Brampton facing fourth lawsuit over $500 million development deal
Brampton is facing more than $52 million in lawsuits over a controversial $500-million downtown development deal

TheStar.com
Oct. 11, 2016
San Grewal

With a web of legal action already surrounding Brampton’s controversial $500-million downtown redevelopment plan, a fourth lawsuit has been filed against the city over the project, this time by a group of residents.

Two families whose properties are adjacent to a recently finished city hall expansion that is the only part of the redevelopment project that has moved forward, are suing the city, as well as the builder, Dominus, and the building’s current owner, Fengate LP, for $2,250,000.

Members of the Meisner family and the Sproule family are seeking $2,000,000 million in damages for trespassing and nuisance, $150,000 for breach of contract and $100,000 for punitive damages. The statement of claim, filed earlier this year, alleges that landscaping and fencing on the plaintiffs’ properties that was supposed to have been replaced after it was damaged or moved during construction has not been dealt with. The lawsuit also claims loss of value to the properties.

When contacted by the Star, Dominus referred to a joint statement of defence for all the defendants in the case, which says they did not trespass and “always had permission” when entering the plaintiff’s property. The statement of defence also denies there has been a loss of property values as a result of the construction project.

Fengate said it cannot comment as the matter is before the court. The city said it is aware of the matter and “is taking appropriate measures to facilitate a resolution.”

The city is already facing a $28.5 million lawsuit that was launched five years ago by local builder Inzola Group, which alleges it was unfairly disqualified from the project’s bidding process and that former mayor Susan Fennell and senior staff were biased against the company and in favour of the winning bidder, Dominus. The city denies the lawsuit’s allegations. There are no allegations against Dominus in the lawsuit. The company has stated it followed all rules in the bidding process.

Last year Inzola filed a second suit, against the city, Dominus and Fengate, seeking $1.5 million, alleging that the city hall expansion is causing excessive amounts of snow accumulation onto the roof of an adjacent building owned by Inzola. The statement of defence by all three named parties disputes the lawsuit’s claims, saying the new city hall building did not cause excessive snow buildup.

Last month, in a surprise move, Dominus, which sold the building after its construction, launched a $20 million lawsuit against the City of Brampton. In its notice of action Dominus stated the suit was launched because the city denied its “obligation to proceed” with the next phase of the project after the city hall expansion was completed. The city said it will respond to the allegations in court.

In total the city now faces more than $52 million in lawsuits over the downtown development project. The nine-storey city hall expansion, the only part of the project to move forward, was completed last year almost two years behind schedule and will cost Brampton taxpayers $205 million over 25 years in lease payments to the property owner.