Legal wrangling between the BID Group of Companies and Commonwealth Campus Corp. is continuing over a land deal gone wrong regarding property adjacent to the Wood Innovation and Design Centre, nearing completion at Fourth and George Street downtown.
An application from BID to have Commonwealth post security of $50,000 to cover its legal costs is scheduled to be heard in Kelowna on Monday.
Commonwealth is suing BID, claiming it reneged on a promise to buy the land for $4.1 million. BID has replied that the transaction was subject to making the short list of proponents competing for the contract to construct the WIDC, which did not happen.
In the application, filed Sept. 5, BID suggested Commonwealth will not be able to cover legal costs if it loses the case because it is in default of a mortgage Northern Development Initiatives Trust granted to Commonwealth to purchase the property. NDIT launched a foreclosure proceeding in November 2012 but court records indicate the action has largely remained on hold since that time.
In a response filed Sept. 15 to BID's application, Commonwealth said it has about $170,000 in cash available plus a significant retainer held in trust by its counsel. "Even after making allowance for the expense of taking this matter to trial, this sum is plainly sufficient to pay the defendants' costs," it said in the response.
Commonwealth also contended BID has "frustrated the progress of this proceeding" since it began in May 2013.
In particular, Commonwealth said BID cancelled examinations for discovery that were set for February on short notice and was ordered by the court to attend a new session that was supposed to be held this week or on Monday and Tuesday in Prince George.
However, BID's latest action appears to have forced another delay on that front.
"Any risk that the foreclosure proceedings in respect of the lands might render the plaintiff unable to pay the defendants' costs is entirely of the defendants' own making," Commonwealth said. "Simply put, if the defendants' had not stalled the plaintiff's pursuit of this action, this case would have been heard well before the foreclosure proceeding."
Commonwealth is seeking a court order forcing BID to either live up to the agreement and cover the cost of damages caused by the delay, or to allow Commonwealth to keep a $150,000 deposit and have BID pay damages for breach of contract.
The matter has not yet been set for trial.
