Duelling Vernon stratas enter 12th year of 'convoluted' legal battle
What was supposed to be a quick and easy Vernon real estate investment has entered its 12th year in court as the owners of the 14 units continue their pricey legal fight arguing this time about unpaid strata fees.
In a June 23 decision, Supreme Court Justice Emily Burke called the court action "complex" and "convoluted" and dismissed the strata's claim that Odin Zavier and Gordon Lemon owed eight years of strata fees.
The long-winded court battle dates back to 2008, when Zavier met Rene Gauthier, who now controls the strata, and the two, along with Thane Lanz, formed real estate firm SWS Marketing.
They attracted investors and bought 14 units in Vernon for $1.6 million, but then promptly fell out.
The result of the failed relationship saw the building split into two "duelling" strata councils, with some owners paying fees to one council and some paying fees to the other. The opposition strata council would then send demand letters asking for payment.
Unsurprisingly, this created much confusion and by 2017 the investors wanted out.
More court time followed and in 2022 the three partners used a 17-day trial to settle scores and display their antagonism towards each other.
Trips to court continued as appeals were filed and costs argued over. An Appeal Court Justice described the history between the three as "extended and tortured."
In the latest challenge, Strata KAS 1886, which is controlled by Gauthier, argued it was owed strata fees from 2013 to 2021.
The others argued that the Gauthier had known this since 2015 and never came after the money. They argued the claim is now out of time as it's past the two-year limitation period.
Gauthier argued the decision as to which of the duelling strata had control was only decided by the court in 2021, and therefore, the claim, which was filed in 2023 isn't out of time.
However, Justice Burke parsed through the evidence and found the strata's claim for fees was out of time and dismissed its claim.
The Justice ruled that each side should cover their own court costs, "given the complexity of the issues."
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