Action No. 0301-09784 IN THE COURT OF QUEEN'S BENCH OF ALBERTA
JUDICIAL CENTRE OF CALGARY BETWEEN: m&^^^^^S^^^^^^ LEVANT' MARV^ LEVANT and SEAN McKINSLEY Plaintiffs and-
iNNAN, JOHN FLYNN, WALTER WAKULA, A AUDREY CERKVENAC. ANNE DAVENPORT. HAROLD DAVENPORT. MARIA DUHAME. DAVID FULTON7 GEORGE LANE. CLARENCE PATTON. RODERICK W. PEDEN. BEV PFEFFER. JIM STEVENSON. LINDA TOEWS. JOHN TRABER, and ELIZABETH TRABER Defendants
AMENDED STATEMENT OF CLAIM The Plaintiffs
1. The Plaintiff Michael Cooper (hereinafter "Cooper") is a resident of the City of St. Albert, in the Province of Alberta. He is a university student, a political organizer and A a^ former National Councilor of the Canadian Alliance party (hereinafter the "Party").
2. The Plaintiff Ezra Levant (hereinafter "Levant") is a resident of Calgary, in the Province of Alberta. He is a lawyer, journalist, author, publisher and political activist. From August, 2001 to March, 2002 he was a political organizer in the Party's Calgary Southwest constituency association (hereinafter the "Riding"). During February and March, 2002, he was the Party candidate in the Calgary Southwest federal by-election, later stepping aside for Stephen Harper, the Party's new leader (hereinafter "Harper"). From March, 2002 until April, 2003 Levant served as a director of the Riding.
3. The Plaintiff Marvin Levant (hereinafter "Dr. Levant") is a resident of Calgary, in the Province of Alberta. He is a medical doctor and a prominent member of the community. From
{K:\cdox\0058275\000004\C4139514.DOC;2} August, 2001 to March, 2002 he was a political organizer in the Riding. From November, 2001 until April, 2003 he served as a director of the Riding.
4. The Plaintiff Sean McKinsley (hereinafter "McKinsley") is a resident of Calgary, in the Province of Alberta. He is a businessman, political organizer and pollster. From August, 2001 to March, 2002 he served as campaign manager for Levant and was a political organizer in the Riding. From January, 2002 until March, 2002 he also served as campaign manager for the Riding in the Calgary Southwest by-election.
The Defendants
5. The Defendant Garry Hennan (hereinafter "Hennan") is a resident of Calgary, in the Province of Alberta. He served as a director of the Riding until being voted out in November, 2001.
6. The Defendant John Flynn (hereinafter "Flynn") is a resident of Calgary, in the Province of Alberta. He served as a director of the Riding from about late 2002 until June, 2003. From April, 2003 until June, 2003 he was president of the Riding.
7. The Defendant Walter Wakula (hereinafter "Wakula") is a resident of Calgary, in the Province of Alberta. He is a member of the Party, but not a member of the Riding. He is the president of the Party's Calgary West constituency association (hereinafter "Calgary West").
8. A iL The following Defendants are each individuals who are residents of Calgary. Alberta or another municipality with Alberta: Audrey Cerkvenac Hereinafter "Cerkvenac"). Anne Davenport (hereinafter "A. Davenport"). Harold Davenport (hereinafter "H. Davenport"). Maria Duhaime (hereinafter "Duhaime"). David Fulton (hereinafter "Fulton"). George Lane (hereinafter "Lane"). Clarence Patton (hereinafter "Patton"). Roderick W. Peden (hereinafter "Peden"). Bev Pfeffer (hereinafter "Pfeffer"). Jim Stevenson (hereinafter "Stevenson"). Linda Toews (hereinafter "Toews"). John Traber (hereinafter "J. Traber"). and Elizabeth Traber (hereinafter "E. Traber").
{K:\cdox\0058275\000004\C4139514.DOC;2} JJL The following Defendants are hereinafter referred to collectively as the "Former Riding Board": Cerkvenac. A. Davenport. H. Davenport. Hennan. Peden. Patton. and E. Traber.
Campaign audited exhaustively by Party
iL Prior to Levant becoming the candidate for the Riding. Levant's supporters, who were also members of the Riding, voted to replace the board of directors of the Riding, which included those Defendants defined as the Former Riding Board, with individuals who were supportive of Levant's candidacy. This took place at the Riding's annual general meeting in November 2001.
12. Levant later became the candidate for the Riding.
LL. After Levant stepped aside for Harper as the Riding's by-election candidate, the Riding retained a professional, independent auditor to review the Riding financial accounts and related governance issues during the period of Levant's candidacy. Upon completion of the audit, the auditor made an extended presentation to the Riding at a board meeting. The report was approved and the Riding, including Harper, voted to issue a formal statement of thanks to the campaign team, including the Plaintiffs.
JA Additionally, the Riding's audit, as well as all supporting documents thereto including bank statements, cancelled cheques and hundreds of receipts and invoices, were submitted to the Party's national office for inspection. McKinsley personally attended at the Party's national office and answered all questions put to him, to the satisfaction of Party officials.
15^ Both the Riding and the Party's national office have reviewed the Riding's finances and governance and have proved baseless any allegations of improper conduct, and have approved as legitimate all of the Plaintiffs' conduct regarding same, including but not limited to the treatment of revenues, expenses, leases and purchases. liL This successful audit and review was or ought to have been public knowledge to all Riding or Party members, who sought to inquire, or to attend Riding meetings, which are open to Party members, or to review minutes of Riding board meetings. Specifically, the results of the audit and review was known or ought to have been know bv each of the Defendants.
{K:\cdox\0058275\000004\C4139514.D0C;2} YL Despite this rigorous accounting, and in the face of the facts, the Defendants have repeatedly published or spoken defamatory untruths about the Plaintiffs regarding the matters treated in the audit. Over the past year the Defendants have publicly threatened to embarrass the Plaintiffs or any of them, and communicated this threat to Party and Riding officials.
18, In response, Party and Riding officials have constantly referred the Defendants to the audit process described above, and advised the Defendants that their defamatory publications and statements were incorrect. Despite being reminded of the facts, the Defendants proceeded with the defamation and continue to do so.
December 17th. 2002 Letter
15L On or about the 17th day of December, 2002, the Defendants, or any of them, published a letter, addressed to the Secretariat committee of the Party's governing National Council (hereinafter the "December 17th, 2002 Letter"). The December 17th, 2002 Letter was also circulated widely to other people across Canada, including to thousands of members of the Party, to people who were not members of the Party, and to various news media. The December 17th, 2002 Letter is attached hereto and marked as Exhibit A. It is false, and defamatory of the Plaintiffs.
January 24th. 2003 Letter
20. On or about the 24th day of January, 2003, the Defendants, or any of them, published another letter, addressed to Terry Horkoff, the Executive Director of the Party (hereinafter "Horkoff). This letter is hereinafter referred to as the January 24th, 2003 Letter.
2L The January 24th, 2003 Letter was also circulated widely to other people across Canada, including to thousands of members of the Party, to people who were not members of the Party, and to various news media. The January 24th, 2003 Letter included within its body a copy of the December 17th. 2002 Letter, as well as certain additional documents listed within its text, and is attached hereto and marked as Exhibit B. It is false, and defamatory of the Plaintiffs.
{K:\cdox\0058275\000004\C4139514.DOC;2} May 19th. 2003 Letter
22*. On or about the 19th day of May, 2003, the Defendants, or any of them, published another letter, addressed to "Canadian Alliance Friends" (hereinafter the "May 19th, 2003 Letter"). Hennan published the May 19th, 2003 Letter as an attachment to an E-mail sent to numerous people (hereinafter the "May 19th, 2003 Hennan E-mail"), including the following Party National Councilors who are resident across Canada:
a. James Carson;
b. Don Irwin;
c. Aria Taylor;
d. Robert Alexander;
e. Michael Cooper (a Plaintiff herein);
f. Doug Sharpe;
g. Jeremy Harrison;
h. Sam Magnus;
i. Eric Schenstead;
j. EdAgnew;
k. Don Plett;
1. Denis Simard;
m. Pat Dunn;
n. Nancy Jahn; and
o. David Leskowski.
{K:\cdox\0058275\000004\C4139514.DOC;2} 23, The subject title of the May 19th, 2003 Hennan E-mail containing the May 19th, 2003 Letter was "Complaints of Misconduct in Calgary Southwest", and it was sent from Herman's E-mail account, namely [email protected]. It is defamatory of the Plaintiffs.
2A In addition to the May 19th, 2003 Letter, the May 19th, 2003 Hennan E-mail also contained the following words in the body of the E-mail itself, which were false, and defamatory of the Plaintiffs:
"To Members of National Council,
As a very long time member of the Reform - Alliance Party in Canada, I would like you to tell me if any of you knew about the serious allegations in the attached documents prior to this release, and, if so, WHY HAS IT BEEN SWEPT UNDER THE CARPET?
It appears as if all of this has taken place RIGHT UNDER OUR LEADER'S NOSE!! If we cannot deal with conduct like this in our own party, how do you expect to run the affairs of an entire country with the honesty and integrity we have promoted over the years?
I must say, ever since Preston Manning stepped down (or was forced out), this party has been lowered to the same level as all the rest of them.
Garry Hennan, Member since 1991,
Calgary Southwest"
2L. hi addition, the Defendants, or any of them, circulated the May 19th, 2003 Letter widely to people across Canada, including to thousands of members of the Party, to people who were not members of the party, and to various news media.
26. The May 19th, 2003 Letter included within its body copies of the December 17th, 2002 Letter and January 24th, 2003 Letter, and is attached hereto and marked as Exhibit C. It is false, and defamatory of the Plaintiffs.
May 21st. 2003 Letter
TL On or about the 21st day of May, 2003, the Defendants, or any of them, published another letter (hereinafter the "May 21st, 2003 Letter") and sent it by E-mail to thousands of members of
{K:\cdox\0058275\000004\C4139514.DOC;2} the Party across Canada, to people who were not members of the Party, and to various news media. The May 21st, 2003 Letter included an attached document, which included within its body a copy of the December 17th, 2002 Letter and January 24th, 2003 Letter, and added to those a preface and postscript similar to that of the May 19th, 2003 Letter, but with an increasingly defamatory and malicious tone and with more incendiary language. The May 21st, 2003 Letter is attached hereto and marked as Exhibit D. It is false, and defamatory of the Plaintiffs.
23a. The May 21st, 2003 Letter was E-mailed from an anonymous E-mail account which disguised the true identity of the E-mail's sender, appearing to be sent instead from the alias "[email protected]."
2SL The Defendants, or each of them, arranged and organized the signing of the May 21st. 2003 Letter by approximately 177 people as a form of petition against the Plaintiffs. All of the signatories of the May 21st. 2003 Letter will hereinafter be referred to as the "Signatories". ilL The May 21st, 2003 Letter's E-mail subject title was "Wrongdoing in Calgary Southwest Must Be Investigated."
21t In addition to the aforementioned attached document, fictitious identity and subject title, the May 21st, 2003 Letter also contained the following words in the body of the E-mail itself:
"Dear Alliance Friend,
If you're a Reform/Alliance member and care about HONESTY and INTEGRITY in politics PLEASE open and read the attached file AND FORWARD IT TO ALL YOUR ALLIANCE FRIENDS.
It is VITAL that members TAKE A STAND and DEMAND that the party INVESTIGATE the misconduct outlined in the attached Complaint signed by nearly 200 members in more than half-a-dozen ridings (many of them past and current constituency association presidents and members of board executives).
The Complaint was hand-delivered to the Executive Director of the party on January 24th, 2003, for immediate delivery to the National Council, Secretariat. Since then the very significant concerns of almost 200 members have been ignored - nothing has been done! Meanwhile the very same people implicated in this Complaint are trying to secure control of other ridings - most recently Calgary Centre, but it wont stop there! Other ridings will soon be targeted, as well.
{K:\cdox\0058275\000004\C4139514.D0C;2} IF YOU STILL CARE ABOUT THE CORE VALUES THAT BROUGHT MANY OF US TO THIS PARTY - HONESTY AND INTEGRITY - PLEASE HELP!
