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For the  week of Sept. 20, 2020:

Will he or won’t he? 

Premier John Horgan could be days away from asking Lt. Gov. Janet Austin to dissolve the Legislature and call a snap election. A year early and during the worsening coronavirus pandemic.

The evidence? A flurry of cabinet ministers resigning from the next campaign simultaneous with a flurry of nomination hopefuls. A $1.5 billion bailout plan followed by a public-paid partisan ad campaign (Horgan promised he would ban partisan government ads). Restrictions on media access to government officials and public records.

There are also calls for Horgan to back-off and stick to governing from Sonia Furstenau, the new leader of the BC Greens, and Norman Spector, the veteran political advisor who brokered the Green/NDP confidence and supply agreement.

On this edition, hear highlights of the week that was. 

Plus commentary and headlines from the Pacific Rim and Pacific Northwest.

CLICK BELOW to listen or go to TuneIn or Apple Podcasts.

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For the  week of Sept. 20, 2020: Will

Bob Mackin

The spokesman for B.C.’s publicans and nightclub owners says the NDP government mishandled the pandemic health order that cut bar hours and shut down nightclubs.

Alliance of Beverage Licensees’ executive director Jeff Guignard said his industry calls Dr. Bonnie Henry’s sudden Sept. 8 verbal order “borderline unprofessional” and is disappointed that there are still no details in writing more than a week later.

During a news conference, Henry immediately set 10 p.m. as last call for alcohol at bars and restaurants and closed nightclubs and banquet halls indefinitely. She also ordered the volume on speakers and TVs be turned down to normal conversation-level. Only establishments that offer full meal service can stay open beyond 11 p.m.

Henry said she was concerned about a late summer surge in coronavirus infections related to liquor service establishments. But, as of Sept. 16, the public health orders website continues to list an outdated July 31 order relevant to restaurants, pubs, bars and nightclubs. Guignard said his struggling members are accustomed to operating in a highly regulated industry and not used to ad hoc announcements not backed-up with paperwork.

“Normally it doesn’t take a week to do this, so normally there is a lot more work goes on with industry beforehand; that did’t happen this time,” ABLE BC’s Guignard told theBreaker.news. “We weren’t surprised that she was going to make more stringent measures, that appear to have been coming for a while. We were surprised the order got announced without anybody having an idea of what was contained within it.”

Guignard and industry allies, including the B.C. Restaurant and Foodservices Association, appealed to Premier John Horgan, Henry, Health Minister Adrian Dix and Attorney General David Eby in a Sept. 10 letter. They complained about the policy rationale and economic consequences after Henry acknowledged that most in the industry are doing a good job to prevent the spread of the virus.

“Not having the actual public health order makes it impossible for our industry to adapt,” Guignard said. “I’m getting inundated with phone calls from members [asking] what the heck is going on, how come we don’t know?”

The letter from the Business Technical Advisory Panel said all operators are being treated as if they have caused problems, regardless of how compliant they have been.

Adrian Dix (right) and Dr. Bonnie Henry (BC Gov)

“We feel that imposing ‘broad brush’ restrictions does not reinforce the positive and necessary message that a majority of operators are doing the right thing. In addition, the impression for everyday consumers is that there are significant, systemic problems, which there are not,” the letter said.

The letter also said evening staff shifts were cut in half by Henry’s order and Downtown Vancouver pubs are suffering because they generally see almost half their sales after 10 p.m. Pubs elsewhere generate 10% to 25% of their revenue after 10 p.m.

The Business Technical Advisory Panel is asking for a midnight last call, greater enforcement and more transparent guidelines/public health targets.

The Ministry of Health communications office has not responded for comment.

As for the prospect of a snap election while his members are struggling, Guignard said it could put economic recovery at risk. “It just strikes me as a strange time to be having an election in the middle a global pandemic,” he said.

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Bob Mackin The spokesman for B.C.’s publicans and

Bob Mackin

A coalition of three First Nations wants the Information and Privacy Commissioner to order B.C.’s Ministry of Health to release the proximate, anonymized locations of confirmed and presumed coronavirus cases.

A letter to Commissioner Michael McEvoy from the lawyer for the Heiltsuk, Nuu-chah-nulth and Tsilhqot’in tribal councils says the NDP government is breaking the section of the freedom of information law that requires information be released without delay if it is about a risk to the health or safety of the public or group of people.

