The Town of Niagara-on-the-Lake has settled a six-year legal battle with former resident John Black, who accused the municipality of abuse of process, bad faith and misuse of power surrounding a home he purchased and his planned addition to the home.

The town announced publicly Tuesday in a news release that it will pay Black $225,000 to resolve the dispute. Black, a Canadian-U.S. citizen, had been seeking $750,000.

Black launched the lawsuit in 2019, claiming the town added his property at 27 Prideaux St. to its heritage roster without his knowledge. He alleged then-lord mayor Betty Disero placed his home on the council agenda for designation and acted quickly to prevent him from completing planned renovations.

The suit further alleged Disero acted at the request of Tom Elltoft, a local real estate agent and Black’s neighbour, who was opposed to the construction of a garage on Black’s property.

“I think it could have been a lot worse … considering the allegations, the facts and all the circumstances of the case,” said Lord Mayor Gary Zalepa.

Black also filed a separate case against Elltoft, which was dropped earlier this year.

Elltoft said he was not involved in the designation in any way and says the filing incorrectly named him as the realtor who sold him the house.

Elltoft owns the company, Niagara-on-the-Lake Realty, but property sale records show he was not involved as a realtor in the purchase or sale of the home.

He added that as a result of the designation of Black’s property, his own property, along with another neighbour’s, was also listed for heritage designation.

He denied having a close relationship with Disero beyond supporting her politically.

“I know Gary Zalepa a lot more than I know Betty Disero,” Elltoft said, adding he never asked Disero to designate Black’s property.

Elltoft added the Real Estate Council of Ontario “was fully aware of the action and recognized the agents involved were not at fault. The lawyers were supplied by the board.”

He notes, and records obtained by The Lake Report show, that Black’s own realtor had included a condition on the purchase agreement which allowed him two weeks to do his own “due diligence” on the property and learn what could be built or altered on it.

“I’m not sure why the town settled. I don’t know what they saw as a losing case for themselves going forward,” Elltoft said. “I have no idea if all the facts were ever presented.”

Elltoft acknowledged opposing one element of Black’s plans: a garage he described as “ugly.”

“I did present at the demolition request as a neighbour but not about heritage. It was about the streetscape and not making garages the focal point in front of homes across from the heritage district.”

Zalepa suggested the fault lies with the previous council, specifically Disero, who is named in the lawsuit.

“(The statement of claim) contains statements such as members of council are conducting themselves in bad faith, conducting themselves in inappropriate and misleading manners,” he said. “As soon as you hear language like that around an organization … you’re really in trouble legally.”

Elltoft also questioned the town’s announcement of the settlement.

“I thought it was odd,” he said, criticizing the town’s public statement, which only linked to Black’s statement of claim.

“Zero evidence. Zero comment as to why they felt they should settle. No minutes to the settlement or the statements of defence.”

Elltoft shared a July 2024 text message from Zalepa, in which the lord mayor wrote: “Where can I send you the bill for your share of the Black lawsuit?”

He said he found the comment strange and inappropriate coming from an elected official.

He also pointed out Black later sold the property for a $200,000 profit and argues the heritage listing did not harm him financially.

Public reaction online was mixed, with some residents criticizing the town.

“We paid $225,000,” said Blair Cowan in a post on the NOTL 4 All Facebook group.

In a reply, Jennifer Elliott wrote: “He deserves every penny at the very least. This guy was put through hell. It’s embarrassing to read.”

Rainer Hummel commented: “In this particular case, the evidence of bad faith was so high that the town’s insurance company refused to even provide legal representation.”

Disero told The Lake Report she did not have a particular reaction to the settlement.

Attempts to reach Black were unsuccessful before press time.

daniel@niagaranow.com