SALMON ARM – Three companies involved in a Salmon Arm commercial development are suing an engineering firm and three of its employees that did preliminary work on the project.
EBA Engineering Consultants Inc. was hired by SmartCentres Inc. and its two related companies to perform environmental assessments of properties the plaintiffs were considering buying to develop a Walmart store and other retailers.
The lands are close to Shuswap Lake and streams and subject to Riparian Areas Regulations that stipulate setbacks from fish-bearing waters.
In a preliminary ruling in the lawsuit, Mr. Justice J. Butler writes: “The two reports provided by EBA suggested that substantial portions of the Properties could be used for development based on the anticipated RAR setbacks contemplated in the reports. However, that information proved to be inaccurate. The high water mark of Shuswap Lake impinges on the Properties such that once the proper RAR setbacks were applied, only a portion of the land could be used for development. The plaintiffs say they relied on the two EBA reports when they purchased the Properties and that the reports were prepared negligently by the defendants. They say they suffered a loss of at least $3.3 million, and perhaps much more, as a result of their reliance on the EBA reports.”
The defendants deny any negligence or breaching any contractual duty and say the plaintiffs suffered no loss or damage.
SmartCentres and its partners bought the properties in 2007 for $14,700,000 and the Walmart Supercentre development opened about a year ago.
The case is scheduled for a ten day trial in July in B.C. Supreme Court.
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