Heiltsuk chief councillor Marilyn Slett, a Vancouver Coastal Health director (VCH)

The First Nations, fearing spread of the virus in their territories, have unsuccessfully pleaded for the information for months. They even appealed directly to Provincial Health Officer Dr. Bonnie Henry.

Notes from an Aug. 7 teleconference with Henry, released by lawyer Lisa Fong, say Henry denied the FOI law applies to her.

“The [Public Health Act] determines what information can be released and protection of personal health information; it’s the PHA I must adhere to,” Henry said.

She said she “will notify those who need to know, but also have responsibility to protect every individual’s personal health information.”

One of the complainants, coincidentally, is Heiltsuk chief councillor, Marilyn Slett, an NDP appointee to the board of Vancouver Coastal Health

In a statement to theBreaker.news, B.C.’s former advocate for children and youth, Mary Ellen Turpel-Lafond, agreed the first nations have the right to know.

“The system currently in place does not reflect the direct sharing of accurate, timely information,” said Turpel-Lafond, who is investigating racism in the healthcare system. “Current arrangements appear to not be aligned with the recognition of the role of First Nations governments in the United Nations Declaration on the Rights of Indigenous Peoples. The B.C. government should make it a priority to ensure that this situation is rectified and that this vital information is shared with First Nations communities in the interests of better pandemic response for all citizens.”

Through his staff, McEvoy confirmed he has opened an investigation and notified the Ministry of Health.

In a 2013 report, then-OIPC commissioner Elizabeth Denham called the public interest override “difficult to apply.”

“While the grounds for disclosure are stated, the determination of what triggers an urgent and compelling need for disclosure can be open to broad and inconsistent interpretation by the heads of public bodies,” Denham wrote.

In that report, Denham found the B.C. Centre for Disease Control, Provincial Health Services Authority and Provincial Health Officer were not obliged under section 25 to immediately disclose two studies about Lyme disease to the public or an affected group of people. 

“While I agree that the 2009 and 2010 studies indicated an underreporting of the disease, there is no evidence of increased incidence of Lyme disease such that there would be an urgent and compelling need to disclose either study to the public,” Denham wrote. 

Dr. Bonnie Henry (left) and Health Minister Adrian Dix (Mackin)

Her report indicated the 2009 study, which was co-authored by Henry, had been delayed due to the H1N1 pandemic.

The NDP came to power in July 2017 with support from the Green Party. It has not fulfilled campaign promises to reform the law, including a pledge to rewrite the public interest override to enable more information to be shared proactively with the public. 

Disclosure delays, on the cusp of an election 

The First Nations’ complaint happens while the NDP government is on the verge of calling a snap provincial election for late October. B.C.’s six-month-long state of emergency was renewed for another two weeks on Sept. 15 as coronavirus hospitalizations continue to rise while government secrecy is at an all-time high.

The NDP government has already benefitted from a blanket two-month disclosure holiday granted by Commissioner McEvoy last spring. After the extension expired in May, McEvoy’s office has allowed various public bodies to delay disclosure of records until November, which would be after the election.

theBreaker.news has exclusively learned that the province’s six health authorities, which report to Minister Adrian Dix, successfully applied in late June for a 60-business day extension to requests received between mid-May and the end of June.

“Since the introduction of B.C.’s Phase 2 Restart Plan, FOI staff have been receiving COVID-19 related requests from interest groups such as media, unions and political groups,” said the health authorities’ application. “These requests are voluminous, complex and involve records retrieval from literally hundreds of sources in one instance. They also involve cross health sector engagement and coordination of requests to ensure consistency and currency of responses in a C-19 environment that is constantly changing, even on a daily basis.”

Records requested include those about PPE shortages and allocations, surgical and other care and treatment impacts, staff scheduling impacts, staff and patient safety impacts, staffing models, emergency management clinical and business decisions, restart plans and impacts, COVID-19 identification and location of positive patients, staff, families and caregivers and other related issues.

theBreaker.news wanted to know what, if any, due diligence was conducted. Did OIPC staff conduct a site visit or take statements under oath from health authority staff, before granting the delay?

McEvoy has yet to respond.

Sean Holman in 2018

In a 2018 Ontario court decision about the Toronto Star’s bid to access tribunal records, Justice Edward Morgan found delays unconstitutional. He ruled that in a system that protects freedom of the press, the media should not have the right to report on proceedings delayed unreasonably.

“Just as justice delayed can be justice denied, so reportage delayed can be reportage denied,” wrote Edwards.

