Project/Necessary changes in involvement in EcoReality

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This has been agreed among those involved by unanimous consent on 20111221.
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Contact WikiSysop to make small corrections (spelling, grammar, etc.) or add an agenda item to re-visit this agreement at an appropriate meeting.

Money loss graph.jpg


Project ID: 136

Project steward


To smoothly transition people from the current irreconcilable differences among those invested in EcoReality.


Spring 2010: the directors agreed to put the EcoReality assets up for sale in preparation for dissolving the co-op and paying out the proceeds to debt holders and investors.

July 2010: an investor came forward who was willing to cover about 56% of EcoReality's long-term debt, so we could continue operations and future plans. The directors agreed to seek financing on the balance.

October 2010: together with that new investor, we crafted a business plan in order to qualify for a loan on the balance of our long-term debt. At that time, we assessed EcoReality's finances, and agreed that we had about one year to either make the business plan work, or once again face financial crisis.

October 2011: for various reasons, largely due to differing work-styles, the past year has not seen successful implementation of the business plan, showing a net loss for the year. The members and three major investors have all been made aware of this situation.

November 2011: we are now at a point where EcoReality can no longer service our debt from co-op operations, forcing us to assess site occupants rental fees in order to service debt.

December 2011: one of the three site residents refuses to pay rent or sign a rental agreement (twice) in order to service debt.

January 2012: The three biggest investors agree this is a matter of irreconcilable differences, and seek one of the following solutions:

  1. Someone buy out their full interest in the co-op,
  2. Someone buy out the other investor's full interest in the co-op,
  3. Put the co-op assets up for sale once again, in preparation for dissolving the co-op and paying out proceeds to debt holders and investors.

If we cannot agree on one of these approaches, an unpalatable fourth alternative will occur: foreclosure and forced liquidation of EcoReality assets.

Minutes:20120125: resolution to allow transfer of investment shares upon board approval.


  1. 2011-10-10: Jan verbally informed Ron of the financial situation, and outlined what he saw as the three alternatives cited above.
  2. 2011-10-24: EcoReality retains solicitor Henley-Walden of Sidney to oversee the proper execution of alternatives cited above.
  3. 2011-11-29: vote to approve liquidation of EcoReality assets was defeated by one investor, meaning alternative #3 is not viable unless that investor changes his mind.
  4. 2012-01-06: notification of request to allow transfer of investment shares with approval of Directors.
  5. 2012-01-25: Ron Pither signs official BC Residential Tenancy Agreement for occupation of the white house.
  6. 2012-03-01: Ron Pither evicted from white house for non-payment of rent.
  7. 2012-03-17: white house rental ads placed on:
  8. 2012-06-01: white house successfully occupied by Geo Morrow.
  9. 2012-07-17: Carol expresses her desire for uninvolvement with EcoReality.
  10. 2014-05-23: Carol hires a lawyer and attempts to force liquidation of EcoReality assets.
  11. 2016-03-20: Carol settles for 8.1% of her initial claim.
  12. 2018-01-12: Ron Pither sues EcoReality Co-op for $450,000 plus unspecified damages, claiming fraud.
  13. 2018-03-27: Henley-Walden files Response to Civil Claim on behalf of EcoReality Co-op.
  14. 2018-04-17: Counterclaim filed, seeking $8,109.12 compensation and unspecified damages.
  15. 2018-05-09: Response to Counterclaim filed, denying all claims.
  16. 2020-02-27: Jan Steinman deposed by Mr. Lott.
  17. 2020-11-26: Suit extremely amended, replacing fraud claim with "oppression," and co-plaintiffs James Cowan and Shannon Cowan, seeking to liquidate EcoReality Co-op and distribute the proceeds to all Class A Shareholders.
  18. 2020-12-21: EcoReality Co-op commissioned professional appraisal sets value of assets at $1,650,000, and simulated sale sent to Mr. Lott, showing plaintiffs could expect less than 50% in a forced liquidation.
  19. 2021-04-01: Parties settle for $383,750, a ~25% discount on par value, to be paid no later than 2021-11-30.
  20. 2021-04-01: Shares in suit redeemed to Accounts Receivable.

