Judge directs Shindico executives to turn over properties worth about $50M to ex-business partner in civil suit

Shindico executives must divide some of their real estate assets with a former longtime business partner, a judge has ruled.

Court of King’s Bench Justice Sadie Bond decided last week that John Pearson of ICI Properties is entitled to three of the seven properties he co-owns with Sandy and Robert Shindleman of Shindico, a Winnipeg commercial real estate firm.

Pearson’s company sued Shindico Realty in 2022 after he ended an agreement that established a real estate brokerage with the Shindlemans.

They had been in the commercial property development and leasing business together for more than 20 years, with land in Manitoba, Saskatchewan and Ontario.

The total value of the seven properties combined is more than $150 million, Bond said in her written decision.

The relationship soured partially over the “negative attention” the Shindlemans received in the media.

“(Pearson) testified that he had decided to end the brokerage association, in part, because of concerns about his reputation in the business community, related to media coverage of allegations of corruption levelled against Sandy, Robert and Shindico Realty,” wrote Bond.

The Shindlemans have denied those allegations.

The Shindlemans had argued that although they co-owned the properties with Pearson, the business relationship wasn’t a partnership and it did not require unanimous agreement on major decisions, but Bond ultimately disagreed.

She said the evidence filed in court showed the three had an unwritten partnership agreement in which each shared revenue and expenses and contributed skills and knowledge.

“They were carrying on business in common with a view to profit; it was a partnership,” wrote Bond.

Bond sided with Pearson’s proposal on how the assets should be divided, finding it was a more appropriate remedy than what the Shindlemans had proposed.

Pearson will get three properties, including a mixed-use site and vacant land in Selkirk and a development on the west edge of Winnipeg. Bond said they’re worth about a third of the total $150 million.

The Shindleman brothers retained the Corral Centre, which is a shopping centre in Brandon, two properties in Saskatchewan and some land in St. Vital.

Pearson also argued the Shindleman brothers breached their agreement or duty to him by charging him various fees during the business relationship, making him entitled to damages.

Bond largely disagreed with that argument, but did rule he was entitled to damages in relation to legal fees he was charged by Shindico after the partnership ended. She ruled he’s entitled to $22,000 in damages, plus interest.

She also ruled he was entitled to more than $7,450 tied to the sale of a parcel of land at one of the developments.

erik.pindera@freepress.mb.ca