Shell Ordered to Pay Domo $6.5m

Summary


Domo alleged Shell had agreed to charge a price that was the lesser of either the lowest price Shell charged any of its wholesale contract customers in Western Canada minus an additional 0.6 cents a litre, or the lowest wholesale contract price in Western Canada minus an extra 0.6 cents a litre, the court filings show.

Domo claimed Shell failed to follow the pricing formula set out in the agreement and as a result, Domo overpaid Shell.

That understanding, Shell alleged, was not legally enforceable. Mr. Justice Murray Sinclair of Manitoba Court of Queen's Bench disagreed, awarding Domo $4.9 million in damages plus compound interest of seven per cent. That brings the total judgment to approximately $6.5 million.

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Extract


Shell Ordered to Pay Domo $6.5m

Manitoba court settles lengthy quarrel over wholesale gas pricing

By Geoff Kirbyson

A Manitoba court has ordere...

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