The long-standing war of words between the Canadian Wheat Board and the federal government has escalated into a full-fledged court battle.
The CWB has filed a statement of claim with the Court of Queen’s Bench in Winnipeg seeking compensation for the severance package it was forced to pay former president Adrian Measner.
On Nov. 24, 2005, the CWB extended Measner’s contract for a three-year term running from Dec. 31, 2005 to Dec. 31, 2008.
The government issued an order-in-council terminating Measner as president of the CWB on Dec. 19, 2006, despite being advised by the board that it was satisfied with Measner’s performance and wanted him to remain.
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In its court filing, the board claims the government had a “fiduciary duty” not to fire the CWB’s president without justification and contrary to the wishes of its board of directors.
“The government has breached such duty by terminating Measner’s appointment as aforesaid and thereby unreasonably and unfairly placed the economic consequences of its politically and self-interested actions on the CWB and the Canadian grain farmers it serves,” said the board’s statement.
The government as of June 1, 2009, had filed no statement of defence. A spokesperson for CWB minister Gerry Ritz said the minister does not comment on cases before the courts.
The CWB has been threatening to sue the government over the issue as far back as February 2007.
“We’ve been trying to settle without going to court. This is a last resort after finally getting word that we’re not going to be compensated from government,” said board chair Larry Hill.
The statement of claim did not identify the dollar amount of the severance package and Hill would not divulge it.
“Out of respect for Mr. Measner, we are not disclosing the amount,” he said.
At the time he was fired, Measner had two years remaining on his contract. His base salary was $264,063. It is not known what his benefit package was worth.
There has been media speculation that his severance package amounted to more than $1.3 million. Hill would not confirm that amount.
“Whatever the number is, it comes out of the farmers’ bottom line. It is not their bill,” he said.
“The government took the action, so it’s their responsibility. They must have known there would be consequences.”
