Capital Sports, Trinity settle LeBreton Flats lawsuit

A years-long legal dispute between a company owned by late Senators owner Eugene Melnyk and a prominent developer over a failed bid to redevelop LeBreton Flats has been settled.

Capital Sports Management Inc. and Trinity Development Group have settled their legal fight and it will not go to court as scheduled in January, a well-placed source told CTV News.

The Senators organization confirmed the news late Monday afternoon.

“All of the parties involved in this matter have reached an out-of-court settlement. CSMI will not be commenting further,” a statement said.

Melnyk and CSMI partnered with John Ruddy and Trinity Group in RendezVous LeBreton, a plan to redevelop the 50-acre parcel of land just west of downtown Ottawa.

The plan, which would have included an NHL arena, fell apart in 2018 over a dispute about Trinity’s nearby development at 900 Albert Street.

Melnyk, through CSMI, sued Trinity for $700 million, claiming the development would reduce the value of the real estate at LeBreton Flats. Trinity Development Group counter-sued for $1 billion, and the two sides were mired in legal fighting for years afterwards.

Melnyk died last March, but legal proceedings appeared to continue after that, with CSMI ordered to turn over documents related to the dispute in May.

The trial was scheduled to start on Jan. 3. Four months had been set aside for the proceedings.

The settlement helps clear the way for the sale of the Senators, which are on the market and reportedly attracting the attention of several bidders. A New York-based bank, Galatioto Sports Partners, is overseeing the sale process.

The Senators and the NHL have said that a condition of any sale is that the team remain in Ottawa.

In June, the Senators and the National Capital Commission reached a memorandum of understanding to build a new arena for the team at LeBreton Flats.