The former landowner of Vancouver's Shangri-La site filed a $6 million lawsuit in the BC Supreme Court May 16 against two insurance companies for not paying the face value of a performance bond, after a contractor allegedly failed to meet obligations during the tower's construction.
KBK No. 11 Ventures Ltd. is suing both the Sovereign General Insurance Co. and Axa Pacific Insurance Co. because those insurance companies were co-sureties on a performance bond for which contractor AGA/AGS Joint Venture Inc. was the principal.
In 2005AGA/AGS signed a contract with KBK for the design, manufacture and installation of a curtain wall system for the Shangri-La hotel and condo development at the corner of Thurlow and Georgia streets.
KBK's notice of civil claim quotes the performance bond agreement as saying that were KBK to declare that AGA/AGS had defaulted under the contract, the insurance companies would do one of several things, including paying KBK the face value of the $6 million performance bond.
"IGA/AGS has failed to perform under the contract, the particulars of which failures are known to the defendants," KBK stated in its notice of civil claim, without documenting details of that alleged failure.
"[KBK] was at all material times in compliance with its obligations under the contract," the claim states.
Kornfeld Mackoff Silber LLP partner Shane Coblin, who is KBK's lawyer, was not available for comment by press time.
