The strata corporation representing homebuyers at the Shangri-La Hotel Vancouver is suing developers, marketers and lawyers for alleged "misrepresentations" that devalue home values and involve unexpected costs at Vancouver's tallest building.
The strata corporation's biggest concerns relate to the fact that it shares the high-end development with a hotel.
The strata corporation claims the developers:
- falsely made representations in disclosure statements to lead homebuyers to believe that, among other things, they would be buying into a strata corporation that "would have its own entrance lobby located on the ground floor with a concierge-security officer 24 hours a day";
- promised in legal documents that the building would have three passenger elevators that would be for its members' exclusive use.
- promised its members that they would have a number of amenities including a fitness centre, function rooms and foyer, library, games room, underground parking.
- promised buyers that costs related to these amenities would be "shared substantially" with the hotel and that the hotel's valet service could be used by the project's strata corporation members on a pay-per-use rather than a cost-sharing allocation basis.
The strata's lawsuit also alleges that its members never "contemplated that rules and regulations would be unilaterally imposed by the hotel component."
As a result of the alleged misrepresentations and failure to disclose all material facts, the strata corporation claims the developer has filed "void, invalid and unenforceable easements, leases, licences and cost-sharing agreements."
The owners are suing as "The Owners, Strata Plan BCS 3165" and have hired DuMoulin Boskovich LLP associate Michael Tatchell as their lawyer.
Neither Tatchell nor anyone else at DuMoulin Boskovich would discuss the case with Business in Vancouver.
The strata corporation's notice of civil claim seeks a series of declarations as well as damages, including punitive damages, related to alleged "misrepresentation, fraud and deceit" and "wilful breach of consumer protection legislation, particularly [B.C.'s] Real Estate Development and Marketing Act."
Calls to Peterson Investment Group were not returned by press time, and a Westbank Projects Corp. spokeswoman emailed back to say that the company was declining to comment.
No statement of defence had been filed by press time.
None of the allegations has been proved in court.
