Kingswood golf-course owner alleges lawyer cost him millions through deceit, scheming
CBC
The owner of a hotel and golf course is suing a Fredericton lawyer and his firm, alleging that negligence, deceit and the mishandling of funds cost him millions of dollars.
In 2015, Brian Johnson, who owns Kingswood Ventures Inc., hired lawyer Stephen Hill of Elliott McCrea Hill to help him navigate a $42-million hotel project in Hanwell, southwest of Fredericton.
Over the next seven years, the lawsuit alleges, the hotel project was co-opted by Hill, franchisee options fell through, the construction company sued Kingswood, Kingswood sued the construction company back, Hill lied about court dates and filings and settled the lawsuit without advising Kingswood.
Kingswood also alleges that Hill asked for a $160,000 no-interest personal loan that he stopped paying back, that Hill was unable to say where he put $750,000 in trust and that he has not given the company most of its official documents.
Kingswood only found out the extent of the alleged fraud in 2021, and finally sued Hill and his law partners, Paul Elliott and Chipp McCrae, in July.
Kingswood is alleging Stephen Hill defrauded the company "through his actions, inactions, breaches of contract, breaches of fiduciary duty, negligence, deceit and defalcations and through a scheme by him to deliberately deceive and defraud, costing the company millions of dollars, the lawsuit says.
The lawsuit alleges that beginning in 2015, Hill repeatedly assured Kingswood "that he possessed the requisite skill and ability to represent and advise."
None of the allegations made by the company have been tested in court. Hill has submitted a notice of his intent to defend himself through his lawyer, Robert Creamer.
Creamer declined to comment on the allegations. Reached by phone Tuesday he said his clients Hill Elliott and McCrae are working on statements of defence "in which they'll not only deny but vigorously oppose the allegations made against them."
Hill is listed as practising and insured on the Law Society of New Brunswick's member directory.
The Radisson Kingswood Hotel & Suites, overlooking the Kingswood Golf Course, opened in early 2018. Soon after, Kingswood got in a dispute with the construction company that built the hotel because of "deficiencies and delays in that work."
The construction company sued Kingswood for more than $2 million. Kingswood counter-sued for $750,000.
Throughout the construction dispute, the lawsuit alleges, Hill did not keep Kingswood informed or tell the owner about upcoming court dates and two motions filed by the construction company.
Kingswood alleges Hill agreed that $1.7 million was to be paid to the construction company, and $750,000.00 was to be held in trust, all while "acting without instructions" from Kingswood and "after failing to provide informed legal advice."
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