Manitoba’s highest court is siding with the City of Winnipeg, overturning a $5 million penalty over the Parker Lands saga.
“I was really pleased to see the outcome of the appeal decision,” said Mayor Scott Gillingham.
In 2023, a trial judge ordered the city pay $5 million to Andrew Marquess, the developer and owner of Gem Equities. The judge concluded two city planners were liable for misfeasance in public office by intentionally stalling the 47-acre Fulton Grove residential development in the Parker Lands, at the behest of area councillor John Orlikow.
Now an appeal court has dismissed the ruling, meaning the city won’t have to pay the penalty and is entitled to legal costs.
“The appeal courts ruling that City of Winnipeg does not have to pay the $5 million that was originally awarded is a big savings for taxpayers, and I think that’s significant,” said Gillingham.
The appeal court decision, written by Justice James Edmond, found the trial judge made errors. His decision found there was no basis to conclude the planners breached any obligation they had to the developer.
“It was not done for an illegal or improper purpose with a conscious disregard that the conduct was likely to injure Gem,” the decision reads.
The appeal court also said local councillors’ input is important, and that the development process was not slowed down on Orlikow’s behalf.
“There is nothing nefarious about meeting with and receiving feedback from Orlikow,” wrote Justice Edmond.
“It shows that our staff was acting in good faith and doing their jobs,” Gillingham said. “And in fact Councillor Orlikow as well was exonerated in this and he too was doing his job.”
Orlikow declined a CTV News request for an interview.
A city spokesperson sent CTV News a statement saying they welcome the decision.
“…the Court of Appeal decision confirmed the city staff named in the court action acted appropriately and professionally,” the statement reads. “The decision also confirms that Councillors can communicate information to city staff in order to assist staff in deciding what recommendations to make to Council.”
But this might not be the final chapter. Dave Hill is the lawyer for Andrew Marquess.
“Our client was disappointed, and we were disappointed,” Hill said, adding his client wants to take the case to the Supreme Court of Canada.
“A lot of the exhibits were damning pieces of evidence from the city that we only found through the trial process.”