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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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