The towing company that the city alleges it paid $1.1 million for tows that never happened is now countersuing the city.
Tartan Towing filed a statement of defence and counterclaim in Manitoba’s Court of King’s Bench in mid-October.
The towing company was named in a lawsuit from the city, which alleges Tartan Towing was overpaid $1.1 million by the city for tows that never happened.
READ MORE: City sues Tartan for false tows
Now, the towing company is denying the allegations in its statement of defence, saying it has acted honestly and in good faith.
Tartan Towing says it was prohibited from completing tows if they were interrupted by the owner or driver of the vehicle. However, the counterclaim says, under its contract the city is still obligated to compensate Tartan for the interrupted tows.
It goes on to claim that the city failed to compensate $730,000 to Tartan Towing for services it provided, which it says equates to a breach of contract.
Tartan Towing is calling for the court to dismiss the city’s claim with costs, and award the towing company damages.
The allegations have not been tested in court. CTV News has reached out to the city for comment.
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