Angry in the Great White North

This story came and went rather quietly.  Millennium Media, the company Liberal MP Garth Turner founded in 1999, settled a lawsuit brought against Turner.

Details weren't mentioned in the media.  But the court filings are public information.  So what exactly was at issue?

These are the allegations brought by Millennium Media against Garth Turner.

There are allegations of camera equipment bought with company funds.  Cost?  Over $76,000.

There are allegations of office supplies, accounting fees, travel expenses, being paid for out of the company accounts. Cost?  Nearly $25,000.

And then there are allegations of a secret bank account:

In early 2005, Millennium Media provided certain services to CIBC Mortgages.

On March 8, 2005, Millennium Media rendered invoice no. 1209 to CIBC Mortgages in the amount of $215,605.00 (the "Invoice").

On or about October 28, 2005, CIBC Mortgages paid the Invoice by way of a cheque in the amount of $215,605.00 (the "Funds").  The Funds were then deposited by Turner into a Millennium Media bank account at the TD Bank (the "Account") which Turner opened on or about November 1, 2005 without informing Millennium Media's chief financial officer that he had done so.

Between November 1, 2005, and March 19, 2008, the Funds were withdrawn or redirected by Turner.  Turner had purposed to resign as an officer and director on or about March 13, 2006.  Turner purported to deal with Millennium Media's funds both before and after such purported resignation and, in fact, closed Millennium Media's TD Bank account after his purported resignation as an officer and director of the corporation.

Millennium Media pleads that the Funds were withdrawn or redirected without its knowledge or consent.  In fact, Turner was the only person at Millennium Media who was aware of the true nature of the transactions.  For reason known to Turner, Turner kept these various withdrawals and re-directions of corporate assets secret from all other Millennium Media personnel including its Chief Financial Officer.  Furthermore, having previous resigned as an officer and director of Millennium Media on March 13, 2006, Turner proceeded to close the Account on March 19, 2008 without any authority to do so, and without informing anyone associated with Millennium Media of this initiative.

Millennium Media pleads that the Funds were withdrawn or redirected for the benefit of the Defendants and to the detriment of Millennium Media with no juristic reason.  Accordingly Millennium Media pleads that the Defendants are liable for the return of the Funds.  Millennium Media pleads that Turner and the Numbered Company have been unjustly enriched at its expense and that it has suffered a corresponding detriment to such unjust enrichment.  At all times Turner stood in a fiduciary relationship to Millennium Media.  The conduct set out above was in direct and flagrant violation of Turner's fiduciary and other obligations to Millennium Media.

The suit makes no allegations regarding what the Funds were used for.  Garth Turner has been a sitting member of parliament since the January 2006 election.

We all know that this suit, for which these papers were filed on August 13, 2008, was settled on or about September 12:

A lawsuit involving Liberal MP Garth Turner and launched by the media company he founded has been settled, The Sun has learned.

"The business dispute in question resulted from a misunderstanding between the parties over the winding up of a corporation. It has been put to rest and will not proceed by mutual consent," said Turner, a financial expert, author and commentator.

The plaintiff's lawyer Gavin Tighe of Gardiner Roberts LLP would not comment on the settlement.

The lawsuit was launched by Millennium Media Television Enterprises in Ontario's Superior Court of Justice on Aug. 18, and was seeking $316,698.84 in damages over alleged misappropriation of company funds.

None of the allegations were proven in court.

None of the allegations were proven in court, but thanks to these publicly available documents, we now know what the allegations were.

Thankfully it was all due to a misunderstanding, as stated by Garth Turner.  Millennium Media did not confirm or deny that characterization of the problem.

Why does this matter?  Normally they would not, as nothing was proven and the suit settled out of court.  But concurrent with these events was the start of an election, and that makes it interesting.

This election was called on September 7.  I believe Garth Turner was appointed to be the nominee for this riding.  That would mean he would not have had to stand before a Green Light Committee, but he would still have to submit forms to the Ontario Campaign Chair:

Notwithstanding anything in these Rules, the Leader of the LPC may decide that a Meeting shall not be held in an Electoral District and shall designate a person who will be the Candidate for an Electoral District in any Election upon the Candidate executing and filing with the Ontario Campaign Chair, Forms 1, 2 (or Form 1A, instead of Forms 1 and 2, where Rule 6.2 would otherwise apply), 3, 4, 5 and 8 to the National Rules, with appropriate amendments.

Form 1A applies to nominees who were candidates for the Liberal Party in the general election in 2006.  Garth Turner was a candidate for the Conservative Party, so he would have to submit the longer form, Form 1.  The obligation to disclose is clear:

Are there any civil proceedings now pending in which fraud or similar conduct on the part of you or any partnership or company of which you are or were at the time such proceedings commenced a partner, officer, director or beneficial owner of more than 10% of the voting securities is alleged?

Are you presently involved, as a party, witness or otherwise, in any litigation before a court of law or tribunal of competent jurisdiction, which, if publicized before or during an election campaign, could adversely affect your campaign or the campaign of the Liberal Party of Canada or cause embarrassment to the Party of its Leader?

Are you aware of any other material fact not otherwise disclosed in this Form that, if publicly known, could cause your electoral chances or the electoral chances of the Liberal Party of Canada to be materially worsened, could hinder the performance of your public duties as a Member of Parliament or could be used by your opponents against you or the Liberal Party of Canada?

I am certain that Garth Turner disclosed everything as required (or updated previously filed forms), given that the lawsuit was still proceeding as the election was called.  I just wonder if the Green Light Committee would have allowed the nomination to proceed under these circumstances, what with such close polling numbers at the outset of the election, and with Stephane Dion's troubled leadership on the line.

By being appointed, the full committee would not have reviewed these forms and his disclosures, and his updated information.

Of course, since the suit was settled, it's all moot now.