TORONTO, Aug. 14, 2017 /CNW/ - On August 10, 2017 the Honourable Justice Perell of the Ontario Superior Court struck out the Statements of Claim in four proposed class actions against Fortress Real Developments Inc. (Fortress) and other defendants.
Justice Perell dismissed the claims against Jawad Rathore and Vince Petrozza, the founders of Fortress, on the basis that the Statements of Claim did not disclose any legal causes of action against them.
Justice Perell also dismissed the claims against two real estate development companies – Empire Pace and Adi Developments – that had borrowed funds for real estate development projects through syndicated mortgage loans, on the basis that the plaintiffs had no legal standing to bring claims against them.
The plaintiffs were granted leave to file new Statements of Claim with the court within 40 days – with respect to claims other than those against Mr. Rathore, Mr. Petrozza, Empire Pace and Adi Developments – failing which the actions will be dismissed. Justice Perell ruled that the filing of any new Statements of Claim will not affect the rights of Fortress and the other defendants to challenge those new Statements of Claim for not disclosing legal causes of action or for not being compliant with the rules of the court.
As part of his decision, Justice Perell directed the defendants to make costs submissions to him in writing within 20 days, if the parties are not able to reach an agreement on costs.
As Fortress has previously stated, there is no basis whatsoever to these actions. Vince Petrozza, COO of Fortress, stated, "We are extremely pleased with the ruling last week. The allegations made in the claims are untrue, misleading and aimed at damaging the reputation of Fortress and Fortress projects in an attempt to benefit companies and individuals trying to compete with Fortress."
"Fortress has a portfolio of over 80 development projects across the country, of which 22 are now completed. We continue to focus on identifying and developing high value real estate projects across Canada and along with our partners, we remain committed to delivering communities we are proud of," said Jawad Rathore, President & CEO of Fortress
If the plaintiffs choose to file new Statements of Claim naming Fortress as a defendant, Fortress will continue to vigorously defend itself against these baseless lawsuits.
Fortress Real Developments Inc. is a Canadian real estate development company that seeks out and analyzes real estate development opportunities in major Canadian markets. The company is focused on quality projects with recognizable alpha in residential low-rise, high-rise, commercial and industrial market segments. For more information, visit: http://fortressrealdevelopments.com
SOURCE Fortress Real Developments
For further information: Natasha Alibhai, Fortress Real Developments Inc., natasha@Fortressrdi.com, Phone: (905) 787-9266 ext. 235