Argo Mezzanine Financing No. 1 Ltd. v. Plaza 88 Developments Ltd., 2024 BCSC 1994

Ken McEwan and Ariyana Dhawan successfully represented the plaintiff, Argo Mezzanine Financing No. 1 Ltd. in a contractual interpretation claim arising from the dispute between parties regarding the allocation of certain funds as profit from a residential and commercial development in New Westminster.

Argo entered into a transaction in which it loaned $40 million to the defendant, Plaza 88 Developments Ltd. to be used for construction of the New Westminster development. Argo was entitled to repayment of the loan principal with interest and to participate in the profits of the development project by receiving 10% of the “Net Distributable Cash from the Project” as defined in an agreement between the parties. The claim centered on whether Plaza 88 was entitled to deduct certain costs under the Net Distributable Cash formula.

After a five day trial, Justice Hughes accepted that two out of the three disputed costs should not have been deducted from the calculation. As a result, Justice Hughes declared that the Net Distributable Cash of the Project is to be increased by $3,463,051, of which Argo is entitled to 10%.

The full reasons for judgment can be found here: Argo Mezzanine Financing No. 1 Ltd. v. Plaza 88 Developments Ltd.