Membership dispute

PAUL LUNGEN CANADIAN JEWISH NEWS

B’nai Brith Canada (BBC) is in a legal dispute with members of a Jewish building society in Vancouver who are disputing the Toronto-based organization’s efforts to take control of two large seniors residences.

“Historic members” of the Lions Gate B’nai B’rith Building Society say B’nai Brith Canada has had no connection to Haro Park Centre and B’nai B’rith Manor, which were constructed locally with government money.

B’nai Brith, however, alleges that control over the properties falls to it as heir of B’nai B’rith International (BBI), which it claims had jurisdiction over Vancouver B’nai B’rith lodges and properties until it transferred them to the Canadian organization in 2008.

At the heart of the legal dispute is a question of who can appoint members to the building society, which operates the seniors residences. According to the building society’s bylaws, its members are drawn from Lions Gate Lodge. The lodge has been dormant for years, but historic members are attempting to revitalize it. At the same time, B’nai Brith Canada has been operating on a parallel track with supporters in Vancouver to reconstitute the lodge. If successful, the BBC-supported lodge would be in a position to appoint members to the building society.

B’nai Brith Canada and Jack Chivo petitioned the Supreme Court of British Columbia to stop a planned annual general meeting of the building society in early December. They claim the meeting was improperly constituted and that changing the building society’s bylaws, as was proposed for the meeting, would jeopardize its funding.

“The primary funding of the building society, which allows it to continue to meet its objective of providing affordable senior’s [sic] housing, is the British Columbia Housing Management Commission (“BCHMC”). Under the terms of the agreement of BCHMC, any bylaw change must obtain the prior written consent of BCHMC. This consent has not been obtained,” states the B’nai Brith claim.

The five respondents to the petition reject the claim that B’nai Brith has any jurisdiction over the building society’s affairs.

They state in court documents that Lions Gate Lodge was connected with “B’nai B’rith USA” until 2008. The building society is a separate legal entity, they contend, and unconnected to either the Canadian B’nai Brith or American B’nai B’rith organization. It draws its members from the lodge.

The respondents acknowledge that the Lions Gate Lodge is defunct and so no new members could be added to serve as a pool for the membership of the building society. As a result, they say “historic members” have control over the society and its assets. They allege B’nai Brith has wrongly attempted to reconstitute the lodge.

“BBC, with its base in Toronto, has attempted to assert power and control of the society with no basis in the society’s constitution, bylaws, any other rules or laws,” state the respondents’ court documents.

The documents assert the building society is an independent entity.

“B’nai Brith [Canada] did not provide any financial or other support to the [building society]. B’nai Brith did not contribute any funds or effort to the society obtaining any interest in the property owned by the society. All the funds and land were obtained from governments, some donations and mortgages on the properties.... [Building society] member[s] were not required to and did not pay dues to B’nai Brith International, Canada or any other B’nai B’rith organization.”

The two properties at the heart of the dispute provide housing for low-income seniors in Downtown Vancouver. Haro Park Centre is a 13-storey apartment tower, which also provides nursing care. B’nai B’rith Manor is a 64-suite apartment building.

The original version of this article can be found at cjnews.com.

Dispute update

On Jan. 5, 2010, the Hon. Justice J.S. Sigurdson of the Supreme Court of British Columbia, in his oral reasons for judgment, stated, “I urge the parties to meet and resolve this issue by agreement. I expect that possibly with the use of a mediator the sides can resolve this issue internally. Therefore, the order I make is that the meeting of December 3, 2009 [of the building society] is set aside and the parties may bring this matter back to me if they are unable to resolve the question of membership.... In the meantime, I think that a caretaker board should be appointed.... The sides will each have three members on the board, and will agree on a seventh member. They may apply for directions if they cannot agree.”

The judge also stated, “It is my intention in appointing a caretaker board that the reasonable legal fees of the respondents in dealing with this petition would continue to be paid by the society until the conclusion of this litigation in the Supreme Court.”

As stated in the Canadian Jewish News article, the petitioners are B’nai Brith Canada and Jack Chivo. The five respondents to the petition are Leah Deslauriers, Izzy Fraeme, Samuel D. Hyman, Stan Korsch and Guy Seeklus.

In addition, the Jewish Independent has obtained a letter dated March 13, 2007, from then B’nai B’rith International president Moishe Smith, chairman of the executive Dennis W. Glick and executive vice-president Daniel S. Mariaschin to then president of B’nai Brith Canada Gerry Weinstein, B’nai B’rith Evergreen Region president Dennis B. Goldstein, executive vice-president of B’nai Brith Canada Frank Dimant and Alan L. Lessack, vice-president, field services. It begins, “We are pleased to advise that the B’nai B’rith executive committee has agreed to the proposed change in district and region boundaries as presented by B’nai B’rith [sic] Canada to the B’nai B’rith International (BBI) board of governors in December 2006.... BBI agrees to alter the boundaries between Evergreen Region and

B’nai B’rith Canada so that the province of British Columbia is now part of B’nai B’rith Canada, also known as District 22. It further recognizes that the three Canadian territories are also entirely now within the administration of B’nai B’rith Canada.

“As indicated in the proposal from B’nai B’rith Canada, B’nai B’rith activity in recent years in British Columbia has been only that of Lion’s [sic] Gate Lodge in Vancouver, and this has been on the decline or has ceased,” it continues. “The members of Lion’s Gate Lodge have not paid dues to B’nai B’rith for approximately two years. While the lodge leadership has not provided any documentation directly to BBI, it is our understanding that the lodge may have formally ceased operations. At this time, BBI is not aware of any assets of Lion’s Gate Lodge, but if the lodge is no longer operating, any funds on deposit, property owned or other assets are the property of B’nai B’rith International, in accordance with the BBI Constitution Section 132 – Dissolution of B’nai B’rith Entities.

“BBI recognizes that the B’nai B’rith Manor, a housing facility for low-income seniors located in downtown Vancouver, is owned and operated by the B’nai B’rith Building Society. Moreover, BBI recognizes that the B’nai B’rith Building Society is a separate entity from the Lion’s Gate Lodge and, as such, retains ownership of the B’nai B’rith Manor and any financial accounts related to the management of the facility.”

The letter concludes with the good wishes of BBI to BBC for the future.

– Cynthia Ramsay

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