Last week, the NDP government announced a $1.6 billion increase to the Ministry of Health budget, but it did not include any boost for FOI offices.

In May a coalition of whistleblowers and government transparency advocates issued a white paper that was critical of various Canadian governments, including B.C. The Canadian COVID-19 Accountability Group called the current approach “secretive and paternalistic” and recommended immediate reforms.

The group includes Sean Holman, a journalism professor at Mount Royal University in Calgary and a former member of the B.C. legislature press gallery. During an appearance on theBreaker.news Podcast, Holman said it is crucial for governments to operate openly in a crisis.

“We are in a democracy, we are not in a dictatorship,” Holman said.

“If people can get a better sense about how much infection there is in their local geographic area, they can act accordingly and we really do want people to, in this time of crisis, be acting in accordance to the risk around them. We want people to be self-isolating, we want people to be socially distancing, we want people to be thinking about the larger community, as opposed to thinking about their own individual safety. By disclosing that type of information, we can allow for those kinds of measures.”

READ BELOW: Health authorities complain about transparency obligations.

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F20 0691 Blackline Mackin by Bob Mackin on Scribd

Bob Mackin A coalition of three First Nations

Bob Mackin

A woman who crashed her James Bond luxury car in Richmond and claimed the repairs were botched got a rude awakening from a judge, who tossed her case on Sept. 10.

Bonan “Jessica” Liu hired Burrard Autostrasse Collision Ltd. after a December 2015 single vehicle collision near No 2 and Blundell in her $200,000, 2014 DB9 Century Skyfall Aston Martin. Burrard subcontracted some work to 0880984 BC Ltd dba MCL Motor Cars. The repairs were done by September 2017 and Liu refused to pay. She sued Burrard and MCL for breach of contract, sought $300,000 in damages and the value of a new Aston Martin DB9.

Aston Martin similar to Bonan Liu’s Richmond-crashed vehicle. (Aston Martin)

B.C. Supreme Court Justice Nitya Iyer dismissed Liu’s claim after an Aug. 13 summary trial and allowed Burrard’s $329,000 counterclaim for unpaid repairs, interest, indoor storage fees and insurance.

“Ms. Liu’s claim is meritless and she has made resolution of the issue virtually impossible,” Iyer wrote. “Objectively assessed, her allegations of fraud, conspiracy, fraudulent misrepresentation, or breach of fiduciary duty are without legal foundation and she should not have advanced them. It is clear that Ms. Liu’s conduct of the litigation has been frustrating and extremely unpleasant for Burrard.”

Liu had been represented by four different lawyers until she finally represented herself. Before she sued, the parties agreed Liu would pay half the outstanding invoice. She signed the release, but did not pay the money. Burrard kept the car and Liu sued. A December 2019 trial was set, but Liu sought an adjournment for mediation. However, she did not attend. Liu sought an adjournment to the February 2020 summary trial, but the April court date was adjourned because of the pandemic.

Iyer’s decision said that Liu made the first payment, but not the second. In September 2016, Liu eventually signed a second payment guarantee for the outstanding $50,000 and final balance. Burrard invoiced Liu in May 2017 for more than $135,000 after the repairs, of which Liu had paid only the initial $50,000.

Skyfall poster (Eon Productions/MGM)

“Notably, over $97,000 of this amount represented the cost of the parts Burrard purchased from Aston Martin to perform the repair. Burrard’s labour cost was about $12,000, or just under 9% of the total invoice,” said the judge’s verdict.

She refused to pay the invoice and did not pick up the car. Burrard stored the car indoors for $200-a-day. They settled their dispute in October 2017, when Liu signed the release and agreed to pay $46,000. But, instead of paying, Liu filed a lawsuit.

Iyer wrote that Liu was clear she wanted the car fixed for $50,000 and that is all she would pay. Yet she was told the repairs would cost about $100,000 before she consented and signed the documents. It was Liu who breached contracts, not Burrard, Iyer concluded.

“She claims damages for various personal injuries and for travel to and from China, along with the value of a new vehicle, $300,000 and increased costs,” Iyer wrote. “The stated legal basis for her claims is coercion, breach of fiduciary duty and extortion of her as a ‘financially well off’ person whose first language is not English. None of the evidence before me supports these allegations.”

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Bob Mackin A woman who crashed her James

For the week of Sept. 13, 2020.

