Super-Save Propane is suing the Salvation Army, alleging that the organization failed to live up to its end of a five-year contract for fuel supply to what was formerly the Salvation Army Centre of Hope building in Whitehorse. (Joel Krahn/Yukon News file)

Whitehorse propane company sues Salvation Army over Centre of Hope contract

Super-Save is alleging that the Salvation Army owes it more than $300,000 in liquidated damages

A Whitehorse propane company is suing the Salvation Army, alleging that the organization failed to live up to its end of a five-year contract for fuel supply to what was formerly the Salvation Army Centre of Hope building in Whitehorse.

38274 Yukon Inc., better known as Super-Save Propane, filed a statement of claim to the Yukon Supreme Court on Aug. 26, seeking more than $300,000 from the Governing Council of the Salvation Army in Canada.

The Salvation Army had not filed a reply as of Sept. 3.

According to the lawsuit, Super-Save and the Salvation Army entered a five-year contract on Sept. 29, 2017, shortly before the Centre of Hope opened its doors.

The terms of the contract included Super-Save supplying a thousand-gallon storage tank, vaporizer and tank blanket for the property, the statement of claim says, while the Salvation Army agreed to purchase propane exclusively from Super-Save and to pay “liquidated damages” should it cancel the contract early.

The damages would be calculated based on the price of a litre of propane on the day the contract was cancelled multiplied by the average volume supplied per month, and multiplied again by the number of months left on the contract.

The Centre of Hope, an approximately $14-million building paid for by the territorial and federal governments, opened in October 2017.

However, on Dec. 20, 2018, the Yukon government announced that it would be taking over the building at the end of January 2019.

According to the statement of claim, the Yukon government told Super-Save to keep using the propane contract on Jan. 31 — the same day ownership of the building was transferred — “until further notice.”

The Yukon government also told Super-Save on Feb. 4 to send it invoices for propane delivery until further notice, the document alleges, but, on June 12, and “in breach” of the contract, removed Super-Save’s equipment from the property and stopped purchasing propane.

The lawsuit says that propane was about 60 cents a litre on that day, with an average monthly supply of just over 13,720 litres. With 39 months left on the contract, Super-Save is alleging the Salvation Army owes it $321,009.93 in liquidated damages.

“Despite demands for payment, the Salvation Army has refused and/or neglected to pay the liquidated damages claim,” the statement of claim says.

Super-Save is seeking the liquidated damages, or, in the alternative, damages for breach of contract, along with 24 per cent annual interest until the amount is paid off as well as “special costs.”

The case has not been tested in court yet.

Contact Jackie Hong at jackie.hong@yukon-news.com

Salvation Army

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Two people walk up the stairs past an advance polling sign at the Canda Games Centre on April 4. (Haley Ritchie/Yukon News)
April 12 is polling day: Here’s how to vote

If in doubt, electionsyukon.ca has an address-to-riding tool

Yukon Party leader Currie Dixon addressing media at a press conference on April 8. The territorial election is on April 12. (Haley Ritchie/Yukon News)
Getting to know Currie Dixon and the Yukon Party platform

A closer look at the party leader and promises on the campaign trail

Yukon NDP leader Kate White, surrounded by socially distanced candidates, announces her platform in Whitehorse on March 29. (Haley Ritchie/Yukon News)
Getting to know Kate White and the Yukon NDP Platform

A detailed look at the NDP platform and Kate White’s leadership campaign this election

Crystal Schick/Yukon News
Sandy Silver announces the territorial election in Whitehorse. Silver is seeking a second term as premier and third term as Klondike MLA. (Crystal Schick/Yukon News)
Getting to know Sandy Silver and the Yukon Liberal platform

Yukon Liberal Leader Sandy Silver is vying for a second term as… Continue reading

Whitehorse City Hall (Joel Krahn/Yukon News file)
This week at city hall

A look at issues discussed by Whitehorse city council at its April 6 meeting.

Point-in-Time homeless count planned this month

Volunteers will count those in shelters, short-term housing and without shelter in a 24-hour period.

The Yukon’s new ATIPP Act came into effect on April 1. Yukoners can submit ATIPP requests online or at the Legislative Assembly building. (Gabrielle Plonka/Yukon News file)
New ATIPP Act in effect as of April 1

The changes promise increased government transparency

A new conservancy in northern B.C. is adjacent to Mount Edziza Provincial Park. (Courtesy BC Parks)
Ice Mountain Lands near Telegraph Creek, B.C., granted conservancy protection

The conservancy is the first step in a multi-year Tahltan Stewardship Initiative

Yukon RCMP reported a child pornography-related arrest on April 1. (Phil McLachlan/Black Press file)
Whitehorse man arrested on child pornography charges

The 43-year-old was charged with possession of child pornography and making child pornography

Team Yukon athletes wave flags at the 2012 Arctic Winter Games opening ceremony in Whitehorse. The postponed 2022 event in Wood Buffalo, Alta., has been rescheduled for Jan. 29 to Feb. 4, 2023. (Justin Kennedy/Yukon News file)
New dates set for Arctic Winter Games

Wood Buffalo, Alta. will host event Jan. 29 to Feb. 4, 2023

Victoria Gold Corp. has contributed $1 million to the First Nation of Na-cho Nyak Dun after six months of production at the Eagle Gold Mine. (Submitted/Victoria Gold Corp.)
Victoria Gold contributes $1 million to First Nation of Na-cho Nyak Dun

Victoria Gold signed a Comprehensive Cooperation and Benefits Agreement in 2011

Chief Medical Officer of Health Dr. Brendan Hanley speaks to media in Whitehorse on October 30, 2020. Hanley is now encouraging Yukon to continue following health regulations, noting it could still be some time before changes to restrictions are made. (Crystal Schick/Yukon News file)
No active COVID cases in Yukon

Hanley highlights concerns over variants, encourages vaccinations

Most Read