Tidewater disputes Axiom lawsuit claims

Executive Summary

• Tidewater Midstream and Infrastructure Ltd. issued a formal response to Axiom Oil and Gas Inc.'s press release regarding a Statement of Claim filed by Axiom on April 29, 2024.
• Axiom alleges that Tidewater acted in bad faith and unreasonably exercised its rights under a Gas Handling Agreement (GHA) by terminating it.
• Tidewater highlighted that Axiom’s previous attempt to obtain an injunction was dismissed by the Court of King's Bench of Alberta on September 25, 2024, with costs awarded to Tidewater.
• The presiding Justice ruled that liability caps in the GHA reduce Axiom's potential claims to a maximum of $200,000.

Key Details

• Parties Involved: Tidewater Midstream and Infrastructure Ltd. (Defendant/Respondent) and Axiom Oil and Gas Inc. (Plaintiff/Claimant).
• Underlying Agreement: Gas Handling Agreement (GHA) entered into between Axiom and Tidewater on April 1, 2020.
• Nature of Dispute: Axiom filed a Statement of Claim alleging Tidewater unreasonably exercised rights under the GHA, specifically terminating the agreement, in contravention of the contract and in bad faith.
• Legal History & Court Rulings:
  • Axiom previously brought an injunction application in the Court of King's Bench of Alberta, which was dismissed on September 25, 2024.
  • Costs were awarded to Tidewater following the dismissal.
  • Justice Horner stated that Axiom has an "uphill battle" to prove unreasonable decision-making.
  • Justice Horner ruled that liability caps in Clauses 15.06 and 15.07 of the GHA apply, limiting Axiom's total claims to $200,000.
• Tidewater's Position: Tidewater believes the claim is without merit and intends to vigorously defend itself.
• Case Reference: Action No. 2401-05882.
• Documentation: A transcript of the injunction proceedings and subsequent ruling on costs is available upon request upon payment of a search fee.

Notable Quotes

• Justice Horner (Court of King's Bench of Alberta): "Axiom has an uphill battle to make out unreasonable decision-making by Tidewater" and "I am persuaded by Tidewater's submissions that ... the liability caps in Clause 15.06 and 15.07 apply to reduce Axiom's claims to $200,000 in total."