On this edition of theBreaker.news Podcast, Kash Heed, B.C.’s former solicitor general, talks about the defund the police movement and agrees change is necessary.

“I have been calling for police reforms for 20 years now,” Heed told host Bob Mackin. “We’ve got police leaders that are still operating in a paradigm that is decades and decades old.”

Heed said police are supposed to be healers of conflict, but have strayed.

“We’ve moved to this paramilitary, if not a militarized way, that we’re policing our communities, that was never meant to be the role of a police officer.”

Research Co. pollster Mario Canseco (Mackin)

In B.C., taxpayers spend $1.6 billion on policing a year. Heed said there needs to be an audit of the costs and effectiveness.

Also, Pollster Mario Canseco of ResearchCo interprets the numbers from his latest research on how the pandemic has affected spending by sports fans in Canada and the U.S.

Plus some thoughts on Premier John Horgan’s early election trial balloon and how it can blow up in his face and headlines from the Pacific Rim and Pacific Northwest.

CLICK BELOW to listen or go to TuneIn or Apple Podcasts.

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For the week of Sept. 13, 2020. On

Bob Mackin

A B.C. Supreme Court judge ruled that three rear-end crashes connected to a Surrey auto body shop were staged in order to make fraudulent damage and injury claims against ICBC.

The defendants’ credibility “was so significantly impaired,” according to Justice Jennifer Duncan in her Sept. 8 verdict.

The crashes happened between Oct. 18, 2013 and Jan. 18, 2014 and involved seven defendants in various combinations related to defendant Pro Choice Auto Body Ltd. There were no independent witnesses. All of the vehicles involved, except one, had been purchased from salvage by Pro Choice.

Pro Choice Auto Body Ltd. (Google Streetview)

“The accounts of each of the defendants who were actually involved in the collisions were inherently improbable,” Duncan wrote. She found ICBC suffered at least $84,000 in losses. Punitive damages will be determined after total claimed losses have been determined.

Duncan found that some defendants even tailored their evidence to explain inconsistencies or failed to mention certain details during the trial, which was held intermittently over 22 days in January, February and June.

“As one example, [Mahmoud] Haghmohammadi said that [Mehrafarin] Mehran and [Krishma Komal] Prakash had reminded him during the trial that he picked both of them up after Collision #1. Additionally, Ms. Mehran said her memory of events was better at trial after hearing Ms. Prakash’s evidence,” Duncan wrote. “I do not believe the defendants’ explanations that these collisions were accidents.”

Three of the defendants live in the same house near Pro Choice in Surrey. Pro Choice owner Major Singh opened it in 1998 and hired his brother Inderjit “Andy” Singh as a vehicle painter. Major Singh’s son Gursharanjit Singh was in high school at the time of the crashes. Though not employed by Pro Choice, he sometimes did paperwork at the office. Major hired Mahmoud Haghmohammadi in 2007 and he did most of the frame work.

ICBC special investigation unit detective Kirk Huxley went to Pro Choice while investigating an unrelated theft claim. Pro Choice lost its ability to direct bill ICBC for work in 2012.

Huxley reviewed ICBC claim files for brothers Inderjit and Major Singh and Mahmoud Haghmohammadi and “certain elements of them piqued Mr. Huxley’s interest.”

“All three collisions were rear-end accidents with no independent witnesses. All three resulted in personal injury claims. All but one of the vehicles involved had been purchased from salvage by Pro Choice Collision #1 and #3 occurred in roughly the same location, close to Pro Choice, after normal business hours, less than three months apart. Inderjit was involved in both collisions,” Duncan wrote.

“There were unusual connections between some of the people involved. Inderjit and Mr. Haghmohammadi worked together and had been in a rollover accident on the Coquihalla Highway in 2007. And the driver rear-ended by Inderjit in Collision #1, Karishma Prakash, had been in a collision while driving a Toyota Prius registered to Mohammed Raza Rasuli several months earlier. Mr. Rasuli was the driver who rear-ended Mr. Haghmohammadi in Collision #2.”

Law Courts Vancouver (Joe Mabel)

Save On Parts Wrecking bookkeeper Prakash married a friend of Haghmohammadi. Prakash had a romantic relationship with Rasuli, an auto body repair technician.

