Regina developer suing City, seeking more than $1 million

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April 7, 2014 - 9:30am Updated: April 7, 2014 - 10:58am
Regina City Hall.  June 4, 2012.  Courtney Mintenko/CJME News
Regina City Hall. June 4, 2012. Courtney Mintenko/CJME News

The City of Regina is being taken to court by one of the biggest developers in the city, which claims that it was decieved out of more than $1 million.

In 2009 and 2010, Dundee Realty Corporation entered into three service agreements with the City of Regina to build infrastructure, like sewage and drainage, in Harbour Landing. The City would then reimburse the company for the construction as set out in the agreements.

When all was said and done, Dundee presented a bill of $4,649,783.67, but the City of Regina only paid a little over half of the bill, claiming that the rest of the work was never outlined in the agreements.

Dundee is suing the City for the outstanding balance, $1,910,912.10. Dundee is also seeking damages, alleging that the City misled it to believe that the company would be reimbursed for the construction in question.

Dundee is also claiming that the City was acting in bad faith when they were drawing up the agreements, that an employee knew Dundee was being misled and didn't say anything, and that if it is judged the City doesn't have to pay the outstanding balance then it has been "unjustly enriched."

The City has denied all the claims, saying Dundee agreed to build the services and pay for them itself.

"Dundee built those services for its own benefit and the City received and receives no benefit from the construction of those services," reads the statement of defence.

The lawsuit between the two parties is ongoing, so neither the City nor Dundee agreed to comment. None of the claims have been proven in courts.

You can see documents from both sides by clicking the links below.

lschick@rawlco.com
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