Goal or deliverable

  • Implementation of one of the three alternatives cited above, such that
    • the solution is legally not challengeable,
    • in the case of alternative #1 or #2, the intention is that the parties eventually recoup their full investment.
  • Implementation to take place in the first half of 2012.

Timeline, schedule, or end date

  1. 2011-10-10: project started.
  2. 2011-11-29: obtain approval for alternative #3.
  3. 2011-12-23: vetting of coop rules in order to implement alternative #1 or #2.
  4. 2011-12-30: notice of any required special resolutions delivered.
  5. 2012-01-25: special resolution election meeting.
  6. 2012-01-26: submission of any required changes to coop rules.
  7. ... and then a miracle occurs...
  8. 2012-06-30: implementation of one of the three alternatives above.


  • Inform stakeholders of the situation. DONE
  • Retain legal counsel. DONE
  • Seek initial approval for alternative #3, so it doesn't need to happen later in a panic. DEFEATED
  • Seek approval of three members/directors and the three biggest investors for this plan. DONE
  • Make necessary changes to coop rules in order to implement alternative #1 or #2. DONE
  • Seek investors needed to implement alternative #1 or #2. IN PROCESS

Financial budget

Item Expense
Legal $6,000.00
Travel $500.00
Telephone $50.00
Filing Fees $255.00
Total $6,805.00

Labour budget

This project is not expected to incur any compensated labour expense. The following is provided for planning purposes only, to show how much less labour is available for other co-op business.

Item Hours
Meetings, Phone, Correspondence 200
Writing, Editing 200
Travel 20
Total 420

Cash Outlay

6200000Bank Charges$1.002020-04-01 00:00:002020-04-01 00:00:00
1010001Cash$200.002014-09-09 00:00:002014-09-09 00:00:00
3220006Cowan, James$50,924.952021-04-01 00:00:002021-04-01 00:00:00
3220005Cowan, Shannon$6,949.872021-04-01 00:00:002021-04-01 00:00:00
3210005Cowan,Shannon$41,681.082021-04-01 00:00:002021-04-01 00:00:00
5050002Goat Feed$321.752011-09-28 00:00:002011-09-28 00:00:00
6650000Insurance$2,552.002011-10-08 00:00:002012-05-31 00:00:00
1010011ISCU Chequing$1,672.002011-12-30 00:00:002017-07-06 00:00:00
6750132Legal: Pither Suit$8,991.842017-07-04 00:00:002020-11-01 00:00:00
6010000Marketing$134.402011-08-12 00:00:002011-08-12 00:00:00
6900051Member/Investor Services$10.562020-07-20 00:00:002020-08-18 00:00:00
6900000Miscellaneous$200.002015-06-11 00:00:002015-09-24 00:00:00
2100075Perry, Adam$39.362017-03-08 00:00:002017-03-08 00:00:00
3210132Pither, Ron$900,601.072010-09-13 00:00:002021-04-01 00:00:00
8060143Pither-Cowan Settlement$392,794.222021-04-01 00:00:002021-04-01 00:00:00
3210138Pobeicke/Stiffler$9,533.142020-12-23 00:00:002020-12-23 00:00:00
1240137Poebeicke/Stiffler$2,479.142009-06-30 00:00:002009-06-30 00:00:00
7150000Postage-Freight-Shipping$11.052015-06-24 00:00:002015-09-14 00:00:00
6750000Professional Fees$3,525.232011-11-08 00:00:002020-12-21 00:00:00
1110000Real Property$628.752008-03-27 00:00:012008-03-27 00:00:01
3210125Roller, Osha$26,269.342009-07-23 00:00:002020-12-23 00:00:00
5040002Seeds$50.502011-04-15 00:00:002011-04-15 00:00:00
6810000Taxes, Property$2,693.042011-10-12 00:00:002012-05-31 00:00:00
6820030Taxes, Sales, GST$111.142015-06-24 00:00:002020-12-21 00:00:00
6100000Travel$104.772014-08-18 00:00:002015-07-31 00:00:00
6300001Volunteer Groceries$5.202015-07-31 00:00:002015-07-31 00:00:00
6300002Volunteer Lodging$799.782011-03-31 00:00:002011-08-15 00:00:00
3210004Wagner, Carol$468,767.802016-03-27 00:00:002016-03-27 00:00:00
4120118White House$11,725.402011-07-28 00:00:002021-04-01 00:00:00
4120118TOTAL:$1,933,778.382008-03-27 00:00:012021-04-01 00:00:00

