Toronto-based labour-sponsored investment fund GrowthWorks Canadian Fund Ltd. Monday announced that it has received a letter from legal counsel to GrowthWorks WV Management Ltd. (GWWV), the fund’s former manager, contesting the termination of the management agreement between the fund and Vancouver-based GWWV.

As previously announced, the fund terminated the agreement in accordance with its terms on September 30.

In the letter, GWWV asserts that the management agreement was terminated without cause, and, as a result, it is entitled to damages of about $16.75 million from the fund.

The fund says it believes that the claim by GWWV is without merit and will vigorously defend the claim.