Nfld. & Labrador

Contractor hasn't refunded money to clients, owes tax bill

A contracting company that owes tens of thousands of dollars to customers in western Labrador for unfinished work is now facing more financial trouble.

ADDAHome and its principals hit with $218,000 tax assessment by feds in December

Contractor controversy

9 years ago
Duration 3:10
Builder Bill Dormody has not delivered promised refunds, reports Lee Pitts 3:10

A contracting company that owes tens of thousands of dollars to customers in western Labrador for unfinished work is now facing more financial trouble.

ADDAHome Development Inc. took cash from several customers in Labrador City last summer, but walked out on the projects, leaving a trail of unhappy people.

Kris Brown and Candace Goulding are suing ADDAHome Development Inc. over unfinished renovations on their Labrador City home. (CBC)

Bill Dormody, one of the principals behind the contracting company, had promised to refund their money back in December.

That hasn't happened.

And CBC News has obtained documents that show the company and its prinicipals were hit with a $218,000 federal tax bill in mid-December. That followed a $30,000 tax assessment filed in early 2012.

Two other tax bills were registered against Dormody personally by the feds a year ago, totalling over $60,000 more.

ADDAHome did get a cash infusion last year. Documents filed at the provincial Registry of Deeds show that the company increased the mortgage for several of its properties, up to $300,000.

Six weeks ago, after the tax assessment, ADDAHome added more of its houses to that mortgage as security.

Unhappy customers

Michelle Sheaves and her husband are still waiting to see the thousands of dollars that the contractor promised would be refunded in December.

"He hasn't made any attempt to contact us whatsoever since, I believe, November," she said.

ADDAHome has already acknowledged running out of cash, and trying to sell its assets to get more money.

Sheaves says she doesn't know when she'll see the cash she's owed.

"My question would be ... who gets the money first? You know, do the taxpayers or the government get their money first, and then everybody else just trickles down the line?"

Town of Grand Falls-Windsor steps in

The contractor is also facing issues at its subdivision in Grand Falls-Windsor.

The development is an adult-living community called Parkview Village that was announced in early 2011.

But only three houses have been built, and several lawsuits have been filed against ADDAHome related to the development.

An investor in the project, who has since bought the houses, lost money on the project, and has turned to the town for help.

Mayor Al Hawkins says the town will cover the costs of water and sewer hook-ups, so that he can rent or sell the houses.

"We obviously found that there were some issues with getting some of the material that was necessary, and then subsequent to that, of course, we know now there's some legal implications with this particular developer," he said.

Legal issues increase

The number of lawsuits against ADDAHome has grown. It was already facing suits from companies in central Newfoundland. The Town of Grand Falls-Windsor is also suing for unpaid bills.

Add to the list Kris Brown and Candace Goulding, one of the affected couples in Labrador City.

They still haven't seen the money they were promised as a refund for the company's botched and abandoned efforts on their home renovations.

Bill Dormody has not returned CBC's request for comment.

The Royal Newfoundland Constabulary launched a formal probe into ADDAHome in December, within 24 hours of CBC News airing its own investigation.

Police say their work is ongoing, and that several people have come forward to file statements and provide evidence.

ADDAHome is also no longer on the list of companies participating in the Atlantic Home Warranty program.


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