A BC Supreme Court judge has ordered a company related to Bonnis Properties to pay $190,572.86 in damages plus return a $1.1-million deposit after a real estate transaction fell through, prompting a lawsuit and countersuit.
The property at the centre of this suit once housed Vancouver’s Jimi Hendrix Shrine and was the site for the Vie's Chicken and Steak House restaurant where that famed guitarist’s grandmother, Zenora Rose (Nora) Moore Hendrix, worked.
Justice Karrie Anne Wolfe said in her April 29 judgment that Bonnis would also be on the hook for pre-judgment interest, and the costs of the action.
Bonnis principal Kerry Bonnis told BIV in a text that he is “disappointed” with the judgment and that he plans to appeal.
Epix Developments Ltd. sought compensation from Bonnis after it failed to buy the development site from an entity officially named Bonnis Development Union Street Limited Partnership.
Epix in 2021 agreed to pay $22 million for the site, which included three adjacent lots located near Vancouver’s Chinatown, at the intersection of Main and Union streets. It put up a $1.1-million deposit.
Delays ensued thanks to the property needing rezoning and a development permit.
It also needed what development industry folk call a “prior-to” letter, which is a document by which the City of Vancouver provides a form of “approval in principle” for a development permit, according to Wolfe’s judgment.
Each side worked with various consultants, including environmental consultants, as well as architects, solicitors and others, she said.
Broadly speaking, the transaction ran into complications.
Epix argued that Bonnis did not fulfill its contractual obligations to deliver the site on the terms set out in the parties’ agreements.
It said Bonnis failed to make necessary efforts to get the rezoning and a development permit (or the prior-to letter) from the city as early as possible.
“As a result of Bonnis’ continuing repudiation of the agreements, Epix says it was entitled to, and did, validly exercise its right to terminate the contract on December 30, 2022,” Wolfe wrote.
Bonnis disputed that it failed to fulfill contractual obligations and claimed Epix was “never ready, willing and able to complete the transaction as agreed.”
Among other things, Bonnis alleged in its counterclaim that Epix improperly filed and maintained a certificate of pending litigation on March 23, 2022.
Epix then hindered Bonnis’ ability to enact the rezoning by refusing to remove that certificate, even temporarily, in December 2022, Bonnis alleged.
Bonnis claimed that Epix committed the torts of slander of title and abuse of process, including by failing to secure adequate financing to complete the deal before filing the certificate of pending litigation.
Wolfe agreed with Epix and dismissed Bonnis’ counterclaim.
Epix provided a breakdown of expenses it incurred with various professionals and calculated a total of $190,572.86.
Wolfe accepted that figure for the damages.
“As Epix has been substantially successful, Epix is presumptively entitled to pre-judgment interest and costs of the action," Wolfe added.
Bonnis Properties is probably best known for its extensive holdings on Granville Street.
It recently released a revised plan for a major redevelopment in the 800-block of Granville Street, with two towers that straddle the historic Commodore Ballroom.
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