Altai abandons legal counsel in Que. expropriation case

Executive Summary

• Altai Resources Inc. has voluntarily ceased legal representation in its Quebec expropriation claim due to prohibitive litigation costs and will not appoint new counsel.
• The company’s proposal to limit proceedings to “test cases” was rejected by the defendants and the court, leaving the full case pending with no foreseeable progress.
• Defendants have filed a motion seeking $250,000 in security for costs, further threatening Altai’s working capital.

Key Details

• Claim filed in Superior Court of Quebec (2022) seeks compensatory damages for expropriation of oil and gas exploration assets.
• Legal counsel withdrew voluntarily; company declined to retain new counsel citing crippling financial burden.
• No court notifications or hearing dates have been set; case file is joined with other similar actions, causing delays.
• Altai proposed a “test cases” approach to limit costs—only select plaintiffs would proceed, suspending the rest—but defendants rejected this and the court offered no support.
• Defendants filed a motion for security for costs of $250,000; if granted, Altai would need to post bond or guarantee, further eroding capital.
• Company concludes that pursuing justice in Quebec is futile and that abandoning legal representation is necessary to preserve working capital.

Notable Quotes

• “Given the repeated setbacks…the company believes that seeking justice in Quebec against the defendants is futile.” – Altai Resources statement.