A Nunavut judge has denied an injunction against the hamlet of Cape Dorset to stop performing private sector work.

The injunction suit was brought by Polar Supplies, a company owned by cabinet minister and MLA Fred Schell.

The company is operated as a blind trust while Schell is an MLA.

Polar Supplies said without the injunction it might go bankrupt because of private sector work the hamlet was doing. It wanted the injunction in place while other lawsuits it has filed against the hamlet are heard in court.

But Justice Bonnie M. Tulloch wrote in her June 13 ruling that there was not enough proof that the actions of the hamlet could cause Polar Supplies to go bankrupt. Tulloch also suggested the two parties look at other dispute resolution measures.

Polar Supplies filed three lawsuits against the hamlet in 2010. Two of the claims allege Cape Dorset illegally competed with the company for private sector work.  

The company is seeking $538,000 in damages.