Defamation suit claims developer was depicted as 'monster-like'
Homebuyer who sued StreetSide after losing deposit hit with counterclaim describing alleged malicious campaign
A B.C. man who lost almost $82,000 in a pre-sale condo deal after failing to meet contract terms is facing a defamation lawsuit by the developer, which claims he carried out a concerted campaign to hurt the company's business after losing his deposit.
In 2021, Sudip Sehgall put down a $81,990 deposit on a yet-to-be-built townhouse in a 127-unit complex in south Surrey, B.C.
Sehgall told CBC News that when his home in New Delhi could not be sold in time he was unable to close the deal on his new property, and he forfeited his deposit.
On March 20, 2024, Sehgall, 52, filed a civil action with B.C. Supreme Court against StreetSide Developments Ltd. in an attempt to recoup his losses, claiming he was denied a chance to resell or reassign the unit to a new buyer so he could rescue his deposit.
But in a counterclaim filed April 12, StreetSide alleged that after forfeiting his deposit Sehgall tried to defame the company out of "vengeance," lobbying journalists, news outlets, boards of trade, the Better Business Bureau, local politicians and business leaders, comparing the situation to "David and Goliath."
Sehgall has yet to file a response to the counterclaim.
He told CBC News that he came to Canada as a skilled immigrant in 2016 and, together with a loan from his father, saved up enough to put down a deposit on the home.
Sehgall's claim argues that after he lost his deposit, StreetSide issued a blanket refusal to allow him to market or assign the property to new buyers, as he believes was allowed under the contract.
He contends the developer elected to forfeit his deposit when it had other options.
In its counterclaim filed in B.C. Supreme Court, StreetSide alleges that on May 29, 2023, Sehgall requested a delayed completion date, but was denied as the date had already been extended by around five months.
StreetSide claims that in an email on July 11, 2023, the company denied Sehgall's request to market the condo for sale and urged him to find a family member or friend to help him close the purchase, offering him one last additional two-week extension.
The company says it followed up multiple times with Sehgall's Realtor, requesting he confirm he accepted an extension but Sehgall either failed, neglected to, or refused to reply by the Aug. 1, 2023, deadline.
He was then considered in default, according to the counterclaim.
StreetSide says Sehgall never presented a proposed assignment of contract of the purchase — another buyer willing to take over the property — for the developer to consider.
'Unjust, unethical'
After Sehgall defaulted and was denied his deposit, StreetSide claims Sehgall then attacked the company's reputation to try to pressure the company to return his money.
StreetSide claims Sehgall painted the company as "unjust, unethical," claiming its "bad faith" actions ruined him financially.
The developer says "false allegations" and "innuendo" smeared the company's reputation, depicting it as "a larger monster-like entity that took advantage of the plaintiff."
StreetSide is seeking damages and an order for Sehgall to retract and destroy all false allegations. It is also seeking an order for Sehgall to give the company's legal team copies of all publications and communications made about StreetSide.
In response to a request for comment from CBC News, a StreetSide spokesperson said in an email that the developer's contracts follow the rules set out in the Real Estate Development Marketing Act of B.C.
In an email sent Monday, StreetSide vice-president Jonathan Meads said the company would not comment further as the matter is before the courts.
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