Senators owner Eugene Melnyk is suing his business partner in a development deal that was meant to bring a new NHL arena to Ottawa’s downtown.
Capital Sports Management Inc., a group controlled by Melnyk, said in a release Friday that it has started legal proceedings against John Ruddy, the chair of Trinity Development Group Inc., “seeking damages arising out of a failed joint venture between Trinity and CSMI.”
The statement alleges the two companies were not able to finalize a master development agreement for the LeBreton Flats area of Ottawa, a couple of blocks southwest of Parliament Hill.
CSMI says its statement of claim “alleges a number of breaches, all arising out of a conflict of interest, that directly resulted in the failure of the partnership.”
The statement of claim was filed a day after the National Capital Commission, the Crown corporation which is responsible for the land at LeBreton Flats, said the Senators-backed RendezVous LeBreton Group advised the NCC on Nov. 8 that they had not been able to resolve internal partnership issues.
The NCC picked RendezVous for a development deal at LeBreton Flats that included a new NHL arena for the Senators as well as housing developments.
The Senators currently play at the Canadian Tire Centre in Kanata, about 22 kilometres west of Ottawa’s downtown.