Canadian Mounties Hit With $55M Claim on 2010 Olympics

DC (CN) - A cruise line sued the Canadian Mounties for $55 million, saying the mounties used the worldwide credit crisis to break a contract for the provision of rooms and meals for security officers at the 2010 Winter Olympics.

Cruise Connections Charter Management says the Royal Canadian Mounted Police reneged on a deal to pay the $7 million in Canadian taxes the charter line would have to pay for prolonged berthing at Vancouver, B.C. It claims the Canadian government yanked the officials who promised to pay the taxes, then demanded that Cruise Connections put up a letter of credit for them, then canceled the contract.

"The RCMP's conduct was the sole reason the bank withheld financing," the company said in its federal claim. "The RCMP believed that it could obtain a better price for the cruise ships by repudiating the contractual obligations it owed to Cruise Connections and then seeking a new bid to provide the ships. Indeed, the RCMP announced almost immediately after its intentional breach that it would seek new bids."

Cruise Connections demands payment of the $55.3 million and damages for breach of contract and unfair trade. It is represented by Cathy Hinger with Womble Carlyle & Sandridge.

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