The former chief administrative officer (CAO) of Summerland will be awarded $65,250 in damages from the City of Williams Lake after a decision handed down by the Supreme Court of B.C.
The punitive damages awarded to Donald DeGagne were equivalent to six months notice after a two-year legal battle with the city over his dismissal.
The ruling made by Justice Jane Dardi was announced on May 15, compensating for six month’s pay, loss of DeGagne’s pension and other benefits for six months and his relocation cost to Williams Lake, $643, as well as one third of his legal costs. She ruled against awarding special or punitive damages to DeGagne.
The dismissal cost the city about $200,000, including its own legal fees. DeGagne also sought damages for defamation as well as for alleged breaches of the Community Charter, but was unsuccessful.
The civil suit relates to the dismissal of DeGagne by the City of Williams Lake in 2013. He was supposed to step into the new role of CAO on March 1, 2013, but on Feb. 27, 2013 the city terminated his contract of employment.
According to court documents, DeGagne was interviewed for the position in January 2013 and it was offered to him by the city.
The documents say he was emailed by the city’s human resources manager asking if he would agree to a press release announcing DeGagne as the new CAO before the employment contract was signed. The press released was issued by the city announcing DeGagne as the new CAO and listing his start date.
The mayor of Williams Lake at the time, Kerry Cook, phoned DeGagne to congratulate him on his new position on Feb. 14, 2013.
The contract was signed and sent to the city.
On Feb. 18, 2013, Cook received an anonymous letter which was very critical of DeGagne and his performance as the former CAO of Summerland. After discussions with the CAO at the time, the city decided to terminate DeGagne’s contract. The anonymous letter was unsigned and unsourced and was not included in the court documents.
DeGagne was emailed a termination letter, which was reproduced in the court documents.
“It is with some regret that I must advise that last night City Council resolved to terminate the contract of employment that the City recently entered into with you for the CAO position,” the email reads.
“Council acknowledges that you will have incurred certain expenses in relation to your anticipated relocation to Williams Lake and is prepared to compensate you in that connection for your reasonable expenses.”
The email goes on to say DeGagne would receive payment of one months salary and that it would be “in both parties interest to issue a mutual press release.”
Justice Dardi states in the documents that the conclusion reached by the city was informed “at least in part” by the contents of the anonymous letter. She also states that because DeGagne hadn’t commenced employment, he hadn’t entered the probationary period outlined in his contract.
Dardi also cleared Cook and the city council of the day of any “malicious or outrageous conduct.”