A Yukon Supreme Court judge has ordered a Yukon mining company to pay more than $135,000 in rental and parts costs after finding that it had agreed to buy two rock trucks from an Alberta heavy equipment rental company, but instead used the vehicles for a season before it backed out of the deal.
Justice Suzanne Duncan ruled in favour of 365334 Alberta Limited, which operates as A1 Cats, in a decision released June 14.
A1 Cats had sued Pishon Gold Resources Inc., also known as PGR, and British Columbia-based businessman Aimin Liao in February 2018, claiming that Liao had verbally agreed to purchase two D400D Caterpillar rock trucks from A1 Cats around June 28, 2017.
However, after the end of the mining season, Liao told A1 Cats that he no longer wanted to buy the trucks as they were not in a good state of repair.
A1 Cats claimed that he had breached the sale agreement, and that PGR had also not returned a number of spare parts for the trucks. Liao argued that he had not breached the agreement because he was still willing to buy the trucks once they’re properly repaired, and countersued for costs he allegedly incurred due to the condition of the vehicles.
Duncan dismissed PGR’s counterclaim and ruled in A1 Cats’ favour, ordering PGR and Liao to pay $114,428.66 in rental costs and $20,900 for parts, plus GST.