Defence can question former West Nipissing public works manager in fraud lawsuit, judge rules
The defence can question a former public works manager in West Nipissing, a judge hearing a $450,000 lawsuit connected to fraudulent invoices has ruled.
The suit, launched in 2016, is the civil end of a case in which criminal charges were laid and town staffers fired in connection with fraudulent invoices submitted by MX Constructors Ltd., a local construction company.
While the criminal cases have wrapped up, the civil suit is slowly making its way through the court system.
West Nipissing alleges:
- That MX submitted two invoices in the amount of $12,964.13 each in connection with unrelated projects to obtain payment of $25,928.26 in connection with a Dura Patcher machine that the plaintiff had previously refused to pay.
- That MX billed for more winter sand than it supplied.
- That MX billed for more granular material than it supplied on four road projects, namely Michel Road, Bear Lake Road, Promenade du Lac, and North Shore Road.
- That MX only completed 50 per cent of the work for which it billed on the Cache Bay sidewalk replacement project.
As part of its defence, lawyers for MX want to cross-examine Marc Gagnon, one of two senior public works employees with the town who were fired when the scandal emerged and later faced fraud charges.
"In November 2017, after this action was commenced, Steven Morrison, the directing mind of MX, pleaded guilty to charges of fraud and uttering a forged document," the court transcript of the suit said. "During the hearing, he admitted that Mr. Gagnon was involved in those crimes."
But lawyers for West Nipissing argued that the defence has failed to show Gagnon has relevant evidence, or that they can't get evidence from him without examining him.
"Counsel for the plaintiff also submits that, because the defendants have failed to establish the relevance of Mr. Gagnon’s evidence, the defendants also cannot establish that it would be unfair to require them to proceed to trial without it," the transcript said.
Dura Patcher pothole repair But the defence argues that it was Gagnon who directed MX to bill the town for the Dura Patcher pothole repair machine.
Dura Patcher pothole repair
"The defendants have pleaded that MX was directed to render the two invoices in question and the evidence indicates that, if true, it would have been Mr. Gagnon who so directed them," the transcript said.
"Although the defendant, Steven Morrison, pleaded guilty as the directing mind of MX to criminal charges in relation to these invoices, counsel agree that the defendants are not precluded from defending the civil action on the basis that MX was directed by Mr. Gagnon to do what it did."
While there's no evidence Gagnon has knowledge about the remaining three allegations, the judge ruled the defence should have the opportunity to ask.
"Like any witness who has evidence to give regarding one issue, the defendants should be free to examine Mr. Gagnon regarding the other issues to determine whether he has relevant evidence to give on those issues, as well," the judge ruled.
The judge also ruled that Gagnon should be questioned, under oath, before the trial begins.
"In my view, given the central role Mr. Gagnon played in the facts of this case and his status as a witness who might be adverse in interest, or even hostile, to both sides of the dispute, this is one of those extraordinary cases in which his evidence should be taken prior to trial," the transcript said.
"It would be unfair to the defendants to have to call him or face him as a witness for the plaintiff without knowing what he is going to say."
None of the allegations has yet to be proven in civil court. Read the full transcript here.
CTVNews.ca Top Stories
Trudeau acknowledges charges in Nijjar killing, calls for commitment to democracy
Prime Minister Justin Trudeau has acknowledged the charges laid Friday in relation to the murder of B.C. Sikh activist Hardeep Singh Nijjar.
No proof man lied to brother about number of kittens born in litter, B.C. tribunal rules
A man was denied a $5,000 payout from his brother after a B.C. tribunal dismissed his claim disputing how many kittens were born in a litter.
Bodies recovered in Mexico likely 2 Australians, 1 American who went missing: officials
Three bodies recovered in an area of Baja California are likely to be those of the two Australians and an American who went missing last weekend during a camping and surfing trip, the state prosecutor’s office said Saturday.
Princess Anne lays wreath at B.C. veteran's cemetery; receives 21-gun salute
Princess Anne paid tribute to veterans buried at a cemetery in British Columbia today, laying a wreath to honour the more than 2,500 military personnel and family members buried there.
Mystik Dan wins the 150th Kentucky Derby at Churchill Downs in a three-horse photo finish
Mystik Dan won the 150th Kentucky Derby in a photo finish, edging out Forever Young and Sierra Leone for the upset victory.
'I just can't believe that it took so long': Body found in wreckage 3 months after deadly fire
A man accused of arson in a January Old Strathcona apartment fire is expected to be charged with manslaughter after a body was discovered in the burned building late last month.
Quebec police hand out hundreds of tickets to Hells Angels and other bikers before 'first run' meeting
Quebec provincial police handed out hundreds of fines to Hells Angels members and other supporting motorcycle clubs who met for their 'first run' in a small town near Sherbrooke, Que.
Work stoppage possible as WestJet issues lockout notice to maintenance engineers' union
A lockout notice issued by WestJet to a union representing aircraft maintenance engineers could result in a work stoppage next week.
London Drugs begins 'gradual reopening' on 7th day after cyberattack
Almost a week after all London Drugs stores across Western Canada abruptly closed amid a cyberattack, they began a "gradual reopening" on Saturday.