Winnipeg Towing company sued by the city wins new contract

Tartan Towing is seen on Aug. 2, 2024. The company received a contract from the city for Winnipeg police towing services months after being embroiled in litigation against the city. (Dan Timmerman/CTV News Winnipeg)

A towing company sued by the City of Winnipeg for allegedly overbilling $1.1 million in towing bills, was just awarded a new city contract.

Tartan Towing was recently awarded the contract to tow vehicles for the Winnipeg Police Service, the city confirmed to CTV News Winnipeg on Friday.

"Tartan Towing is not banned from bidding on City of Winnipeg contracts," a city spokesperson said in a statement. "In order to prevent a person or company from bidding on City contracts, they would need to be debarred under section B7 of the City’s Materials Management Policy. Debarment is a structured process with definite causes and steps, and it is completely distinct from litigation."

The city filed a statement of claim against Tartan Towing in June 2023, seeking $1.1 million it says it overpaid the company. Tartan Towing filed a countersuit in November 2023. asking for the case to be dismissed.

When reached by phone, the owner of Tartan Towing said he had no comment on the new contract or the lawsuit.

City council voted to reject Tartan Towing’s offer to settle for $446,000 in March 2023.

CTV News Winnipeg has asked the city about the status of the lawsuit, and is awaiting a response.