IF YOU STILL THINK THIS PARTY SHOULD STRIVE TO "DO POLITICS DIFFERENTLY" - PLEASE HELP!
IF YOU WANT TO CONTINUE TO FEEL PRIDE IN YOUR PARTY AND NOT SHAME - PLEASE READ THE ATTACHMENT and ACT NOW!
Thank you.
Note#l: The attachment contains a Member Advisory dated May 2003, a copy of the Covering Letter sent to the Executive Director in National Office dated January 24, 2003 and the Complaint.
Note#2: File transfer size limits makes it impossible to include all the documentary evidence but all of the material referenced as attachments to the Executive Director have been provided to the Leader, National Council, Secretariat and the party Executive Director."
May. 2003 Hennan E-mails to the Calsary Sun
22u On or about the 20th day of May, 2003, Hennan published the May 19th, 2003 Letter as an attachment to an E-mail sent to Paul Jackson, a senior columnist with the Calgary Sun newspaper (hereinafter the "May 20th, 2003 Hennan E-mail"). On or about the 27th day of May, 2003, Hennan published another E-mail to Paul Jackson (hereinafter the "May 27th, 2003 Hennan E-mail") referring to the May 20th, 2003, Hennan E-mail. Both of these E-mails were false, and defamatory of the Plaintiffs.
33. The subject title of the May 20th, 2003 Hennan E-mail was "Joel Loh May Not Make It The Way You Think", and the E-Mail was sent from Hennan's E-mail account, namely [email protected].
24* The May 27th, 2003 Herman E-Mail also contained the following words in the body of the E-Mail itself:
"Hello Paul,
Do you recall the document package I sent to you last week regarding the problems in Calgary Southwest? Well, both your rising stars Joel and Ezra are front and centre in this controversy and formal complaint now in the hands of the Alliance Party National Council.
{K:\cdox\0058275\000004\C4139514.DOC;2} In fact, there is a more than even chance that Joel may have to withdraw from his bid for Calgary Centre. The nomination selection committee is having second thoughts about Mr. Loh now that they have additional information on his background as former treasurer and president of Calgary Southwest Constituency Association.
This places you in a difficult position. However, you may send any portion of your Mexican retirement fund you like to my attention (as noted in your May 27th column). I am calling you on your bet.
Garry Hennan,
Alliance Member,
Calgary Southwest,
680-5735"
May 2(fh. 2003 Wakula E-mail to Party officials
35. On or about the 20th day of May, 2003, Wakula published an E-mail sent to numerous people (hereinafter the "May 20th, 2003 Wakula E-Mail"), including to Terry Horkoff, the Party's executive director (hereinafter "Horkoff), and A Toews, a defendant herein who was also, at the time, the Party's Southern Alberta volunteer coordinator.* This E-Mail was false, and defamatory of the Plaintiffs.
36. The subject title of the May 20th. 2003 Wakula E-mail was "Re: Wrongdoing in Calgary Southwest", and the E-mail was sent from Wakula's E-Mail account, namely [email protected].
37. The May 20th, 2003 Wakula E-mail contained the following words in the body of the E-mail itself (including original typographical errors):
"Dear Concerned Alliance Members, Terry and Linda,
I continue to be amazed at the lack of financial control and poor governance of some constituency associations, Calgary Southwest in particular, and the lack of fundamental decency and pure ambition of some people. I have seen some "Gong shows" but this one surely takes the cake.
However, when all is said and done, this appears to me to be a Calgary Southwest matter and a forensic audit appears warranted with results reported at a spacial meeting of the members. My
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wonder is why a special meeting of the members has not already been called to deal with the matter and pass a special resolution to ask National Council for help rather than rallying people from other ridings.
Though a Calgary Southwest matter, I am concerned of the spillover effects this matter may have in the rest of Calgary and, indeed, for the party overall if these allegations get into the press and especially if litigation is launched. On that basis, I ask that this matter be put on the SACC agenda for June.
Best regards, Walter Wakula, President Calgary West Constituency Association Canadian Alliance Phone: 246-9290"
May. 2003 Flynn E-mail to Ridins officials
3JL. hi or about May, 2003, Flynn published the May 21st. 2003 Letter as an attachment to an E-mail sent to numerous people (hereinafter the "May. 2003 Flynn E-mail"), including to the entire board of directors of the Riding.
May 27th. 2003 Wakula E-mail to Calearv West Party officials
3SL On or about the 27th day of May, 2003, Wakula published the May 21st. 2003 Letter as an attachment to an E-mail sent to numerous people (hereinafter the "May 27th, 2003 Wakula E-mail"), including to the entire board of directors of Calgary West. The E-mail was false, and defamatory of the Plaintiffs.
4a The subject title of the May 27th. 2003 Wakula E-mail containing the May 21st. 2003 Letter was "Alliance Party News - Issue No. 26", and the E-mail was sent from Wakula's E-mail account, namely [email protected].
4L In addition to the May 21st, 2003 Letter, the May 27th. 2003 Wakula E-mail also contained the following words in the body of the E-mail itself:
"Fellow Directors,
Attached are the latest party announcements and sampling of news that I have received since my Alliance Party News Issue No. 25 about 2 weeks ago.
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Significant items among these are:
1. Calgary Center and Calgary SE are looking for volunteers for their Candidate Selection Meetings (May 31, June 4 and 14) See attached Email for details.
2. There's a few Canadian Alliance Advocates attached including a special edition
3. Wrongdoing in Calgary SW is a case study in lax financial controls and poor governance of a constituency association.
Enjoy.
As usual, if you don't want to receive these Alliance Party News Emails, please let me know and I'll take you off the list.
Best regards, Walter Wakula, President Calgary West Constituency Association Canadian Alliance Phone: 246-9290"
May 3(f . 2003 Calgary Centre Meeting Statements by Lane
42, On or about the 30th day of May. 2003. Lane attended a meeting of the Party's Calgary Centre Candidate Selection Committee (hereinafter the "May 30th. 2003 Calgary Centre Meeting"), where he repeatedly and aggressively asked a prospective Party candidate. Joel Loh. oral questions about his involvement with the matters described in the May 21st. 2003 Letter. In addition to defamatory questions, defamatory statements were also made by Lane. The exact words used by Lane at the May 30th. 2003 Calgary Centre Meeting (hereinafter "May 30th. 2003 Calgary Centre Meeting Statements") are unknown to the Plaintiffs who will amend this claim to particularize them when same have been ascertained. The questions and statements were defamatory of the Plaintiffs.
June 6th. 2003 Wakula E-mail to Party officials
43. On or about the 6th day of June, 2003, Wakula published an E-mail sent to numerous people (hereinafter the "June 6th. 2003 Wakula E-mail"), including to A Toews, and members of the Calgary West's executive committee. The E-mail was false, and defamatory of the Plaintiffs.
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44- The subject title of the June 6th. 2003 Wakula E-mail was "Fw: Wrongdoing in Calgary Southwest", and the E-mail was sent from Wakula's E-mail account, namely walterwakula@shaw. ca.
45, The June 6th. 2003 Wakula E-mail repeated the entire May 20th, 2003 Wakula E-mail, and also contained the following additional defamatory words in the body of the E-mail itself (including original typographical errors):
"John,
I had responded to your "Wrongdoing..." Email copying Terry Horkoff and Linda Toews but the return Email copy to your group bounced.
I just re-read the Email from your "Please Act Now" group and am forwarding my response, below, made a couple of weeks ago. I understand that you are being pressured to not pursue an audit by senior members of the Alliance. I can understand why the Alberta National Councilors are against such an audit but don't understand why Terry and other senior Alliance officials are against it. My previous Email comments below also apply.
My position with managing other people's money is always to err on the side of tranparency, especially when there appears to be malfeasance as your group alleges. It may just be gross incompetence or naivety of that Board which, though reprehensible and not financially prudent, would not otherwise be illegal. If funds were misappropriated by the constituency to pay for a national councillor election campaign then I believe erring on the side of transparency is again preferable so the consequences of that can properly be dealt with by the Alliance.
On the basis of these points I would support a forensic audit being undertaken so that you can provide a proper financial report to your members. If your riding is like mine there have been hunderds of $25 donations by poeple who are strong believers but who can't really afford the donation and don't even qualify for the tax receipt.
However, extending the audit to a lawyers trust account, over his objections, may involve obtaining a court order and going through that process, which could include litigation. This may be a reason for senior Alliance resistance to such an audit.
I have put this item on tomorrow's SACC agenda despite Terry's objections and hope to understand the matter better after our discussion.
Best regards, Walter Wakula, President Calgary West Constituency Association Canadian Alliance Phone: 246-9290"
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June 7th. 2003 Alberta Meeting Statements by Flynn
46. On or about the 5th of June, 2003, Flynn chaired a meeting of the Riding. At that meeting, the auditor who audited the Riding's financial accounts in the spring of 2002 presented his findings again, in rebuttal to the May 21st. 2003 Letter.
47. Two days later, on or about the 7th of June, 2003, Flynn attended a meeting of Party constituency association presidents and other Party officials from across southern Alberta (the "June 7th. 2003 Meeting"). At the June 7th. 2003 Meeting, Flynn orally repeated the defamatory words, or any of them, contained within the May 21st, 2003 Letter, and encouraged other Party officials from across Alberta to read and believe the May 21st. 2003 Letter and to officiously launch another audit into the matters alleged therein. He did so despite having heard the true facts of the matter from the auditor just two days previously.
48. At the June 7th, 2003 Meeting, Flynn described Party officials, including Harper, who were not receptive to this new audit proposal as "cockroaches." The exact defamatory words used by Flynn at the June 7th. 2003 Meeting (hereinafter "June 7th. 2003 Alberta Meeting Statements") are unknown to the Plaintiffs who will amend this claim as may be necessary to particularize them when same have been ascertained. The statements were false, and defamatory of the Plaintiffs.
49. On or about the 7th day of June, 2003, as a result of the June 7th. 2003 Alberta Meeting Statements, Harper telephoned Flynn to ask him to resign as president of the Riding. Following that telephone call, Flynn published an E-mail sent to numerous people (hereinafter the "June 7th4 2003 Flynn E-mail"), including to Toews, Robert Harper (Harper's brother), Ray Novak (Harper's assistant), members of Calgary West, and members of the Riding. The E-mail was false, and defamatory of the Plaintiffs.
June 7 . 2003 Flynn E-mail to Party officials
50. The subject title of the June 7th, 2003 Flynn E-mail was "Jabs from the Leader", and the E-mail was sent from one of Flynn's E-mail accounts, namely [email protected].
{K:\cdox\0058275\000004\C4139514.DOC;2} 14
JUL The June f ,2003 Flynn E-mail contained the following words in the body of the E-mail itself (including original typographical errors):
"Mr. Harper,
This afternoon, you had phoned my home and our telephone conversation ended abruptly. You have interpreted my words as a resignation. Firstly, I did not use the word "resign". Secondly, I do not resign to you. I will resign to the Board on my terms. Again, I find it appalling that you continue to believe that you run this Constituency Association. This constituency association is not "yours". You have forgotten that this is a grassroots party with a Constitution.
You had called to tell me that there have been many complaints from National Council and from Calgary SW Board members about my conduct. You would not name them for me. (I have also heard that you are not happy with my stance on this issue and plan on removing me anyway). Of course, our members are quite aware of the two local National Councillors involved. Many could question their conduct. I know our SW Board members have been called by your associates. Again, inappropriate conduct. I can say, after the Southern Alberta Constituency Council meeting today, that I would have the full support of all Constituency Presidents in Southern Alberta.
No one can understand why you will not properly and professionally deal with the very serious allegations against this riding. It has been one year and nothing has happened. You have told me that it is not our problem. You have also said that National Office is dealing with it. I strongly disagree on both of those statements. This Calgary SW Constituency Association will not be moving forward until the Complaint against this Association is properly handled. There is also spill over to other ridings. This issue can damage the party.
The Calgary SW Board will now have to decide whether to call for a forensic audit. Many other Constituency Presidents agree. Maybe an Elections Canada/Revenue Canada audit would be the best since it would save the Board a lot of money which we do not have in our account.
