Details emerge in Fort McMurray condo construction
lawsuit
Journal
of Commerce
by Richard Gilbert
04 April 2011
The owners of a condemned condominium in Fort McMurray, Alberta have
released new details about a lawsuit filed in provincial court against
the developers, consultants and municipal authorities involved in the
construction of the project.
The owners of a condemned condominium in Fort McMurray, Alberta have
released new details about a lawsuit filed in provincial court against
the developers, consultants and municipal authorities involved in the
construction of the project.
A recently released court document shows the corporation representing
owners of units in the Penhorwood condominium are seeking $5.5 million
in general and punitive damages from a number of defendants.
The amended statement of claim dated Feb. 10 argues that the apartments
on Penhorwood Street have had ongoing structural problems since they
were built in 2004.
“The foundation footings were placed too shallow, do not meet the
requirements of the Alberta Building Code and are subject to frost
heaving in the Fort McMurray climate,” said the statement of claim.
“Further, the compaction of the soil underneath the footings does not
meet the geo-technical requirements of the developers’ own engineers.”
“The foundation was designed and built without control joints, and as
such is highly susceptible to uncontrolled cracking,” it said.
The Penhorwood Place Condominium Corporation announced on March 23 that
residents would not be allowed to ever enter any of the structures
again, for any reason.
About 300 people were evacuated from the Penhorwood condominium in the
late evening a couple of weeks earlier, after an engineering report
detailed problems with buildings in the168-unit complex.
Fencing was put in place around seven condominium buildings and warning
signs were prepared.
“The holes that were cut in the ceiling joist webs, to allow for the
routing of mechanical and electrical service conduits, were too large
and in the wrong direction, which detrimentally affects the structural
integrity of the buildings,” said the statement.
Citing a long list of structural deficiencies, the condo owners claim
the developers breached the terms of the purchase agreement and their
statutory duties to the owners.
It is alleged they failed to design and construct the project in a
manner that complies with the Alberta Building Code and directives
issued by the Regional Municipality of Wood Buffalo (RMWB).
The first defendants named in the court document are linked through
their participation and ownership in a number of registered
corporations.
Collectively, defendant Gary Nissan, Evan Welbourn and David Marshall
were the majority shareholders in 970365 Alberta Ltd., Prairie
Communities Corporation and Dome Britannia Properties Inc.
It is alleged the developers breached their contractual obligation and
warranty to repair any construction deficits within thirteen months of
the possession date.
Other defendants in the case are key participants in the construction
process, including architects (Archiasmo Architectural Works), quantity
surveyors (Cuthbert Smith Consulting Inc.) and the engineers involved
in geo-technical, structural, electrical and mechanical work (Earth
Tech Canada Inc. and Kneppers Consultants Inc.).
The owners claim they did not discover the alleged breaches of contract
and the extent of the deficiencies until engineering reports were
commissioned and delivered in August 2005, March 2006 and November 2006.
Finally, the owners claim that the RMWB and its safety officers
breached their statutory and common law duties, by failing to ensure
the project met the specifications of the Alberta Building Code and the
terms of the building permits.
The statement of claim alleges that the RMWB knew about the
deficiencies, unsafe conditions and violations. However, it allowed
construction to continue and people to occupy those units.
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