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DETAILED TIMELINE OF MAJOR EVENTS
ORIGINAL METAXIDES LAWSUIT (2006) APPLICATION FOR JOINDER (2010) LAWSUIT AGAINST CONSENT ORDER (2010) APPEAL OF JUDGMENT (2012-2013) SECURITY OF COSTS OF APPEAL (2012) APPEAL TO PRIVY COUNCIL (2013)
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COSTS OF THE
METAXIDES LAWSUIT TO DATE GRAHAM, THOMPSON & CO
(ROBERT ADAMS) - $32,946.31 1 SESSIONS HOUSE (EDWIN KNOWLES) - $25,000.00
2 MCDONALD & CO. (CONSTANCE MCDONALD) - $11,475.00 GAIL LOCKHART-CHARLES & CO. - $256,323.00
3 CALLENDER'S & CO. - $1,250.00 TOTAL INCURRED IN LEGAL FEES TO DATE - $326,994.31
2
TOTAL ALREADY PAID -
$112,396.31
TOTAL OUTSTANDING (STILL NEEDS TO
BE PAID) - $1,888,730.12 5
TOTAL LEGAL COSTS TO SILVER POINT
OWNERS -
$2,001,126.43
5 WHAT DOES THIS MEAN TO YOU? You Have Already Paid:
Per 1 BR (avg 0.89%) = $1,000.33 You Still Owe:
Per 1 BR (avg 0.89%) = $15,858.54 Notes: SPCA and Metaxides are jointly and severally liable for Callender's fees. This means that while Metaxides has been Ordered also to pay Callender's & Co's fees, these fees are still fully owed by the owners of Silver Point, and SPCA's debt is not settled until all of the fees have been paid in full, whether Metaxides contributes to them or not. These numbers are only estimates. Consider that 5.24% of the unit entitlement will not be contributing to these costs, so the actual numbers are likely higher. The Registrar may alter these numbers somewhat during the taxation process. Commentary: This amount will have to be done as a special assessment, as there is no cash reserve and no contingency planning for this has taken place by the BoD. Ask yourself: Do you want to be liable for these costs that you did not authorize, and that were illegally incurred by the BoD with your money? The BoD has taken the position that by owner inaction, and allowing them to remain on the BoD, owners have authorized their actions. They have repeatedly said this, and owners have not objected in any organized manner to that statement. Courts have held that owners may not sleep on their rights, owners may unknowingly be shielding the BoD members from future liability for these fees by not acting to stop the bleeding. So what can you do? Stand for the BoD at this year's AGM and stop the bleeding. DETAILED BREAKDOWN OF LEGAL FEES BILLS OF COSTS FILED PENDING TAXATION - PAYABLE BY SPCA & METAXIDES
Callender's & Co (Trial &
Injunction) - $1,050,435.43
LEGAL FEES ACCUMULATED SO FAR (PAYABLE
ENTIRELY BY SPCA) Footnotes 1 This amount was over the course of several AGMs and was approved by the body corporate. If Silver Point were victorious in the Metaxides lawsuit, this money would be recoverable and would be returned to the condominium. However, the BOD with the Consent Order illegally gifted this entire amount to Mr. Metaxides without the authority or (we believe) a good reason to do so. Now that the Consent Order has been declared invalid by the Court of Appeal, SPCA can (and should) seek to recover these fees. 2 This amount does not include $14,771.88 that was paid by Silver Point in 2004-2005 to Sessions House (Edwin Knowles) for unspecified services allegedly performed in December 2004 and January 2005, when both Mr. Metaxides and Veronique Knowles (Edwin's wife) were on the Board of Directors. Both left the BOD at the end of January, 2005, at which time the legal bills from Sessions House also stopped. This money was also illegally gifted to Mr. Metaxides by the BOD in the Consent Order, but because the Consent Order has been declared invalid, this money will be repaid to Silver Point, if Silver Point pursues it (as they should). 3 It has been a standing direction at Silver Point for decades that over $20,000 cannot be authorized by the BOD, it must be authorized by the owners at an AGM. This payment to Charles, like the $25,000 paid to Sessions House, and all other legal fees to be paid, was a violation of Section 1(1) of the byelaws, and a Breach of Fiduciary Duty by the Board of Directors in not seeking owner approval. 4 Metaxides also paid $1,250 to Callender's, and also another $1,500 for the hearing to submit fresh evidence. 5 May be decreased during the upcoming taxation process. PENDING COSTS Counterclaims - Silver Point and Mr. Metaxides will have to pay all legal fees of Callender's & Co, as well as their own attorneys' legal fees for all fees incurred as a result of the failed counterclaim applications. Callender's has filed a Bill of Costs in the amount of $97,203.33. SPCA has not divulged their attorney's fees for the counterclaims, which will also need to be paid. Injunction Hearings - By virtue of successful Appeal, all costs incurred as a result of the injunction hearings will be borne by SPCA and Metaxides. These costs are about half of the totals shown below under Supreme Court Trial, but are filed together with those costs. See below. Conflict of Interest - A summons filed by Mr. Metaxides in February, 2011 asserting conflict of interest of Callender's & Co. was subsequently withdrawn, and costs Ordered to be paid by Mr. Metaxides. No cost will be incurred by the owners of Silver Point. Motion to Strike Joinder - A summons filed by Mr. Metaxides in February, 2011 attempting to strike the joinder application in a separate action was subsequently withdrawn, and costs Ordered to be paid by Mr. Metaxides. No cost will be incurred by the owners of Silver Point. Supreme Court Trial - By virtue of successful Appeal, the costs of the Supreme Court Trial have been awarded to the Appellants, to be paid by SPCA and Metaxides. Callender's & Co. has filed a Bill of Costs for the Action, totalling $1,050,435.43. Gail Lockhart-Charles has previously submitted a Bill of Costs of $180,345.00, which will also be payable by Silver Point owners. Metaxides' Legal Fees of $373,386.25 will be paid himself. Appeal of Justice Longely's Judgment - The Court of Appeals has Ordered all costs of the Appeal will be paid to the Appellants. Callender's has filed a Bill of Costs of $377,896.45 for the appeal. SPCA also owes $51,636.00 to Gail Lockhart-Charles which has not yet been paid. CoA Objection Hearings - Silver Point and Metaxides objected to proceeding with taxation for the costs of the Court of Appeal hearings, citing certain documents that were filed out of time. This required an additional hearing before the Court of Appeals, who dismissed the objections, and awarded all costs for both hearings and associated filings and expenses to be paid by Silver Point and Metaxides, with no part being paid by the Appellants. Callender's has filed a Bill of Costs of $106,871.91. This cost, after taxation, must be paid by SPCA and Metaxides no matter the outcome of Privy Council. SPCA's fees to Gail Lockhart-Charles have not been disclosed. Privy Council - If SPCA loses at Privy Council, costs of this action, both for SPCA's attorney and for Callender's & Co will be payable by the owners. If they prevail, then the matter will return to the Court of Appeals to argue the other 33 points of law being appealed and the Plaintiffs will have to pay the Privy Council fees. None of these expenditures were authorized by the owners except the initial defense of the Metaxides action. The initial expenditure is recoverable upon successful defense of the Metaxides action, but the BOD, through the Consent Order, relinquished Silver Point's rights to this money. However, if the current action is successful, Silver Point will once again have a claim to it. All other expenditures were incurred by the BOD without authorization from the owners. MORE INFORMATION See our Frequently Asked Questions for more information about how your rights and your finances may be affected by the outcome of the action. Anything you don't see, you are always welcome to ask us.
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