I believe I speak for many individual members of this party when I say it is time for some leadership on this issue.
Regards,
John Flynn President Calgary SW"
June 8th. 2003 Wakula Memos to Party officials
5Z On or about the 8th day of June, 2003, Wakula published two defamatory memoranda, by sending them by E-mail (hereinafter the "First June 8th, 2003 Wakula Memo" and the "Second
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June 8 ^2003 Wakula Memo"). The First June 8^2003 Wakula Memo was sent to numerous people, including to Don Plett (the president of the Party), Harper, Flynn, Horkoff, Gus Barron (the president of the Party's Calgary Centre constituency association, hereinafter "Barron") and the executive committee of Calgary West. The Second June 8lb. 2003 Wakula Memo was sent to the same people, except Horkoff. The First June S'^JQOjWakula Memo is attached hereto and marked as Exhibit E. The Second June 8lh, 20M Wakula Memo is attached hereto and marked as Exhibit F. Both memoranda are false, and defamatory of the Plaintiffs.
June ?h. 2003 Flvnn E-mail to Wakula
53. On or about the 9th day of June, 2003, Flynn published an E-mail sent to numerous people (hereinafter the "June 9*jg2J Flynn E-mail"), including to Wakula. The E-mail was false, and defamatory of the Plaintiffs.
54, The subject title of the 9,h day of JunejJ003 Flynn E-mail was "Re: Solutions For The Calgary Problem", and the E-mail was sent from one of Flynn's E-mail accounts, namely [email protected].
ii. The June 9,h4M03Flyiin E-mail contained the following words in the body of the E-mail itself (including original typographical errors):
"Walter,
behindh^ttedKmu my back I™*?ti°n to undermine t0 *e SWme and b0ard-(What they plan on is lynching left of me ") There tomorrow w<*e anyway people operating For your eyes only, Yesterday, I received the typical telephone call/blackmail attempt Of course, I am not entirely scared by this action. I would love to stay and fight. I am verv concerned about my elevated anger and blood pressure.
Having been a member for many years, I also have a really hard time justifying an enormous amount of my tune to clean up this huge mess that was created by many others who have all been promoted mto this party. Amazing ... destroy a riding association and get promoted??
New"UberalSy^'"^ "* * "*"* "^ ** Chretiea X d° n0t want t0 be a P3* °f *"
Sincerely,
John Flynn"
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June 15', 2003 Statements at a Party meeting
56,. On or about the 15th day of June, 2003, the Defendants, or any of them, attended a meeting of Party constituency association presidents, volunteers, Members of Parliament and senior Party officers, including the Party's national president, national secretary and senior advisors to * the Party leader. At that meeting the Defendants, including Lane and Wakula1 orally defamed the Plaintiffs, bv making remarks Thereinafter the "June 15th. 2003 Statements") repeating the Mav30th. 2003 Calearv Centre Meeting Statements, the June 3rd. 2003 Letter, or any of them. Some of these June 15th. 2003 Statements were reduced to writing in the form of defamatory minutes Thereinafter the "June 15th. 2003 Minutes").
First June 16th. 2003 Wakula E-mail to the Calgary Herald and Party officials
5T On or about the 16th day of June, 2003, Wakula published an E-mail sent to numerous people (hereinafter the "First June 16th, 2003 Wakula E-mail"), including to Linda Slobodian, a reporter and columnist with the Calgary Herald, the Letters Editor of the Calgary Herald, Barron, and Jim Stevenson, president of the Party's Calgary Northeast constituency association. The E-mail was false, and defamatory of the Plaintiffs.
58. The subject title of the First June 16th, 2003 Wakula E-mail was "Canadian Alliance - Meeting fails to mend rift over riding vote", and the E-mail was sent from Wakula's E-mail account, namely [email protected].
52*. The First June 16th, 2003 Wakula E-mail contained the following words in the body of the E-mail itself (including original typographical errors and use of bold text):
"Re: Canadian Alliance - Meeting fails to mend rift over riding vote June 16,2003 by Linda Slobodian
I was disappointed to read in this article that Gus Barron, President of Calgary Centre Alliance, believes that nothing was accomplished at Sunday's meeting of Southern Alberta Alliance MPs, Presidents and National Council Executive. On the contrary, the objectives of the meeting were to hear National Council's viewpoint and rationale for decisions taken by it on the Calgary situation and to discuss and provide feedback from Southern Alberta MPs and Presidents on this situation. A further objective of the Presidents was to encourage National Council to work with riding officials to bring about a quick, transparent and fair resolution to the controversy currently engulfing Calgary Southwest and Calgary Centre Constituency Associations.
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In my opinion the Executive of National Council undertook to do just that. Council President Don Plett committed to provide a report on Calgary Southwest finances within 10 to 14 days. Council also delegated to an Offficer of council responsibilty to investigate the Candidate Selection process in Calgary Centre with a view to resolve the impasse and move forward quickly with a solution acceptable to the Board and the three candidates. I felt we left the meeting upbeat and confident that all sides had discussed the issues openly and honestly and that our objectives had been substantially achieved.
Best regards, Walter Wakula, MBA President Calgary West Constituency Association Canadian Alliance 143 Windermere Road S.W. Calgary, AB T3C 3K9 Phone: (403) 246-9290 Cell: (403) 816-6206"
Second June 16th. 2003 Wakula E-mail to Party officials in Calgary West
60. On or about the 16th day of June, 2003, Wakula published another E-mail sent to numerous people (hereinafter the "Second June 16th. 2003 Wakula E-mail"), including to the entire board of directors of Calgary West. The E-mail was false, and defamatory of the Plaintiffs.
61. The subject title of the Second June 16th, 2003 Wakula E-mail was "My Letter to the Herald Editor Re; Calgary SW & Centre", and the E-mail was sent from Wakula's E-mail account, namely [email protected].
62. The Second June 16th, 2003 Wakula E-mail contained within its body an exact copy of the First June 16th, 2003 Wakula E-mail and the following additional words (including original typographical errors):
"Fellow Directors,
I had believed that the problems in Calgary SW and Calgary Center were problems that needed to be solved by their Boards and members. However, after last week's Southern Alberta Constituency Council ("SACC") meeting I was appalled to learn more about the serious allegations being circulated, was concerned about the threats of litigation against those volunteers providing evidence of alleged malfeasance and was concerned about the effect these
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matters may have on Calgary West and other Southern Alberta constituencies. Because of these factors I moved a motion in SACC for SACC to arrange a meeting with Don Plett, President of National Council, and his executive before they left town on Sunday.
Following up on that motion I wanted you to be aware that I was one of the organizers of a joint meeting among SACC, National Council Executive and the Calgary area MPs held Sunday morning, June 15, 2003. It was important to us to get National Council more informed on the issues and to urge them to work with riding officials to bring about a quick, transparant and fair resolution to the controversy. Further, I emphasized to the meeting that a high priority be given to this by Council for a number of reasons not the least of which is that 23 percent of the membership of the Alliance is represented by SACC. A problem spreading in Calgary less than a year before the next election has, in the opinion of several presidents, the potential to erode a substantial base of the party, especially if hostile Board takeovers domino into more Calgary area ridings.
I thought the concensus of the Sunday morning meeting was upbeat and that the issues had been discussed openly and honestly and that Council had committed to proceed quickly and openly to resolve the disputes. I woke up to a Herald article stating that Gus Barron, President of Calgary Centre, disagrees.
Accordingly, I have written the following letter to the editor of the Herald. I would appreciate any comments you may have on this.
Best regards, Walter Wakula, President Calgary West Constituency Association Canadian Alliance Phone: 246-9290"
June 18th. 2003 Wakula E-mail to Party officials in Calgary West
61. On or about the 18th day of June, 2003, Wakula published an E-mail sent to numerous people (hereinafter the "June 18th, 2003 Wakula E-mail"), including to the entire board of directors of Calgary West. The E-mail was false, and defamatory of the Plaintiffs.
64 The subject title of the June 18th, 2003 Wakula E-mail was "Alliance Party News - Issue No. 27", and the E-mail was sent from Wakula's E-mail account, namely [email protected].
65. The June 18th. 2003 Wakula E-mail included, as attachments, an exact copy of the May 20th, 2003 Wakula Letter, the June 6th, 2003 Wakula E-mail, the June 7th. 2003 Flynn Letter, the First June 8th, 2003 Wakula Memo and the Second June 8th. 2003 Wakula Memo.
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May 21st. 2003 Letter sent to National Post
66. On or about the 19th day of June, 2003, the Defendants, or any of them, sent the May 21sta 2003 Letter, including the names of the 177 * Signatories, to the National Post newspaper's Ottawa bureau.
July 18 r 2003 Fulton E-mail to Yahoo chat group
67. On or about the 18 dayth of July, 2003, Fulton published an E-mail to numerous people (hereinafter the "July 18th, 2003 Fulton E-mail"), a publicly accessible online service, also called a chat group or a bulletin board, hosted by the Internet company Yahoo (hereinafter referred to as "Yahoo"), and to other recipients.
68. E-mail messages sent or posted to Yahoo are automatically sent to a massive list of recipients, and are saved and continuously published in a publicly accessible archive.
69. The July 18th, 2003 Fulton E-mail contained the following false and defamatory words (including original typographical errors'):
"Was it the part when he claimed Calgary Southwest finances had been given a "clean bill of health" when, in fact, there was a investigation into those finances by Mr Rattai taking place at that time?
Was it the part when he denied any knowledge of these finances despite having being the Treasurer and President for the constituency association? (Does he not have a fiduciary duty as a director and officer of the association to have complete knowledge of these finances?)
Was it the part where he stated in a letter dated May 26, 2003 to John Flynn (the recently resigned President of the Calgary Southwest Constituency Assn at that time and named defendant in a $1.45 MM defamation suit launched by Ezra Levant, Marvin Levant and Michael Cooper) that Morris Reef CA had "meticulously reviewed all of the finances of the campaign in Calgary Southwest during Ezra Levant's tenure as candidate...all funds were properly accounted for" when, in fact, to date, no complete independent audits of the constituency association account, campaign account and "Ezra Levant in trust" account have been presented to the members of Calgary Southwest since the fall of 1991?"
August l(f . 2003 Lane E-mail to Yahoo chat group
20, On or about the 10th day of August, 2003. Lane published an E-mail to numerous people (hereinafter the "August 10th. 2003 Lane E-mail"), including to Yahoo, and to other recipients.
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71. The August 10th. 2003 Lane E-mail contained the following false and defamatory words (including original typographical errors):
"Last time in Alberta the 'Principled and Loyal' slate He. Michael Cooper. Doug Sharpe and Bob Alexander! spent a huge amount and were successfully elected in part due to a strange voting system that allegedly favours slates.
The result here was quite controversial in part due to allegations that the slate in their brochures defamed two of the other leading candidates and partly because it was never revealed where the money for the slate's campaign [estimated to be at least $35,0001 came from.
On this latter point I have personally heard from two usually very Reliable sources that 'everyone knows that the money came from the Calgary SW Constituency Association after Ezra Levant took it over'.
Well I don't personally think that 'everyone does know that' although many seem to suspect it. But that is apparently one of the reasons some 177 plus CA members signed a petition calling for a thorough investigation and audit - for which they are now being sued by Cooper. Levant. Levant and McKinsley."
22, The defamatory written documents referred to in the within Amended Statement of Claim and the Exhibits * hereto are hereinafter referred to collectively as the "Letters". The defamatory oral statements referred to in A the within Amended Statement of Claim are hereinafter referred to collectively as the "Statements."
Plaintiffs are identifiable
73. The Plaintiffs state that they are the persons referred to in the Letters and the Statements. Their identity is readily apparent to readers of the Letters and those who heard the Statements, especially to members of the Party and the Riding, even though euphemisms and pronouns are generally used in the Letters instead of the Plaintiffs' names. As well, many people who are not members of the Party but who follow the news, as well as members of the news media, other political activists, clients, patients, friends and other associates of the Plaintiffs would identify the Plaintiffs as the persons defamed in the Letters and the Statements.
