Trial not pro­ceed­ing in $15-mil­lion law­suit

Set­tle­ment said to be in works for civil suit on for­mer GM prop­erty

The Standard (St. Catharines) - - Front Page - KARENA WAL­TER THE ST. CATHARINES STAN­DARD

A $15-mil­lion law­suit in­volv­ing the for­mer GM plant may be com­ing to an end.

A trial sched­uled to start on Sept. 28 be­tween At­tar Met­als Inc. and Bayshore, which owns the par­tially de­mol­ished in­dus­trial prop­erty at 282-285 On­tario St., has been called off.

The civil trial of­fice in Toronto’s Su­pe­rior Court of Jus­tice said the trial is not pro­ceed­ing due to a set­tle­ment and the lawyers are work­ing on terms.

Mis­sis­sauga-based At­tar Met­als Inc. launched a suit in May 2017 against Bayshore Groups, Bayshore In­ter­na­tional, 2390541 and 2202180 On­tario Ltd. and Bayshore prin­ci­pals Chiara and Robert Megna.

The metal re­cy­cler al­leged in court doc­u­ments that Bayshore didn’t hon­our a con­tract made in Oc­to­ber 2014 in­volv­ing work at the 54.7-acre for­mer GM prop­erty.

At­tar claimed in its law­suit that it was sup­posed to get 50 per cent of rev­enues gen­er­ated from the sale of all met­als at the plant, as well as pro­ceeds of sale from all other as­sets and real es­tate on site.

It also said it ac­quired ex­clu­sive

rights to mar­ket, sell and col­lect rev­enue from ma­te­ri­als in ex­change for a $2-mil­lion pay­ment for prop­erty rights and $625,000 for mar­ket­ing rights.

But it al­leged that Bayshore se­cretly sold off as­sets and mort­gaged the prop­erty, less than a month af­ter the con­tract was ex­e­cuted, in the amount of $5 mil­lion and then mort­gaged it again in March 2017 for $20 mil­lion.

Bayshore de­nied all allegation­s and launched a counter suit.

In early 2019, the Su­pe­rior Court judge pre­sid­ing over the mat­ter in Toronto’s com­mer­cial court or­dered the mort­gagee, 2496582 On­tario Inc. to be­come a de­fen­dant in the civil case.

A lawyer for At­tar Met­als would not com­ment Wed­nes­day, other than to con­firm the trial is not go­ing for­ward as sched­uled. Lawyers for Bayshore Groups and the mort­gagee did not re­spond to calls and emails.

The site of the for­mer GM plant has been listed for sale since March 2019.

Its en­vi­ron­men­tal im­pact has been a sub­ject of con­cern by neigh­bours and the group Coali­tion for a Bet­ter St. Catharines, which has ar­gued the city and up­per lev­els of gov­ern­ment need to stop toxic chem­i­cal runoff from the site from en­ter­ing Twelve Mile Creek.

The On­tario Street prop­erty was sold by GM to Bayshore in June 2014 for $12.5 mil­lion.

BOB TYMCZYSZYN TORSTAR

The for­mer GM prop­erty on On­tario Street in St. Catharines. A set­tle­ment said to be in works for a civil suit on the prop­erty.

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