B.C. Supreme Court in Vancouver. (File photo: Tom Zytaruk)

B.C. Supreme Court in Vancouver. (File photo: Tom Zytaruk)

Surrey, Langley twin brothers who own companies together battle in court

Presiding judge described Surrey resident Kerry Hawley and Langley resident Kelly Petersen as ‘self-made successes’

Twin brothers who owned and operated a group of companies together for some 30 years have squared off in B.C. Supreme Court in Vancouver over their business concerns.

Chief Justice Christopher Hinkson, presiding over the case, described Surrey resident Kerry Hawley and Langley resident Kelly Petersen as “self-made successes” who own Value Equity Ltd., Mega Cranes Ltd., MBS Structural Engineering Ltd., Mega Truck and Transportation Ltd., Mega Lift Ltd., Mega Building Systems Inc. and Mega Structures Ltd.

The Mega Group buys, sells, and operate cranes that are used in construction. It has annual revenues of about $10 million, and administrative offices at 6330 – 148th St. in Sullivan.

Petersen sought a receivership order concerning land, other assets, undertakings and property of Value Equity Ltd. pursuant to the Business Corporations Act but Hinkson denied his application on Jan. 12, finding the disputed evidence did not support “a determination that the appointment of a receiver is fair and convenient, particularly considering the additional costs and nature of the assets.” Each twin owns half of Value with Hawley serving as president and Petersen its vice-president and secretary.

“By May 27, 2020, the relationship between Mr. Petersen and Mr. Hawley had fallen apart, and the two engaged in a physical altercation that resulted in the involvement of the RCMP,” Hinkson noted in his reasons for judgment.

“While each brother blames the other for the differences that have arisen between them, it is unnecessary for me to decide who to believe. I am satisfied that Mr. Petersen and Mr. Hawley now have irreconcilable differences that, due to their equal shareholdings, compromise the management and operations of Value,” the judge found. However, he added, he was “not persuaded that the allegation of misuse of assets by Mr. Hawley has been made out, based on the competing evidence of the brothers.”

READ ALSO: Kidnapper threatened to leave Surrey man ‘dead in the river’

READ ALSO: Daughter sues dad over Surrey real estate cash

Petersen alleged his twin fired him, withheld his salary, ended his health and medical coverage, removed his signing authority in the Mega Group, and changed the locks in the Mega Group offices, barring him from the front door, lunch rooms, computer room, personal office space, boardroom and filing cabinets. He also claims Hawley barred his access to the corporate server and his email by changing the password, either directly or through others informed vendors and suppliers his brother had been fired, purported to pass pre-dated director’s resolutions removing him as director of the Mega Group, told corporate bankers and legal counsel he was no longer with the Mega Group, and seized sole control of the corporate bank and investment accounts.

Hinkson noted that Petersen also swore in an affidavit that his brother made “unauthorized use of funds” related to Value to buy a waterfront home in Mexico, a home in Shuswap, buy property in White Rock, and make payments of personal expenses on his credit cards, tuition payments for his children, pay legal fees and buy luxury vehicles, including one for his spouse.

Hawley, for his part, countered that there is no evidence his twin was removed as a director or officer of Value and that both remain authorized signatories to Value’s bank accounts. He told the court he used personal funds to purchase the properties in Mexico, Shuswap, and White Rock and denied having “a credit card for Value,” or making credit card use for personal expenditures, or using Value funds for his children’s tuition, or legal fees, or vehicle purchases.

“To the extent that funds have been transferred from Value to Mega Cranes Ltd., Mr. Hawley says that in so doing, he simply followed Mr. Petersen’s practice prior to 2019,” the judge noted.

“Insofar as access by Mr. Petersen to his personal email is concerned, Mr. Hawley asserts that this is Mr. Petersen’s own fault as he failed to change his email address in June of 2020, and that arrangements have been made to forward email sent to the Surrey Depot email account to Mr. Petersen’s personal email,” Hinkson noted. “Mr. Hawley denies that Value’s assets need the protection of a receiver, asserting that they are almost entirely land holdings that are not in jeopardy.”

