Penticton contractor faces multi-million-dollar order to pay building and mortgage supplier – Penticton News

Penticton-based construction company facing countless legal battles he was recently ordered to pay nearly $3 million for the owner’s mortgage and construction materials.

Okanagan Extreme Home Builders (OEHB) and its owner Jason Stutzke were has been involved in constant lawsuits over the past year and I have already received such an order repay part of their debts. The owner of the company was accused of misappropriating funds to build his own house.

The contractors claim they were left behind completely unpaid for projectswhile some homeowners reporting lien issues on their homes.

Stutzke is served with application for enforcement submitted by many companies, having He allegedly failed to pay his mortgage.

Castanet first reported olegal trouble in January. Since then, the number of alleged unpaid claims has increased and is estimated to be approaching $9 million.

Homeowner frustrated with bills

Another homeowner reached out to Castanet News after building a retirement property in Penticton with OEHB, only to be left to pursue claims for unpaid bills from contractors and liens placed on their property.

Leana Trogi and Peter Hamilton commissioned OEHB in April 2021 to build a house on the Skaha bluffs.

“We paid all OEHB payments on time, despite the endless delays that prevented our house from being built on time. “Our payments included a cash payment for the invoice we received in July for extras that included an upgrade to an on-demand heat pump and hot water system,” the couple said in a written statement.

“We finally moved into the house in November 2023, after a tremendous amount of stress and excessive delays.”

In December 2023, Canadian Aerothermal placed a lien on the house, claiming it was still owed $36,000. In January 2024, Home Hardware placed another lien on their home for a total of $50,000.

The couple stated that they only became aware of Home Hardware’s claim after receiving formal notice of the pending legal proceedings in April 2024.

“We were not served at the time, but the shock of learning that Home Hardware was going after us for $53,000 was terrifying to say the least.”

The couple also said that in late October 2024 they received a demand letter from a lawyer representing Canadian Aerothermal stating that they expected to pay $36,000 and then withdraw the lien, which expires in December 2024.

“We refused and sought legal assistance,” the couple added.

Trogi said it’s really frustrating for them to see the increasing number of lawsuits, claims and liens placed by these companies on homes across the Okanagan Valley.

“How is it that in July 2021, we paid OEHB $36,000 to Canadian Aerothermal for the supply and installation of our HVAC, and even though OEHB was not paid, the company continued to supply and install HVAC systems?” she accused.

“Why would they continue to lend to OEHB? So, given that we have paid all our invoices, they think they can jeopardize the lien statute, but will end up running outside the court system to demand that we pay cash now?”

“We are retirees. We are not rich, but thanks to our hard work we have only saved for a house.”

They believe the current legal system and provincial lien system are “totally broken.”

“It could cause people to lose their homes and their livelihoods.”

Castanet has reached out to Home Hardware, also known as Pro Builders Supply, and Canadian Aerothermal for comment on the status of their working relationship with the OEHB and whether nonpayment issues have resulted in changes in this regard.

Pro Builders Supply’s chief financial officer told Castanet in an emailed statement that the company does not comment on pending or pending litigation.

“That said, any lien placed on the property in favor of the company is made in full compliance with the British Columbia Builders Lien Act. No further comments on this matter.”

Canadian Aerothermal did not respond to Castanet’s request for comment.

The building supplier was in arrears with costs

Penticton Home Hardware Building Center moved forward against OEHB and Stutzke, and the court ordered them to pay $403,027 at the end of October, plus $18,304 in interest and $1,270 in costs.

The court determined that if OEHB and Stutzke failed to respond, a default judgment should be entered.

The company first filed a lawsuit against Stutzke in January, starting with a $166,000 debt for construction materials.

In July, they filed a new civil lawsuit alleging that as of June 20, 2024, OEHB owed them $403,027 for construction materials supplied to them, which included interest of $58,953.

In October, the company filed another lawsuit, alleging that it had entered into an agreement with OEHB under which it agreed to provide construction materials for various construction projects on May 20, 2021.

This time they claim that construction materials were taken as part of a contract for the supply of three different building plots and were not paid for in the amounts of USD 22,624.25, USD 65,866.72 and USD 73,254.13.

A response to this particular claim has not yet been filed in court.

Time to pay

Cambridge Mortgage Investment Corporation will receive its dues after serving a foreclosure motion on Stutzke over a claim that he failed to make mortgage payments earlier this year.