74. The Letters and the Statements could not be referring to anyone else but the Plaintiffs.
75. In particular, Cooper is well-known as a National Council candidate and member of the "PAL" Party slate referred to in the Letters and the Statements. Every member of the Party,
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especially those in Alberta, has received several letters, both from the Party and from Cooper, to that effect. All references to "PAL", "PAT or National Council elections refer to him. As well, Cooper was the recipient of a $500 fee for service on the campaign. By implying that this $500 payment was inappropriate, the Defendants again clearly identify and defame Cooper.
76. In particular, Levant is well-known as the candidate referred to throughout the Letters and the Statements, and as the author of various brochures and correspondences referred to therein, including fundraising appeals, and the host of various fundraising events referred to therein. Members of the Party, especially those in the Riding, would have known that fact, not only from media coverage but from several letters, brochures and telephone messages from the Party and Levant himself. Levant's candidacy is also well-known to the news media, political activists, lawyers, the Jewish community and the public in general, especially in Alberta, Toronto, Ottawa and nationally.
77. In particular, Dr. Levant is well-known as a director of the board of the Riding and a leading volunteer in and organizer of Levant's campaign activities referred to throughout the Letters and the Statements. Members of the Party and others, especially those in the Riding, would have known that fact, not only from media coverage but from a letter sent to hundreds of Alberta doctors by Dr. Levant. Dr. Levant's involvement is also well-known to Harper, and to other Members of Parliament, the news media, political activists, the Jewish community and the public in general.
78. In particular, McKinsley is well-known as the businessman, campaign manager and general political and financial organizer referred to throughout the Letters and the Statements. Members of the Party, especially those in the Riding, would have known that fact. As campaign manager and a guest at many Riding meetings, McKinsley is well known to Party volunteers including Riding board members and Harper. McKinsley is also well-known within the Party in general and the general business, news media and political community.
Defamatory meaning
79. The Plaintiffs claim that the Letters and the Statements are false and defamatory in their material and ordinary meaning. Unless otherwise particularized in the Reply to Demand for
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Particulars dated September 17. 2003 and the Further Reply to Demand for Particulars of the Defendant Walter Wakula dated October 28. 2003. the collective meaning of the content of the Letters and Statements is false and defamatory of the Plaintiffs.
8(1 The December 17th, 2002 Letter and the Statements were meant or reasonably understood to mean that:
a. the Plaintiffs are not honest;
b. the Plaintiffs have no integrity;
c. the Plaintiffs engage in wrongful conduct;
d. the Plaintiffs, particularly Levant, Dr. Levant and McKinsley, refuse to make disclosures of properly disclosable information;
e. the Plaintiffs disregard appropriate standards of conduct;
f. the Plaintiffs, particularly Levant, Dr. Levant and McKinsley ran the Riding into the ground, into debt, and broke it;
g. the Plaintiffs are tainted;
h. Cooper was elected to National Council improperly;
i. the Plaintiffs, particularly Levant, Dr. Levant and McKinsley improperly handled $30,000 from a December, 2001 fundraising dinner that should have been deposited with the Riding;
j. the Plaintiffs, particularly Levant, Dr. Levant and McKinsley did not contribute to the election campaign, after promising to do so;
k. the Plaintiffs engaged in fundraising tactics that are contrary to the Party's policy, and that the Party has criticized in Parliament;
1. Levant and McKinsley misled the Party into paying inappropriate or personal debts;
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m. the Plaintiffs inappropriately used Party funds to pay for Cooper's election campaign for National Council, including inappropriate use of postage, photocopying, printing and telephones;
n. the electoral results at the Riding's Annual General Meeting in November, 2001, including Dr. Levant's election to the board, were not legitimate, but rather the result of a hostile act by the Plaintiffs;
o. Party funds were inappropriately used to recoup costs for personal expenses of the Plaintiffs, particularly Levant;
p. Riding funds were used to pay an election deposit for Cooper;
q. McKinsley inappropriately paid fundraising commissions, and funds raised through those commissions were inappropriately spent;
r. Levant inappropriately received a candidate refund twice;
s. cash donations were improperly accounted for by the Plaintiffs;
t. Riding funds were turned over by Dr. Levant to Levant or McKinsley without authority, prematurely, and without arms-length controls;
u. Levant and McKinsley inappropriately had early access to the Party membership list, and continue to use it improperly;
v. Levant's choice of an official agent was inappropriate and illegal;
w. the Plaintiffs have breached their fiduciary duties to Party members in the Riding;
x. $50,000 of Party money was improperly and unaccountably transferred by the Plaintiffs to a lawyer's trust fund;
y. the Plaintiffs have improperly kept or converted property belonging to the Riding;
z. McKinsley improperly enriched himself by giving himself or his company $40,000 from Party funds;
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aa. McKinsley has received money from the Riding without proper accounting;
bb. Levant and McKinsley improperly acquired durable assets purchased by the Riding, and did not meet their fiduciary duties;
cc. the Plaintiffs conduct warrants a professional investigation, or an additional professional investigation;
dd. the Plaintiffs conduct warrants a criminal investigation, have conducted themselves illegally, and are criminals; and
ee. the Plaintiffs are deserving of sanction by the Party.
81. In addition to the meaning of the December 17th. 2002 Letter, which was repeated in the January 24th. 2003 Letter, the January 24th. 2003 Letter and the Statements also were meant or reasonably understood to mean that:
a. the Plaintiffs are vexatious and frivolous litigants who abuse the court system; and
b. the Plaintiffs are controlling the Riding and the Party and are refusing to allow proper investigations or complaints to be made.
82. In addition to the meaning of the December 17th. 2002 Letter and the January 24th. 2003 Letter, which was repeated in the May 19th. 2003 Letter, the May 19th. 2003 Letter and the Statements also were meant or reasonably understood to mean that:
a. the Plaintiffs were not being honest;
b. the Plaintiffs have no integrity;
c. the Plaintiffs are corrupt and engage in corruption, and do so blatantly;
d. the Plaintiffs engage in questionable, intolerable and shocking conduct;
e. the Plaintiffs are scandalous, and attempt to cover up their scandals;
f. the Plaintiffs throw away money belonging to the Party;
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g. the Plaintiffs engage in deceitful behaviour, and deceive Party members throughout Calgary;
h. the Plaintiffs siphon money out of Party coffers, and do so inappropriately and
secretly;
i. the Plaintiffs improperly enrich themselves and personally benefit from property that belonged to or ought to have belonged to the Party;
j. the Plaintiffs misappropriate money that was supposed to go to fight the Liberal party;
k. the Plaintiffs violate conflict of interest guidelines;
1. McKinsley grants himself contracts, with Levant's approval, and both do so inappropriately;
m. the Plaintiffs are discreditable;
n. the Plaintiffs have been implicated by these accusations;
o. the Plaintiffs make the Party a corrupt imitation of the Liberals; and
p. the Plaintiffs are generally disreputable, odious and worthy of contempt.
83, In addition to the meaning of the December 17\_2QQ2 Letter, the January 24th. 2003 Letter and elements of the May l^jm. Letter which were repeated in the May 19th. 2003 Letter, the May 2H2003 Letter and the Statements also were meant or reasonably understood to mean that:
a. the Plaintiffs are committing or are about to commit misconduct in the Party's
Calgary Centre constituency association, and potentially elsewhere, and that the Party's finances are nowhere safe from the Plaintiffs;
b. the Plaintiffs and their conduct are like a cancer- and
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c. Levant was not properly scrutinized by the Party before becoming the Riding's candidate, and that he was and is not fit to become the candidate.
j££ The May 21st. 2003 Letter and the Statements contained adjectives and adverbs throughout which served to emphasize the defamation by portraying the Plaintiffs conduct as superlatively disreputable.
85, The May 20*. 2003 Hennan E-mail and the Statements were meant or reasonably understood to mean that:
a. the allegations outlined in the Letters were true;
b. wrongdoing by Plaintiffs had been covered up;
c. the Plaintiffs and their conduct lacked honesty and integrity; and
d. the Plaintiffs had lowered the moral character of the Party.
86. The May 20th. 2003 Hennan E-mail, the Mav27th. 2003 Hennan E-mail and the Statements were meant or reasonably understood to mean that:
a. Levant's career as a rising star is over, or ought to be over; and
b. anyone associated with the Plaintiffs is of dubious character.
\th 3lL The May 20 . 2003 Wakula E-mail and the Statements were meant or reasonably understood to mean that:
a- the Plaintiffs' actions warranted concern amongst Party members, including _officers of the Partv:
b. the Plaintiffs' lack of financial control and poor governance was amazing:
c the Plaintiffs lacked fundament decency and were driven bv pure ambition:
d. the Plaintiffs' conduct was a gong show;
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e- the Plaintiffs' conduct warrants a forensic audit:
f- the Plaintiffs' conduct warrants a special Party meeting, and such a meeting should have been called bv the Party's National Council: and
S- the Plaintiffs' conduct threatens to spill over into other constituency associations within the Party.
S& The May 2A7th4_jo03-Wakula E-mail and the Statements were meant or reasonably understood to mean that:
a. it was an established fact that the Plaintiffs committed wrongdoing in the Riding; and
b. any wrongdoing was the result of laxity and poor governance on the part of the
Riding's directors, including Dr. Levant.
89. The June 6l, 2003 Wakula E-mail was meant or reasonably understood to mean that:
a. the Plaintiffs' conduct warrants a further audit, and a forensic audit;
b. senior members of the Party are covering up the Plaintiffs' conduct;
c the Plaintiffs mismanaged other people's money;
d. the Plaintiffs' financial dealings were not appropriately transparent;
e. the Plaintiffs were guilty of malfeasance;
f. the Plaintiffs were guilty of gross incompetence and naivete;
g. the Plaintiffs conduct was reprehensible;
h. the Plaintiffs are not financially prudent;
i. the Plaintiffs, especially Cooper, misappropriated funds for a Party National Council election;
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j. the Plaintiffs took advantage of hundreds of hard-working people, who can't afford it; and
k. Levant's lawyer's trust fund should be audited.
90. The June 7l ,2003 Flynn E-mail was meant or reasonably understood to mean that:
a. the Plaintiffs have been let off improperly and unprofessionally by Harper;
b. the financial allegations against the Plaintiffs are very serious;
c. no material or real audits or investigations have been made;
d. the Party's National Office has not properly punished the Plaintiffs;
e. the May 21st Letter has not been properly handled by the Party or Harper;
f. the Plaintiffs' conduct is spilling over into other Party constituency associations;
g. a forensic audit is needed, and other Party constituency associations agree with that conclusion; and
h. the Plaintiffs' conduct is egregious enough to warrant an investigation and audit by both Elections Canada and Revenue Canada.
_9L The First June 8* 2003 Wakula Memo was meant or reasonably understood to mean that:
a. the Plaintiffs' conduct is appalling;
b. the allegations against the Plaintiffs are serious;
c. the Plaintiffs, especially Levant, threaten volunteers and witnesses;
d. the Plaintiffs engage in malfeasance;
e. other Party constituency associations in the Calgary area are at risk from the Plaintiffs;
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f. the Plaintiffs' conduct was not appropriately transparent;
g. the Plaintiffs, especially Dr. Levant, have not properly disclosed financial information for three years running, and have not complied with proper accounting procedures; and
h. the Plaintiffs' conduct warrants an audit or a forensic audit.
92. In addition to the meaning of the First June 8th, 2003 Wakula Memo, the Second June 8\ 2003 Wakula Memo was meant or reasonably understood to mean that:
a. Cooper inappropriately funded his National Council campaign through Riding funds; and
b. the Plaintiffs, especially Levant, bully people who seek solutions.
it- 93. The June 9 , 2003 Flvnn E-mail was meant or reasonably understood to mean that:
a. the Plaintiffs, particularly Levant, engage in blackmail;
b. the Plaintiffs have created a huge mess that needs cleaning up; and
c. the Plaintiffs have destroyed the Riding.
