A member of a Saanich Peninsula farming family has been awarded $2.5 million following a dispute with HSBC Bank Canada over how to split proceeds from the sale of the former Vantreight Farm.
Mortgage holders Michael Vantreight and HSBC faced off in the Supreme Court of B.C. following the sale last year of six parcels for a total of $8.75 million. Foreclosure proceedings against Ian Vantreight, Michael’s brother, saw the lands go on the market. Ian had attempted to keep the family farm intact but was unable to meet financial obligations.
Westerkirk Capital Corp., headed by local resident Sherry Brydson, bought the properties under a court-ordered sale. Fifth-generation farmer Ryan Vantreight, Ian’s son, stayed on as manager.
The crux of the June 23 decision by Judge Elizabeth Arnold-Bailey was about how much of the total net sale proceeds should be attributed to one parcel at 8410 Wallace Dr. in Central Saanich. The value of that 92-acre parcel was critical because it includes a 32-acre section zoned to allow construction of a 57-lot residential subdivision.
HSBC held first and third mortgages on that particular development parcel. Michael Vantreight held a second mortgage, the court decision states.
The outcome of the dispute between the mortgage holders determined whether Vantreight would receive any money from his mortgage on the land.
The bank wanted a lower percentage of the total net sale proceeds from the six parcels attributed to the development parcel, arguing in favour of 27.04 per cent. Vantreight sought 56.92 per cent, the decision said.
Judge Arnold-Bailey decided that the development parcel had a higher value within the group of properties, noting the $5 million value that Westerkirk had attributed to that land at the time of the sale. She found that 57.34 per cent of the total net sale proceeds should be allotted to the development parcel.
That meant Vantreight was awarded $2.5 million. That amount does not cover the full mortgage, which court documents state had reached $4.1 million.
The bank has 30 days to decide whether to appeal the decision.
