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Stinson, Mirvish court battle not over quite yet
It's hard to go a week in this city without hearing about the latest development in Harry Stinson's real estate struggles. From his public war of words with Donald Trump to his legal matters with David Mirvish, Stinson sure knows how to keep the media's attention on him.
The Post's Chris Wattie reports on the latest Stinson-related news:
The judge overseeing a running battle between two of Toronto’s best-known businessmen reserved her decision yesterday on a bid to appoint a receiver to take over the luxury condominium and hotel tower One King West.
Madame Justice Sarah Pepall told lawyers for developer Harry Stinson and for theatre impresario David Mirvish, who provided much of the financing for the 51-storey building, that she would issue a ruling “in a matter of days.â€
However, the judge hinted that she does not expect her decision to end the long-running and increasingly acrimonious dispute. “I do appreciate that this is a difficult matter for all concerned,†Justice Pepall said at the end of the two-day hearing in Ontario Superior Court. “It’s frankly highly problematic.â€
Lawyers for Mr. Mirvish, who was not in court for the hearing, are asking the court to appoint a receiver to oversee operations of the hotel and condos at the corner of King and Yonge streets. “We hope that the court will put something into place to end all the litigation,†said Patricia Conway, of the law firm Miller Thomson, representing Mr. Mirvish. “Mr. Mirvish just wants out of it at this point.â€
Mr. Stinson, the flamboyant hotelier who first proposed the ambitious One King West project, said after the hearing that he was not optimistic that the dispute will end, even if the judge rules in his favour and does not appoint a receiver.
“There’s too much mud that’s been thrown here — that’s the sad part,†he said. “An outstanding project has turned into a giant negative experience for everyone involved — except for the guests in the hotel. Given that we’re full tonight they seem to like what we’ve done.â€
Despite the months of court, Ms. Conway said her client holds no grudge against Mr. Stinson. “Mr. Mirvish has always, always wished the best for Mr. Stinson and in my opinion has turned himself into a pretzel to accommodate him.â€
But Arthur Jacques, the lawyer for Mr. Stinson, told court that if a receiver is appointed to take over management of the hotel, it would have disastrous consequences. “You will destroy this operation economically; you will destroy its goodwill,†he told the judge.
The fight began earlier this year when relations soured between Mr. Mirvish, who put up most of the cash for the award-winning building, and Mr. Stinson, the creative force behind the project, after the theatre impresario sought $11.8-million for the lower floors.
In February, Mr. Stinson sought bankruptcy protection for two of his One King West companies. Mr. Mirvish’s legal team replied with a separate action to appoint a receiver who would take charge of the hotel assets.
In April, Mr. Stinson counter-attacked with a $38-million lawsuit, claiming Mr. Mirvish failed to deliver on several promises. The suit was dismissed after the former partners appeared to reach a compromise.
Mr. Stinson still manages the Suites at One King West and owns the first four floors, including the hotel lobby, several meeting rooms and the former banking hall of the Dominion Bank of Canada.
But under a court-supervised deal in April, Mr. Stinson must be monitored by receiver Ira Smith, who now oversees all of the condo king’s business records.
Photo of Harry Stinson by Peter Redman for National Post
