A Titanic-sized repair bill to get a 41-foot vessel seaworthy has been upheld by B.C. Supreme Court judge - even though the $210,000 bill was at least $25,000 more than the boat's value on the market.
Garfield Johnson, a trustee for Chester Allison Johnson Alter Ego Trust, lost his B.C. Supreme Court bid to knock the price tag on the boat repairs down to $80,000 - a sum he said was agreed upon before work started.
But the judge disagreed, noting misunderstandings about the expensive repair job were made worse by the presence of a middleman and the lack of a written agreement.
The boat Dorie Gal was originally owned by Chester Johnson - a North Shore resident who made a name for himself as a captain of B.C. industry from the 1950s to the 1980s.
Johnson also played a key role in a number of Crown corporations and projects including BC Hydro, Vancouver Airport and Expo 86.
After Johnson's death in 2010, his son Garfield planned to fix the Dorie Gal up and sell it. But the vessel's port engine had "choked to death" on its own exhaust and the starboard engine had water in its cylinders.
In addition to the engines being seized and corroded, the battery system was inoperative and the hull was encrusted, according to court documents.
Capt. Richard Creed, who was retained by the trust to help out with the boat, pronounced the vessel in imminent risk of sinking.
Johnson and Creed eventually sought repair work from Raven Marine, operating out of North Vancouver's Mosquito Creek. After suggesting they should consider selling the boat for $1, boat repair company owner John Nassichuk asked if Johnson and Creed were willing to spend $80,000 on an engine replacement. That figure was never intended to be a fixed price, as Nassichuk had "no idea" what the job would cost, the judge ruled.
Johnson disagreed, testifying that if he knew the final price would approach $250,000, he never would have proceeded.
Nothing was put in writing between the two parties.
Creed testified that it was not his responsibility to report back to Johnson or oversee the boat's re-powering, which may account for a "good deal of the misunderstanding," Grauer wrote.
"The two sides were communicating through a middleman who did not seem to appreciate his position," Grauer wrote.
While Nassichuk would eventually become frustrated about a lack of payment, Johnson was equally vexed about the work's seemingly tentative completion date.
"Both parties seemed to get a bit nervous. .. but no concerns were reported through Capt. Creed in either direction," the judge wrote. The complexity of the affair was exacerbated by Creed's "apparent desire" to work for Raven Marine, the judge wrote.
"(Creed) inadvertently forwarded a copy of his proposal in that regard to a rather nonplussed Mr. Johnson."
Johnson eventually decided to withhold payment until the work was finished. Raven Marine responded by seizing the boat until they were paid for their work.
"In hindsight, this was, perhaps, not the best tactic, particularly as no invoice had ever been delivered for the amount claimed," Grauer wrote.
The trust was awarded $5,000 for wrongful seizure and another $8,500 for damage related to Raven Marine's maintenance of the vessel, including minor hull damage and some leaking.
However, Raven Marine was entitled to be paid for their work, according to the judge, who noted the plaintiff called no expert witness to testify that Raven Marine's repairs were substandard or unnecessary.
The judge ordered the trust to pay Raven Marine $131,719 in addition to $55,000 already paid, minus damages. The judge noted in his decision the boat was "now fully seaworthy" and "in very good condition."
