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Salvage Store remains open while appeal before courts

The Salvage Store will stay open for business for now, despite operating in a legal limbo. The Hearts and Hands for Homes Society is appealing a July B.C. Supreme Court decision in favour of Habitat for Humanity Canada.
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The Salvage Store is seen in a file photo from 2011.

The Salvage Store will stay open for business for now, despite operating in a legal limbo.

The Hearts and Hands for Homes Society is appealing a July B.C. Supreme Court decision in favour of Habitat for Humanity Canada.

In the meantime, Hearts and Hands still has to transfer all its assets, including seven properties and six mortgages, to the national non-profit.

"As long as people know that we're still here and we're still operating and trying to be happy," said Jo-Ann Pickering, Hearts and Hands executive director.

Cathy Borowec, Habitat's director of affiliate relations, said in an email response it is working to complete the transfer of assets but is still waiting on information from Hearts and Hands.

"We can confirm that Habitat for Humanity has agreed to run The Salvage Store again as a ReStore and we would like to see that transition happen as soon as possible," said Borowec.

Borowec could not answer follow up questions asking if someone would be sent by Habitat to run the store, if it will keep the existing staff and if that presents a conflict of interest given workers are engaged in legal proceedings against the company.

"At this time we don't have those answers. We are waiting on information from Hearts and Hands that will help us make some of those decisions as we proceed," she said.

Habitat for Humanity provides housing, built by volunteers, to low-income families. The Prince George branch disaffiliated from the national non-profit in October 2013 and relaunched under its new name.

Pickering said a date hasn't been set for the appeal, but she expected it to happen in mid to late November. Meantime, Borowec was less certain when they would be in court again.

"We anticipate dealing with costs issues in both levels of court in the near future," Borowec said.

"Particularly as Hearts and Hands is no longer represented by legal counsel, we do not know if and when an appeal may be heard."

Pickering said past legal fees were "paid out of the store" and she's not sure how it will cover future legal costs.

"We'll cross that bridge when we get there," she said.

In addition to taking over the properties, Hearts and Hands must also give up control of its bank accounts.

Asked if they weren't already at that bridge, Pickering said "We won't have any lawyer fees now. We're done until the appeal. We're in limbo now."

Habitat's notice of claim said the falling out started in September 2012 when the national organization came to Prince George for a routine assessment and uncovered a "multitude of problems and issues," including a "number of conflicts of interest" related to the board of directors, "a serious human resources issue in the management of the Prince George ReStore" and a failure to meet 34 of the 56 standards affiliates are required to meet.

Pickering maintains that the local group was in compliance, but acknowledged the July judgment ruled against that assertion.

"We were in compliance with everything they asked us to do," she said. "This is really very, very sad because everything, all of our homes, the store, everything, came from the citizens of Prince George. Nothing came from Habitat Canada."

Pickering said she expects Hearts and Hands will present a similar argument and hopes having three appeal judges will work in the group's favour.

"I'm hoping and praying that it will," she said. "We knew we were right and they had no business to close us down so that's why we're fighting.

"We've come this far and we don't want to give up now."

-- with files from Mark Nielsen