The Winnipeg Free Press is the sole contractor responsible for billing police headquarters

The City of Winnipeg has dismissed claims against dozens of defendants seeking reimbursement for construction costs for the Winnipeg Police Service's downtown headquarters.

Last March, the City Council voted to accept a settlement that would result in the defendants paying the city at least $21.5 million.

Court records show that Crown Judge Glenn Joyal ordered contractor Caspian Construction Inc. on Dec. 15. and 11 other defendants related to Caspian, including owner Armik Babakhanians, dismissed the city's claims against all defendants.

Court records show Joyal also dismissed a number of counterclaims among the defendants.

Details of the rulings could not be confirmed Thursday because they were not readily available.

The Free press The city was contacted for comment but did not receive a response by deadline.

The headquarters building at 245 Smith St. opened in June 2016 at an estimated cost of $214 million, $80 million more than its original estimate.

An external audit found that the project was mismanaged. The RCMP conducted a lengthy investigation into allegations of fraud and forgery, but no charges were laid.

In 2018, the city sued Caspian Projects and structural engineering consultant Adjeleian Allen Rubeli Ltd for damages for alleged construction defects.

Both companies “showed negligence” in their work at the WPS headquarters downtown, the statement said.

In 2020, the city filed a civil suit against Caspian, AAR and dozens of other defendants, alleging a fraudulent scheme inflated project prices.

If the city had not reached a settlement, the case would have gone to court this year.

Under the terms of the settlement reached last March, the city will receive $21.5 million if the payment is made in full within 12 months; $22.5 million if paid within 24 months; or 23.5 million if paid within 36 months.

If payment is not made within 36 months, the city authorities will require the court to pay the defendants 28 million dollars.

Fraud allegations against former city CAO Phil Shigle were dropped from the civil suit.

In 2022, Joyal Shagle ruled that Armik took $327,000 in bribes from Babakhanian and ordered him returned to the city.

Joyal's settlement included an order to pay the city $250,000 in restitution, as well as $100,000 in punitive damages.

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Dean Pritchard
Court reporter

He once said that a journalist is a well-dressed reporter. Dean Pritchard doesn't have a good suit. But he knows a good case law.

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