ST. JOHN'S, N.L. — The Supreme Court of Newfoundland and Labrador this week awarded Baffin Fisheries $544,000 following a civil trial against the company’s former CEO Garth Reid.
The company says Reid unlawfully diverted company funds for his personal use, including the construction of a lavish home in Winterton.
Justice Vikas Khaladkar ruled the money in question was the property of the company and that Reid had no right to convert the funds in the manner he did.
A news release from the company states that the legal action started in 2017 after Baffin Fisheries discovered the funds missing.
The legal case doesn’t end with this week’s decision. The Dec. 17 ruling came as a result of a summary trial application by Baffin Fisheries and subsidiary Niqitaq Fisheries Ltd. against Reid.
The company’s release states the legal case will continue as the company attempts to recover further money — up to $855,983 — it claims Reid unlawfully diverted for his personal use.
Baffin Fisheries is an independent, not-for-profit, Inuit-owned company held by five hunters and trappers associations in Nunavut with its head office in Paradise. The company is the largest commercial fishing enterprise in Northern Canada employing about 150 people both on land and at sea.
Surplus revenue from fishing operations is reinvested in economic development projects in Nunavut.
Baffin Fisheries chairman Johnny Mike, who is in Pangnirtung, Nunavut, said they are pleased with Tuesday’s ruling.
“This is welcome news for the thousands of shareholders of Baffin Fisheries who are all Inuit beneficiaries under the Nunavut Land Claims Act, living in the harshest, most remote communities in Canada,” Mike said.
“We will continue to work hard to recover all monies unlawfully taken and return it to our communities.”
In addition to the $544,000 awarded, the court also ordered Reid to pay interest and the company’s legal costs.
