The former first vice-president and treasurer of an Ontario public sector union is countersuing the organization, arguing he didn’t breach any fiduciary duty and used due diligence.
The Ontario Public Services Employees Union is suing former vice-president and treasurer Eduardo Almeida, former financial services administrator Maurice Gabay, and former president Warren (Smokey) Thomas for nearly $6 million, alleging they unlawfully transferred strike fund cash and union vehicles to themselves.
In a countersuit and statement of defence, Almeida denied he breached any fiduciary duty owed to the union.
“When Almeida assumed office in 2011, OPSEU was in bad financial shape being approximately $15 million dollars in debt,” the statement of defence said.
“When Almeida left office in April 2022, OPSEU had a strike fund in excess of $100 million, had approximately $15 million in cash and no longer relied on a line of credit.”
Almeida said he was a politically elected figurehead without any financial qualifications to be the treasurer and he used due diligence and relied on the professional advice of others in the organization, which didn’t provide any financial, legal or managerial training to him.
“Almeida depended on the expertise, guidance and direction of the President and the staff at OPSEU to fulfil his duties,” the statement of defence said.
“Almeida states he used due diligence and relied on the professional advice of others in all his conduct on behalf of OPSEU. His conduct did not fall below the standard of an individual with his experience and qualifications in the role of (first vice-president and treasurer). OPSEU provided no financial, legal or managerial training to Almeida at any time upon him assuming the (first vice-president and treasurer) office.”
OPSEU said since Thomas and Almeida left their positions last April, the union has been doing a forensic audit and alleges it has uncovered that Thomas and Almeida paid themselves “significant compensation” they weren’t entitled to, used union money for non-business purposes, transferred union vehicles to themselves or family members and paid out strike fund cash to themselves and Gabay.
“Almeida disputes that the transfers of 2 vehicles to him in the course of his 11 year tenure were in any way improper or contrary to the best interests of OPSEU,” the statement of defence said.
None of the allegations have been proven in court.
Almeida is seeking $1.5 million in damages including for defamation, loss of remuneration and benefits and mental distress and other personal injury.
Thomas and Gabay have also filed statements of defence, denying the union’s allegations.
Thomas also alleged the claims against him are part of a campaign by president JP Hornick along with vice-president and treasurer Laurie Nancekivell to undermine his reputation and deflect negative attention from their leadership.
Thomas, who retired in April 2022 after 15 years as OPSEU president, is seeking $4.5 million in damages, including for breach of contract, conspiracy and defamation, plus another $1 million in punitive damages.
In a statement last month, Hornick and Nancekivell said they were limited in what they could say publicly but called Thomas’s defence and counterclaim “fiction at best.” They were elected to their current positions in April 2022.
Gabay’s statement of defence said he did not arrange for the purchase, sale or transfer of any vehicles during his employment and alleged the union terminated his 14 and a half years of employment in April without cause after a new president and vice-president were elected.
“Gabay denies that OPSEU had just cause or after acquired cause to terminate his employment,” the statement of defence said.
The statement of defence said Gabay is asking the court to declare that OPSEU breached the memorandum of settlement between him and the union after the termination of his employment and to order the union to pay damages for the breach of his contract.
Comments