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Document 1

Summary of recent Litigation pertaining to Stadium

Stadium History

The Ottawa Stadium, located at 300 Coventry Road, was built in 1993. Commencing on August 13, 1992, the City of Ottawa had an Operations and Maintenance Agreement (O & M Agreement) with Ottawa Triple “A” Management Limited for the operation of a Triple “A” baseball franchise from the Stadium. This Agreement expired on October 31, 2009.

In June 2000, Ottawa Triple “A” Management assigned the O & M Agreement to the . On November 28, 2007, while the City was in the midst of litigation with the Ottawa Lynx, Council passed a Motion without prejudice to the rights of either party. It directed staff to move forward, should the Lynx decide not to play their home games at the Stadium in 2008, to conclude an agreement with the Lynx and the Canadian American Association of Professional Baseball Inc. (Can-Am) for a team from the Can- Am League to play its home games at the Ottawa Stadium for the 2008 and 2009 baseball seasons at the same cost as the Lynx, namely, $108,000 for each of the two seasons.

In March 2008, the Lynx and the City executed a partial assignment of the Agreement to Ottawa Professional Baseball Inc. This enabled the new organization to play their home baseball games at the Stadium for the 2008 and 2009 seasons of the Can-Am Baseball League at a base annual rent of $108,000. In August, 2011 the City successfully concluded the litigation which had been brought against it by the Lynx.

During the 2008 baseball season, the Ottawa Rapidz played baseball at the Stadium under a management arrangement between the Rapidz Baseball Club and Ottawa Professional Baseball Inc. On September 19, 2008, the Rapidz filed for bankruptcy and subsequently sued the City of Ottawa and others for $3M as more particularly set out under the history of the litigation.

In November 2008, the Can-Am League announced it would undertake the financial backing of the baseball team and would continue to seek new ownership to play the 2009 season at the Stadium. However, in March 2009, the Can-Am League advised that the Ottawa Voyageurs, the new baseball team, would not be able to operate in 2009. Despite these events, Ottawa Professional Baseball Inc. did remain liable for the operation and maintenance of the Stadium until October 31, 2009 and honoured its obligation with respect to payment of the rent to the City for 2008 and 2009. 19

History of Litigation arising from the Ottawa Rapidz

As set out below, between October 10, 2008 and February 20, 2013 the City was subjected to three lawsuits from the Ottawa Rapdiz, via the parent company, Momentous.ca Corporation (Momentous), which owned them and Zip.ca Inc (Zip), a separate corporation which had provided a legal commitment to ensure that the Stadium rent would be paid to the City for each of the 2008 and 2009 baseball seasons.

However, it is important to note that at no time was the City ever subjected to litigation from Miles Wolff, a director of and Commissioner for the Canadian American Association of Professional Baseball Inc. or Ottawa Professional Baseball Inc., the parties which had brought a professional baseball team to play at the Stadium for the 2008 and 2009 baseball seasons. Further, Mr. Wolff, through his majority ownership of Ottawa Professional Baseball Inc., ultimately ensured that the City was paid its Stadium rent for the 2008 and 2009 baseball seasons.

The first lawsuit against the City – October 10, 2008

On October 10, 2008, Momentous and Zip commenced a lawsuit in the Court of Justice at Ottawa against the City seeking general damages for breach of contract and several other claims, for $3M as well as seeking punitive damages in the amount of $500,000. This first claim was never served upon the City and was administratively dismissed by the Registrar of the Court on or about April 11, 2009.

The second lawsuit against the City – January 29, 2009

On January 29, 2009, Momentous, Zip, Rapidz Sports and Rapidz Baseball commenced a second lawsuit against the City, Wolff, Can-Am, Inside the Park, LLC and three individuals associated with Can-Am, namely, Bruce Murdoch, Greg Lockard and Dan Moushon. The claim for damages was essentially the same as what had been set out in the first unsuccessful lawsuit. The City defended this second lawsuit against it and was successful in having the lawsuit dismissed by all levels of the courts in Ontario as well as ultimately having it finally dismissed against the City by the Supreme Court of Canada in a unanimous decision on March 15, 2012.

Wolff’s lawsuit against Momentous and Zip – August 10, 2009

On August 10, 2009, Miles Wolff commenced a lawsuit in the Ontario Court of Justice at Ottawa against Momentous and Zip. Wolff’s claim against Momentous was for $83,330, being the unpaid balance of a shareholder’s loan of $110,000 which he had made to Ottawa Professional Baseball Inc. Momentous was a minority owner of Ottawa Professional Baseball Inc. Miles Wolff’s claim against Zip was for $201,000, being rent he was required to pay to the City as a result of Rapidz’s default to pay the rent, and for which Zip had agreed to indemnify him. 20

The third lawsuit against the City – April 25, 2012

On April 25, 2012, Momentous and Zip attempted to file a third lawsuit against the City for essentially the same damages as in the first unsuccessful lawsuit against the City, by way of a Counterclaim in connection with their defence in the lawsuit which had been commenced by Miles Wolff against them in 2009. Subsequently, the City was successful in getting this third action against it dismissed on or about February 20, 2013.