Trinity countersues Melnyk for $1 billion over LeBreton fiasco

Trinity Development Group Inc. has clapped back at Eugene Melnyk, the owner of Capital Sports Management Inc., countersuing for more than $1 billion.

It's the latest legal battle over the LeBreton Flats redevelopment, after Capital Sports Management Inc. sued Trinity Development Group Inc. Executive Chairman John Ruddy and others for $750 million.

In the countersuit, Trinity claims it's been covering Capital Sports Management Inc.'s share of the costs so far on LeBreton Flats project, and is calling in the tab, plus demanding reimbursement for its own expenses. Those two things total more than $4 million.

Trinity is also suing for $1 billion for things like loss of capital value in the LeBreton project, loss of opportunity, and loss of future profit.

The countersuit also claims $1 million in punitive damages.

Observers think this countersuit is the final blow to the Melnyk-Ruddy partnership, but it also raises questions about Melnyk's financial future.

“We know that Melnyk is not exactly flush with capital; I think that's been reflected in the way the Senators have been operated in recent seasons,” said Wayne Scanlan, a veteran hockey writer and Sportsnet contributor. “You just wonder the degree to which he's able to handle a suit like this.”

“If it were to get to court, it could drag on and involve millions of dollars,” Scanlan told Ottawa Today with Mark Sutcliffe on 1310 NEWS.

Trinity also calls Melnyk's initial lawsuit “meritless” and that it contains multiple falsehoods. 

But the head of Trinity Development Group said he is still committed to seeing the LeBreton Flats redevelopment project move forward.

“I have been actively involved in the redevelopment of the LeBreton Flats since 2014 because I know how important this redevelopment is to local residents and Canadians,” Ruddy said in a written statement. “The vision we've brought forward is the right one. I will work with the NCC, the City of Ottawa, and the community at large to advance solutions that will make this project a reality, and avoid losing these important lands for another generation.”

Ruddy added that he will not say anything more about the litigation while it's before the courts.

The claims in the suit and countersuit have not been proven in court.