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N.B. village launches lawsuit after company allegedly turns $1 land sale into $1.8-million profit

Cap Pele in legal battle against developer
Cap Pele in legal battle against developer

The Village of Cap-Pelé is suing a company to which it sold a parcel of land for $1, before the company allegedly sold it for a $1.8-million profit.

Cap-Pelé’s statement of claim filed in the Court of Queen’s Bench in Moncton on Dec. 11, says on Nov. 3, 2010, it sold a piece of land on Acadie Ave., to Gestions CJMPR Holdings Ltée/Ltd. with an agreement that the company would provide a pharmacy and a medical clinic that would accommodate three family doctors.

The claim says if the third-party company, which has since dissolved, was to sell the land, it would need to repay the village the land value at the time of sale.

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Seven years later, in March 2017, Gestions CJMPR Holdings Ltée/Ltd. sold the land for $1.875 million, according to the claim.

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But the village is now seeking $87,500, which it says was the value of the land at the time of the first sale.

The land listed in court documents is shown here
The land listed in court documents is shown here Callum Smith / Global News

The land now houses a Jean Coutu Pharmacy and a medical clinic.

The village, which says it didn’t learn of the sale until December 2018, is also seeking interest and incidental or unwarranted enrichment damage.

Global News reached the Pierre LeBlanc, president of the now-dissolved company, by phone late Thursday.

Cap-Pele beach first in N.B. to receive prestigious distinction
Cap-Pele beach first in N.B. to receive prestigious distinction

He says it’s a “misunderstanding,” but declined to say where the $87,500 was and said he wasn’t sure if he’d file a statement of defence.

The allegations have not been tested in court.

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The village’s lawyer declined an interview about the ongoing suit.