Court awards province wins $5M judgment

Government provided letter of credit for Richard Carpenter’s train-refurbishment company after he provided personal guarantee for repayment if things went south - which they did

A judge awarded the provincial government a $5-million judgment earlier this month plus interest, ruling that a Moncton entrepreneur’s personal guarantee to the province left him on the hook for the deal.

The province’s then-Department of Economic Development filed a notice of action and statement of claim in Court of King’s Bench in Fredericton against Moncton businessman Richard S. Carpenter in 2014 over government support for a business that ultimately faltered.

The now-defunct Industrial Rail Services Inc., based in Moncton, had secured contracts to refurbish LRC rail cars for VIA Rail, such as the ones pictured above. (Photo: VIA Rail)

Carpenter was the founder of Industrial Rail Services Inc. (ISRI), which focused on refurbishing passenger rail cars and locomotives, and that business successfully secured contracts with VIA Rail for work on its fleet of trains and rail cars.