The Westbank First Nation is suing a British Columbia numbered company to quash a land deal, claiming a band council official “fraudulently colluded” with the company’s director to transfer the lands for millions less than their assessed value.
Westbank filed a notice of civil claim in BC Supreme Court on Feb. 14, naming 1284464 B.C. Ltd. as a defendant. According to the lawsuit, the lands were once slated for a “major real estate project” involving a golf course, residential housing, sports venues, retail stores and a winery. Westbank had partnered with several companies including Treegroup Development Corp. for the proposed Ponderosa development in Peachland, but the project never came “to fruition as Treegroup was not able to carry out its responsibilities under the project.”
Treegroup’s president was Norman Porter, who Westbank claims is the defendant numbered company’s director and a business partner of the First Nation’s manager of inter-governmental affairs, Raf De Guevera. In 2019, the Westbank Band Council passed a resolution to explore a possible sale of the 152-acre property, which was assessed at $5.3 million in 2021, and $6.97 million in 2022. However, the council never passed a resolution to approve the sale of the lands.
In March 2021, Westbank claims, Guevara transferred and conveyed title to the lands to the numbered company without approval from the Band Council for $1.5 million.
“Prior to, and at the time of the Purported Transfer, Guevara was a business partner of Norman Porter or had an interest in the Defendant, or both,” the claim states. “Westbank pleads that the Defendant and Guevara fraudulently colluded with each other to deprive Westbank of the full benefit of the Lands.”
Westbank claims both Guevara and the numbered company knew that the $1.5 million purchase price was “grossly below the actual value of the lands.”
“Guevara and the Defendant did not disclose their business partnership nor Guevara’s relationship to the Defendant,” the claims states, adding that the connections “placed Guevara in direct conflict with Westbank.”
Moreover, the First Nation claims the defendant knew or should have known the land deal was “unconscionable” since it required a Band Council resolution authorizing the sale.
“The Plaintiff is ready, willing, and able to return the monies paid by the Defendant under the Purported Agreement back to the Defendant,” the claim states.
Westbank seeks to rescind the purported agreement to transfer the lands and damages for misrepresentation. The allegations have not been tested or proven in court and the numbered company defendant had not responded to the lawsuit by press time.