94. The June 13 . 2003 Lane Interview and the Statements were meant or understood to mean that;
a. the May 21st, 2003 Letter was valid, persuasive and authoritative:
b. .anyone associated with the Plaintiffs was deserving of disqualification:
c. the Riding's audit was not proper, persuasive or relevant:
d. the Riding's finances were unhealthy, and did not have a clean bill of health;
e. matters require further investigation: and
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f. .Stephen Harper, the Party leader, has requested the investigation called for bv the. Internet Letter] and in fact suggested the idea.
iL The First June 16^2003 Wakula E-mail and the Second June 16th, 2003 Wakula E-mail were meant or reasonably understood to mean that:
a. the Plaintiffs are controversial, and have created a situation requiring the intervention of outside officials;
b. the Plaintiffs' conduct was appalling;
c the Plaintiffs were threatening witnesses and others with evidence of the Plaintiffs' malfeasance;
d. Wakula had to educate the Party's National Council about the facts regarding the
Plaintiffs;
e. the Plaintiffs represent a problem that is spreading around Calgary and threatens to erode the Party; and
f. the Plaintiffs did not succeed in the Riding through democratic means, but rather
through hostile means, and threaten to do the same in other Party constituency associations.
il The use of capital letters, bold and underlined text in the Letters was deliberately designed to inflict maximum damage on the Plaintiffs, by emphasizing particularly defamatory words.
— Tb0 My 18* 2m Fulton F'-™i] was meant or reason,^ understood to m«.n tw.
thQ Riding's finances had not h*en given a r.1*an bill of health nW ite statements to that effect by Joel Loh. a fornw trqasurer and p^ept of the RiHinp-
b- that Shawn Ratfai, a senior Party official was condnrW M investigation w that investigation would not be ongoing ^ Ridirig.R finatlppg were accepfflh1ft.
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c- no audit had given the Plaintiffs' financial and governance conduct a clean bill of health: and
d- no complete independent audits at all had been submitted to Riding members since 1991.
2*L The August 10th. 2003 Lane E-mail was meant or reasonably understood to mean that:
a- Cooper's election to the Party's National Council was not fair, and was the result of a strange electoral system;
b- Cooper's election was regarded as quite controversial throughout Alberta;
c- Cooper and his National Council slate defamed other leading candidates, and that is why he won;
d- Cooper and his National Council slate are improperly secretive about the source of their campaign funds;
e- Cooper and his National Council slate are reliably known to have taken money, that actually belonged to the Riding, and was given that Riding money by and because of Levant. Dr. Levant and McKinsley when thev took over the Riding:
f- some people know the above statement to be true, and many others suspect it to, be true;
8- because many Party members suspect it to be true thev have legitimately signed the defamatory Letters: ano!
h- because many Party members suspect it to be true, thev have been sued bv the Plaintiffs in the within action.
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Plaintiffs damaved bv defamatinn
99, The Plaintiffs state that by reason of the publication of the aforesaid Letters and Statements the Plaintiffs have been severely injured in their credit, character, and reputation and have been brought into public scandal, odium, and contempt, and have suffered damages.
Defendants acted with malice.
iOa The Plaintiffs claim that the Defendants acted with malice, in that the Defendants, or any of them, had a pre-existing political hostility towards and disagreement with the Plaintiffs, and that pre-existing hostility and disagreement was the real motivation behind the Letters and the Statements.
— The P'aintiffs claim that the Former Riding Board a,,r„H with malice. and used the Letter* and Statements as a form of vengeance on the Plaintiffs, who were th* leading political actnr. who were responsible for the Former Riding RnarH h»ing renlaReH hv inHividuals whn WRrft supnortive of Levant's candidacy.
— The Plaintiffs, especially Levant claim that the Pendant whn drafted the December 2001 Letter acted with malice and used the Tetter. »nd Statement, a. , form of vmPfianr.ff „n the Plaintiffs, especially Levant against whnm thev had, in rw^ber of 2001. threats i*r] action bv way of a demand letter against Levant.
102. The Plaintiffs claim that the Defendants, or some of them, continue to act with malice, in that they continue to exhibit political hostility towards and disagreement with the Plaintiffs,'as revealed by their reference to the Calgary Centre Party contest and other potential Party contests, and their Statements.
Ongoing malicious feud
—• Lane acted with malice towards the Plaintiff,, and *vhibited that malic ,< c,™ .. ^ Former Riding Board was defeated in a Riding annual rnera| meeting in Member. 2001 anrf again when Cooper ran for election to the Party'. National Council in h> Spring of ?nn?| hy publishing a series of E-mails on Yahoo and elsewhere
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1Q5-. These E-mails not only constitute an ongoing, malicious political feud against the Plaintiffs, and thus colour the aforementioned defamatory Publications and Statements, but thev are each false and defamatory in their own right, and as such constitute separate acts of defamation, as described below. These E-mails were discovered bv the Plaintiffs subsequent to the original filing of the Statement of Claim on June 19. 2003.
November 23rd. 2001 Lane E-mail to Yahoo
IQfL On or about the 23rd day of November. 2001. Lane published an E-mail to numerous people (hereinafter the "November 23rd. 2001 Lane E-mail"), including to Yahoo and to other recipients.
ISiL The November 23rd. 2001 Lane E-mail contained the following false and defamatory words (including original typographical errors):
"When I compare the carnage of Calgary SW's AGM Tand ves. I was there working the polls and helping on the counting] with an earlier time it seems there has been a definite loss of reason among us.."
and
"Calgary SW's AGM on the other hand seemed at times to be only a step away from 'the tyranny of the mob'.
Fortunately the board had obtained the services of David Salmon to chair the meeting. I think I know a bit of how he must have felt. When I chaired a GM a few months ago, where Jason Kenny and Jim Stevenson debated the question of calling for an early leadership review I had to contend with some of Mr. Day's supporters launching into a rhythmical chant when Mr. Stevenson was speaking. Thev stopped when I stood up and hammered the gavel. I later learned that this same chanting tactic has been used elsewhere.
Is there any way we can get back to a pooling of opinions, rational discussion, respectful debate, and collective wisdom? back to reason itself?"
March 6th. 2002 Lane E-mail to Yahoo
108. On or about the 6th day of March, 2002. Lane published an E-mail to numerous people (hereinafter the "March 6th. 2002 Lane E-mail"), including to Yahoo, and to other recipients.
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191- The March 6th. 2002 Lane E-mail contained the following false and defamatory words (including original typographical errors):
"Permit me to tell vou a bit of what is happening here.
The biggest issue has to do with a letter sent bv a group of three candidates ninning as a team under the acronym of PAL - principled and loval.
In the letter thev allege that 'some National Councillors have been disloyal to our leader'.
Thev argue that a number of the other candidates running for NC in Alberta are 'dissidents'.
And thev name two highly respected and long time CA leaders in particular that are a 'cause for concern' and castigate certain of their behaviors."
March 23rd. 2002 Lane E-mail to Yahoo
ii2i On or about the 23rd dav of March. 2002, Lane published an E-mail to numerous people (hereinafter the "March 23rd. 2002 Lane E-mail"), including to Yahoo, and to other recipients.
iiL The March 23rd. 2002 Lane E-mail contained the following false and defamatory words (including original typographical errors):
"2. Ezra and his 'Pals' [Principled and Lovall are quite a controversial group and may be the subject of a lawsuit in the NC or election in Alberta. Thev have caused a lot of division in the riding and indeed, in the city and the province. With several CA members likely to work against him, and for the PC/ 'joint' candidate, there is a question whether Ezra can win the riding - esp if the Liberals parachute in a 'star' candidate."
fAarch 24th. 2002 Lane E-mails to Yahoo
112. On or about the 24th dav of March. 2002. Lane published an E-mail to numerous people (hereinafter the "First March 24th. 2002 Lane E-mail"), including to Yahoo, and to other recipients.
ILL The First March 24th. 2002 Lane E-mail contained the following false and defamatory words (including original typographical errors):
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"You should know that the sequence of events wasn't the usual of the Constituency Board undertaking a 'search and selection' process, followed bv a General meeting and democratic vote of the members in order to obtain a candidate for the election which has not vet been called. aa"
Rather, in this case the Board had simply called it's Annual General Meeting. Levant, and his friends [apparently believing that he could not win the nomination in the regular course of events! organized a nasty, but successful 'coup' in which thev captured all the seats on the Board. —
Thev then immediately set the date for the General Meeting to select Ezra, the nominee, in violation of the time provisions of the constitution, which is when NC had to step in. Thev also asked all other ridings in the region to give them money [$5.000 each was suggested! as their 'war chest' was empty. Some ridings did send money and then discovered that the riding had had a balance all along of close to a hundred thousand dollars in the bank.
So you can understand how controversial and divisive the whole Levant affair has been. ^ ^ — a ^ — — a — — — i \ . m . i m and
"The notion being that Harper has taken on a huge, perhaps impossible, job. If we want him to drag the Party out of the deep hole it is in we should at least support him in his choice of seat over the self indulgences of a divisive, maverick force."
UL On or about the 24th dav of March. 2002. Lane published another E-mail to numerous people (hereinafter the "Second March 24th. 2002 Lane E-mail"), including to Yahoo, and to other recipients.
115, In response to another E-mail that had stated "Ezra won the nomination fair and square", the Second March 24th. 2002 Lane E-mail contained the following false and defamatory words:
^That is apparently debatable." March 29th. 2002 Lane E-mail to Yahoo
116. fOn or about the 29th day of March. 2002. Lane published an E-mail to numerous people (hereinafter the "March 29th. 2002 Lane E-mail"), including to Yahoo, and to other recipients.
UL .The March 29 , tth2002 Lane E-mail contained the following false and defamatory words:
'Michael.
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rIn my opinion Tfor what it is worth) your allegations are unfounded, lack substance, contain no ^—rationale ■■■■ i ■ and^SS^ZS are i ■ i malicious."i t,a«.im . '^LU»
Moreover it is mv opinion that they contravene the AOL Code of conduct, particularly section 7 and possibly other sections. See below:
7) Commercial solicitations, personal attacks, slander, libel or unproved allegations (even when presented as hypothetical) of criminal or civil wrongdoing are strictly forbidden on Alliance Online.
By copy of this email I ask the moderators to carefully consider vour message and to take appropriate and swift action."
April 25th. 2002 Lane E-mail to Yahoo
■U& On or about the 25th dav of April. 2002. Lane published an E-mail to numerous people (hereinafter the "April 25th. 2QQ2 Lane E-mail"), including to Yahoo, and to other recipients.
ii& The April 25*.2002 Lane E-mail contained the following false and defamatory words:
"We also can't forget the atrocious behavior of Ezra Levant"
May 15th. 2003 Lane E-mail to Yahoo
&&- On or about the 15th dav of Mav. 2003. Lane published an E-mail to numerous people (hereinafter the "Mavl5th. 2003 Lane E-mail"), including to Cooper, to Joel Loh (a Party candidate nominee), and to other recipients.
•12L. yhe Mav 15th. 2003 Lane E-mail contained the following false and defamatory words:
"Dear MichaelT
I am writing vou with regard to vour harassing behavior and vour accusations made at the conclusion of the public Forum held on the evening of Mav 13 2003
Your enmity towards me fond some might say Calgarv Centre! seems to he rather well known jind as vou know is a matter of some record. Despite this I am refraining from suing vorT^ThnT time as vou invited me to do-
Rather I am writing you in mv capacity as Chair of the Candidate Selection Committee and intend to focus my remarks at this time unonyour most serious charge that T, and bv implication
{K:\cdox\0058275\000004\C4139514.DOC;2} 37
the Committee, is biased in its treatment of the three nominees. This is a totally unfounded1 unsubstantiated and libelous charge for which I demand retraction and apology." ^
and
"As I indicated to you at the event, if there is anv need for vour to meet with me I will do so only in the presence of at least two reliable witnesses of mv choosing."
March 11th. 2002 Fultnn E-mail tn Ynhnn " '" ' " ■ ■■ i ■■■—
^- .Fulton acted with malice towards the Plaintiffs, and exhibited that malice in the Spring of 2002. bv publishing an E-mail on Yahoo and elsewhere!
