OTTAWA – The battle between Ottawa Senator's owner Eugene Melnyk and business partner John Ruddy over a proposed new downtown arena has escalated.
Ruddy and Trinity Development Group Inc. are seeking more than $ 1 billion in damages from Melnyk and Capital Sports Management Inc. after filing a counterclaim on Tuesday.
Last month, Melnyk filed a $ 700 million trial against Ruddy, Trinity and others, after the two sides could not agree on a plan to rebuild the land at LeBreton Flats, which slated out to include a new NHL arena as well as other developments .
In opposition, Trinity Melny's trial calls "meritless" and says "the allegation against John Ruddy is particularly outrageous."
CSMI and Melnyk's true goal is to have the city of Ottawa or the Trinity Fund and build the $ 500 million Event Center for the Ottawa Senator hockey team, with senators receiving 30 years of free rent. CSMI also wants the valuable naming rights and an unreasonable degree of control over the LeBreton project. "
Melny's group, in its trial, claimed that Trinity developed an adjacent property that was in direct competition with LeBreton.
The National Capital Commission, the crown company controlling the country at LeBreton, said last month that the Melnyk-Ruddy RendezVous LeBreton Group had until January to resolve internal partnership issues, or it would look for other options to develop the website.
Ruddy said in a statement that he hopes to continue working with LeBreton.
"Let me be clear, I'm determined to move this project forward," he said. "The vision we have come across is the right one. I will work with NCC, Ottawa City and the community as a whole to develop solutions that will make this project a reality and avoid losing these important countries for another generation."
Senators are currently playing in the Canadian tire center in Kanata, far beyond Ottawa's center core.