The Van Aerts have filed suit for $120,000 for organic,
free-range and Omega 3 eggs for which they claim they were not paid.
Sweda is counter-suing for $3 million for breach of
contract.
The Van Aerts are now shipping to Burnbrae Farms Ltd. with
which Sweda has had a long-standing court battle.
The Van Aerts deny Sweda’s claim that it had a one-year
extension on its contract for the supply of eggs. They say they only agreed to
the price premiums Sweda and its Best Choice Eggs business offered.
Sweda says that Van Aerts’ failure to supply eggs cost it
the loss of clients and reputation.
Sweda has paid more
than $132,600 into the court to cover Van Aerts’ claim, which has been approved
by the courts, but put on hold until Sweda’s counter-claim is heard.
Court documents indicate that the Van Aerts needed money to
buy quota and build barns to produce the specialty eggs and that a contract
with Sweda provided security for the investments.
The quota was purchased, facilities were built and the Van
Aerts supplied eggs to Sweda and Best Choice eggs for two years.
