Laurentian University staff union to take LU administrators to court
One of Laurentian University's biggest unions is considering taking some members of the university's administration to court.
At issue is the way retirement funds were handled, said Laurentian University Staff Union (LUSU) president Tom Fenske.
"We're looking at the plan of arrangement and within the plan of arrangement, there is part of it that allows LUSU to bring court action on behalf of its members and retirees against certain directors and officers at Laurentian that misused our RHBP, our trust fund, the fund that was set for retirees as our retirement health benefits plan," said Fenske.
In September, many LU creditors will vote on the plan of arrangement, a key step in the university emerging from insolvency.
Fenske said the court action is about holding people accountable.
"The basic idea behind this action is that LUSU members like myself and most people that are retired paid into a fund every month," he said.
"We've spent millions in dollars since 1998 into that fund and Laurentian's directors and officers were supposed to hold that money in trust and instead they spent that money on other things."
Fenske said the basic goal would be to recover damages -- either from individuals or their insurance companies -- in hopes some of the lost money can be returned.
While not yet revealing the administrators who would be named in a legal action, he said what happened to members is outrageous.
"It's sacrilegious to touch retirees -- everyone knows that -- and that's happened here," said Fenske.
"There's got to be some accountability here. I think the biggest thing we're all waiting for is the auditor general's report."
LUSU said it is waiting for the final auditor general's report to get some answers. He said a founder of the union told him even if no money is recovered, it's important to uncover the truth.
"Even if we are successful and the amount is negligible, the ability to hold people accountable is at the forefront of this discussion," Fenske said.
"To take money that was supposed to go to the retirement health benefits plan is unacceptable and I think our members will see it that way."
They're meeting with membership next week to discuss the legal action, along with the plan of arrangement.
"This is the first step of anyone trying to hold them accountable and I certainly hope it's not the last step," he said.
"If I had my way we'd have a full government inquiry here. This should have never have happened and we're going to do our part to hold people accountable."
CTV News has reached out to Laurentian University for its reaction, but has not yet received a response.
Creditors vote on the plan of arrangement so the university can exit CCAA protection on Sept. 14.
CTVNews.ca Top Stories
NEW From yearning for a change to cost of living, why some Canadians have left or may leave the country
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
NEW Capital gains tax change 'shortsighted' and 'sows division' business groups tell Freeland
Forging ahead with increasing Canada's capital gains inclusion rate 'sows division,' and is a 'shortsighted' way to improve the deficit, business groups are warning Finance Minister Chrystia Freeland.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
Minister said 'hundreds' of Canadians might use Gaza visa. More than 7,500 applied.
An immigration lawyer in Toronto says new figures from the federal government show just how 'grudging' Ottawa's efforts have been to rescue Canadians' family members from the war in the Gaza Strip.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
Canucks claw out 5-4 comeback win over Oilers in Game 1
Dakota Joshua had a goal and two assists and the Vancouver Canucks scored three third-period goals to claw out a 5-4 comeback victory over the Edmonton Oilers in Game 1 of their second-round playoff series Wednesday.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his brain more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Florida deputies who fatally shot U.S. airman burst into wrong apartment, attorney says
Deputies responding to a disturbance call at a Florida apartment complex burst into the wrong unit and fatally shot a Black U.S. Air Force airman who was home alone when they saw he was armed with a gun, an attorney for the man's family said Wednesday.