Desert Properties Inc. v. G&T Martini Holdings Ltd.
Desert Properties Inc.
Law Firm / Organization
McCarthy Tétrault LLP
G&T Martini Holdings Ltd.

Background:
Desert Properties Inc. and G&T Martini Holdings Ltd. were involved in a real estate development transaction in Langley, British Columbia. The parties entered into a Restated Subdivision and Servicing Agreement (RSSA), under which Desert was responsible for subdividing, rezoning, and servicing the land sold to Martini. Martini initiated arbitration, alleging Desert breached the RSSA.

Legal Issues:
The arbitration focused on Desert's responsibility for Development Works Agreement (DWA) levies related to a stormwater detention pond and a sanitary pump station, totaling approximately $19.75 million. Martini argued Desert should pay these costs. Desert sought to appeal the arbitrator’s finding that it was responsible for the levies, while Martini cross-appealed, disputing findings related to rezoning delays and claiming an equitable interest in Desert’s land.

Court Decision:
The Court of Appeal dismissed both parties' applications for leave to appeal. It found that neither Desert nor Martini raised an extricable question of law justifying further review. The court held that the arbitrator’s interpretations involved issues of mixed fact and law, unsuitable for appeal.

Costs and Awards:
The arbitrator ruled that Desert owed Martini for DWA levies, specifically $14.9 million for the stormwater detention pond. Martini’s claim for an equitable interest in the land was rejected. Prejudgment interest of $9,797.72 was awarded to Martini for certain environmental bonds, with the arbitrator declining Martini's request for higher contractual interest.

Court of Appeals for British Columbia
CA49527; CA49923
Real estate
Respondent