Drainville launches $750k legal action, cites Norcross as a central figure

New Tecumseth Free Press November 27, 2012

The former executive director of the Gibson Cultural Centre (GCC) alleges in a Statement of Claim served on the Corporation of the Town of New Tecumseth this afternoon, that she was “solicited and induced” (…) “to become an employee of the Town” then was terminated approximately six months later “as a result of expressing her opinion and/or her failure to ‘look the other way’ in response to certain questionable conduct.”

The Statement of Claim, whose allegations have not been proven in a court of law, seeks general damages in the amount of $500,000 for abuse of process, intentional interference with economic relations, inducing breach of contract, bad faith, breach of contract, negligence and breach of fiduciary duty; special damages; and punitive, exemplary and aggravated damages in the amount of $250,000.

Ms. Drainville is represented by Alliston lawyer Kevin Kemp, who in 2011, acted for former New Tecumseth Clerk Gayla McDonald in a similar action which was settled for $150,000, plus her termination pay entitlements.

In this case, Ms. Drainville alleges that her termination on October 10, 2012, was triggered by repeated run-ins with Ward 6 councillor Richard Norcross in his capacity as both the operator of the Hornet’s Nest at the New Tecumseth Recreation Centre, and his role  in mayor Mike MacEachern’s annual golf tournament, whose net proceeds are used to dole out college and university scholarships to local students.

Below are condensed excerpts of the Statement of Claim to which the Town will have 20 days to issue its Reply – it can request an extension.

On January 4, 2010 Angela was hired as Executive Director of the GCC.

Almost immediately thereafter Angela recognized that GCC was insolvent and near bankruptcy. She identified other issues of concern including excessive duplication and a building that was unsustainable due to massive upkeep costs.

Angela advised the executive of GCC of these facts. Thereafter Angela was asked to develop plans and/or strategies to ensure the ongoing survival of GCC.

By the fall of 2011 it was apparent, notwithstanding the addition of “bailout” funds from members of the Gibson family, that GCC was not sustainable. Angela was permitted to pursue the possibility of Town ownership of GCC.

Commencing in or about December, 2011 Angela was involved in several meetings with the Mayor, Christine Brayford, the Vice-President of GCC, for the specific purpose of discussing the Town’s acquisition of GCC.

On January 17, 2012 an “in camera” meeting was held between members of the GCC executive and representatives of the Town including MacEachern, Chief Administrative Officer Terri Caron, Chief Financial Officer Mark Sirr and Parks and Recreation Director Ray Osmond for the specific purpose of discussing the Town’s acquisition of GCC.

Throughout January, 2012 it was apparent that GCC President Hart Holmstrom was resistant to a Town acquisition. He preferred a Town bailout. However, the Town had no intention of providing a financial bailout.

In or about early February, 2012, Ms Brayford replaced Mr. Holmstrom as President of GCC.

Reaffirmation of Town Intentions

In late January and early February, 2012, Angela was contacted on several occasions by both MacEachern and Brayford who advised that the Town intended to assume control of GCC and its staff.

Angela was asked by Town representatives to produce a list of options for the Town to consider as to how to best carry out its acquisition of GCC.

On February 9, 2012 Angela submitted to MacEachern and Brayford a document entitled: “The Gibson Centre: Town of New Tecumseth Acquisition. MacEachern subsequently replied: “This is very good.”

Employment by the Town

On February 8, 2012 Parks and Recreation Manager Osmond asked that Angela submit her resume and an “outline” of what she could do if her position was moved to the Town.

On February 9, 2012 MacEachern (following delivery of the Acquisition Memo) emailed Angela, with a copy to Brayford, that said: “I left a voice mail about some positions at the Town that are coming up in Parks Rec and Culture that I wanted to be sure you are aware of.”

On February 20, 2012 Angela, following the above-noted inducements and solicitations, as well as repeated representations that a Town take-over of GCC was imminent and that GCC would fall under Angela’s portfolio following the takeover, submitted a formal application to the Town.

In March, 2012 the Town offered Angela the position of Supervisor of Recreation and Community Services. She commenced employment with the Town on April 10, 2012.

The Town has a poisoned work environment where mid and senior level women managers who do not exhibit “appropriate deference” to certain individual members of council are terminated.

Although mid and senior level female managers at the Town represent a small fraction of all Town managers they have, in recent years, been terminated at a grossly disproportionate rate in comparison to their male counterparts.

This poisonous environment was extended to at least one former woman member of Town Council who was isolated by MacEachern and Norcross.

The Norcross Connection

Given that Angela was assigned responsibility for the NTRC she was in frequent contact with Norcross. In particular, Norcross operated a business in the NRTC that included the Hornet’s Nest Bar and Grill as well as exclusive concessions and vending machine rights at the NTRC. With limited exceptions Norcross also had exclusive rights to sell alcohol at the NTRC including the community room adjacent to the Hornet’s Nest.

Norcross possessed these rights from the Town on more favourable terms than third parties who engaged in business with the Town.

The Liquor License Issue

Although Norcross had exclusivity related to liquor sales at NTRC, he was nevertheless capable of waiving or surrendering such rights at any time to enable a liquor license to be brought into the NTRC. However, at all material times Norcross represented to the Town that the Alcohol and Gaming Commission of Ontario (AGCO) prohibited anyone from bringing a liquor license into NTRC as there was already a license in the facility.

