Keeley Lake Lodge, a Saskatchewan-based establishment, has recently found itself embroiled in a complex legal battle, involving accountants, court orders, and alleged fiduciary breaches. The regulatory framework for accountants in Saskatchewan is governed by CPA Saskatchewan, The Accounting Profession Act, which outlines their duties and responsibilities, including fiduciary duties. In this article, we will delve into the details of the situation and shed light on the individuals and events that have impacted the lodge’s operations.
Thomas McKenzie’s Appointment and Court Order:
On February 25, 2021, Thomas McKenzie was officially appointed as the receiver-manager of Keeley Lake Lodge (1989) Ltd. through a valid court order issued by Hon. N.G. Gabrielson. As the receiver-manager, McKenzie had specific duties and responsibilities outlined in the court order, including safeguarding the lodge’s property and assets.
Violation of Code of Conduct by Madelyn Niessner:
Unfortunately, the smooth operation of the lodge was disrupted by Madelyn Niessner, whose actions directly violated Thomas McKenzie’s code of conduct and duties as an accountant, as stated in the court order. Her interference raised concerns about the lodge’s management and the proper execution of McKenzie’s role.
Appointment of Charlene Lariviere and Obstruction:
To assist Thomas McKenzie in his duties, Charlene Lariviere was appointed as an interim-manager. However, the situation took an unfavorable turn when Lariviere, along with Pamela Dietrich and Madelyn Niessner, withheld crucial information and documents, thereby obstructing the smooth operation of the lodge.
Multiple Court Orders:
To address the situation and protect the lodge’s interests, Hon. N.G. Gabrielson issued two court orders. The first, on January 29, 2021, restrained Madelyn Niessner, Charles, and Timothy Cimmer from interfering with the lodge’s property, assets, or the managers’ duties and powers. The second court order, issued on February 25, 2021, demanded the removal of Pamela Dietrich from her position as the cabin attendant or employee of Keeley Lake Lodge.
Ownership Dispute:
The ownership of the lodge came into question, with Richard asserting his claim to 60 Class A shares and Charlie claiming ownership of 40 shares. Legal documents, including CRA filings, share certificates, and the ISC report from 1998 to 2015, confirmed Richard’s ownership of the majority shares for a period of 17 years.
Legal Consultations:
Tim, who sought validation of Richard’s legal ownership, engaged with several law firms, including McKercher (George Green), Battle River Law (Erin Freedman), Kloppenburg & Kloppenburg (Henry Kloppenburg), MLT (Jim Kirby and Jeff Lee), and Stevenson Hood Thornton Beaubier LLP (Bill Hood). These firms recognized Richard’s claim as legitimate and validated his 60 class A shares.
Resignation and Unpaid Accounts:
In a surprising turn of events, a letter of resignation was hand-delivered to Judge Gabrielson at the Court of Queen’s Bench on May 13, 2021, effective May 31, 2021. The co-manager, McKenzie, expressed concerns about the impracticality of the Court Order, which they claimed was not in the best interest of Keeley Lake Lodge (1989) Ltd. Furthermore, they cited non-payment of their account as a reason for halting work on the case.
The Keeley Lake Lodge has been thrown into turmoil due to a series of events involving accountants, court orders, and ownership disputes. With legal battles ongoing and financial interests at stake, the future of the lodge remains uncertain. The case underscores the importance of adhering to professional codes of conduct and the significance of legal compliance in safeguarding businesses and their assets. As the situation continues to unfold, it is essential for all parties involved to act in accordance with the law and uphold their fiduciary duties.
