Background
Wastech Services Ltd. (Wastech) moves and disposes of waste. In
1996, Wastech and the Greater Vancouver Sewerage and Drainage
District (Metro) entered into a 20-year contract for the disposal
of waste from the Greater Vancouver Regional District (the
Contract).
Wastech agreed to remove and transport waste to three disposal
facilities. Metro was responsible for allocating where the waste
was to be disposed. The volume of waste allocated to each facility
was a critical variable in calculating Wastech's compensation.
In 2010, Metro significantly redirected the volume of waste between
the three facilities, such that it was impossible for Wastech to
achieve its target operating revenue.