B.C. judge orders Monette Farms from Swift Current, Sask. to pay $12-million fee to adviser in ranching deal
CBC
A British Columbia judge says Saskatchewan farming magnate Darrel Monette must pay the $12 million he promised to an adviser in a multimillion-dollar ranching deal in 2021.
David Dutcyvich owns Vancouver Island-based 3L Developments Inc., which advised Monette in the ranching deal, the judgment said.
Born on a farm in Saskatchewan, Dutcyvich moved to B.C. as a teen and started working as a logger. He went on to create Lemare Lake Logging and then, from those profits, form 3L Developments, now part of a related group of companies through which he carries out development, ranching and agricultural activities.
Monette is the owner of Monette Farms Ltd., a ranching and farming operation with holdings in Saskatchewan, B.C., Manitoba and the United States. In a news release March 31, he said that the company, based in Swift Current, Sask., about 245 kilometres west of Regina, is appealing the ruling.
Justice Emily Burke's 50-page ruling on March 25 from the Supreme Court of British Columbia details the complex maneuvering behind the multimillion-dollar deal involving cattle and thousands of hectares scattered across 16 ranches in the province's interior.
For all its complexities, Burke's decision came down to deciding which of the two multimillionaire farmers was telling the truth about what was or wasn't said on a day in May 2021 when the two men took a helicopter ride near Kamloops to tour the ranches.
Burke chose to believe Dutcyvich's account of what happened.
"Mr. Dutcyvich said he had a brief early morning conversation with Mr. Monette just prior to the helicopter tour, during which he advised Mr. Monette that his work was essentially done and he expected his $12 million when the deal closed," Burke wrote.
"Mr. Monette says this conversation did not occur."
The dispute began in 2020 when the Blue Goose Cattle Company in Vancouver wanted to sell its ranching interests in B.C. The shares in Blue Goose Cattle were owned by Blue Goose Capital, which is a subsidiary of the Dundee Corp., a public company listed on the Toronto Stock Exchange.
Blue Goose Cattle owned 16 separate ranches with more than 18,200 hectares and 14,000 cows. It started negotiating the sale with LBJ Capital Inc., based in Okotoks, Alta, about 45 kilometres south of Calgary. As part of its due diligence, LBJ hired Dutcyvich and his company, 3L Developments, to review the deal.
"He is an 81-year-old, self-made, successful businessman," Justice Burke wrote.
According to Burke's decision, Blue Goose wanted just over $100 million for its holdings. Dutcyvich's deal with LBJ was to see if the price was fair, and if he could get it lower, he would get a portion of anything under the $100 million asking price.
"For example, as Mr. Dutcyvich explained, if he was able to reduce the purchase price by $20 million, Mr. Dutcyvich and 3L Developments would receive $10 million," Burke wrote.
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