The company at the centre of a computer-leasing controversy with the City of Toronto is being sued by the City of Windsor.
Windsor and the County of Essex filed a statement of claim yesterday over financing agreements from MFP Financial Services Ltd. for about $80-million worth of equipment, including an emergency-services radio system.
The suit claims damages of $300-million and asks for changes in the agreements to lower the payments.
A statement issued by Mississauga-based MFP yesterday said the company "intends to vigorously defend the [Windsor]lawsuit on the basis that the financial documents entered into are clear and complete and create binding obligations of the parties."
In Toronto, auditors question a leasing deal with MFP for the use of $80-million worth of computers and software, whose cost escalated. The city audit committee reported last month that the city apparently overpaid.
Last month, Toronto announced plans to sue MFP, but Mayor Mel Lastman said the city would try to negotiate a settlement to avoid the costs of litigation.
The issue is expected to re-emerge when Toronto City Council reconvenes this month.
Deputy mayor Case Ootes has called for a public inquiry.
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