Advertisement

Houseboat owners get $5K in wake of 2012 Shuswap flood that led to lawsuits, receivership

In 2012, sudden flooding damaged the waterfront property of Waterway Houseboats and Vinco Holdings of Sicamous. This week, the B.C. Supreme Court ordered that each houseboat owner was to receive just over $5,000 for lost earnings. Global News

Another legal chapter was added this week in the long and somber story of a houseboat company in B.C.’s Southern Interior that was forced into receivership because of flooding.

In 2012, Waterway Houseboats and Vinco Holdings of Sicamous suffered a serious financial blow when flooding damaged their waterfront property on Mara Lake.

Waterway and Vinco wound up suing the province, the District of Sicamous and a local couple, asking for $10 million for property damage and business losses.

READ MORE: B.C. Supreme Court judge awards $2M in 2012 flood damage lawsuit

However, they were awarded just $2 million, and on June 11, 2019, the court placed the houseboat company into receivership despite objections from Waterway and Vinco.

Story continues below advertisement

Notably, the insolvency trustee company that handled the receivership said the houseboat company had $13.331 million in assets, but owed $13.392 million to creditors.

On Tuesday, May 12, a B.C. Supreme Court justice issued supplemental reasons for judgment against Waterway and Vinco.

Click to play video: 'B.C. Supreme Court judge awards $2M in 2012 Sicamous flood damage lawsuit' B.C. Supreme Court judge awards $2M in 2012 Sicamous flood damage lawsuit
B.C. Supreme Court judge awards $2M in 2012 Sicamous flood damage lawsuit – Apr 19, 2019

“The majority of the houseboats in Waterway’s fleet were owned by individual houseboat owners (IHO). In total, there are currently 63 such owners,” wrote Justice G.P. Weatherill.

“While the houseboats themselves did not sustain physical damage, the flood resulted in the loss of Waterway’s business, revenues and profits which filtered down to loss of profits to the individual houseboat owners.”

Weatherill wrote that damages awarded to the individual houseboat owners was $335,353.13, stating the amount was based on an assessment he did of lost earnings that the houseboat owners sustained because of the flood.

Story continues below advertisement
Click to play video: 'Waterways receivership a blow to tourism in Canada’s houseboat capital' Waterways receivership a blow to tourism in Canada’s houseboat capital
Waterways receivership a blow to tourism in Canada’s houseboat capital – Jun 12, 2019

In April 2019, Weatherill said he granted judgment in favour of the plaintiffs against the various defendants, but that an appeal of the judgment was to be heard on June 17, 2020.

But on April 29, 2020, Weatherrill said he received a letter from counsel representing 45 of the houseboat owners that they had reached a settlement.

Weatherill noted that attempts have been made to reach the remaining 18 houseboat owners, but that none have objected, commented or taken a position on the settlement request.

READ MORE: Shuswap houseboat company slammed by 2012 flood predicts it will go into receivership

At day’s end, Weatherill calculated that each houseboat owner will receive just over $5,000 – $335,353.13 divided by the 63 houseboat owners.

Story continues below advertisement

“The nature of Waterway’s business makes it extremely difficult to predict what business would have looked like but for the 2012 flood,” Weatherill wrote.

“There are simply too many economic factors and other unknowns to say with precision what the financial impact of the 2012 flood was. An assessment of past and future loss of earnings is therefore required.

“Therefore, the [award] will be allocated such that each Individual houseboat owner shall receive $5,323.06.”
Click to play video: 'Shuttered Sicamous houseboat site could become park and campground' Shuttered Sicamous houseboat site could become park and campground
Shuttered Sicamous houseboat site could become park and campground – Dec 1, 2019

Sponsored content