Stouffville Mayor Altmann vs. United Soils: A brief history
Mayor battled with town over who would cover his legal expenses
YorkRegion.com
March 5, 2018
Simon Martin
Some say the battle between Whitchurch-Stouffville Mayor Justin Altmann and United Soils Management and Alec Cloke is splitting the town apart.
The latest chapter was written Dec. 31 when Altmann refused to attend the town’s New Year’s Eve celebration because it was sponsored by Tiny Seedlings, which is affiliated with United Soils.
While the much publicized mind-map on Altmann’s office bathroom wall and the subsequent integrity commissioner investigation has garnered much of the attention, many of the town’s disagreements go back to 2016, when Altmann, along with some local residents, and United Soils had a major disagreement.
Council discussed a fill management plan for a site on 14245 Ninth Line (a property operated by United Soils Inc.), allowing acceptable fill from small quantity source sites and hydro-excavation trucks. The motion was discussed, debated and eventually passed. Altmann and councillors Iain Lovatt and Rob Hargrave voted against it. Councillors Rick Upton, Hugo Kroon, Maurice Smitth and Ken Ferdinands voted in favour.
Altmann refused to sign the document into law because he wasn’t comfortable with the information presented.
Sept. 9, 2016
United Soils’ lawyer serves Stouffville school teacher Katie Mohammed with defamation lawsuit for damages of $100,000 for libel, aggravated damages of $10,000 and punitive damages of $10,000, totalling $120,000 for comments made on two local Facebook groups. The following year, Justice Thomas R. Lederer found no grounds for the lawsuit and awarded damages of $7,500 to Mohammed under the province’s new anti-SLAPP legislation.
Lederer held no punches in his decision. “Having received the apology demanded, United Soils Management went ahead and sued. What was the purpose? It had what it needed, but it pressed on. This was a continuation of its desire to intimidate,” he wrote. “The proceeding is not only without substantial merit. There is no merit.” The decision is being appealed by United Soils and is scheduled to be heard in 2018.
Sept. 11 and 12, 2016, email excerpts between Cloke and acting town CAO Rob Raycroft regarding the mayor’s community fund
Cloke: “I read online that the original fund is depleted. I’m being inundated with queries about where the money went.”
“The question to be addressed is; is the mayor representing the town in these matters or is he acting as a private citizen?”
Raycroft: “The mayor’s community fund is a private fund and is not connected to the town. This is constant with previous mayor’s funds. As such, they are not related to or controlled by the town.”
Cloke: “If this topic requires him need legal representation, are my tax dollars paying for it?”
“Thanks for getting back to me so quickly on a Sunday.”
Raycroft: “No problem. And I’m always on my phone and never have an issue with anyone contacting me. I’m just watching football anyway.”
Cloke: “If my town is covering his legal bills, this will get handled one way. If not, then completely different.”
Raycroft: “Spoke to staff and legal counsel on the fund. It’s a private fund and not connected to the municipality in any way. Any issues related to the fund would be a private matter.”
Sept. 19, 2016
United Soils’ lawyer serves Stouffville resident Kayt Barclay with a defamation lawsuit for comments made on a private Facebook group. The case is still before the courts.
Sept. 22, 2016
United Soils’ lawyer wrote to Altmann requesting a copy of every monthly bank account statement and debit made from the mayor’s community fund. Altmann responded two weeks later saying he was unable to provide the documents “at this time.”
According to court documents, the conflict stemmed from a dispute about the mayor’s community fund. In 2015 and 2016, golf tournaments were held to raise money. United Soils owner Cloke assisted in the organization of the 2015 tournament and made contributions in 2015 and 2016. After the 2016 tournament, Cloke was concerned over the status of the money from the fund.
Nov. 3, 2016
United Soils commenced an application that would compel Altmann to provide a full accounting, along with an order for the tracing of money raised from the fund.
May 25, 2017
Altmann provided monthly bank statements for the relevant bank accounts, along with copies of accompanying cheques, deposit slips, invoices, receipts and supporting correspondence. Altmann indicated that he was providing this documentation, which consisted of 505 pages, in an effort to prevent further expenditure of time and resources.
