Derek Johnson’s Alleged Lawsuit is a Nullity – RECA Response

Many in the real estate industry have received emails or other communications from or on behalf of Derek Johnson or “Hot Justice” or “Mogli Russ, Human Rights Activist” or others concerning an alleged lawsuit or judgement by Mr. Johnson against the Real Estate Council of Alberta (RECA).

There is no such lawsuit. There is no such judgement.

Mr. Johnson has attempted to commence a lawsuit by filing a Statement of Claim suing us and others. His complaint about us arises out of the assessment of an Administrative Penalty of $15,000 against him for breach of the Real Estate Act. The Notice of Administrative Penalty may be seen here.

Mr. Johnson has also attempted to sue the CBC and one of its employees by that same Statement of Claim.

We have been advised that when the lawyer for the CBC and its employee sent to the office of the Clerk of the Court their Statement of Defence, that document was refused by the Clerk on the basis that the lawsuit was improperly commenced. As a result, RECA has not responded to the claim.

There is an outstanding Court ruling requiring that 1158997 Alberta Inc. and Mr. Johnson’s related companies, including Partners in Success Mortgage Inc. (one of the named Plaintiffs in Mr. Johnson’s Statement of Claim) may only be represented in the future by a lawyer authorized to practice pursuant to Alberta’s  Legal Professions Act.  As the Statement of Claim was not filed by a lawyer, the Clerk has concluded that it was filed in breach of this ruling and that it was accepted in error. Accordingly the action is a nullity. That is, it does not exist in law.

We have sought further information from the records of the Clerk, and received advice from the “Procedure Record Print” that the action number was “used in error”. There is no indication whatsoever that RECA has been noted in default or made subject to a judgement in default of filing a defense.

Indeed, the fact is the opposite of the allegations made in these emails: No one can obtain a judgement as the lawsuit was not properly commenced in the first place.

For the record, we deny any liability whatsoever. Our conduct throughout was lawful and in fulfilment of the legislative mandate conferred by Alberta’s Real Estate Act. We have properly exercised our legislative authority. We have done nothing wrong.

This Administrative Penalty remains unpaid. No steps have been taken by Mr. Johnson to appeal that decision and it remains in full force and effect.