Fresh legal drama surrounds Naramata candidate
A political candidate in Naramata is embroiled in a messy business dispute that has now landed in court and bears a resemblance to another high-profile lawsuit with which he was involved.
Tim Hodgkinson is named as a third-party defendant in a battle between Penticton man Robert Appelman and Vernon-based Back to Earth Enviro Products, which sells health foods.
Appelman alleges in a notice of claim filed July 24 in B.C. Supreme Court that Back to Earth defaulted on an agreement that saw him pay $75,000 for five per cent of the company.
In its reply filed Aug. 14, the owners of Back to Earth claim they knew nothing of the agreement before it was signed.
The company alleges it hired Hodgkinson in July 2016 to find new investors, conduct a rebranding to increase sales, plus create a new and improved website and marketing strategy.
It was in the course of that work that Hodgkinson allegedly cut the non-binding deal with Appelman and “was transferred” the $75,000.
Back to Earth claims it fired Hodgkinson in October 2017 when it found out Hodgkinson had spent $24,000 without the owners’ consent on accounting services from a third party.
That same month, the owners found out Back to Earth had been listed as a client on the website belonging to a company called Tredgold Corporation, which had paid $6,825 for the unauthorized accounting work.
It was later discovered that both Hodgkinson and Appelman are involved in Tredgold Corporation, which has the same Naramata address as Hodgkinson.
Failing to disclose his involvement with Tredgold amounted to “fraudulent misrepresentation,” alleges the company, which also claims Hodgkinson failed to live up to his end of the original deal for services.
Back to Earth was subsequently left in a “financially vulnerable” position because of its dealings with Hodgkinson and Appelman, who “have worked together in the past to put other companies and organizations in financially vulnerable positions,” the claim adds.
In his reply dated Sept. 24, Hodgkinson denies all of Back to Earth’s allegations.
He states he “provided the services to the requisite standard,” and that Back to Earth chose not to implement his plan in order to remain as a “cottage industry.”
Hodgkinson also explains the third-party accounting firm was hired to prepare financial records for Back to Earth, “which was a necessary step in order to implement the strategic plan in accordance with the services agreement.”
He claims Back to Earth “received, accepted and utilized the benefit of the accounting firm’s services, and has accordingly suffered no loss or damage in consequence of that expenditure.”
Hodgkinson also counters that Tredgold was not a party to the services agreement with Back to Earth and that it has no legal relationship with Appelman.
In a statement Monday, Hodgkinson said Back to Earth is trying to take advantage of him being in difficult circumstances.
“I started a claim against that company last year but had to place it on hold while I dealt with my son’s well-publicized illness,” he wrote in an email.
“They are now being pursued by yet another party for monies owed (perhaps others?) and are simply taking advantage of my inability to act against them at this time by making entirely false counter claims against me (presumably designed to stop my initial lawsuit, on hold since last year). The court/authorities have now been made aware of this and will act in due course.”
Hodgkinson and Appelman also played prominent roles in a 2016 lawsuit against the Penticton Hospitality Association
Hodgkinson sought $100,000 as a result of what he claimed was the wrongful termination of his contract to serve as the group’s administrator.
The PHA raised doubt about the validity of the contract, however, because it was signed by Appelman, who was then-president of the PHA, without a required second director’s signature and had been drawn up by Hodgkinson himself. The PHA described Appelman as a friend and business associate of Hodgkinson’s.
A judge sided with the PHA in November 2017.
Hodgkinson is seeking election as the Area E director on the board of the Regional District of OkanaganSimilkameen. He’s up against incumbent Karla Kozakevich, who is looking for a third consecutive term.