It may be both ABZ and WSP are telling the truth.
That ABZ and WSP are litigating whether ABZ is entitled to maintain its existing share as a joint venturer should be, IMHO, of limited consequence for those WSP shareholders who held shares in WSP prior to the alleged default by ABZ and those who do not consider the potential increase in WSP's share of the joint venture by reason of that alleged default to be material to their investment decisions.
I base my remarks on the assumptions that the issue to be tried is whether ABZ is entitled, in all the circumstances, to rectify its default of failing to deliver written notice of its intention to participate in ongoing joint venture expenses, and that ABZ is ready, willing and able to pay its share of those expenses. I have no knowledge of the terms of the joint venture agreement between ABZ and WSP. Those terms, and other facts not assumed, may be material to the result of the litigation.
It is open to a court of superior jurisdiction (i.e., the British Columbia Supreme Court) to relieve ABZ from forfeiture of that portion of its share in the joint venture which is in issue on equitable grounds which I gather, but have not researched, have been enshrined in the statutes of British Columbia. In such case, except for interest costs and legal fees, WSP should be in no worse position than it was prior to the alleged default.
Alternatively, the court may refuse to relieve ABZ from forfeiture of that portion of its share in the joint venture on a variety of grounds.
In either case, WSP will probably be liable to pay at least a portion of its lawyers' bill. If unsuccessful, it may be liable to pay at least a portion of ABZ's lawyers' bill as well. If the issue is as simple as a question of due notification, I have difficulty in imagining that the total legal costs of both sides in litigating the issue would exceed CDN$1,000,000.
Accordingly, IMHO, at least for those shareholders of WSP in the first class referred to above, a WSP victory would be a windfall, less some legals, and a loss by WSP would be a return to the status quo ante less some legals.
Regards,
Tony
E & O E
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