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Structural weakness, coercion and duress: a condo project goes off the rails
CBC News Manitoba
By Vera-Lynn Kubinec, Katie Nicholson
06 April 2017
Legacy Homes faced 56 charges in provincial court for not following
orders from the city to fix problems in the Riverside Glen condos
development in west Winnipeg. (CBC)
Imagine paying hundreds of thousands of dollars for a bungalow
condominium close to a river and a golf course, only to learn city
building inspectors think your new condo could face structural failure.
Then imagine learning the developer faced 56 charges in provincial
court for not following orders issued by the city to fix the problems.
Add to that finding out the engineer who you believed was responsible
for the structural integrity of your new home was suspended from
practice as a result of his involvement in the project.
Those are just a few of the revelations contained in a flurry of
lawsuits now before Manitoba Court of Queen's Bench related to the
Riverside Glen development on Augier Avenue, near the Assiniboine River
in west Winnipeg.
Condo exterior
City building inspectors issued orders saying condos in Riverside Glen
had foundation problems that 'could result in structural failure.'
(Photo: winnipeghomes.com)
The development consists of 20 condominium units developed by Legacy
Homes Ltd., a company operated by Neil William Hiebert and lawyer
Kenneth Pass.
"This process has been very difficult for the plaintiffs, and they
intend to advance this case through the court process and pursue all
remedies available at law," said the condominium owners' board of
directors in a statement to CBC News.
The people involved have so far been unwilling to be interviewed by CBC
News, but their grievances are laid out in court documents.
Dozens of construction defects outlined
Most of the condo owners are suing Legacy Homes and others involved in
the construction of the duplex condos. Legacy Homes, in turn, is suing
George Pratt, an engineer who was involved in the project. It says
Pratt didn't provide engineering and design services in a reasonable
manner.
Pratt says in court filings his engineering seal was used on some
designs, but he alleges those designs were subsequently changed by
other people numerous times. He says he was "coerced into providing two
reports regarding [Legacy's] project to the municipality, and did so
without remuneration and as a result of duress."
Besides failing structural walls, construction defects outlined in the
condo owners' claim include false walls erected to hide the failing
structural walls, insufficient and deficient piling, deficient window
framing and installation, improper vapour barrier, electrical
deficiencies, deficient concrete pads in garages, problems with
exterior stairways and basement stairs, absent and defective fire
hydrants and about a dozen other items.
Legacy Homes refused to speak with CBC, but in a court filing,
company director Neil Hiebert said, "Legacy Homes does not have the
means to cover the remediation work asked for (estimates are running
about $100,000 per home x 18 homes) and we continue to pursue the
engineer and his insurer to make this right."
At least one unit was occupied as early as 2011, but the problems
started coming to a head when City of Winnipeg building inspectors
showed up in June 2013 to take a look at the condos.
Inspection reports noted problems with the foundations, including
"irregularities that would indicate structural anomalies and weaknesses
that could result in structural failure."
The city issued orders against Legacy Homes to submit reports by a
licensed engineer either affirming the construction is in compliance
with the Manitoba Building Code, or providing specifications for
changes to bring the foundations into compliance.
Orders were issued in July 2013 and covered 18 of the 20 condos.
Non-compliance charges
Legacy turned to Pratt for documentation, and while court records say
Pratt did provide some drawings, they fell short of what the city
needed.
As a result of non-compliance with the orders, Legacy's directors,
Hiebert and Kenneth Pass, were charged on Jan. 29, 2014 for 16
violations of the City of Winnipeg Charter. Legacy was charged with 56
violations of the City of Winnipeg Building Bylaw.
The following year, the orders had still not been fulfilled, so in
October 2015 a summary conviction order was issued against Legacy in
provincial court.
The court imposed 19 fines of $230 each and one fine of $130, for a total of $4,500.
The city lawyer gave Legacy another year to fix the problems. Legacy paid the fines but once again failed to complete the work.
By November 2016, the case was back in court and the city's lawyer said
the city was considering whether or not to pursue a contempt order
under the Criminal Code.
The first condo owners to sue for damages were a couple who filed a claim in August 2015.
The couple had bought their condo from Legacy in 2011 at a price of about $372,000, court records show.
