finally accepted to pay $500,000."
Council announced at Tuesday's meeting that the City was going to borrow the money to settle its debt.
The litigation between CITSO and CAN was filed in 2000. It affected the interpretation of certain clauses of the contract linking the two parties concerning the remuneration rate for services rendered.
At the source, CITSO believed it had overpaid $1 million to the bus firm. The latter contended that, to the contrary, it was owed money. An arbitrator ruled in favour of CAN. First Superior Court and later the Court of Appeal upheld that decision.(Tr: D.R.)
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