Resort co-founder denies debt
Rex Philpott, co-founder of Humber Valley Resort, disputes claim he owes current owners money
The current owners of Humber Valley Resort are suing one of the property’s founders for $1.3 million.
According to statement of claims filed by 61839 Newfoundland and Labrador Ltd. and Noton Enterprises, Rex Philpott owes them for property at the resort.
He disputes the claim, saying he owes nothing to the current owners.
The numbered company is part of a consortium, including Noton Enterprises Limited and Oke Consultants Limited, which bought the resort in 2010. Noton is owned by Katie Watton or Corner Brook, while Oke Consultants is owned by Gary Oke of Corner Brook.
Philpott was among a trio of businesspeople, including Brian Dobbin and Keith Smith, who were involved in the original purchase of land to be developed as Humber Valley Resort. The three were directors of the entity known as Humber Valley Resort Corporation until November 2006.
The resort was sold in 2006, but the new owners eventually declared bankruptcy in 2008 and the 61839 Newfoundland and Labrador consortium bought the resort in March 2010.
In statements of claim filed by lawyer Graham Watton, husband of Katie Watton, the current owners say Philpott never paid the $1.3 million cost for a lot he has maintained at the resort and want him to pay back the debt, plus interest.
In his defence, Philpott says he does not owe the money and he does own the property in question. His position is that he had been entitled to dividends equivalent to $1.3 million in 2006, which he did not take in exchange for the property just a few months before he ceased to be a director of the Humber Valley Resort Corporation.
Philpott is asking that the two statements of claim filed by the current owners of the resort be dismissed.
The property in question is currently listed as being for sale on the local real estate market. The price is not listed for the four-bedroom luxury chalet.
The matters will be called in the Supreme Court of Newfoundland and Labrador on Aug. 30.