Developer Matthews Southwest is denying it owes $15.25 million to another prominent real estate builder, Michael Hutchison.
This is the latest in an ongoing court battle between two major Squamish developers. The pair are in a dispute over the payment of $15.25 million, among other things.
According to court filings, these two developers started a business relationship in November 2013. As part of that arrangement, they were development partners for both the Newport Beach and Cheekye Fan residential projects. However, they decided to separate due to a disagreement.
As a result, they entered into an unwinding agreement, which was intended to decide the terms of the separation, court documents say.
The documents say one part of the agreement states that Matthews Southwest was to pay $15.25 million after the Cheekye Fan residential development was given approval by council. That project has passed third reading but has not received final adoption.
Hutchison claims under the unwinding agreement, the payment was to come after the development passed third reading. He claims the payment was due as of Oct. 23, 2018.
On the other hand, Matthews claims Hutchison misrepresented that third reading was the same as final adoption. Matthews alleged this was a misrepresentation.
In this latest court filing, made on Dec. 11, Matthews Real Estate Development Company Ltd. and Squamish Cornerstone Developments Ltd. filed a response to Hutchison’s allegation that they owe him $15.25 million.
Hutchison was previously involved in Squamish Cornerstone Developments but is no longer part of that company.
Hutchison and his associated companies, dubbed the Hutchison Group, are Bethel Lands Corporation Ltd., Atka Holdings Ltd., Attu Holdings Ltd., Elah Holdings Ltd. and Fivestone Capital Corp.
“The plaintiffs deny the allegations of the Hutchison Group that they jointly and severally owe $15.25 million to the Hutchison group,” reads Matthews’ Dec. 11 response.
“To the contrary, the plaintiffs’ obligations under the unwinding agreement, including and especially in relation to any payments to be made to the defendants, have been at all material times fulfilled in accordance with the applicable contractual obligations.”