‘Sentimental value:’ Kelowna businessman loses another appeal over $42-million property dispute

Kelowna businessman Ted Callahan has lost another appeal after a BC judge sided with his brothers’ bid to buy a highly contested $40-million lakeside property.

In the five years since the Shasta Mobile Home Park began its liquidation process, Ted had made numerous legal appeals arguing over everything from which company oversaw the deal to how much money he should get when it sold.

The latest turn in the ongoing family feud is laid out in a July 22 BC Court of Appeal decision, where Ted argued the sale of the trailer park, which is set to complete next month, should be quashed until after a hearing scheduled for October, when he’s appealing the sale itself.

In May, a judge sided with Ted’s brothers Douglas, Bruce and Robert Callahan, who put in a winning $42.5-million bid for the Shasta Mobile Home Park, known as the “Crown Jewel” of their late father’s real estate empire.

Ted tried to extend the bid deadline until the fall, after a separate court ruling increased payments to his former spouse by $29 million.

He argued the separation had caused him “financial uncertainty,” but a judge dismissed any extension of the deadline.

The proceeds from the $42-million sale of the trailer park are set to be split four ways, but in a separate appeal, Ted argued he was due a bigger share, calling it the “Ted Differential.” That issue is still ticking through the court system.

The Callahan brothers are no strangers to litigation, and over the last two decades they have contested $300-million in assets.

“The four sons of Lloyd and Marjorie Callahan — Douglas, Edward, Bruce and Robert — received from their parents what should have been a legacy of financial security that could have been expected to extend into at least the next generation. But while the enterprises they were given have been largely successful, the extreme disaffection that has plagued the relationship between (Ted) on the one hand and his three brothers on the other has overshadowed that success,” a BC Justice said in 2022.

Ted has been described as an “outlier” in the disputes, with his three brothers aligned with each other and their late father.

Justice Heather MacNaughton described the grounds for his latest appeal as “dubious” but ruled it was not frivolous or vexatious.

In the appeal, Ted argued that he will suffer irreparable harm if the sale were completed before his appeal is heard, as he has a sentimental attachment to the property.

However, the Justice wasn’t swayed.

“Ted has provided no authority for the proposition that potential loss of an asset with sentimental value may constitute irreparable harm,” the Justice said.

Ted also argued that if the mobile home park is sold and he wins his appeal afterwards, it will be too late.

However, the Justice said he would still get the money from the sale, so that wasn’t “irreparable harm.”

Both sides present numerous legal arguments to back up their positions, and ultimately, the Justice dismissed the appeal.

“I find that on an overall assessment of the circumstances before me, it is not in the interests of justice to issue the stay of proceedings,” Justice MacNaughton said.