Developers sue after Salmon Arm property buy turns sour

SALMON ARM – A multi-million dollar lawsuit is underway after a trio of developers found out the property they bought in Salmon Arm wouldn’t be as profitable as they’d expected.

Smart Centres Inc., Salmon Arm Shopping Centres Limited and Calloway REIT (Salmon Arm) Inc. are suing EBA Engineering Consultants, and three of its employees, over two studies into a piece of property in Salmon Arm.

The reports, which cost $5,550, suggested substantial portions of the property could be developed, however that information proved inaccurate when proper Riparian Areas Regulations setbacks were applied. 

The developers say they relied on the reports when purchasing the land for $14,700,000 in 2007. They claim losses of at least $3.3 million stemming from the reports.

The engineering firm denies any negligence or breach of contractual duty. On Dec. 2, the firm applied to have a summary trial (judgement without a traditional trial) but the judge dismissed the application.

The case is set to be heard over a ten-day trial starting July 13.

To contact the reporter for this story, email Charlotte Helston at chelston@infonews.ca or call 250-309-5230. To contact the editor, email mjones@infonews.ca or call 250-718-2724.

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Charlotte Helston

REPORTER

Charlotte Helston grew up in Armstrong and after four years studying writing at the University of Victoria, she came back to do what she loves most: Connect with the community and bringing its stories to life.

Covering Vernon for iNFOnews.ca has reinforced her belief in community. The people and the stories she encounters every day—at the courthouse, City Hall or on the street—show the big tales in a small town.

If you have an opinion to share or a story you'd like covered, contact Charlotte at Charlotte Helston or call 250-309-5230.

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