“Several witnesses testified that both defendants had worked in the same auto body repair shops in closely overlapping periods of time. All of them said they had never seen the two work in the same place at the same time, although in some cases the witnesses had to cast their minds back to inconsequential events at work more than a decade before trial. I am satisfied that Mr. Rasuli and Mr. Haghmohammadi had either met through their overlapping employment or were aware of each other, but Ms. Prakash was the critical connection for the purposes of Collision #2.”    

Duncan found Haghmohammadi organized the staging of the first collision and Pro Choice, through Major, allowed the Zephyr to be used for the purpose of profiting from the damage claim.

Inderjit, Prakash and Mehran were all in on the claim. ICBC lost $34,000 after recovering $582.86 for the Zephyr and $534.87 for the Buick.

Haghmohammadi, Prakash and Rasuli combined on the second collision. ICBC paid-out more than $22,000, but recovered $1,011 from salvage for the Saturn.

Duncan also ruled that the third was staged, likely to ensure the Hyundai was totalled to secure a payout from ICBC, which collision number two failed to do. Inderjit, Major, Gursharanjit and Haghmohammadi were found liable for collision number three.

ICBC lost $28,000, after recovering $3,395 for the Hyundai and $820.02 for the Acura from salvage.

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Bob Mackin A B.C. Supreme Court judge ruled

Bob Mackin

B.C. Premier John Horgan signalled that his NDP minority government may exit the Confidence and Supply Agreement with the BC Green Party and seek an election this fall, one year ahead of schedule.

Horgan and Weaver agree to defeat Clark (Twitter)

“The Green caucus today is not the Green caucus of three years ago,” Horgan told reporters during a televised Sept. 9 appearance. “You will also know that the vast majority of the elements of CASA have been realized. You will also know that nowhere in that document will you see the word ‘pandemic.’ The world we live in today is not the world of 2017. I know that British Columbians want me to focus on 2020 and beyond, rather than looking backward to a relationship I had with the then-leader of the Green Party and his colleagues.”

The CASA governing blueprint was the catalyst for the three-member Green caucus, under leader Andrew Weaver, to vote with the 41-member opposition NDP to defeat the 43-member BC Liberal government on a confidence vote after the 2017 election. The NDP and Liberals are now tied at 41 after South Surrey-White Rock’s Tracy Redies quit in August to become the new Science World CEO. 

As theBreaker.news was first to report, the NDP is eyeing Oct. 17 or 24 for the snap election, so Lt. Gov. Janet Austin would have to give her blessing by Sept. 22. The NDP is reluctant to go beyond those dates because of the expected second wave of the coronavirus during November’s flu and storm season. Elections BC has staff on standby and is negotiating leases for its offices in each of the 87 ridings.

The new Green leader will be announced Sept. 14, after the party’s eight-day election. All three candidates, Cam Brewer, Kim Darwin and Sonia Furstenau, said on theBreaker.news Podcast that they support continuing CASA, but oppose a snap fall election.

The opposition BC Liberals are also opposed to a snap election. Andrew Wilkinson’s party wants Horgan to reconvene the Legislature for the scheduled Oct. 5 to Nov. 26 sitting. The spring session was postponed for three months because of the pandemic. It ended Aug. 14.

Weaver quit as Green leader last year but continues as the independent MLA for Oak Bay-Gordon Head. In an interview, he took no issue with Horgan’s words. He said CASA was created to get a stable government and it has done its job.

John Horgan at the B.C. NDP’s April 23 Better BC rally. (NDP)

“[Horgan and the NDP] are looking for a new mandate to come out of the post-COVID world, and that new mandate would require government to spin on a dime and not have to worry about being held hostage, in some sense, by a small minority,” Weaver told theBreaker.news, referring to house leader Furstenau and interim Green leader Adam Olsen.

“I think the premier has done a super job, CASA has served B.C. well. If the premier decides to call an election that is his prerogative, I don’t think there is anything in CASA that would preclude him from doing that, particularly in light that much of CASA is done.”

The agreement triggered the electoral reform referendum, lobbying reform, ban on corporate and union political donations and a government-wide climate change plan. It requires Horgan to not request dissolution of the Legislature, except after losing a confidence vote, and there must be spring and fall sittings every year. As part of CASA, the NDP shifted B.C.’s fixed election date from May 2021 to the fall of 2021 and every four years after that.

Weaver, who is planning to return to teaching at University of Victoria, said he is confident that Elections BC can conduct a safe election during the pandemic.

“People will vote, I don’t think it will have any effect on virus response. I go to the grocery store, a bunch of people are there, every time you go you’re at risk.”

