Winnipeg towing company sues city for $10M over 'preferential treatment' of competitor during contract bid

CBC News

· Posted: Jul 02, 2025 10:37 AM EDT | Last Updated: 2 hours ago

A Winnipeg towing institution has launched a suit against the city, claiming municipal officials improperly awarded contracts to a competitor, costing the institution much than $4 cardinal successful yearly revenue.

Bison Towing alleges successful a connection of assertion filed with the Manitoba Court of King's Bench connected Friday that the institution was treated "unfairly and unequally" erstwhile it was passed implicit for 2 municipal contracts — 1 for Winnipeg Parking Authority awarded successful April and 1 for the Winnipeg Police Service awarded successful July 2024.

Both contracts went to Tartan Towing, a determination that Bison claims showed the metropolis was giving "preferential treatment" to Tartan.

None of the claims person been proven successful court. 

Tartan archetypal signed the declaration to tow and store vehicles for the Winnipeg Police Service successful 2019, covering a play of up to 5 years. 

In 2023, the metropolis filed a suit against Tartan aft a metropolis reappraisal of invoices suggested that Tartan charged much than $1.1 cardinal for tows that ne'er happened. These allegations stemmed from Tartan's contracts to bash courtesy tows during residential snow-clearing parking bans.

Shortly after, Tartan launched a countersuit against the city, alleging the metropolis failed to wage much than $730,000 successful towing services and near declaration obligations owed to the steadfast unfulfilled. 

Bison said successful its connection of assertion that it began preparing to bid for the constabulary work towing occupation erstwhile the declaration came up for tender past year.

The institution spent much than $100,000 to upgrade their gait and indoor abstraction to store vehicles, the assertion says. 

The metropolis received 3 bids: 1 from Dr. Hook for $113,600, 1 from Tartan Towing for $18,500 and 1 from Bison Towing for $14.70.

Bison antecedently told CBC News it could screen the debased connection with retention fees.

Bison argued successful its filing that it met each the requirements and was a "qualified bidder" with the lowest bid offered to the city. Bison claims that Tartan's premises didn't conscionable fencing requirements, portion its ain batch already "exceeded the indoor abstraction requirement."

However, Bison claims it wasn't selected for the declaration due to the fact that the city's declaration head said the tract didn't person capable indoor abstraction — thing Bison questions successful its connection of claim. 

In its claim, Bison said Tartan shouldn't person been considered for the declaration successful the archetypal place. 

"The ongoing litigation betwixt Tartan Towing and the metropolis should person resulted successful Tartan Towing being disqualified from the bid process," the institution said successful the ineligible filing.

Last November, metropolis constabulary launched an interior reappraisal of their towing contracts aft Coun. Janice Lukes raised fairness concerns.

That aforesaid month, Tartan filed a defamation suit against the city, alleging that Lukes and Bison proprietor Zakria Shoaib made statements that suggested Tartan bribed officials to get the contract.  

This past January, Tartan sued the metropolis again, alleging the metropolis breached their declaration by unilaterally refusing to negociate an extension. That suit accused Lukes of interfering successful the process. 

In Bison's connection of claim, filed past week, the institution said that the metropolis besides gave Tartan "preferential treatment" erstwhile it awarded Tartan a declaration to tow vehicles for the Winnipeg Parking Authority successful April. 

Bison argued Tartan's ongoing lawsuits against the metropolis should person disqualified the institution from getting that declaration too. 

In its claim, the institution said "the metropolis owed Bison contractual duties" to dainty Bison reasonably and grant it the 2 contracts arsenic the palmy bidder. 

Bison argues it was treated "unfairly and unequally" erstwhile Tartan was selected, claiming Tartan's bid was "non-compliant," making the rival institution an unqualified bidder. 

"But for the city's breaches of contract, Bison would person been awarded the WPS Towing Contract and the WPA Towing Contract," Bison said successful the lawsuit. 

Bison is seeking wide damages of astatine slightest $10 cardinal for breach of contract. The assertion besides lists unspecified compensation for peculiar damages, ineligible costs and different costs that whitethorn beryllium awarded by the court. 

The institution said it mislaid $2 cardinal successful yearly profits erstwhile it wasn't awarded the constabulary contract, portion spending astir $100,000 to upgrade its Winnipeg gait specifically for this declaration and paying $2,000 successful monthly lease expenses. 

Bison said it mislaid astir $2.2 cardinal successful yearly profits it would person earned nether the parking authorization contract and incurred monthly lease costs of $5,100 for its gait and indoor space. 

"The denial of some towing contracts to Bison has besides caused Bison to endure a nonaccomplishment of concern estimation successful the towing community," the institution said successful its connection of claim. 

CBC News has reached retired to the metropolis for remark but did not person a effect anterior to publication.