Builder sues over Grace Islet home
A Victoria construction firm that was hired to build a controversial luxury home on Grace Islet two years ago is suing the property’s former owner for breach of contract.
West Terra Projects Inc. alleges in a notice of civil claim in B.C. Supreme Court that Edmonton businessman Barry Slawsky terminated the construction contract on Dec. 18, 2014, and failed to pay the company’s final invoice for $32,914.
Two months later, the B.C. government announced that it had purchased the islet from Slawsky for $5.45 million in order to protect an ancient Coast Salish burial ground on the site.
The province agreed to pay $850,000 for the 0.78acre property in Ganges Harbour off Salt Spring Island and $4.6 million for losses suffered by Slawsky.
Slawsky bought the property for $270,000 in 1990 with the intention of building his retirement home there. But his plans sparked controversy after kayakers found exposed human remains on the islet in 2006, and archeologists subsequently located at least 16 rock formations believed to be ancient burial cairns. Protests erupted after West Terra began work on the project in June 2014.
The company claims in its lawsuit that, as the controversy grew, it questioned Slawsky’s agents about whether the property would be sold and whether the company should start looking for other work. The suit claims that Slawsky, through his agents, reassured West Terra “the contract would complete” and that they should keep working.
West Terra also claims that Slawsky made a number of changes that drove up the cost of the project. The lawsuit says the budget rose from $1.1 million in May 2014 to $1.4 million in September to $1.7 million by Dec. 18, when Slawsky purported to terminate the contract with West Terra because the revised budget exceeded the original budget.
“The defendant made change orders to the project with the intention of increasing the budget of the project so that he could negotiate a higher sale price of the land to the provincial government,” the lawsuit claims.
The suit alleges that Slawsky “misled” West Terra “by making change orders and increasing the budget for the project when he knew that the project would not be completed and that the land would be sold to the provincial government.”
The lawsuit adds that Slawsky “failed to honestly state the reason for the termination of the contract.”
None of the claims have been proven in court. Slawsky has yet to file a response, but still has time to do so.
Victoria lawyer John Alexander, who has acted for Slawsky in the past, said in an email that he had received no instructions about the lawsuit and had yet to see West Terra’s notice of claim.
“Unfortunately, I don’t have any more information than would be in the court documents, other than to say, of course, no claims have been admitted, proven or decided,” he said.
Slawsky was reached by telephone, but he declined to be interviewed.
West Terra owner David Yager said Tuesday that his company was unable to resolve its dispute with Slawsky out of court and had no option but to sue.
“It’s been very damaging and hard for us, but we’ve just got to go through with it,” he said. “It’s the principle of the matter. We held up our end of the agreement and they didn’t hold up theirs.”
The suit seeks a judgment against Slawsky for breach of contract and for the final outstanding invoice, plus interest, and any other relief the court deems appropriate.