Whether the companies have the legal authority to bypass the marketing boards is now being weighed by the New Brunswick Forest Products Commission, an arm’s-length regulatory panel.

JDI, backed by AV Group and more than two dozen private contractors who work for the companies, appealed to the commission after the SNB Forest Products Marketing Board issued an “order” declaring how wood sales must work in the region.

All wood sold in its territory had to be sold through the board, said the board based near Sussex, and all wood purchased in its territory had to be purchased from the board.

Irving also launched a challenge through the Court of Queen’s Bench related to the same order.

When the commission heard the case in August, JDI explained how it does business outside the board system.

Woodlot owners who want to sell wood to JDI simply contact the company, Irving vice-president Jason Limongelli testified.

A “direct contract” is worked out, setting out the price, volume of wood, delivery schedule, and bonuses for achieving targets, he said.

The marketing board is acknowledged only in that it receives a fee from each, as required by law.

Limongelli said Irving hasn’t bought wood through SNB since 2012. At the commission’s insistence, JDI did try negotiating with the board, but the company didn’t get what it wanted.

"We indicated that we weren't interested in a board contract under the terms of unnamed contracts, whereby all the wood was purchased from the board and sold to the board," he said.