Elliot Lake City Councillors are being asked to look after one of their own on Monday night.
City CAO Daniel Gagnon is urging council to re-imburse Coun. Ed Pearce for his legal expenses which piled up after former city Integrity Commissioner E4m of Sault Ste. Marie appealed a court decision that Pearce be reprimanded for not declaring a conflict of interest.
In his report to council, Gagnon wrote, "This memo is intended to ensure an appropriate degree of accountability and transparency."
He went on to say the meeting's agenda contains a confidential letter with information from the city's solicitor John Mascarin of the Toronto law firm of Aird and Berlis LLP.
It's up to council to decide whether to handle the issue in open or closed session, after they read the letter.
The issue dates back to 2019 when E4m brought an application against Pearce under the province's Municipal Conflict of Interest Act.
Pearce was responsible for all of his own legal defence costs to defend himself.
The city also paid the legal costs for the then Integrity Commissioner E4m, as required by law.
The judge ruled that Pearce did not benefit from his failure to disclose that he was a director of the Elliot Lake and North Shore Business Development Corporation (ELNOS) during a city meeting and that a reprimand for the breach was sufficient penalty.
But E4m felt the judge was too lenient and appealed his decision, arguing Pearce should have been kicked off council.
Once again the city paid the IC's legal costs despite Elliot Lake's objections to the appeal.
Gagnon added, "Coun. Pearce had no choice but to incur legal expenses in his defence to fight the appeal or step down from council.
"A panel of three judges at the Divisional Court ruled in favour of Coun. Pearce and was very clear in calling out E4m's erroneous interpretation of the Municipal Conflict of Interest Act and in questioning the necessity as well as the validity of bringing the appeal in the first place," Gagnon continued.
The divisional court awarded $16,000 in costs to be paid to Pearce.
Gagnon noted that E4m takes the position the city is responsible for these costs while the city believes E4m should be solely responsible, giving that the company made its own call on filing the appeal. Either way, it all boils down to Pearce not receiving the money the court wants him to have.
The CAO noted that Pearce's own lawyer, Douglas Elliott, has requested that all of his costs defending the appeal (not the original application - just the appeal) should be reimbursed.
That would be an additional $12,000 on top of the $16,000 for a total of $28,000.
The repayment suggestion comes before council at it's next hybrid meeting on Monday night at 7 p.m.
The meeting will be live-streamed on the City of Elliot Lake website.