Labour, by person

2Jan Steinman299.6100.0%

Labour, by activity

46Controlling Pests52.917.7%
33Entering Data4.01.3%
5Managing Information1.80.6%
25Telephone/Video Communicating6.02.0%

Vehicle Use

"Vehicles" with no odometer, such as tractors or stationary equipment, are in tenths of an hour, rather than kilometres.

1Blue Jetta69 km
5Bubba372 km
12Cleome's Jetta87 km
19Cleome's Jetta II60 km
19TOTAL:588 km


Jan SteinmanCleome's Jetta II2020-10-2316 km$3.840EcoRealityPasuta, about Pither suitno
Jan SteinmanCleome's Jetta II2020-08-1815 km$3.600EcoRealityget ingredients for value-added productsno
Cleome RoweCleome's Jetta II2020-08-048 km$1.920EcoRealityoff-site lawsuit meetingno
Cleome RoweCleome's Jetta II2020-07-2021 km$5.040EcoRealityoff-site lawsuit meetingno
Cleome RoweCleome's Jetta2018-12-1935 km$8.400EcoRealityto Henley-Walden, to drop off thumb drive with documents for Pither
Cleome RoweCleome's Jetta2018-11-3014 km$3.360EcoRealitymeeting, discuss Pither suitno
Cleome RoweCleome's Jetta2018-11-0915 km$3.600EcoRealitymeeting to discuss Pither problemno
Jan SteinmanBubba2018-09-0742 km$17.976EcoRealitydeliver Pither suit documents to Henley Waldenno
Jan SteinmanBubba2016-01-2824 km$10.272EcoRealityRepay loan taken out to settle Wagner v. EcoRealityno
Jan SteinmanBubba2015-11-022 km$0.856EcoRealityvisit mailboxno
Jan SteinmanCleome's Jetta2015-09-0923 km$5.520EcoRealitylegal: notarize Wagner v EcoReality settlement, deposit (42)no
Jan SteinmanBubba2014-08-1525 km$10.700EcoRealityVancouver Supreme Court for Wagner v. EcoReality JCCno
Jan SteinmanBubba2014-06-2625 km$10.700EcoRealitySend Wagner suit response via Salt Spring
Jan SteinmanBubba2014-06-2525 km$10.700EcoRealityAttempt to mail EcoReality response to Wagner
Jan SteinmanBubba2013-08-0325 km$10.700EcoRealitymove Carolno
Jan SteinmanBubba2013-04-20129 km$55.212EcoRealityhelp Carol moveno
Jan SteinmanBlue Jetta2013-02-2220 km$8.800EcoRealitySusanne H, divorce counsellingno
Carol WagnerBubba2012-10-1775 km$32.100EcoRealityCarol move out. The nightmare
Carol WagnerBlue Jetta2012-06-1228 km$12.320EcoRealitycredit union for Ron, grocyes
Jan SteinmanBlue Jetta2011-10-2721 km$9.240EcoRealityDale Henley, Sidneyyes

Final accounting

Item Expense

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