Competing lawsuits launched over use of information

Gary Park

Petroleum News Calgary correspondent

The question of who owns what is in somebody’s head faces a pivotal test in a Canadian court.

Building over the last four months, the showdown involves counter suits by Hong Kong-controlled Husky Energy and Clayton Woitas, who resigned as chief executive officer from Renaissance Energy shortly before it was taken over by Husky for C$4.3 billion in April 2000.

At issue is Husky’s claim that Woitas used knowledge he accumulated with Renaissance to successfully launch closely held Profico Energy Management, of which he is CEO, by operating in the Shackleton/Lacadena area of Saskatchewan, which has turned into a hot natural gas play.

Husky, controlled by Hong Kong tycoon Li Ka-shing, took Woitas and Profico to court for allegedly breaching fiduciary duties by staking out a position in the Saskatchewan play, where Husky is also active. It claims the region was a major part of Renaissance’s business plan, labeled a “gas mega-vision.”

Earlier this month, Woitas counter sued for C$335 million for making “scandalous, embarrassing, untrue and unsupported” claims that he built Profico on confidential information.

Woitas said his fiduciary duties to Renaissance ended when the company’s chairman fired him as president and chief executive officer in December 1999 — four months before the Husky takeover — without “notice, compensation or cause.”

Woitas and Profico say the Husky action has caused “substantial loss and damage conservatively estimated to exceed” C$270 million, while the loss and damages to Profico’s relationships with industry partners are calculated at C$60 million.

Woitas further claims that Husky was well aware of his activities at Profico and did not show any interest in the Saskatchewan opportunities until Profico’s efforts paid off.