Penticton, B.C. mayor accused of assault as civil property battle gets ugly

 

The mayor of Penticton, B.C., has been accused of assault by his brother in civil court documents involving an ugly property dispute.

Nicholas Vassilakakis claims his brother, John Vassilaki, assaulted him in June 2020.

The allegation was made in a counterclaim filed by Vassilakakis in B.C. Supreme Court in Kelowna on Oct. 4, as part of a response to a lawsuit launched by John Vassilaki on Aug. 26.

“Nicholas seeks aggravated damages. He is entitled to these damages given the distress and humiliation caused by the plaintiff’s behavior, including mental and physical distress, pain, anguish, grief, humiliation, and similar matters,” the counterclaim alleges.

The circumstances surrounding the alleged assault are not outlined in the civil court documents. Vassilaki has not been criminally charged with assault, according to court records.

The RCMP declined to comment on the matter.

“In general, the RCMP do not disclose the existence or non-existence of an investigation unless there is a public safety component to the matter,” said Supt. Brian Hunter in an email.

John Vassilaki filed the initial notice of civil claim in B.C. Supreme Court in Kelowna, listing his brother Nicholas Vassilakakis and nephews Florio Michael Vassilakakis and George Ioannis Vassilakakis as defendants, as well as The Cellar Wine Bar and Kitchen.

The dispute involves a historic building in the 400 block of Main Street called the Greer Block. The main level is leased to the Cellar restaurant and five residential units are located on the second floor.

John and his brother Nicholas purchased the property in 2013 under a trust agreement that would see Nicholas manage the bank account for the rental investment property, as he was the owner of the Cellar restaurant, the anchor tenant of the building, according to the notice of civil claim.

“It was also a term of the Trust Agreement that Nicholas would distribute rental proceeds to John, either upon demand or on a timely and consistent basis,” the court documents allege.

However, John, who owns half the property, alleges that his brother failed to pay him his share of the rental proceeds, “despite demands.”

According to the claim, the Greer Block makes approximately $90,000 in rental proceeds per year, however, John only received $23,980.00 since 2013.

John also alleges that the Cellar Restaurant is not paying fair market value to lease the space.

The restaurant has been paying $3,000 plus GST per month, but the suit alleges the rent wasn’t increased high enough as of Jan. 1, 2021.

“The Cellar Restaurant increased its rent by $500 monthly commencing January 1, 2021, however, the fair market value increase ought to have been $750.00 monthly,” the suit stated.

“John as one of the Greer Block Owners has suffered a corresponding deprivation without any juristic reason,” said the notice of civil claim.

In July 2019, Nicholas transferred his share of Greer Block to his sons, Florio and George.

The lawsuit claims the pair have “exerted influence” over their father and have “essentially usurped control” of the bank account and the operations of the restaurant.

“Florio and George have hindered or prevented Nicholas from managing the Greer Block Account and have acted to ensure that John is kept out of the operations or any knowledge of the financial status of Greer Block and to further ensure that John does not receive any rental proceeds from the Greer Block Account,” the suit alleged.

“Florio, George, and Nicholas have acted in concert or in a conspiratorial manner to remove John from any involvement, including distribution of John’s proportionate share of his rental proceeds, with Greer Block,” the lawsuit stated.

The defendants deny most of the allegations in a response to the civil suit filed on Sept. 29 and Oct. 4.

They claim that fair market value is not a factor and there is no obligation to pay a “proportionate share” as there is no lease agreement, as alleged.

“The plaintiff has no standing to sue,” the response to the claim says.

Florio, George and Nicholas also deny participating in a conspiracy and called the lawsuit “unnecessary, scandalous, frivolous and vexatious.”

The Cellar Wine Bar, meanwhile, said in its response that it complied with its duties, including the payment of rent.

“The company did not pay and has not ever paid, rent on a triple net basis. No such obligation exists. The plaintiff’s claims are without merit,” the response stated.

Global Okanagan has reached out to Vassilaki for comment.