Taxpayers to cover Hazel McCallion's $513K legal bill

Peel taxpayers are on the hook for more than $500,000 in legal fees racked up by Mississauga Mayor Hazel McCallion after Peel Region councillors voted to pay her bills Thursday

Toronto Star
Feb. 27, 2014
By Peter Criscione

Peel taxpayers are on the hook for more than $500,000 in legal fees racked up by Mississauga Mayor Hazel McCallion after Peel Region councillors voted to pay her bills Thursday.

The councillors voted to cover the $513,000 McCallion owes for legal fees after city resident Elias Hazineh, 60, brought a complaint against her. The Mississauga mayor was covered by insurance for the first $50,000 of her $563,000 tab.

McCallion successfully defended herself against allegations she broke conflict-of-interest rules related to a vote by councillors on a development charges bylaw in 2007.

Last year, Justice John Sproat dismissed the conflict allegations against McCallion. Following that, the judge ordered Hazineh to cover $170,000 of the mayor’s legal bill. Citing financial difficulties, Hazineh has yet to pay.

Under the Peel bylaw, councillors are covered to a certain extent by insurance - limited to $50,000 in the mayor’s case - but council can extend the reimbursement “in circumstances deemed appropriate.”

On Feb. 13, Mississauga resident Diane Kalenchuk appeared before council alongside the mayor’s lawyer, Freya Kristjanson, to argue for the appropriateness of paying McCallion’s full bill of $563,430.58.

McCallion, she said, was forced to mount a vigorous defence in this case “because of the potential effect on her reputation, her career and her responsibilities as a democratically elected mayor of Mississauga as well as Peel Regional councillor.”

Meanwhile, taxpayers have already covered $600,000 of the mayor’s legal bill from the previous Mississauga Judicial Inquiry, which examined her role in her son’s failed bid to bring a hotel to the city centre. Taxpayers also contributed to her son Peter’s $400,000 legal bill.

On Thursday, McCallion waited outside of council chambers as politicians debated the issue.

In the same meeting, councillors voted to extend their ability to reimburse the legal costs of one of their peers who is charged under Ontario’s Municipal Conflict of Interest Act (MCIA). Now, politicians who successfully defend themselves against allegations of wrongdoing have access to a maximum of $250,000 in insurance coverage. In 2007, that amount was $50,000.

Some councillors suggested limiting the legal representation politicians can employ.

Brampton Councillor Paul Palleschi argued that, without limits, “someone could go out and get a top lawyer that could cost $1 million.

“I am concerned about the dollar amount. There should be some sort of a limit,” said Palleschi.

The new bylaw states that Peel Region has the right to set reasonable limits on lawyer’s fees.

Councillors unanimously supported the bylaw amendment.