They allege that Legacy and Hiebert "actively concealed deficiencies in
construction that were material to the contract to avoid detection of
same."
The claim also alleges Legacy and Hiebert "unreasonably denied the
existence of deficiencies in construction to avoid extra expense of
repairing the condominium."
In a statement of defence, Legacy and Hiebert deny the condo owners suffered any damages due to any of their acts or omissions.
None of the allegations in the civil claims have been proven.
The organization that regulates the engineering profession, Engineers
Geoscientists Manitoba, says it suspended Pratt's licence in March 2014
based on information received from the city.
Following an investigation, EGM reprimanded Pratt and restricted him
from practising structural engineering. Pratt is still allowed to
practise as an engineer in other disciplines.
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Owners of condos with structural problems question city's role in approving building plans
Riverside Glen owners overwhelmed by 'staggering' impact of repairs
CBC News
By Vera-Lynn Kubinec
07 April 2017
Owners in a Winnipeg condominium development with structural problems
are questioning the city's role in approving plans for the homes.
Board members of the Riverside Glen condominium corporation said they
are "confused as to why or how the city of Winnipeg Planning and
Property Development Department approved the plans to build our homes."
The 20-unit bungalow community developed by Legacy Homes on Augier
Avenue in west Winnipeg is the subject of several lawsuits, as owners
grapple with the costs of repairing defects in their condos.
"The numbers which have been presented to us are staggering," the condominium corporation board said in a statement.
"We are in the process of obtaining appropriate expert reports and quotes for the remedial work," the statement says.
may be in excess of $150,000 per unit in repairs as well as the landscaping and the surfacing of our road
"We purchased expensive condo homes and are now faced with what may be
in excess of $150,000 per unit in repairs, as well as the landscaping
and the surfacing of our road," the board said.
"Also concerning to us is the scope of the remedial work which will
require that we move out of our homes while our basements and yards are
being excavated. The financial stress and the emotional impact this has
had on our lives is overwhelming."
In June 2013, city building inspectors looked at the condos developed
by Legacy Homes and found irregularities with the foundations that
could result in structural failure.
The city ordered Legacy Homes to fix the problems but that didn't
happen. Legacy was hit with provincial court fines totalling $4,500 for
not fulfilling the orders.
condo owners said they are "confused by the ineffectiveness of the City of Winnipeg orders against some of the defendants
In their statement Thursday, the condo owners said they are "confused
by the ineffectiveness of the City of Winnipeg orders against some of
the defendants."
"It is highly unfortunate that we have been left to look to the court
for recourse," the condo board said, referring to the lawsuits against
Legacy Homes and others involved in the construction.
Their city councillor in the St. Charles ward, Shawn Dobson, said he met with the condo owners last year.
"It's a bad situation all around. I feel for them," Dobson said. He
said he doesn't know whether there is any further action the city
administration will take in provincial court.
Councillor wants to see follow through
"I'd love to see them [the city] follow through and force the builder
to fix these. I don't even know if we can do this," Dobson said.
The city administration declined comment, saying the matter is before the courts.
Dobson questioned whether the city inspection process should have caught the structural design problems in the condos sooner.
"If we [the city] had our own engineers go over the material then we may have caught the deficiencies," said Dobson.
He noted that in 2012, before he was a councillor, the city announced
changes in the building permit and inspection process to deal with a
backlog arising from a construction boom.
Although it's not clear if, or how, the changes might have impacted the
Riverside Glen condo project, Dobson said the inspection system should
be reviewed.
"I'm certainly not happy that this has happened," Dobson said of the condo owners' plight. "I hope this gets resolved. Soon."
The condo board members called on the city to be more diligent when approving building plans.
Greater vigilance
"We hope that the public awareness of the alleged conduct of the
defendants in this action encourages the City of Winnipeg and other
interested parties to exercise greater vigilance in approving and
overseeing the construction of condominium properties," said the condo
board.
Legacy Homes director Neil Hiebert declined comment.
In court documents, Legacy Homes blames much of the problem on an
engineer who worked on the project. The engineer, in turn, blames
Legacy.
The condo board responded in its statement, "We are so disappointed
that the defendants appear to have turned a blind eye to the gravity
and financial consequences of their actions."
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