Should the NDP go to the polls this fall, it would distract from the witness testimony phase of the Cullen Commission public inquiry on money laundering. A loss to the BC Liberals would put the Cullen Commission in jeopardy of cancellation. Similarly, an election may delay the conclusion of the RCMP investigation of Legislature corruption.  

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Bob Mackin B.C. Premier John Horgan signalled that

Bob Mackin

There were 13 people behind the camera for the controversial B.C. government back-to-school ad starring Provincial Health Officer Dr. Bonnie Henry.

Scene from the controversial B.C. government back to school ad (BC Gov)

The crew included on-site school administration and support staff, according to a representative for the Ministry of Health. The $15,000-budgeted ad was produced in-house by Government Communications and Public Engagement with contractor Gab Films. Trapeze Communications of Victoria and PostPro Media of Vancouver did post-production. The seven children in the classroom scene were “chosen through a network of parents,” according to the ministry.

In the ad, shot at a Victoria school, Henry addresses schoolchildren about washing their hands, wearing masks when necessary and staying home if sick during the upcoming school year.

The Ministry of Education told reporters that in order to shoot the ad, the number of students in the classroom was limited for health and safety reasons and the children were placed safe distances from each other.

That prompted a Tweet from B.C. Teachers’ Federation president Teri Mooring, who said the small group of children cast for the ad “proved her point.”

From Point Blank Creative’s Back to School campaign (BC Gov)

“I respect the fact that physical distancing was required to film this ad. We’re asking for the same with students in real classrooms in September,” Mooring said.

Just in time for the new school year, Henry diluted her two-metre physical distancing guideline to one metre in some circumstances, such as classrooms. 

The ad was also widely criticized on social media for politicizing Henry and casting an Asian girl as the only mask-wearer in the class.

“That was not a commercial about what a classroom was going to look like,” Henry told reporters on Aug. 31. “What that was was me as the public health officer talking with children and their parents about the things that they can expect in the new school year about some of the public health issues and it was a conversation that I had, with there were more than six children. We had it in a classroom, because that’s what the children wanted.”

Although Henry characterized it as a “conversation,” none of the students has a speaking role in the 30-second ad.

The $1.24 million ad campaign launched Aug. 20 with an animated 30-second spot by NDP ad agency Point Blank Creative, whose clients include the Alberta and federal NDP, CUPE, United Steelworkers, B.C. Government and Service Employees Union and B.C. Federation of Labour. The budget for animation, radio and digital assets was $150,000.

Point Blank billed taxpayers almost $380,000 in the previous two fiscal years.

B.C. government advertising contractors are chosen from a roster of companies compiled by politically appointed Government Communications and Public Engagement bureaucrats after the NDP came to power in 2017.

Point Blank’s 2017 B.C. Fed ad (Point Blank/B.C. Fed)

Point Blank donated $1,000 on June 9, 2017 to the NDP. Co-founder and managing director Nathan Lusignan gave $400 last year.

Other contractors include Captus (translation and production) and Vizeum and Jungle (media buying). The campaign runs through Sept. 20.

The province’s back-to-school plan is subject of a legal challenge from two fathers who say parents should be given a choice to send their children back-to-school or learn at home remotely during the pandemic. Mooring has voiced her support for parents who want to continue online courses, which were instituted late last spring.

The province says up to 60 students will be in “learning groups” in elementary school and up to 120 in high school. Individual school districts and private schools have their own variations on the plan. Teachers and staff will have two days of training after Labour Day before students get two days of orientation. Sept. 14 is the beginning of the first week of instruction for the school year.

Simon Fraser University Prof. Caroline Colijn told CTV News Vancouver that 5% of elementary schools and 20% to 40% of high schools in Metro Vancouver would have at least one coronavirus infection on day one.

The ad controversy comes on the heels of a report by the Ombudsperson on the Ministry of Education’s exam marking scandal from 2019. The Course Correction report found the Ministry deliberately misled the media and public about the incorrect tabulating and reporting of more than 18,000 Grade 12 course exam marks.

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Bob Mackin There were 13 people behind the

For the week of Sept. 6, 2020.

On the 150th edition of theBreaker.news Podcast, hear from B.C. Green Party leadership candidates Cam Brewer, Kim Darwin and Sonia Furstenau.

The election of the new head of the B.C. Legislature’s third party runs Sept. 5-13, with the winner to be announced Sept. 14.