■121- This E-mail not only constitutes an ongoing, malicious political feud against the Plaintiffs, and thus colours the aforementioned defamatory Publications and Statements, but it is false and defamatory in its own right, and as such constitutes a separate act of defamation, as described below.
■!2i Pn or about the 11th dav of March. 2002. Fulton published an E-mail to numerous people (hereinafter the "March 11th, 2002 Fulton E-mail"), including to Yahoo, and to other recipients
■i^Su Jhe March 11th, 2002 Fulton E-mail contained the following false and defamatory words (including original typographical errors):
"Speaking of sinking the Alliance!...
Here in Alberta (and I understand also in Ontario and Saskatchewan), there are slates of National Councillor candidates who stvle themselves as "Proud And Loyal" (PAL).
In Alberta, this group is comprised of Doug Sharpe (Calgarv SW President). Michael Cooper and Bob Alexander. At some considerable expense (at least $10.000). thev sent out a direct mail piece at the end of February to many - if not all - Alliance members which allegedly libels Linda Toews (Southern Alberta VAC and NC Candidate) and Jim Stevenson (CalgaVy NF. Pr^wT (also candidates for National Council who support unity efforts). —"—
I am told Linda is seeking legal advice since the Chief Electoral Officer has told her there is nothing he can do" about anv alleged libel or the letter at this time - it is a matter between her' and PAL to sort out. Similar complaints have been lodged against a group of National CoS c a n d i d a t e s i n O n t a r i o . — ■■■ ' ■■
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All the debate between which leader is elected is rendered moot if- bv virtue of their direct mail campaign - PAL and others who profess thev "will support our new leader" end up in control of National Council. National Councillors are supposedly elected bv and accountable to THE MEMBERS and not the LEADER. If National Councillors proclaim blind lovaltv to ANY leader, then it's all over folks - were back to a right-wing top-down dodo bird!!
If there is anv hope of salvaging the Alliance. PAL and others of their ilk must be defeated in the NC elections. If not, then thev provide iust one more reason to lend second ballot support to Dav! Then let's move on to Plan B (whatever's next)!
126. The November 23r. 2001 Lane E-mail was meant or reasonably understood to mean that:
a. the Plaintiffs' political success at the Riding's 2001 annual general meeting, at which the Former Riding Board was voted out, was carnage and proof of a loss of reason, and not valid:
b. the Plaintiffs were one step away from tyrants, and their supporters were a mob:
c. the Plaintiffs and their supporters succeeded using bully tactics: and
d. the Plaintiffs and their supporters succeeded without rational discussion, respectful debate, collective wisdom or reason itself.
127. The March 6th. 2002 Lane E-mail was meant or reasonably understood to mean that:
a. Cooper, through his association with the PAL National Council slate, was controversial and his political tactics were questionable.
128. The March 23 ,2002 Lane E-mail was meant or reasonably understood to mean that:
a. Levant and Cooper are quite controversial because of their association with the PAL National Council slate:
b. Levant and Cooper have conducted themselves in a manner deserving or likely to attract a lawsuit:
c Levant and Cooper have caused a lot of diving in the Riding, the City of Calgary and the Province of Alberta: and
{K:\cdox\0058275\000004\C4139514.DOC;2} 39
d. Levant has caused Party members to turn against the Party.
129. The First March 24th, 2002 Lane E-mail was meant or reasonably understood to mean ■■ ■ » J l " j - . j i . - u i j . . . i . i i > 1 1 m ■ 11 !■ p J . . . r . M l f - ■ ! ■ — r - i i ^ — - * 1 — * " ■ r - ' ■ ' ■ ".'l i.l ■■ ■ ■■ n » ^ — ^ — | ■ | . | i - ■ g - - _ ^ i - ■ ■ i .. ■ . t l that:
a. Levant did not go through a proper vetting process before he became the Party candidate in the Riding, and that was the result of the Plaintiffs' efforts to avoid same;
b. Levant was not democratically chosen as the Party's candidate in the Riding:
c. Levant, the other Plaintiffs' and their friends did not achieve success at the Riding's 2001 Annual General Meeting properly and democratically, but rather did so in a nasty coup:
d. Levant could not have won the Party's nomination in a democratic and fair manner, and he knew it. and he therefore chose a nasty coup instead:
e. the Plaintiffs lied to other Party officials about the state of their bank accounts;
f. the Plaintiffs, especially Levant, are controversial and unsavoury:
g. the Plaintiffs are a self-indulgent, divisive, maverick force.
130. The Second March 24th. 2002 Lane E-mail was meant or reasonably understood to mean that Levant did not win the Party's nomination fairly.
131. The March 29 .2002 Lane E-mail was meant or reasonably understood to mean that:
a. Cooper makes false, unfounded and malicious allegations, without rationale or substance:
b. Cooper violates the Yahoo code of conduct and should therefore be barred from posting anv messages to Yahoo: and
c. Cooper engages in defamation, including against Lane.
{K:\cdox\0058275\000004\C4139514.DOC;2} 40
132. The April 25 . 2002 Lane E-mail was meant or reasonably understood to mean that Levant's conduct was an atrocity that should not be forgotten.
133. The Mav 15 .2003 Lane E-mail meant or reasonably understood to mean that:
a. Cooper is a harasser:y-
b. Cooper makes false accusations:
c. Cooper hates Lane and the Party in Calgary Centre, and this is well known and a matter of public record;
d. Lane has grounds upon which to sue Cooper:
e. Cooper owes Lane an apology-
f. Cooper's conduct is so harassing or untrustworthy that it would be inappropriate to meet with him without two independent witnesses.
134,. The^a—^i March 11th. i 2002 ■Fulton E-maili«^■ ——m^———— meant or reasonably imi understood mn to mean ii that: rfc
a. the Plaintiffs were sinking the Party;
b. Cooper, as part of the PAL National Council slate, had libeled his political rivals;
c. the Party's officer in charge of the National Council election was not taking appropriate steps to punish Cooper;
d. Cooper was therefore under real threat of being sued for defamation bv Linda Toews and Stevenson, defendants in the within action:
e. if Cooper and his slate are elected to National Council (which thev were), they would be blindly loyal to anv Party leader and abandon the Party membership: and
f. Cooper and his ilk will destroy the Party, and it is necessary to defeat them for the Party to survive.
{K:\cdox\0058275\000004\C4139514.DOC;2} 41
135,. The Plaintiffs claim that the Defendants acted with malice, in that the Defendants conducted themselves as officious intermeddlers. The Defendants had no reasonable basis for publishing the Letters and the Statements, and had no public or private duty or interest which obligated them to do so. A
136. The Plaintiffs claim that the Defendants acted with malice, in that the questions raised in the Letters and the Statements were answered exhaustively by the auditor and by the Plaintiffs, especially by Levant and McKinsley, and their answers were accepted and approved by the Party and the Riding. The Defendants persisted with their defamation despite their defamatory complaints being rejected by the auditor, the Riding, the Party and all other proper authorities.
137. Duhaime and Flvnn were present at various Riding meetings in 2002 at which certain of the aforesaid reviews of the Riding's finances took place, including Riding meetings at which an independent auditor presented his reports on the Riding's finances.
138. The Defendants acted with malice, in that the Letters and the Statements were published with reckless disregard of the truth, or fairness, or for the Plaintiffs' reputations, as the Defendants knew the Letters and the Statements were false.
139. The Plaintiffs, especially McKinsley, claim that Duhaime acted with malice, in that McKinsley had worked for several years with Duhaime. As such, Duhaime knew or ought to have known that McKinsley was not unethical and did not have the poor character imputed to him bv the Letters and Statements, and that, in any event, Duhaime owed McKinsley a duty of care to contact him first to find out the facts of the matter.
140. The Defendants acted with malice in that thev pressured some of the Signatories into signing the defamatory Letters by various means including through repeated telephone calls and personal visits, bv telling the Signatories false and misleading information about the Plaintiffs, to make the Plaintiffs and their actions seem odious, and bv telling the Signatories false and misleading information about the defamatory Letters, to make those Letters seem factual and fan- where they were not.
{K:\cdox\0058275\000004\C4139514.DOC;2} 42
— fa Particular. Davenport. Patton and Peden induced C. Huthersall n John M. Huthersall and William Westgate to sign the defamatory Letters, bv misrepresenting the facts about the Plaintiffs and impugning their honesty
l£L In particular. E. Traher induced Evelyn Daae to sign the defamatory Letters, bv misrepresenting the facts about the Plaintiffs and impugning their honesty.
H3i In particular. H. Davenport induced Doug Leitch and Marg Leitch to sign the defamatory Letters, bv misrepresenting the facts about the Plaintiffs and impugning their honesty.
MfL In particular, H. Davenport and A. Davenport induced Kathleen Isfan and William Man to sign the defamatory Letters, bv misrepresenting the facts about the Plaintiffs and impugning, their honesty.
ii^ One or more of the Defendants falsified one or more signatures on the defamatory Letters, including the signature of Barbara Craig.
146. Flynn acted with malice in that, just days after he heard the auditor's report debunking the defamation described herein, Flynn attended the June 7th, 2003 Alberta Meeting and uttered the June 7th, 2003 Alberta Meeting Statements.
i£Z; Additionally, on Mav 26. 2003. Flynn received a letter from Joel Loh. Flvnn's predecessor as the president of the Riding, confirming that the matters in question had been exhaustively investigated and had all been found to be in order.
148. The Letters and the Statements were not genuine complaints or inquiries, but rather crude attempts to smear the Plaintiffs. The Letters and the Statements pretend to be good faith complaints, or unprejudiced questions, but in fact repeatedly state defamatory conclusions and false statements of fact, and therefore are not legitimate complaints or inquiries.
149. The Plaintiffs state that the anonymous nature of the Letters reveals the malicious and sneaky mindset of the Defendants and their knowledge that they were not making genuine complaints.
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15{L The Plaintiffs state that none of the Defendants ever contacted the Plaintiffs, or any of them, for an explanation or response to the questions posed in the Letters and the Statements, and that this omission is a sign of bad faith and malice.
15L The Plaintiffs state that, by organizing approximately A J77 co-signers to the Letters, the Defendants were not actually interested in a formal complaint, put discreetly and properly to the Party's appropriate committee, but rather were interested in drumming up a public scandal and circulating the rumours contained in the Letters as widely as possible, including to people who had no business receiving them.
152. The Letters and the Statements contain exhortations to all recipients of the Letters to forward and republish the Letters to others indiscriminately, and this is an act of malice.
153^ The Plaintiffs also claim that the Letters and Statements imputed dishonourable motives to the Plaintiffs, and this is an act of malice.
154. Cooper states that the Letters and the Statements were particularly damaging to him, as he is a National Councilor of the Party whose reputation in the Party, the news media, at university and in the community at large, was severely damaged by accusations of corruption and other malfeasance and improper or illegal conduct.
.155. Levant states that the Letters and the Statements were particularly damaging to him, as he is a lawyer whose reputation with his firm, colleagues, judges, clients and potential clients and the Law Society of Alberta was severely damaged by accusations of corruption and other malfeasance and improper or illegal conduct.
156. Levant further states that the Letters and the Statements were particularly damaging to him, as he is a newspaper columnist and author whose public reputation in the community at large, with the newspapers that publish him, with his readers and with book-buyers was severely damaged by accusations of corruption and other malfeasance and improper or illegal conduct.
157- Levant further states that the Letters and the Statements were particularly damaging to him, as he is a political organizer and was a director of the Riding whose public reputation in the voting public at large, with the Riding, with others within the Party and with the news media was
{K:\cdox\0058275\000004\C4l 39514.D0C;2} 44
severely damaged by accusations of corruption, other malfeasance and improper or illegal conduct.
158. Dr. Levant states that the Letters and the Statements were particularly damaging to him, as he is a prominent medical doctor whose public reputation amongst other doctors, medical staff, current and prospective patients, health administrators and the College of Physicians and Surgeons of Alberta, the news media and the public at large was severely damaged by accusations of corruption, other malfeasance and improper or illegal conduct.
