As a civil trial over the breakdown of a business relationship between a developer and Shindico continued Tuesday, one of the commercial real estate firm’s principals denied a “false accusation” made on the stand last week.
John Pearson, president of ICI Properties, is suing the principals of Shindico Realty Inc., brothers Sandy and Robert Shindleman. The Shindlemans and Pearson co-owned and developed a number of large retail centres over the course of a decades-long business relationship that soured in early 2022.
The lawsuit is seeking a $5.1-million financial settlement over the dissolution of partnerships and agreements between Pearson and Shindico.
MIKAELA MACKENZIE / FREE PRESS FILES
Robert (front) and Sandy Shindleman of Shindico Realty Inc. leave the law courts last week. Their civil trial continues.
“Let’s talk at a high level about media attention (on Shindico) in 2013 and 2014,” Pearson’s lawyer Simon Bieber said while cross-examining Robert Shindleman.
Shindleman, the company’s 73-year-old executive vice-president, bristled.
“There’s been a number of articles written — and there was even a false accusation made by Mr. Pearson in this courtroom,” said the elder Shindleman.
Last week, Pearson alleged during cross-examination by Shindico’s lawyers that he discovered what he suggested was a “bribe” from Shindico to Phil Sheegl — the City of Winnipeg’s chief administrative officer while Sam Katz was mayor — during pre-trial proceedings.
Bieber quickly redirected Robert Shindleman, telling Court of King’s Bench Justice Sadie Bond that the question’s intention was not to “get into” whether the accusation was true or false. The allegation has not been proven in court.
Pearson previously told court a main reason he sought to dissolve the relationship was concerns over negative headlines involving Shindico.
Pearson said on the stand last Wednesday that he grew concerned that his reputation as a real estate developer would be impaired by “corruption allegations between (former mayor) Sam Katz and Sandy Shindleman.”
Pearson claimed last week that while reviewing documents provided by the Shindlemans as part of the “production” phase of pre-trial proceedings — where both parties to a lawsuit must provide certain documentation to the other — he came across Shindico financial records showing an $85,000 transaction involving Sheegl while Katz was mayor.
The 2009 transaction was a loan provided to a Sheegl-owned company, Financial Support Services, and was connected to a contract Shindico later won to build a new Winnipeg Fire and Paramedic Service station in Sage Creek, Pearson said last week. That was one of four contacts to build new stations awarded to Shindico.
A city audit later determined the contracts, which ended up costing the city $3 million more than anticipated, were awarded through a compromised bidding process in which Shindico was given inside information not available to other contractors.
MIKAELA MACKENZIE / FREE PRESS FILES
John Pearson, who is suing the Shindlemans, had a long business relationship with them that soured in 2022.
It was also learned that a fire hall on Taylor Avenue was built on Shindico-owned land even though the city owned land nearby.
Pearson said that as of 2023, the loan had not been repaid, suggesting it was a “bribe.”
Jason Kendall, lawyer for Shindico, would not comment on Pearson’s claim last week. Sheegl couldn’t be reached for comment.
“It’s a complex case and I think all the facts need to be heard… by this court before any determinations can be made about what really happened here between these parties,” Kendall said last week.
Shindico president Sandy Shindleman, 67, was called to testify Tuesday afternoon.
erik.pindera@freepress.mb.ca
Erik Pindera
Reporter
Erik Pindera is a reporter for the Free Press, mostly focusing on crime and justice. The born-and-bred Winnipegger attended Red River College Polytechnic, wrote for the community newspaper in Kenora, Ont. and reported on television and radio in Winnipeg before joining the Free Press in 2020. Read more about Erik.
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