Lawsuit bill keeps climbing
October 19, 2006

The costs of the city's lawsuit against the federal government are continuing to rise despite a decision in June to seek a mediated settlement. Legal bills for the action climbed to $200,000 over the summer, and at least one councillor wants to know why.

Financial status reports for July and August for the Red Hill Expressway project were presented yesterday to council's corporate administration committee. They show spending on the legal action against Ottawa over the expressway rose $28,000 in July and another $13,000 in August.

Referring to the June council decision to seek mediation, Dave Braden asked for an explanation of the new spending. “I thought nothing was going on – how could there be over $40,000 expenses for that in the last few months?”

City solicitor Peter Barkwell said the bills might reflect work done earlier. “I think these accounts actually relate to several months ago. Once the work is incurred they issue an account to us, we process it through legal … and ultimately it shows up on these reports and there's a gap between the time when those accounts relate to and when they show up on these committee reports.”

The report on July spending is dated October 10 and the August one carries yesterday's date. Councillors have required the monthly updates from their staff since the beginning of 2005.

Braden expressed frustration on the summer spending numbers and asked for details. “I've been asking these same questions every couple of months, and that's the same answer I get,” he noted. “This is real time and real money. Even if it's May, can you tell us what [the outside lawyers] are doing other than charging time?”

Barkwell could offer nothing on the spot, but promised to respond privately. “I can provide an email to members of the committee indicating what those accounts relate to.” he pledged.

The lawsuit was launched in April 2004, but not actually approved until November of that year – in an 8-7 council vote. The suit alleges that 64 federal civil servants and four former cabinet ministers "abused their public office by engaging in targeted malice towards the City's completion of the Expressway" by using environmental assessment "in an unprecedented, illegal and unconstitutional manner in order to achieve that objective."