159. McKinsley states that the Letters and the Statements were particularly damaging to him, as he is a political organizer and pollster, whose public reputation in the news media, the business community, the voting public at large, with the Riding and with others within the Party, and with other current and potential clients, including the Party, was severely damaged by accusations of corruption, other malfeasance and improper or illegal conduct.
160. In the opinion of the Plaintiffs, this action will take more than 25 days to try. The Plaintiffs propose that the trial of this action be held at the Court House, in the City of Calgary, in the Province of Alberta.
161. WHEREFORE THE PLAINTIFFS EACH CLAIM AGAINST THE DEFENDANTS JOINTLY AND SEVERALLY:
a. general damages in the amount of $ 1,000,000.00;
b. punitive, aggravated and exemplary damages in the amount of $450,000.00;
c. interest on any amounts awarded in accordance with the Judgment Interest Act, RSA2000,c.J-l;
d. costs of this action on a solicitor and own client basis or on such other basis as this Honourable Court may determine;
e. an interim and permanent injunction against the Defendants, enjoining them from continuing to defame the Plaintiffs; and
{K:\cdox\0058275\000004\C4139514.DOC;2} 45
f. such further or other relief as this Honourable Court deems just.
DATED at the City of Calgary, in the Province of Alberta, this 19th day of June, 2003, AND DELIVERED by *G. Scott Watson. Solicitor for the Plaintiffs, whose address for service at A Suite 3400. 150 - 6th Avenue S.W.. Calgary. Alberta. T2P 3Y7.
ISSUED out of the Office of the Clerk of the Court of Queen's Bench of Alberta, Judicial Centre of Calgary, this 19th day of June, 2003. tCEVINHOSCHKA (CS^T
Clerk of the Court
{K:\cdox\0058275\000004\C4139514.DOC;2} COMPLAINT & REQUEST FOR INVESTIGATION AND CONSEQUENTIAL ACTION
December 17,2002
Canadian Alliance Party National Council Secretariat
Dear Members,
We thank you for taking the time to consider this material and recommending such follow-up action as you deem appropriate.
We believe your decision in this matter is vital to the long-term survival of this party. You can either unequivocally affirm that the Reform party's bedrock commitment to honesty, integrity and "doing politics differently" survived the evolutionary process that gave birth to the Canadian Alliance party, or not We believe those fundamental values should be at the core of what the Canadian Alliance party stands for.
If basic concepts of "right" and "wrong" are to have any currency in this party then members must be assured that suspected "wrongful" conduct will be investigated. Most importantly, members need to be confident that where misconduct is proven, after appropriate investigation, those responsible will be held accountable.
We, the undersigned members, believe an immediate investigation into recent activities in Calgary Southwest is required. Regrettably, based on the incomplete but alarming disclosures that have been made to date, it appears that a significant number of party members may have flagrantly disregarded appropriate standards of conduct in Calgary Southwest since November 21, 2001. Because the Calgary Southwest board has solicited funds throughout the province and across the country the conduct of this board has affected members all over Alberta and from coast to coast Calgary Southwest was a premier riding but since November, 2001 it has been run into the ground and is now broke and in debt
The scope of the possible misconduct referenced within, extends to the campaign and subsequent election of the self-styled "PAL" slate of Alberta councilors to National Council. Just as the election of the current board in Calgary Southwest was tainted by misconduct so too may have been the election of Alberta's three councilors. -2-
Specifjcally, the possible misconduct suggested by the partial evidence currently available and requiring immediate investigation by the Secretariat includes the following:
Questionable Fundraising Solicitations
• On December 3, 2001, when the Calgary Southwest Constituency Association had assets of $89,534 available, a fundraising solicitation was directed to party members throughout Calgary inducing members to donate by asserting that the Calgary Southwest constituency had no funds. Members were specifically asked to contribute towards constituency by-election expenses. Questions have arisen as to where the $30,000 reportedly raised at the subsequent December 12* event were deposited. Were the funds deposited to the constituency association account or were those member donations deposited to an "In Trust" account not in the control of the constituency association?
• On January 5, 2002 the constituency association solicited funds from other ridings assuring them that Calgary Southwest had enough money for the writ portion of the by-election campaign. But when the by-election was called the money had all been spent and we've been told that no money at all was contributed bv the constituency association to the Leaders bv-election campaign. Was there flagrantly irresponsible spending engaged in by the directors and if so, to what end?
> A March 10, 2002 mailer asked members to send a tax-deductible donation but then urged members on the payment form to take a "business expense" tax receipt rather than a political donation receipt. Is it appropriate to engage in that kind of fundraising practice and isn't that similar to the Mnd of Liberal party fundraising that this party has questioned in the House of Commons?
Questionable Representations to National Office
When the Calgary Southwest Constituency Association approached the party in April for a loan representations were allegedly made that there were creditors pressing the riding association for payment of by-election campaign expenses. Examination of the Southwest Alliance Campaign Fund accounts suggests that the expenses were not constituency by-election expenses, to what extent has the party been asked to fund debts that are not its responsibility ?
Questionable Use of Constituency Funds and Resources
The "PAL" letter, distributed throughout the province to secure the election to National-Council of three candidates may have been funded using Calgary Southwest constituency funds. The same Canada Post account was used both for alleged constituency expenses and for the "PAL" mailer. Since photocopying expenses paid for by the constituency association are not identified, or in any way broken down, the Southwest Alliance Campaign Fund may also have been used to cover that portion of -3-
the "PAL" letter costs as well. Additionally, it certainly appears that the predictive dialer and the color printer, the purchase of which the constituency contributed to, was used to craft the "PAL" letter and broadcast messages on their behalf. Were Calgary Southwest constituency funds used to fund the "PAT campaign ?
• It appears that membership funds may have been solicited and retroactively used to finance the takeover of the Calgary Southwest Constituency Association in November 2001. At a Calgary Southwest Director's meeting on May 15,2002 it was disclosed that an " In Trust" account was used to finance an individual's hostile takeover of the board at the November 21, 2001, AGM and that the same account was used to finance that same individual's subsequent candidate selection. Numerous fundraising solicitations for donations to that "In Trust" account were paid for by the Calgary Southwest Constituency Association. Did an individual in Calgary Southwest attempt to recoup board takeover expenses from party member donations secured after the November 21,2001 AGM?
• Records of the Southwest Alliance Campaign Fund disclose that one "PAL" candidate, not even resident in the riding, accepted direct payment of $500.00 from the Calgary Southwest Constituency Association. Members want to know why that payment was made? Was that payment was made to fund the individual's required candidacy deposit
• Some $18,000, more or less, in direct payments were made to other individuals, also from constituency association funds. Many of those direct payments are described in the records of the Southwest Alliance Campaign Fund as payments made for "fundraising'', however, no con*esponding fundraising deposits to the constituency association are immediately identifiable. If constituency association funds were used to pay "commissions*' to raise funds, all of the funds so raised belong to the constituency association. Why were "commissions'* paid? What fundraising was done for those "commissions"? Where was the money that was raised deposited - into the Calgary Southwest Constituency Association, the Southwest Alliance Campaign Fund or the "In Trust" account?
The unopposed default candidate for Calgary Southwest received direct payment from constituency funds and may have been reimbursed twice for his nomination fee of $2,000. On November 22,2001 the board unanimously agreed to impose a $2,000 non-refundable registration fee for candidates. On February 27th a cheque for $2,000 described as a "candidate honorarium" was issued and on May 15th, 2002 a motion was passed and carried by the board to again provide a $2,000 payment using constituency funds. Did the constituency association actually provide $4,000 to the default candidate?
Questionable Accounting for Constituency Donations
It appears that bulk of all membership donations solicited between December, 2001 and May, 2002 requested that payments be made to an "In Trust" account that was -4-
assoc&tion paid for ^ ra^^J^? ^ K!CQrds- *» «X£ toe In toe ^ ^ J*> m* ^crtatrons that went out ££fig Tiust"account The tact that Ael££ asked to make donations payable tome T view, ennt.es the party KbfdfaESfS' Tff" &aded ■*£»££ £<£ "^vedand where^C4XS? "" *"* S° ""*-• «- funds w«
It is believed that r-aei* ^ — «% orparnCfSby aSSF- * —- P-* meetings that -ord of those finds being depS .t^*™ WverlXS record keqang & fc oaad^ Z^^"*0?* "■«*««« account What Where d,d those finds go? ^ ""Mm do m regards to cash donations?
Constituency finds may have be™ .j ^sible candid prj 7L IcSTL If0"1 "*' *• <™
Party. The Southwest Alliance OuZiJn 1? ? Trust account rather man to the WhatJ*«V37. donations 2002 were of received $500.00^73,1™ by ft! TOT PWMnt "«»* of ".MO **»• in payZ? mat reeard on me «■»*■«* ever been coZenw^ J™f aC°0Unt*« *• web pagfaK Page construction? ""P^ted for the expenses associated wmf thTweb
unrelated to me constituency?^ ^ S°Uthwest "•»*« *» promote JEfiiJ
I—H—hi,1..^, Arf p^,^ ^^^s^^ss--- -5-
luestionahi* n^^tim il r I,„ ( • Decisions were made this naot wa- u *. ^ ,
Officeinstitutional to intercede ca^didS^CmtjL^r to ensure ctmXSl^T S°UthWeSt WaS " f"-^ fw^ to National «»** Party constitution? compliance by the Calgary Southwest directors of the
notoonsthuencymatu^ementa^stoh^t a single repo^wj, madeTad£^Jf^ * T *" pr°duced' DeCember "V«»a* * **» were™«*eFinancialStatementeft^ presented to the board it wasni t^ Sorest Alliance Campaign finances- Fund
