A $53-million lawsuit against the City of London that’s become a flashpoint in the criticism of London’s bus rapid transit proposal seeks “excessive” damages and should be tossed, the city argues.

In a statement of defence filed this week, the city fires back at developer Danforth (London) Ltd., which has claimed road widenings needed for the BRT system hobbled a planned multi-tower project at Clarence and King streets.

The city argues Danforth, owned by developer Tony Graat, is making claims based on the redevelopment of what’s now a parking lot, but didn’t fully pursue the project.

“The damages claimed are excessive, exaggerated and too remote to be recoverable in law,” the city’s statement of defence states.

“The alleged damages relate to significant proposed improvement to the property, which was not pursued and would constitute a significant betterment to the property if it was pursued.”

The city argues the court “has no jurisdiction” over the matter and suggests it’s better suited to the Ontario Municipal Board.

The statements of claim and defence contain allegations that haven’t been tested in court.

At the crux of the lawsuit is a plot of land at the northwest corner of King and Clarence, now a parking lot and formerly the London Mews shopping centre. Danforth, in its lawsuit, states it planned to build 35-, 32- and 19-storey buildings with about 700 apartment units and a four-storey office building. The project would have required a significant increase to the density allowed by the city.

Danforth claims the city first wanted a 1.5-metre road widening on Clarence Street in January 2015. That July, Danforth claims, the city informed the company it needed a five-metre widening on both Clarence and King Street to make room for BRT.

That intersection is the proposed hub of the entire 24-­kilometre transit system. It’s proposed to run on L- and 7-shaped corridors, with their corners touching at King and Clarence. City council, however, is now considering route changes, including possibly moving one BRT line off King.

In its statement of defence, the city says discussions involving staff were with representatives of Ayerswood Development Corp., the project’s applicant, not Danforth.

“Apart from its status as the owner of the property, Danforth (London) Ltd. had no involvement in the pre-application or the application process,” the city states.

F. Scott Turton, the lawyer representing Danforth, could not be reached Tuesday for comment.

pmaloney@postmedia.com

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