Hearts and Hands for Homes' appeal of a judge's decision to hand over its assets to Habitat for Humanity Canada has not only been dismissed but two of its directors are now facing contempt of court allegations.
In an application to the B.C. Supreme Court, Habitat Canada is seeking the order against Vivian Pylatuik and Doug Willoughby for "forcibly entering" the old ReStore at 220 Queensway St., then "changing the locks and security alarm codes and thereafter taking over and running its operations."
The two made the move in late October and, on Nov. 3, 2015, it was reopened as Heart and Hands' Salvage Store and remained that way up unitl the most recent decision, made Feb. 15, to dismiss the appeal. The store is currently closed.
The move was made despite Pylatuik and Willoughby having "full knowledge" that Habitat Canada took possession of the building and property two months before, according to the application.
If Pylatuik and Willoughby are held in contempt, Habitat Canada is calling for a sentencing hearing "at the earliest opportunity to ensure the integrity of this court's order and the administration of justice." The penalty for being held in contempt is typically special costs.
Habitat Canada is also asking B.C. Supreme Court to issue Hearts and Hands directors a rebuke in the form of special costs for "conduct that has directly led to extraordinary legal costs being incurred by Habitat Canada, a charitable organization."
In July 2015, B.C. Supreme Court Justice Neena Sharma found Habitat Canada was entitled to disaffiliate the local group because it failed to live up to standards the national organization had in place regarding governance and operations.
She ordered the transfer of all Hearts and Homes assets to Habitat Canada after all debts and liabilities had been paid. In that light, Habitat Canada has maintained Hearts and Hands has no right to be running or selling the store and has been contravening Sharma's order.
Saying it is seeking to pay off all debts and then transfer the net assets to Habitat Canada, Hearts and Hands has since listed the property for sale at $599,000.
Habitat Canada argues that is an inflated price, given the state of the building and the fact the property was once home to a gas station, suggesting there is environmental contamination on the grounds.
Habitat Canada wants to have the property sold in foreclosure by Integris Credit Union, "which appears to be taking the position that the Salvage Store property is in default." A local realtor advised Habitat Canada that $325,000 is a more reasonable price, the application says.
Despite a lack of information from Hearts and Hands, Habitat Canada also estimates the local group has run up a $190,000 shortfall. Habitat Canada also asserts Hearts and Hands discharged one of the family partner mortgages it held and the funds subsequently paid out were used for "ongoing operations."
The B.C. Court of Appeal dismissed Hearts and Hand's appeal on Feb. 15, the same day it was heard, with written reason still to be issued. Habitat Canada followed up with its application seeking the contempt order and special costs on Feb. 26 and it's scheduled to be heard on May 5-6.
Habitat Canada is also seeking a number of other orders related to the transfer of assets, including the truck and the partner family mortgages and $70,000 being held in trust by Hearts and Hands' former lawyer.
