P.E.I. government sues Ocean Choice

The Prince Edward Island government is suing Ocean Choice International, claiming the company has breached its contract with the province.

Innovation Minister Allan Campbell confirmed Sunday that the province has filed legal action against the company.

Ocean Choice announced in April that it was ceasing lobster processing at its plant in Souris just days before the lobster season opened on May 2. About 300workers lost their jobs.

At the time, Premier Robert Ghiz said the company still owed the taxpayers of Prince Edward Island $9.75 million.

The money owed is from the a deal in 2004, when Ocean Choice bought the assets of the bankrupt company Polar Foods International from the province.

"We have a contract in place that states that they still owe us $9.75 million to fulfill the contract and we expect them to live up to those obligations," Ghiz said in late April.

"By them not opening this year, obviously they're not living up to those obligations."

Ocean Choice chief operating officer Blaine Sullivan said then that the company wanted to focus more on lobster marketing, rather than processing.