Defendants in Ottawa Hospital fraud lawsuit want case dismissed

A lawsuit filed three years ago by the Ottawa Hospital, alleging a "fraudulent scheme" between two of its own employees and five of its contractors, is still far from a trial date, and now some of the parties are planning to ask the court to dismiss the case.

In January 2016, a statement of claim filed by the Ottawa Hospital alleged that two longtime former directors in charge of large budgets and projects conspired with contractors to defraud the hospital in exchange for luxury vacations, family favours and discounts on home renovations.

None of the allegations has been tested in court.

A date has been set in spring 2019, more than three years after the lawsuit was filed, for the hospital to share its evidence with the defendants.

'An inordinately long time'

"That's an inordinately long time to only be where we are," said lawyer Chuck Merovitz, who represents Brock Marshall, one of the hospital's former employees named in the lawsuit.

Guy Adrian Lapierre, one of the contractors named in the lawsuit who was the president of GAL Power Systems, and is now listed as CEO and chairman, is in September planning to bring forward "a motion for summary judgment" essentially asking the judge to throw out the case against him without going to full trial.

• Ottawa Hospital files lawsuit against former directors, contractors

• Contractor Guy Adrian Lapierre files defence in Ottawa Hospital fraud suit

Merovitz said his client is thinking about doing the same.

"A motion for summary judgment is under consideration," Merovitz said.

'No delay' in its litigation, hospital says

In an emailed statement, Ottawa Hospital spokesperson Bernie Etzinger wrote there's been "no delay" in the hospital's litigation. But later in the same statement, Etzinger wrote that the hospital changed lawyers because its board of directors wanted Ottawa counsel in place to manage the file.

Etzinger also wrote the hospital has been waiting on police investigations.

"With the knowledge and concurrence of all of the parties, the hospital has been awaiting the outcome of police investigations which are taking time to complete," the statement continued.

Ottawa police would not confirm whether an investigation is underway.

Lawyers for the defendants disagree with the hospital's statement.

Peter Mantas, who represents Lapierre, wrote in an email that they didn't "concur or agree to a delay in this case due to a police investigation.

"We don't even have knowledge of an investigation," he continued. "We are disappointed that the hospital would release this type of statement to explain its delay."

Merovitz also said he had no knowledge of an ongoing police investigation.

Hospital asks court to dismiss employee counterclaims

In September, the Ottawa Hospital will also be bringing forward motions for summary judgments to dismiss each of the counterclaims launched earlier on by the two employees named in its suit: Marshall and Frank Medwenitsch. 

• Former director fires back at Ottawa Hospital over fraud claim
• Ottawa Hospital director accused of fraud was 'loyal and honest,' defence claim says

"The hospital's view is that the counterclaims have no merit and, accordingly, it wishes to have them summarily dismissed in order to properly focus and narrow the issues before the court," the hospital's statement reads. 

The counterclaim by Medwenitsch, the former director of capital projects, states the hospital's lawsuit destroyed his reputation and claims at least $350,000 in damages, with other amounts still to be assessed.

Marshall, meanwhile, is seeking $4.5 million in his counterclaim.

None of the allegations has been tested in court.

Both counterclaims had made explosive allegations against current hospital COO and board member Cameron Love, including that he had work done by hospital contractors on his personal properties.

The hospital has said Love was cleared of any wrongdoing in the same Ernst & Young audit which forms a significant part of the evidence behind the hospital lawsuit.