By Jeff Labine

Embee Diamond loses another court battle

Jun 2, 2017 | 5:00 PM

Embee Diamond Technologies Inc., the family-owned company run by a sitting Prince Albert city councillor, has lost another legal battle.

In March, a Saskatoon Queen’s Bench justice dismissed Embee’s request to throw out a claim by I.D.H. Diamonds NV. I.D.H. is a diamond supplier based in Belgium. It claimed the Prince Albert company failed to pay $732,000 for diamonds purchased from them.

Embee argued the claim should be dropped because the time allowed to hear it had passed. The judge disagreed.

“I find Embee acknowledged the debt during the operative time so that I.D.H.’s claim is not beyond the limitation period,” Justice Donald H. Layh wrote in his decision. “The contention that I.D.H.’s action is statute-barred fails and Embee’s application is dismissed.”

Embee appealed the decision, but the Saskatchewan Court of Appeal said it wouldn’t hear the matter until it received all material needed from both parties.

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paNOW reached out to representatives for both Embee Diamond and I.D.H., but neither party was available for comment.

Ward 3 Coun. Evert Botha is the chief operating officer of Embee Diamond. According to the most recent corporate registry report obtained by paNOW, I.D.H. is currently a partial shareholder in Embee Diamond.

According to Layh’s decision, the issue between the two companies dates back to 2011 when Embee purchased raw diamonds from I.D.H. After years of back and forth, the Belgian company formally demanded payment, May 29, 2015. When Embee still didn’t pay-up, I.D.H. issued a statement of claim against the company Sept. 11, 2015,effectively starting legal action.

Both parties disagreed when the debt was first acknowledged, leading to the argument surrounding timelines.

This wasn’t the only legal battle for Embee.

Recently, Embee sought financial relief from the court because its holding company, MFN & MB Holdings Inc., owed the city more than $170,000 in back taxes.

The request was denied.

The city took ownership of 1203 Central Ave. back in February and changed the locks last month.

Embee operated out of the building and argued changing the locks would harm its business. The company also argued MFN & MB Holdings was a separate entity and Embee actually paid it rent.

Embee is now operating out of 1235 Central Ave., which also houses a jewellery store and a law firm.

Jeff.labine@jpbg.ca

On Twitter: @labinereporter