The Town of Olds is being sued by RVB Managements Ltd. in connection with flooding that happened at Braeburn Estates on April 26. A co-defendant, 1407095 Alberta Inc., is also being sued by RVB. Only the Town of Olds has filed a statement of defence at this point.
In its statement of claim, RVB Managements is seeking at least $500,000 in damages to renovate Braeburn Estates, at least $25,000 per month to replace loss of rental income, damages for increased insurance premiums as a result of the flooding to be determined at trial, and punitive damages of at least $50,000, among other remedies.
In its statement of defence, the town denies RVB suffered damages in that amount and asks RVB to provide proof of the monetary loss.
The suit also alleges that “prior to 2009, the Town of Olds or in the alternative, 1407095 or both of them, dug a large hole on the 1407095 lands and the Town of Olds subsequently used the soil therefrom for a noise abatement berm at the rodeo grounds of the Town of Olds.”
The town denies it dug the hole on the adjacent land.
“In specific response to … the statement of claim, the town denies it dug a hole on the lands owned by 1407095,” the town's statement of defence reads.
RVB also claims that the flooding was caused by the defendents.
“The Plaintiff states that the inundation with water brought about by the defendents, or any one of them, their servants, agents, employees, or any one or more of them, with resulting impairment or damage to Braeburn Estates, … has created a nuisance that has interfered with and continues to interfere with the plaintiff's and its tenants' right to use and enjoy Braeburn Estates,” the claim reads.
The town denies the claim.
“In specific response to paragraph eight and the whole of the statement of claim, the town denies that it brought about the alleged inundation of April 26, 2011 or created a nuisance that interfered with the plaintiff's property,” the statement of defence reads.
RVB Managements also alleges that the flooding of Braeburn Estates was due in whole or in part to the negligence of the town. It goes on to list nine reasons for that claim. The town denies it was negligent and asks RVB to provide proof.
RVB Managements alleges that due to negligence of the town and 1407095 Alberta Inc., it has suffered loss and damage to Braeburn Estates and has incurred significant renovation costs, loss of rental income and that insurance premiums on Braeburn Estates are being increased.
The town denies all of the allegations and claims that the inundation of water was caused by natural causes that were beyond the town's control. It further states that the damage was unforeseeable and “too remote to be compensable.”
The town also alleges that RVB Management failed to maintain proper drainage and other water mitigation strategies and that some or all of the repair costs are due to “building and maintenance deficiencies that pre-existed the events of April 26, 2011.”
The town is asking that the suit be dismissed. A hearing date has not yet been scheduled to hear arguments.
