Dene Nation sued over unpaid rent
Court action seeks $114,000 for 50 Street office space
Shane Magee
Northern News Services
Friday, November 11, 2016
SOMBA K'E/YELLOWKNIFE
The Dene Nation has been taken to court over alleged unpaid rent to its office landlord, according to a statement of claim filed in NWT Supreme Court last month.
Dene Nation Chief Bill erasmus says: "It's an internal matter and we'll deal with it." |
The filing states the indigenous political organization owes more than $114,000 in payments to MDC Holdings Ltd. for office space at 5125 50 St.
It was to pay $6,600 in rent and about $3,800 in operating and maintenance costs per month based on a lease signed in 2006 and later extended in 2011.
Starting in December 2015, MDC alleges Dene Nation stopped paying rent.
"Despite repeated assurances by representatives of Dene Nation that payment would be forthcoming, Dene Nation has refused or failed to satisfy the arrears of rent and accruing rent,"
the notice of claim states.
Dene Nation told the company it would vacate the space after a final demand for payment was made Oct. 6, the claim states. The company also alleges Dene Nation has damaged the space, pegging the cost to fix carpets and a removed wall at $12,000.
Space for lease signs now occupy several of the office windows.
Dene National Chief Bill Erasmus said because of legal proceedings he wasn't able to comment.
"It's an internal matter and we'll deal with it," Erasmus said.
The Dene Nation has not yet filed a response to the claim.
The court case comes as no surprise. A letter from law firm DLA Piper to the Dene Nation and several First Nation chiefs was provided to Northern News Services over the summer threatening legal action.
The July 22 letter states the Dene Nation was already in arrears and sought payment of $62,315.51 by the end of August, or else face legal action and the termination of its lease.
Calls to Dene Nation at the time were not returned and DLA Piper declined to comment.
In April, Erasmus told reporters at a news conference that the territorial government was withholding payments for its health program, which amounted to about $1.3 million in total.
The money from the federal government was based on a 1988 agreement but funds flowed through the GNWT, which Erasmus said was withholding about $165,000 per year since 2008.
Erasmus said the Dene Nation was paying the cost itself but it was having an impact on its finances.
"This affects us on a daily basis. We're behind in rent. We're behind in a whole number of areas. A million dollars is a lot of money," said Erasmus at a press conference April 21.
Bill Merklinger, comptroller general for the GNWT, told Yellowknifer in April that the government doesn't agree it is withholding funding.
"Dene Nation owes the GNWT $352,179.89 (as of April 22) and the reason for that is Dene Nation is in arrears with respect of a payroll tax," said Merklinger, adding the Dene Nation appears to be using the funds to pay off debt.
Larry Frolick, communications head with the Department of Finance, stated in an e-mail Thursday that the amount owing remains largely unchanged.