The Town had reported significant losses associated with the NTRC in part because of its reliance upon the representations of Norcross as to its inability to bring in additional licensed functions and fundraisers.

However, following her review of the lease Angela explained to Osmond that, contrary to the representations made by Norcross, the AGCO did not prohibit additional licenses.

Norcross was not pleased.

The Mayor’s Golf Tournament

In June 2012 Angela was assigned responsibility for MacEachern’s golf tournament. Shortly thereafter Angela received an email from Norcross announcing that he was typically responsible for the golf tournament.

At a meeting in July, 2012 Norcross instructed Angela to make a list of persons and/or corporations involved with the Town (including suppliers, developers and contractors) and thereafter solicit donations on behalf of MacEachern. Angela expressed the opinion that such solicitations should be made by volunteers rather than Town employees on paid time. This advice was disregarded and Angela solicited donations (along with another Town employee) as instructed by Norcross.

Angela also suggested that expensive prizes and trophies be eliminated from the golf tournament. In response, Norcross insisted that MacEachern needed things to be “very nice” and he arranged for the Town to spend nearly $8,000 on golfer giveaways and prizes.

Norcross was not pleased with Angela’s opinion and advice.

The Town’s Acquisition of The Hornet’s Nest

In or about the summer of 2012, the Town made a decision to purchase the Hornet’s Nest from Norcross for the sum of $50,000.00. Angela was involved in the transition as the responsible manager.

In or about mid-September, 2012 Angela met with Norcross and Osmond for the purpose of discussing the transition. In the course of the meeting Angela made certain suggestions related to the transition based on her years of experience in the banquet industry. In response, Norcross became incensed at Angela and accused her of telling him how to run a bar.

The Golf Tournament “Accounting”

On September 28, 2012 a local news outlet, New Tecumseth Free Press Online, published an article that questioned the propriety of Town staff being used to solicit donations for the Mayor’s golf tournament.

As part of the article MacEachern was quoted as saying: “costs of paid staff time are reimbursed to the municipality from the proceeds of the tournament.”

Following the publication of this article Norcross approached Angela in a public area of the NTRC in a highly anxious and agitated manner and accused her of failing to deduct “staff time” from the golf tournament revenues in the financial statements for the tournament. In fact, Norcross had been provided several reports that reflected expenses of the tournament that had been paid from the account. Staff time was not included in these reports.

At this time Norcross demanded that Angela revise the financial statements to reflect a deduction (or payment) of $3,000 from golf tournament revenues for Town staff time. When Angela advised Norcross that a deduction of $3,000 for Town staff time was neither realistic nor accurate and that the total amount of staff time was significantly higher, Norcross became upset and berated her in front of staff and members of the public.

The Termination

Shortly after Angela was berated MacEachern gave a direction that she be terminated.

On Wednesday October 10, 2012, Angela was terminated by the Town’s Human Resources manager who claimed she was not a “good fit” for a municipality.

On or about Thursday October 11, 2012 Manager Osmond sent an email to the department advising that Angela had done great things.

Inducing Breach of Contract

MacEachern and Norcross wrongfully took steps to arrange the termination of Angela by the Town as a result of their malice and ill will and Angela’s failure to passively  ‘look the other way’ in relation to certain questionable practices.

Angela pleads that MacEachern and Norcross willfully induced the Town to breach its contract with her.

Negligence

Angela states that the Town was negligent in its conduct towards her the particulars of which include the following:

it failed to ensure proper systems and procedures were in place to safeguard employees from the petty and/or petulant whims and questionable direction by individual members of Council;

it failed to implement appropriate policies, procedures and safeguards to ensure that Town staff were not subject to manipulation by individual members of Council;

it failed to implement appropriate policies, procedures and safeguards to ensure that Town staff were not subject to direction from individual members of council (as opposed to entire council) that were beyond the role of council as outlined in sections 224 and 225 of the Municipal Act, S.O. 2001, c. 25.

it failed to implement appropriate policies, procedures, and safeguards to ensure that employees are judged based on their performance and ability rather than being subject to controlling and/or manipulative behavior of individual members of council;

it failed to implement appropriate policies, procedures and  safeguards to ensure compliance with the provisions of the Act.

it placed members of Town staff in the untenable position of having to deal with and negotiate with an individual member of council in relation to his private business interests (the Hornet’s Nest, private concession rights and private vending machine rights), and;

it failed to ensure compliance with section 106 of the Act.

Unlawful Interference with Economic Interests

As described herein, Norcross and/or MacEachern embarked upon a course of conduct designed to have the Town terminate Angela’s employment.

MacEachern’s and Norcross’ actions were malicious, high-handed and designed to achieve the termination of Angela. MacEachern and Norcross intended to cause deliberate damage to Angela’s livelihood and their conduct amounts to an unlawful interference with Angela’s economic interests.

Abuse of Public Office

Angela states that the conduct of MacEachern and Norcross as described herein is an abuse of public office. The conduct of these individuals amounts to malicious and deliberate abuse of public office motivated by personal animus calculated to injure Angela.

Damages

As a result of the defendant’s conduct, Angela has suffered a loss of income and other damages,  has suffered irreparable harm in the practice of her occupation. She has suffered special and general damages including economic loss, reputation and good will.

The defendant’s conduct represents a wanton and callous disregard of the plaintiff’s rights.