Paused lawsuit against Paradise company leaves homeowner in limbo

A fed-up Paradise resident is in legal limbo after his lawsuit against a Paradise home-building company was put on hold.

Last month, Thomas O'Brien's got a letter in the mail from lawyer Darren O'Keefe, the lawyer representing developer Greg Hussey's companies — which include Karwood Contracting.

The letter informed him that his lawsuit had been stayed because Karwood, the company that built O'Brien's home, had entered creditor protection. 

O'Brien, frustrated at the latest turn of events, says companies don't enter creditor protection out of the blue.

"This is something that they probably knew about for quite some time that was on the horizon," O'Brien told CBC News.

At this point, O'Brien said he can't really do anything about his long-standing problem with Karwood.

"I can at least make sure people know that this is a company in your community that has demonstrated, to me and every single person on the street out there, that they are not trustworthy."

O'Brien lives in a duplex-lined cul-de-sac off Karwood Drive that has gravel pits for front yards and driveways, despite a contract from Karwood Contracting to have the work completed by June 30, 2023.

Fed up with the company's lack of communication with him, O'Brien filed a lawsuit in small claims court, seeking $5,525 so he could hire contractors to complete the work.

But in February, Hussey's four companies —  Karwood Contracting, Karwood Engineering, Karwood Design and Karwood Ontario — entered creditor protection.

"I had one day in court with them, a settlement conference, and we were booked again to go back this month," said O'Brien.

"Unfortunately since then, Karwood's filed for creditor protection, which means that all the kinds of court proceedings against them are stayed. So I'm kind of out of luck right now."

In an email O'Keefe said the monitor, BDO Canada, is working on the restructuring process and it's going well.

"It is too early to tell how the outstanding construction issues for Nicholas Quinn Place will be resolved, but ultimately this is now in the hands of the monitor to deal with, in cooperation with the company. We are operating on the assumption these issues will be dealt with," O'Keefe told CBC News.

The matter is due back in court on April 11.

'Biggest eye-roll'

In an affidavit dated Jan. 27, Hussey listed a litany of reasons behind his companies' financial problems, including the impact the COVID-19 pandemic had on the price and supply of materials, the actions of other businesses and what he described as "aggressive lender behaviour."

Hussey said he intends to use this period in creditor protection to "weather the storm" and come out as a leaner company.

However, O'Brien said he's skeptical about the company's future, saying he gave the "biggest eye-roll" when he read Hussey's statement.

"It all just sounds like excuses from people that had no idea how to run a business effectively. Had no idea how to keep their customers' needs in mind. And to be honest, it feels like they don't care," he said.

O'Brien also isn't hopeful the company will complete the contracted work at his home if Karwood exits creditor protection.

"First off, if they do somehow manage to 'weather the storm' or to get through this and come out on the other side of it, I have no belief that they would follow through, still, on that end of things," said O'Brien.

He said Karwood's past actions speak for itself, noting how he repeatedly tried to contact the company prior to the lawsuit, but was ignored.

"So no, I have no faith whatsoever in Karwood Contracting or Greg Hussey," he said.

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