Province denies wrongdoing in former commission chair's wrongful dismissal lawsuit
The NDP government is denying wrongdoing in a lawsuit over a longtime Progressive Conservative staffer's abrupt dismissal from a role on a provincial commission earlier this year.
The government revoked Jonathan Scarth's appointment as chair of the Clean Environment Commission on Jan. 29 through an order-in-council.
Scarth had been appointed to the role from from Jan. 1, 2022 through Dec. 31, 2026 by an earlier order-in-council — a public record of a decision made by provincial cabinet — in September 2021, under the previous PC government.
Scarth filed suit in Court of King's Bench over what he alleged was a wrongful dismissal, breach of contract and breach of duty earlier this year.
But the province, in a statement of defence filed by private lawyers working on its behalf last month, argues the Environment Act provides the lieutenant-governor the power to terminate commission appointments at any time.
The province's filings argue the court should toss out the lawsuit and grant it costs.
The commission, an arm's-length agency, conducts public reviews and hearings on matters of environmental concern and gives independent advice and recommendations to the environment minister.
The government also says the terms in the original order-in-council allowed the position to be revoked.
Scarth and the province did not sign a written employment agreement related to the commission chair role, but the government claims there had been multiple written communications about preparing one.
The government filing claims the clerk of the executive council provided Scarth an agreement, with defined obligations upon termination of employment, in December 2022 — before the NDP formed government in October 2023 — which Scarth refused to sign.
The clerk then sent Scarth an email in January 2023 advising that if he did not sign the agreement, his employment would be governed by the province's policies, say the government defence filings.
His starting salary, inked in the order-in-council, was $170,502. As of his termination, Scarth's annual salary was $196,431, with five weeks vacation and other benefits. He was given six week's pay in lieu of termination notice.
The province says Scarth was not entitled to due process, as he argued. The longtime PC staffer argued his 'unlawful' dismissal should be considered void, which the government denied in the filings.
The government denies its conduct was malicious and says it breached no contracts or duties.
Scarth's claim seeks a court declaration that the termination of his appointment was invalid and damages for wrongful dismissal equivalent to the pay, benefits and pension contributions he would have received if he had completed his term.
He's also seeking aggravated and punitive damages as well as interest and court costs.
The province argues in its filings it does not owe Scarth any damages.
Scarth first began working in PC politics in the 1990s under former premier Gary Filmon.
He was later tapped in the 2000s to serve as former PC leader Hugh McFadyen's chief of staff and was the party's chief executive officer for a stint, before later joining former premier Brian Pallister's government as the premier's principal secretary — his most senior aide — in 2016.
erik.pindera@freepress.mb.ca.
Erik PinderaReporter
Erik Pindera is a reporter for the Free Press, mostly focusing on crime and justice. The born-and-bred Winnipegger attended Red River College Polytechnic, wrote for the community newspaper in Kenora, Ont. and reported on television and radio in Winnipeg before joining the Free Press in 2020. Read more about Erik.
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