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
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
U.S. paused bomb shipment to Israel to signal concerns over Rafah invasion, official says
The U.S. paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the U.S.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Northern Ont. woman makes 'eggstraordinary' find
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.