Hinkson said that while he has “concern over the alleged misrepresentation of revenues” he was not prepared to make a finding that this “has indeed occurred, or pertains to the revenues of Value.

“I am not persuaded that the allegation of misuse of assets by Mr. Hawley has been made out, based on the competing evidence of the brothers,” he decided.



tom.zytaruk@surreynowleader.com

Like us on Facebook Follow us on Instagram  and follow Tom on Twitter

BC Supreme CourtLangleySurrey

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

This map illustrates the number of active COVID-19 cases in Greater Vancouver from Feb. 21 to Feb. 27, 2021. (BC Centre for Disease Control image)
Delta’s COVID-19 numbers continue to climb

Total number of cases in Fraser Health increased by 206 from Feb. 21-27

An example of a Surrey Police cruiser, showcased at Mayor Doug McCallum’s State of the City Address at Civic Hotel in May of 2019. (File photo: Amy Reid)
Surrey Police Service hires first three inspectors as ‘next layer of leadership’

Three men have more than 80 years of combined experience

Scales of Justice
Court awards woman $167K after vehicle was struck by White Rock taxi in 2016

Plaintiff’s knee injuries and resulting chronic pain disability are genuine, judge rules

Delta police have arrested a suspect in the theft of a custom-made wheelchair hoist stolen from a Ladner condo complex’s underground parkade on Dec. 15, 2020. (Debbie J Green/Facebook photos)
Delta police arrest suspect in theft of custom wheelchair hoist

The device was stolen Dec. 15, 2020 in Ladner and later recovered, stripped and damaged, in Surrey

TEASER - SAGAís Gift Shop Manager Barbie Warwick wearing The Summons while sketching in Facing Time exhibit. Photo by Pardeep Singh.jpg
‘The Summons’ face masks created as fundraiser for Surrey Art Gallery Association

Image of magnolia flower and poetry printed on specially designed mask

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry head for the B.C. legislature press theatre to give a daily update on the COVID-19 pandemic, April 6, 2020. (B.C. government)
B.C. nears 300,000 COVID-19 vaccinations, essential workers next

564 new cases, four deaths, no new outbreaks Thursday

Municipal Affairs Minister Josie Osborne speaks in the B.C. legislature, March 4, 2021. (Hansard TV)
B.C. Liberals, NDP sing in harmony on local election reforms

Bill regulates paid canvassers, allows people in condo buildings

(National Emergency Management Agency)
No tsunami risk to B.C. from powerful New Zealand earthquake: officials

An 8.1 magnitude earthquake shook the north of New Zealand Thursday morning

(AP Photo/Richard Vogel, File)
Pandemic stress, isolation key factors as to why Canadians turned to cannabis, alcohol

Study found that isolation played key role in Canadians’ substance use

Burnaby Mounties responded to 56 complaints and issued 10 tickets to people flouting COVID-19 restrictions in February. (Patrick Davies/100 Mile Free Press)
COVID denier fined $2,300 for hosting gathering in her home: Burnaby RCMP

The woman told Mounties she does not believe the pandemic is real

Grand Forks’ Gary Smith stands in front of his Church of the Flying Spaghetti Monster float. Photo: Submitted
Grand Forks’ Flying Spaghetti Monster leader still boiling over driver’s licence photo

Gary Smith, head of the Church of the Flying Spaghetti Monster of B.C., said he has since spoken to lawyers

RCMP members responded to calls of a man-down at Landsdowne mall in Richmond Wednesday afternoon. The 40-year-old was suffering from stab wounds. (Phil McLachlan/Capital News)
Man in critical condition following afternoon attack outside Richmond mall: RCMP

The Vancouver resident was found lying injured outside Richmond’s Lansdowne Centre

A Cowichan Valley mom is wondering why masks haven’t been mandated for elementary schools. (Metro Creative photo)
B.C. mom frustrated by lack of mask mandate for elementary students

“Do we want to wait until we end up like Fraser Health?”

Most Read