HALIFAX, NS: Documents uncovered through the Freedom of Information and Protection of Privacy Act by the Canadian Taxpayers Federation (CTF) show that the government spent hundreds of thousands more than it had budgeted paying Ontario lawyers to defend the Province against a lawsuit relating to the design of the Bluenose II.
The family of William Roue (the original designer of the 1921 schooner) launched a lawsuit in October 2012 claiming that the Province broke copyright by the “destruction and reconstruction” of the Bluenose II.
The Province hired an Ontario law firm, Smart & Biggar (some work was subcontracted to Bay Street firm Gowlings), through an untendered sole source contract to represent Nova Scotia taxpayers in the lawsuit.
A “Statement of Work” outlining the budget and responsibilities for Smart & Biggar in August of 2012 stated the “budget for the legal defence of the Province of Nova Scotia by Smart & Biggar has been set at $200,000”. That was to include all “billed hours”, “paralegal costs” and “travel costs”.
You can find a copy of the “Statement of Work” HERE
But the lawsuit ended up costing many times more than budgeted.
In March 2014, the lawsuit was settled and the Roue family received $300,000 from the Province. Invoices provided to the CTF show the government paid little over one million to Smart & Biggar for the legal defence.
“It doesn’t seem to matter what aspect of the Bluenose project that you look at, two words come up every single time: over budget”, said Kevin Lacey, Atlantic Director with the CTF.
Smart & Biggar lawyers made 15 trips to Nova Scotia during the time they were working on behalf of the Province. Each trip they charged anywhere from $2,759.89 to $653.92.
Smart & Biggar charged the Nova Scotia government for 2,704 hours of work, which is roughly equivalent to 338 full days of work or 68 workweeks. On average the law firm charged $330 per hour including HST.
Nova Scotia’s Auditor General is scheduled to bring down his report on the Bluenose rebuild on January 28th, 2015. Premier Stephen McNeil ordered the report after the CTF released new information about the cost of the Bluenose project a year ago, in January 2014.
You can find copies of all the Smart & Biggar invoices and government purchase orders can be found here: Part 1 Part 2 Part 3 Part 4 Part 5
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