Nov. 24, 2017
While giving the documents rendered the case moot, Altmann’s legal team indicated they did not believe the issues were moot since it was their position that United Soils never had standing to bring the request for the mayor’s community fund documents in the first place. Justice P.J. Monahan, however, didn’t see it necessary to rule on the case when the matter was essentially settled. In his written decision, Monahan said, “I see no merit in the argument that I should exercise my discretion and proceed to adjudicate the matter despite its mootness.”
According to Cloke's lawyer, William Chalmers, Altmann said he always had the bank account statements for the fund in his possession and he could have provided them in response to the information request letter in September. Cloke said he had no comment on if the documents he received alleviated his concerns. Altmann said the mayor’s community fund is clean and well run.
Due to the fact that Altmann asked the judge to rule on the matter when the case had, for all intents and purposes, been settled, he was forced to pay a portion of United Soils' legal fees, which amounted to $12,500, Altmann said.
According to town spokesperson Glenn Jackson, the town was not party to the legal action between the mayor and United Soils. However, the town provides insurance to its directors and officers. According to town records, AIG insurance paid costs awarded against Altmann in the amount of $12,500 to United Soils. AIG insurance has paid legal expenses to date in the amount of $43,555.46.
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Who would cover those fees was the subject of conversations between town staff, Cloke and Altmann. Before commencing legal action, Cloke was told in emails with Raycroft that Altmann was not covered by the town in regards to the mayor’s community fund.
Nov. 24, 2016 email from Raycroft to Altmann
“You confirmed to us on several occasions that the community fund was a non-town related fund and not connected to any official business of the town. Unfortunately, the town cannot provide financial or legal support related to this matter.”
Altmann said that Raycroft and town solicitor Josh Silver never mentioned to him that he might be covered through the town’s insurance protection. The first legal representative that Altmann hired said that defending himself against United Soils in court could cost upwards of $100,000 and that was money Altmann said he simply didn’t have at the time.
He eventually hired Sotos LLP, Dec. 1, 2016, which was also representing Mohammed and Barclay in legal battles against United Soils.
On Dec. 7, his legal team met with the town, where, according to Altmann, the town again said he wasn’t covered and had cases of precedence to back up the claim.
Altmann and his lawyers asked for a copy of the town’s insurance policy. A letter requesting coverage was sent by his lawyers to AIG Insurance Dec. 15 and Altmann was informed on Dec. 20 that he was, in fact, covered.
“The town lied to me. The town lied to me, didn’t defend me and didn’t protect me,” Altmann said, adding the legal matter caused him and his family significant stress. “I have reason to be upset.”
The town, for its part, said no mistake was made in the matter.
“Mayor Altmann advised staff that the mayor’s community fund was a private entity, with no affiliation with the town. The application for information was brought against “Justin K. Altmann” in his personal capacity. Based on these facts, as presented to staff, the town could not provide money directly to the mayor for his legal fees, as he requested, or direct legal services, as per the town’s bylaw,” the town said in a statement
The town also said the insurance company wasn’t contacted because Altmann never requested they be.
Cloke said he was shocked when he found out the mayor was being covered by the town's insurance company. He said the case cost him upwards of $70,000. In an email dated Dec. 23, 2017, Cloke forwarded his concerns about the insurance coverage to members of council and senior staff and said it was important for the town to review its bylaw. Cloke also took aim at the legal matter being characterized by Altmann as a lawsuit at public meetings last year. He said it was an application for information. Altmann’s lawyer, Sabrina Callaway, said Altmann was sued by United Soils. She said that "to sue" and "lawsuit" are colloquial terms employed by laypeople rather than lawyers. “To sue” means to institute legal proceedings, she said. Callaway confirmed that United Soils did not seek monetary damages in the case.
Ward 6 Coun. Rob Hargrave has also been subject to legal action from United Soils. On May 18, 2017, Cloke said in cross-examination with Altmann's lawyer that he sued Hargrave and his son. Details of the case are not known at this time. Hargrave refused to comment on that matter, but did declare a conflict at the July 4, 2017, council meeting due to legal action with United Soils.