Whoever wins will be faced with convincing Premier John Horgan to not seek a snap election in October. Hear what Brewer, Darwin and Furstenau say about that and other issues.

Plus Pacific Rim and Pacific Northwest headlines and commentary.

CLICK BELOW to listen or go to TuneIn or Apple Podcasts.

Have you missed an edition of theBreaker.news Podcast? Go to the archive.

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For the week of Sept. 6, 2020.

Bob Mackin

A British Columbia Supreme Court judge rejected a minority shareholder’s bid to block the sale of Richmond’s Duck Island.

In an Aug. 6 oral verdict, Justice Michael Brundrett dismissed an application by Samuel Cheung and 0908034 B.C. Ltd. for an injunction to prevent Morris Mao Hua Chen and his companies, Raegon Properties and Investments Ltd. and Morrison Homes Bridge Street Ltd., from transferring shares.

Morris Chen (Wealth One Bank Canada)

Chen chairs the North America Investment and Trade Promotion Association (aka North America Business Progressive Association) and is a member of the boards of Wealth One Bank Canada, an online bank that targets Chinese customers, and CIBT Education Group Inc., the TSX-listed owner of private career colleges and student housing properties.

Real estate agent Cheung has experience developing real estate, mainly in China.

Chen and his companies control 98% of Jingon International Development Partnership LLP and West Road Partnership, which owns the properties near River Rock Casino Resort. Cheung and his company hold the remaining 2%.

Duck Island is the site of the annual Richmond Night Market, which was cancelled this summer by the coronavirus pandemic. In 2012, Richmond Mayor Malcolm Brodie revealed that Jingon proposed building the $4 billion Vancouver International Plaza with hotels, offices and a trade and convention centre at Duck Island, which was absorbed by Lulu Island half a century ago.

Cheung filed a notice of claim in July, alleging Chen and his companies breached their partnership, fiduciary duties and common law duty of good faith and honest performance. Chen wanted a judge to dissolve the partnership agreements and award damages and costs.

The parties agreed to a standstill clause, but Chen gave notice that he wanted to sell his interests by an Aug. 7 closing date. The buyer was not identified in Brundrett’s judgment.

Brundrett’s ruling said Cheung and Chen have done business since 2006. In 2010, Cheung discussed developing Duck Island and West Road in Richmond. They agreed that Cheung would receive commission and a 2% stake in any partnership that arose.

Proposed new look for Duck Island (Morrison Group)

Cheung found Gui Fang Zhu to invest $40 million for a 49% interest in the partnership in 2011 under the Jingon name. Zhu is the wife of Xu Chang’an, who was a member of the Tianjin City Chinese People’s Political Consultative Committee.

The three Duck Island properties were assigned to Jingon. A similar arrangement came about for the West Road land.

Chen bought out Zhu for $80 million after litigation with Xu between 2015 and 2019, giving Chen 98% control over Jingon and West Road.

Chen-controlled companies entered into December 2019 mortgages secured by the Duck Island land. One for $22 million, the other $60 million.

“Mr. Chen did not discuss the mortgages with Mr. Cheung before taking them out,” said Brundrett. “I am told that the current assessed value of the Duck Island properties [18.41 acres] is more than $150 million, and it is common ground that their value would be many times that amount if successfully rezoned and developed. The assessed value of the West Road properties is in the range of $20 million.”

Chen offered $800,000 to buy Cheung’s shares in March 2020 but the offer was rejected and no counter-offer made.

“This is important because the buy-sell provision in the partnership agreement is a form of ‘shotgun clause’ that deems the lack of a counter-offer after seven days to constitute acceptance,” Brundrett said.

Duck Island (Morrison Group)

Cheung applied for an interim court order to preserve the status quo and protect his interests from what he called “unfair and oppressive conduct” until a Sept. 17 hearing.

The judge said Cheung’s application raised a serious question about whether the buy-sell clause was properly invoked.

“If the plaintiff is successful in its underlying action, the plaintiffs will likely end up with an award of damages commensurate with the nature of their interest in the partnership,” Brundrett said. “However, the plaintiffs have not established a risk of irreparable harm to their interests if the injunction is not granted.

“Overall, weighing the potential harm to the parties, I find that the balance of convenience does not favour restricting the defendants from exploring commercially viable options by imposing restrictions on the transfer of their interests, or imposing restrictions on their ability to further financially encumber the properties.”

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Bob Mackin A British Columbia Supreme Court judge