Senators owner sues partner in Ottawa in development deal

OTTAWA, Ontario (AP) — Senators owner Eugene Melnyk is suing his business partner for $700 million in a development deal meant to bring a new NHL arena to downtown Ottawa’s downtown.

Capital Sports Management Inc., a group controlled by Melnyk, said in a statement Friday it has started legal proceedings against John Ruddy, the chair of Trinity Development Group Inc. Melnyk is “seeking damages arising out of a failed joint venture.”

Melnyk’s group contends the companies were unable to complete an agreement for the LeBreton Flats area of Ottawa, a few blocks from Parliament Hill. The statement alleges “egregious conflict of interest on the part of Trinity and its principal, John Ruddy.”

The Trinity Group did not immediately respond to requests for comment.

The Senators play at the Canadian Tire Centre in Kanata, less than 15 miles from Ottawa’s downtown.