The petition was filed in June and sought an order that the Stutzkes’ land and personal property be offered for sale at their own request.

According to the petition, payment of the amounts owed was requested, but the amount was not paid and so far amounted to over $2 million plus interest.

The petition alleges that Stutzke has been in arrears since April 2024, and a letter sent on May 7, 2024 requesting payment from Stutzke allegedly went unanswered.

In August, Stutzke filed a response to the lawsuit, arguing that the fair market value of his property exceeds the outstanding mortgage amount and claiming that a May 2024 appraisal estimated the value of the Garnet Way property at $8.6 million.

“To date, the outstanding balance of the mortgage debt on the land, including the amount owed to petitioner, is approximately $4,852,852.34 plus interest,” the response reads.

In late October, the court ruled that the mortgage was in default and Stutzke would have to repay the $2.389 million plus interest by April 24, 2025.

Court records from April show that Stutzke received a request to foreclose on the property from another company due to his alleged failure to repay his mortgage with that company.

The petition ordered that Stutzke and OEHB’s land and personal property be put up for sale based on their own conduct because he owes more than $2.5 million plus accrued interest.

The local contractor has exhausted its funds

In late September, local Kelowna drywall company Lesperance Interiors filed a lawsuit alleging that OEHB refused or neglected to make payment despite a demand and is therefore owed $33,505 for its labor and materials .

The company spoke to Castanet earlier this year, saying it had entered into an agreement with OEHB in which it agreed to provide drywall work and in-home services both in writing and verbally.

Lesperance said the main construction contract had been “abandoned or terminated.”

OEHB filed a response on October 16, alleging that Lesperance Interiors invoiced the company three weeks before the work was completed, contrary to the terms of the contract.

They also claim that the invoice should have been submitted after termination of the subcontract.

Cases are pending

In March, Burnco filed a lawsuit against Stutzke that named the owners of the land behind nine properties to which they allegedly supplied materials and sought money owed to them. They claimed they were owed approximately $29,200 on the six properties and potentially more due to contractual interest and attorney and client fees.

In July, Burnco filed a cease-and-desist notice for AMB Holdings and the three homeowners and has not received a response.

A lawsuit filed by Finish First Interiors alleging that Stutzke and OEHB owe a balance due to drywall and residential finishing work performed in Penticton in December 2022 has gone to trial.

Finish First Interiors is seeking the balance due for completed work, which was invoiced in the amount of $20,509.50. They claim that OEHB paid off $6,548.25 towards the total debt, leaving Finish First with $14,042.25, which allegedly amounts to $15,011 including interest.

They also claim that the property owner paid OEHB for work performed.

The court ordered Stutzke to appear in court on September 16, and OEHB must pay Finish First’s $350 appearance fee on that date. A default order was then placed on October 8.

OEHB has since filed supporting materials in its case, and a default hearing is scheduled for December 2.

The lawsuit filed by AMB Holdings and Panorama View Estates says they are owed more than $2.7 million by OEHB but have not yet received a response.

In March, TwinCon Enterprises filed a lawsuit against Stutzke that included naming the owners of land under six Penticton properties they allegedly worked on and seeking money owed to them.

Several homeowners filed responses earlier this year alleging that OEHB had billed them “additional invoices” for an amount equal to the amount of the TwinCon claim against them. Further responses to this matter have not yet been filed.

The Naramata homeowners filed a motion against Stutzke and OEHB for judgment in favor of the liquidated $135,318 for the deposit, general damages, discovery or removal of the deposit, and a declaration that the lien claim constitutes an abuse of process, have not yet received a response.

In mid-May, Stutzke filed a lawsuit against Timeless Developments, maintaining that the company’s work on his home’s pool was poor and needed repairs. He sought compensation for damages, interest, costs and lost rental income.

With no response from Timeless Developments, Stutzke filed a motion for default judgment and a claim for damages in August.

The payment dispute between Stutzke and Penticton homeowner Randall Browning is still being resolved in the civil court action through cross-claims and replies.

In June, Browning filed an updated counterclaim alleging unjust enrichment and claiming that Stutzke overcharged him and took a security deposit for work that was never completed.

Browning then filed a motion with the court on November 21, requesting that he go to a judge in December and obtain a certificate of termination of the dispute, as well as canceling any liens on his property.

None of the allegations in the lawsuits have yet been proven in court, and all named parties have the right to file a counterclaim if they so choose.