The Case for Northern Pulp – a look at their legal strategy and the strength of their case against the Province

Last week, Northern Pulp filed a lawsuit against the Province of Nova Scotia, claiming for damages of $450 million on the allegation that the Province conspired to shut down “The Mill”, and in so doing cost Northern Pulp lost profits adding up to that amount. This was a predictable development, and there is a strategy behind what at first read may seem like an outrageous claim.

Many are now wondering how any kind of a lawsuit could even be possible. Northern Pulp was given a five-year legislated deadline to fix its effluent treatment system or else be shut down. It failed to build a new treatment system, the Province held fast to the deadline, and so the mill had to cease operations. It sounds simple, and if it were an interpersonal matter, and if the amount of money involved was less, perhaps that simplicity would be retained. This, however, is the world of corporations and shareholders, and so different principles apply.