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Energy Minister Chris Bentley says SouthPoint did not have a contract with the province. (Courtesy Chris Bentley)

Ontario's Liberal government is facing a $1-billion lawsuit for imposing a moratorium on offshore wind farms.

SouthPoint Wind filed suit in Ontario Superior Court of Justice in Windsor, Ont., claiming damages for the confiscation of its property and reimbursement of its costs.

The company tried to develop wind power projects near the communities of Leamington, Union and Kingsville before the government announced a moratorium on offshore wind farms in February 2011.

SouthPoint says the government arbitrarily cancelled applications for offshore wind development without notice, and did so with the intent to stop its projects.

The allegations have not been proven in court.

Energy Minister Chris Bentley says SouthPoint did not have a contract with the province, and the government intends to defend the lawsuit.

Bentley had a similar response to a $300-million suit filed against the government last week for cancelling a natural gas plant in Mississauga, Ont., in the middle of last fall's election campaign.

"The government intends to vigorously defend this statement of claim," Energy Minister spokesperson Paul Gerard wrote in an email. "As the matter is before the courts, I cannot comment further."

With files from CBC