Roxy Theatre, neighbour in lawsuit fight over claims post-fire rebuild damaged next door building

Construction work to rebuild a historic Edmonton theatre damaged a neighbouring retail building, the building’s owner claims in a lawsuit linked to its move to deny the theatre access to its property to finish an exterior wall.

Last month, Alberta Court of King’s Bench Justice Donald Lee ruled against the operators of the Roxy Theatre, denying them an easement to the property directly to the theatre’s south on 124 Street.

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The Roxy’s owners, Theatre Network Society, claim they need access to the property to complete work on the theatre’s unfinished south wall.

The easement controversy is tied up with another ongoing legal case stemming from the theatre’s rebuild, which has been underway since 2019 after a catastrophic fire destroyed the Roxy four years prior.

The Roxy reopened in 2022 with its south wall still under construction. In court submissions, the theatre claims that without waterproofing, insulation and cladding, the wall poses “significant hazards” to the public, theatregoers and adjacent properties — worries Lee downplayed in his decision on the easement.

Lawsuit claims builders excavated ‘under’ next door building foundation

The building to the south of the Roxy is owned by CSIC Services & Holdings and is home to Meuwly’s Artisan Food Market, Washoku Bistro and Golden Sparrow. The building has stood for more than 40 years, directly abutting the Roxy Theatre on their shared property line.

In 2020, CSIC filed a lawsuit claiming work to rebuild the Roxy after the 2015 fire damaged its building.

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The statement of claim, which contains allegations not proven in court, names Theatre Network, Chandos Construction, Kichton Contracting, GeoPacific Consultants, Profound Construction and the City of Edmonton as defendants.

The lawsuit alleges three of the contractors entered CSIC’s property and excavated “under the foundation of the CSIC building without any authorization.”

CSIC also claims it was not given a chance to inspect whether the excavation and subsequent fill were done properly.

“Since the excavation, cracks have formed in the basement of the CSIC building and the north wall of the CSIC building has shifted,” the lawsuit states.

CSIC also claims the City of Edmonton failed to properly regulate work on the theatre and failed to act on its request the construction be halted.

“Notwithstanding that it was aware of the trespass and the potential for damage to the CSIC building, the city refused or neglected to stop work on the construction of the new building until proper measures could be put in place to protect the CSIC building,” the claim reads.

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CSIC is seeking $150,000 in general and punitive damages, as well as additional costs, a declaration the defendants trespassed on its lands, and an order the CSIC building be restored to its “original state.”

Peter Keith, co-owner of Meuwly’s, said construction next door has been “incredibly difficult” on businesses in the CSIC building.

Keith, who is not a party to the litigation, said “large cracks” appeared down the length of the building’s north wall during excavation for the theatre rebuild.

“We’ve withheld public comment on these matters since 2021, as we have no desire to publicly shame the Roxy organization,” he said in an email. “However, recent weeks have seen an uptick in speculation about the unfinished wall. We’ve been receiving boycott threats, negative Google reviews, and personal smears against us as owners.”

Janice Agrios, CSIC’s lawyer, previously declined comment citing the ongoing litigation. Theatre Network also declined comment.

Theatre, builders and city deny wrongdoing

Theatre Network and the companies involved in the construction deny wrongdoing and have asked the court to dismiss CSIC’s lawsuit.

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In its statement of defence, Theatre Network disputes “each and every” claim from CSIC.

It fired back with its own claims, alleging parts of the CSIC building, including its footings, ducts and a bulge in the foundation encroached on the Roxy property — which CSIC denies.

The theatre also disputed allegations it trespassed, but said if it did, CSIC failed to mitigate and inflated the value of any losses it suffered as a result.

Profound Construction, which performed the excavation work, said it took “extraordinary care” to make sure it didn’t cross CSIC’s property line.

“Profound specifically denies that it entered onto and/or excavated a portion of the CSIC lands underneath the foundation of the CSIC building, as alleged or at all,” its statement of defence says.

The defence also accuses CSIC’s “agents, employees, directors, officers or representatives” of “consistently harassing, intimidating, threatening and attempting to provoke Profound’s employees.”

The City of Edmonton also denied wrongdoing, arguing it is legally immune from civil liability in the case. If the court finds otherwise, the city says it performed its duties “in good faith and in accordance with the Safety Codes Act.”

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CSIC’s claim says if the case goes to trial, it expects the proceedings “will not take more than 25 days.”

jwakefield@postmedia.com

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@jonnywakefield.bsky.social

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