Modular homes builder sues Innu group

Claim filed in Supreme Court seeks more than $660,000

Published on August 26, 2014

A company is suing a Labrador First Nations group and its local band council for failing to pay what it owes on a modular homes contract.

ConSol (Bermuda) Ltd. is seeking almost $663,000 in damages from the Mushuau Innu First Nation (MIFN) and its band council in Natuashish.

That figure stems from a contract initially valued at $2.9 million. Changes to the order eventually brought the total to almost $3.5 million.

ConSol agreed in March 2012 to build and install eight modular homes in the community. They were shipped from Port Canaveral, Fla., in September 2012, with all installation and finishing work completed by December.

According to a statement of claim filed with the Supreme Court of Newfoundland and Labrador earlier this month, ConSol provided MIFN with a payment certificate on Oct. 28, 2012, for work related to the contract totalling a little more than $145,000. ConSol said MIFN certified that payment certificate the same day as due and payable.

“It has been over 21 months since MIFN certified the payment certificate,” reads the statement of claim. “Despite repeated requests, MIFN has failed to make payment as required by the contract.”

MIFN was required to pay all remaining amounts owed by the end of last October, according to ConSol. Other amounts owed at that time included $10,430 worth of finishing and inspection work and $156,347 to cover the contractual holdback.

A Port Canaveral Magazine article published in the fall of 2012 reported that the 1,600-square-foot homes each cost US$175,000 to build and included 10-inch thick walls to help insulate against cold temperatures.

The Telegram attempted to contact ConSol co-owner Chris Wallington and MIFN Chief Gregory Rich on Monday. They could not be reached for comment.

Twitter: @TeleAndrew