Judge orders Melnyk-owned company to turn over documents in LeBreton dispute
A judge has ordered a company owned by late Senators owner Eugene Melnyk to turn over documents in a legal fight with Trinity Development Group about an ill-fated bid to redevelop LeBreton Flats.
The decision earlier this month appears to show proceedings in the years-long legal dispute are moving forward despite Melnyk’s death in March.
Melnyk’s company Capital Sports Management Inc. had been withholding the documents citing solicitor-client privilege with Gowlings, the law firm that worked on the bid. The judge’s decision compels them to produce those documents.
“CSMI shall produce all correspondence, memos, accounts, emails, data, and other documents in its possession, control of power related to the work of Gowlings for RLG and the LeBreton Project from July 23, 2015 to November 23, 2018,” the decision from Justice Robyn M. Ryan Bell said.
Melnyk and CSMI partnered with John Ruddy and Trinity Development Group in RendezVous LeBreton, the bid 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 have been mired in legal fighting since then.
The start of the trial was recently pushed back by three months to Jan. 3, 2023. It had been scheduled to start in September.
This latest decision centres around documents that CSMI had been withholding citing solicitor-client privilege.
At issue is whether Gowlings, the law firm that worked on the RendezVous LeBreton bid, was working for both CSMI and Trinity.
CSMI claimed there was no joint retainer, and that Gowling was in a solicitor-client relationship with CSMI alone. Trinity’s position is the law firm was jointly retained until litigation between the two sides started.
Bell heard arguments on the matter in January, and earlier this month issued a ruling agreeing with Trinity’s position, compelling CSMI to turn over the documents.
“Based on the totality of the evidence, I find that there was a joint retainer of Gowlings by CSMI and Trinity in relation to RLG and the LeBreton Project for the period July 23, 2015 to November 23, 2018,” the decision says. “A reasonable person in the position of a party with knowledge of the objective facts would reasonably form the belief that Gowlings was acting for both CSMI and Trinity in relation to RLG and the LeBreton Project during this period of time.”
The court has allocated four months for the trial.
Melnyk died in late March at age 62 after a lengthy illness. His death threw the future of the Senators into uncertainty. His estate owns the team and it is being run by an oversight board. Earlier this month, NHL commissioner Gary Bettman said earlier this month the team is not for sale.
LeBreton Flats, meanwhile, is going through another redevelopment phase. The National Capital Commission received several expressions of interest for a major attraction on the site earlier this year.
It’s believed the Senators submitted a bid to put an arena on that land, but the NCC has not released details about the list. More details are expected at the board’s meeting in June.
CTVNews.ca Top Stories
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Town of Fort Nelson, B.C., ordered to evacuate due to wildfire
The entire town of Fort Nelson, B.C., as well as the nearby Fort Nelson First Nation, has been ordered to evacuate due to an out-of-control wildfire.
Snowbirds in Vancouver for puck-drop flyby as Canucks face Oilers
The Canadian Forces Snowbirds will be performing a flyover across downtown Vancouver at the start of tonight's Stanley Cup playoff game between the Canucks and the Edmonton Oilers.
McGill University seeks emergency injunction to dismantle pro-Palestinian encampment
McGill University has filed a request for an injunction to have the pro-Palestinian encampment removed from its campus.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Video shows naked raccoon catching B.C. family by surprise
When Marvin Henschel spotted a strange and hairless creature wandering through a front lawn in B.C.'s Lower Mainland, he could barely believe his eyes.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Out-of-control wildfire prompts evacuation alert for Fort McMurray, Saprae Creek Estates Friday night
An evacuation alert was issued for two Wood Buffalo communities Friday night, as crews battled an out-of-control wildfire near Fort McMurray.