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
Most of Canada to receive emergency alert test today
The federal government will test its capacity to issue emergency alerts today, with the exception of Ontario, where the test will take place on May 15.
OPINION What King Charles' schedule being too 'full' to accommodate son suggests about relationship with Prince Harry
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
Ontario man devastated to learn $150,000 line of credit isn't insured after wife dies
An Ontario man found out that a line of credit he thought was insured actually isn't after his wife of 50 years died.
Boy Scouts of America is rebranding. Here's why they're now named Scouting America
After more than a century, Boy Scouts of America is rebranding as Scouting America, another major shakeup for an organization that once proudly resisted change.
New Canadian study could be a lifesaver for thousands suffering from CTE
A first-of-its-kind Canadian research study is working towards a major medical breakthrough for a brain disorder, believed to be caused by repeated head injuries, that can only be detected after death.
Rape, terror and death at sea: How a boat carrying Rohingya children, women and men capsized
In March, Indonesian officials and local fishermen rescued 75 people from the overturned hull of a boat off the coast of Indonesia. Until now, little was known about why the boat capsized.
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.
These adults born in the '90s partnered with their parents to buy homes in Ontario
An Ontario woman said it would have been impossible to buy a house without her mother – an anecdote that animates the fact that over 17 per cent of Canadian homeowners born in the ‘90s own their property with their parents, according to a new report.
For their protection, immigrants critical of China and India call for speedy passage of Canada's foreign interference legislation
Canadian immigrants threatened by hostile regimes are urging parliamentarians to quickly pass the 'Countering Foreign Interference Act' so they can feel safe living in their adopted home.