separate accounts. Membera are aZ*wwl^f 5 WIplam me existence °f«nree whether or not directors mc5i«2! ^ T^* m expected o{ directors and members paruvX?wn^^™^ 1"W bfached ** **«** duty to factored in. If the l^ m»SZ T^* "** *" «"Pi« is Executivelavemoseexec^ve^Staea^edreiy,ng^nuve onicers breached their fiduciary ?" duty advice to members? °f *» ""^ S50.0ffl>.nn fT-.. account«^»S£S^^^£2Srt What happen^ to S£S Mftin8 °°nStItUenCV * m°ti0n to « unidentified ^ Passed lawyers' trust to 8g.esttom.hle Tar Becein* T,.^ T M| m|||, y to "political contnW^^tTf^m^on that would entitleftem receiving 20%. Is this approprk^ ^ WOttM result » Na«°nal Office teesttonable ronrt,,* Surroun^p rw^,fn|, r ^ donated by members w^T^ Te^^^^ "^^ ^ to^ nave been used for lawn signs, brochures, -6- advertisements and other by-election campaign expenses. The Southwest Alliance Campaign Fund Financial Statements establish that those lawn si^b^hureTa^ axemen, were paid for by the constituency assocX^^ £ Questionable Condnct Bebirive To Ann,™* r^meta of Tntgrort " ^n^fS J"1 * Cl6ar ^""al/corporate financial interest have entered into s^ne^TTT? "? *" COnStitUenCy -"**» ™» nave Aere^ entities.entitief OnecS°S- mdradual S"? fOT was *8mSelves given control or ofbusmess Southwest «« Alliance■» *» their C^mpaifinFund corporate spending andhe was also the recipient of approximately $40,000 inSpSnS all^Zf ^ corporation. What were the funds used for? Why was this ffifad association^ ?*«? «"* a benefit? have What in return interest for in the the property $40,000? does consutuencythe conXency Undngnmpnh^ Payments ivr««i» ' afto wh^™^™ be8n I* to 0Be particular "^^^ with no indication as to what the expenditures were for. What was the money-used for and where are the receiptsormvoicestosubstantiateuiosepayments? «»ranawnerearetne Questionable Attribution of p,Tp»n«.. ' foThTeST^6 'T maintained * a Vety close «™* °f Manuals and mat has enabled that small group to selectively attribute expenses such mat bTTd t f6 **" *7* *" «"*-£ associatiorbuTXaotSha^ K fromjm" m ^ account Why was this allowed to happen and is it a SesfwhTdTd!,•£?practices? Why did directors t0 not f protect memberS the members to ""^ interests? «"* Why vJSL did the busmis default candidate not protect the members interests in this regard? Questionable Rrf.,«ai hy Board tn Pay r.~«^n * t^T!?KSel(^lly °egle?ted to pay *"» outstanding creditors. Have the actions of me board brought the party into disrepute? As a consequence of the questioned activities outlined above, the undersigned members are asking the Secretariat to do the following immediately: unaers,gnea members 1. Launch an investigation into what has taken place in the Calearv smm Constituency from November 21,2001 to the presL, usmg^ch2Sl 2Sf external investigative agencies and professional assodations or «SE ££££ of afl 7T™ the Calgary ^r ?* Southwest 2" *"*>«*« Constituency should Association's include financial exaction accounts^mHl EK other as yet unclosed accounts directly or indirectly related toTJefito -7- S^SfSJT^ **** *e Sonthwest *"« °^» *- ^e.,^i8,fi D?embaS "" ■* mat &Uowtog a full and thorough investigation due s s r i s r • ■ f o u o w i D & - - * t f * • s e c r e t o i a t - s s s s 2. Diligently pursue all criminal or civil remedies that may be available to secure membership, including civj judgements against responsible individuals or directors. 3' Ssar;.anCti0nS k aCC0"lanCe ** S- 3 W (iii) of the party constitution as 32^ *und5eds m°re WOaId have "*»* bnt tt w" essential that the C^unJ be forwarded to the Secretariat for investigation as IJucSy Members who prepared and signed the petition include long-standing Sdenttr * l0ya!!Sb a"d maa* Past and current riZf execuhve«~.« 1 g office mth memberspositions or wh0 directorships *■" he,d on «" constituency do currently boards hold Southwest, Calgary Centre, Calgary North East, Calgary Nose HiH Calgary Southeast, Macleod, WHdrose, Edmonton StraSa. ^ The names and signatures of the members who signed that document Complaintc2lwrem0Ved were promised ^ ** that Cmafl the party •»■ would*■. Membersbe asked to teen signS aU names m stnct confidence to avoid retaliation from the people So^ -8- conduct was being investigated - these are people with a track record of belligerent and bullying behaviour. Every member of this party who cares about political decency and honesty should immediately contact the Leader's Office (Attention Stephen Harper - Phone (403) 253-7990, the Executive Director (Attention Terry Horkoff - Phone (403) 269-1990) the National Council Secretariat (Attention Jerry Rice - email to- [email protected]) or the Calgary Southwest Constituency Association (Attention the President - Mr. John Flynn Email to: [email protected]) to demand to know what has been done to address the very serious questions raised in this complaint The people implicated in this Complaint continue to seek control of other ridings. It is not fair to those ridings or to party members to leave these important questions unanswered. The party has responsibility to its members to perform and conclude this investigation and publicly exonerate those that have been imphcated tf they have done nothing wrong or appropriately sanction those that have engaged in misconduct Democracy works best under the light of truth and fails miserably when cloaked in the darkness of secrecy. Members are being asked to perform an essential democratic task and they cannot do that if the party withholds vital information. We all know from bitter experience that the failure of any one riding to diligently accept their responsibility to carefully examine potential candidates can do immeasurable harm to every other riding. Every Canadian Alliance member who receives this e-mail has a duty to demand that the party not shirk from its duty. §5^^S^5S£r-concerned members ?^SSaa35S£ttS2B-*w-«-^ W n a , m e m b e « o f o u r g r o u p c o n t a c t y o u t o f o l l o w ♦♦♦♦....♦.....♦mmmmm#imm** Attachments Included: • PAL Letter- Canada Post 7023157 "May lf+K U% MEMBER ADVISORY GROSS MISCONDUCT IN CALGARY SOUTHWEST SUSPECTED! "'" IMMEDIATE ACTION HEQUIBEB M E M B E R S H I P S O0F R a ANYv v » « RE^NSIBLE . - SHOULD BE REVOKED May, 2003 Canadian Alliance Friends, ft^JSBSi'Sti"J" atoCted to *« ^Allianc* par* hy movement beheveTSSLTmuS^mtS- "" *?* °f *« M^SS adherence to the "math" rnade mSS m the Re Wa^ "*** * tart*- ^ "*-•« of. moersmp m me Refonn/AUiance patty someming to be proud when it turned irs back afta SoeT sTT^^^ ** M *« PC party "imploded driving out the very people ^L^i?^^^ ^ ^ » «^ * the party to "do politics dfflereZ^are Sri™ ?? J"" ,Dd ™>men who came to constitutionaHy enshrined rules foZjZfZftT*?; •Rfther to ■*"*« our own a s ^ y t * ^ ^ ^ ■ ^ ■■ ..^^^... r honest party member could tolerate ttw!fr£ r"*?* «nestto,»We induct that no Director of the party for delivejto£5ffi2r£nS7ta,t Tas.forwa«^ » me Executive the concerned members who^mZe^tos^1^^mJan^»2«>3. Until now unfortunately the party has erected T^^^Z1?*.0* *e ****> act tat concerns contained in the fijfflDlajnt the parry 2taJ2^ mvestleate *• substantial determmed to shelve the &bSEmow £J™£■"* m« """cerus and apparently seems • The Calgary Southwest Constituencv Assi«.|««„- •• .. and throughout Calgary to be decdved Into£n I ^ membeM fa tte ridta8 empty when It in tact hid «Jfil B ** tte *"** war <*«* waf ) ' fil^it^S-l- T^ *- —« * Ca.gary -^edove^^^^^ nothing to show for having roentZfJ^8 *' CoM*»ency Association with • Money donated by honest Rrf»m;1,r member^«fte^««*nWCe^^^ who chose to conduct a h^fff^Ped tte to '"^ °ffset tte ""tended «P«*«* of just one » November, 2001. 0n<,,,Ct * hosWe **•*» of the Calgary Southwest boa* fo hard earned money into their pockets ? "themselves" - sucking your The very same people who are implicated <•> a. trying to take over in Calgary CentoHta«£ * po-Md """"S^oing outlined above are no. L Sf^cS^s^rSdrr °n »-"* **•« ■ **. 3. Contact the Executive DirectTorS Pa^ T ***'* beated I"""**- Horkoff why National Office tete^^1"1*1 (403> 2o"9-19*>> and ask Terrv 4. Contact the National Coun^ tZ^^l***™""«to*>Corr^ [email protected]) and^lT (Attention Jeny **» - «aafl to- other!r^ ^^^iMof"^ constituency Advisory board directorate^^7^to »dn«^ ^.*"^"«ils*tal *" *£*&*»fiiends to without computers. " "* to W s "> P** off copies to give to memte PLEASFAf-TlM^y, January 24,2003 Canadian Alliance 300,717 -7th Avenue SW Calgary, Alberta T2P 0Z3 ATIENTION: Mr. C. TERRYHORKOFF, EXECUTIVE DIRECTOR RE: COMPLAINT AND RFQIFFST FOR mnHifnn^ amRMJVmm* ^^ Dear Sir,. Southwest constituency, since November 21,2001. g^ Southwest Wewouldm^ouCtok^a^Sr^^"^^^0^60^^ party members who arelLSme Seaenria^^^'8 *^,0n8 Standm8'co""**» Partyrwmberswho^l^pa^to^^ honesty that brought us to the nartv hi tkTZf i ^fe^^»les of integrity and in significant W^aIiS^I^ J*"" tove Served OT « cunentIy *«ving will nTstar^b?*^^ to tte gmwm of tlus par* and »^thisCcm^a4^^t^^ KyTatn^ 2001 have a well-known track rSfefiC^T 'k^™* *"* NoVember' requesting that the names of all individual&£JEffi?"". !" » ■■»* or signatories, be kept in strict coiifiaCe^ItCbS^d^^P^^MOIBanto the reputation of those who are to be mesubie^nV^ yay*ffi * "^^ members of our group contact you to follow *****♦♦♦♦*♦♦♦♦♦♦♦»♦♦♦♦♦♦♦♦ »**♦♦» Attachments Included' • PAL Letter -Canada Post 7023157 COMPLAINT & REQUEST FOR CO?wnVICATION AND CONSEQUENTIAL ACTION December 17,2002 Canadian Alliance Party National Council Secretariat Dear Members, We thank you for takuw th* *i foBow-upacnonasyoudeeriap^rL00^'1" to »«*> -«I xecoinmending such mtegruy and "doing polks diffSy" 2SlW 'j8*0* «»mmitment toZestJ to the Canadian Alliance party or not wJT^- f evoranonary process that gave birtf, If basic concepts of "richf A »• members must be m^^J^J^L *» ™t currency in this party then ""Portantly, members need tolH^den?^.J""*"*.*0 ** investiga^Mort ^^^^^-spoSe^theTj^Se^ * *""* "* tods ftroughout the province and acraTtl ^ S°Uthwest *>«« has solicited affected members all over Alberto ar^T *>Unlly ffle condnct of this boarih£ premier riding but since IwXrJooT^Tu to °°UL <»»* SoXrSS^ broke and in debt. ^ 2W1 rt ^ been run into the ground and is^ow Council. Just as the election of the cmW£j2? r*,***"* «"»^ to nK -2- Questional,!,. ir,.„H^.Mnr SolicifaHn„. throughout cWgary^mBtoei8tSOl!,CIta?\WM dilBCted to ** ambers SouthwestconJn^cytZiun^ \ "** by aSSeitin8 ^ me &*V towards cor^tuen^y^ecSoTetifr^ T ^f^08"3' *** to «-*S $30,000 reportedlyJ2*T£ SF^S?*" "»•«*« as to where the Were theXTfaE to te^TST DeCember 12 Weat were **o»to4 member donatio,^!* ^T^ """f °n account « *« those constituency association? ^^t not m the control of the by-election carimaignlta wSt ^ ^>Ugh mtmey for me ^Potion of the spent and w^^SS^^fTT ™ CaUed me mmey bad all been association,„«,,™r^Tl 1 ~ T^1'l|1" ■ " tbanapolitical dunSS^J^ T^688 «?*■-"** «**!* tamer practice and isnt that sirmto to to 25rf?£ "T*'*' " to^ of fundraising has questioned in me HouZf^S? ^ ^ ''""k^8 *"* «• P«S riding association &rpa»fbStZt •*" "*■ CreditM8 I""* *» Southwest Alliance ftrnpaign vSd^^T^ T^** *■»»»*» of the constituency by-electioTe^e^X^Sr^ *\-*«— *» not debts that are not its responsibility? ^ me party been asked to fend Questionable TTse of Cnn««h..^ *__,. „„„ r The "PAL" letter, distributed throughout the m™™,.. ♦ National Council of three cano^dates Chat b^^'£,?"??* eIeCtioa to constitaency funds. The same Canada S' ^ff^ "^ ^gary Southwest -3- was™ « ^ used ^ o T Pto Z craft : : l A the ^ f ^ yl£-taK^bf — ■ tbat ?"? *" the ^^^ contributedpredictive to, disclosedNovenmerJOOLAtaCa^gartso^tS^ that an »I„ W a«oZ l^^f T^8 Q«to-'* °n *»*15'2002 Association * was in takeover of the board * ZNoZoerT Z, * ^f"08, ^ Mvidua1'8 nostik was used to finance that sanL inS ,. ' l°°1' AGM ^ that the same account todraisingsolicitanZV^^Z^^**^"™^ Calgary Southwest CMtaeZ^E, * T^ acC0Unt were ^ *r by the securedSo«mwestattempttorecStoarftal^^^dftan after the November 21,2M1AGOT ^^ &>m party member ^^^ donations m <£* ' f^te,t?e^^^ *- one "PAL" the Calgary Southwest ConrftaJcy^SI^^6*°f $50000*» payment was made? Was thi ™™^T^ ^ Members want to know why that candidacy deposiT Payment ™ made to fund the individual's Sr£ ' ^ c o n S ^ ^ ^ the records of the Soumwest^H^r * non-refundable registration fee for candX^^ "^to *»««• » $2,000 described as a "candidate tJZSffSS^**?*'****•*»for«W0 was passed and carried by ae^d ^w ^ ^ *** 15 ■ 20°2 a motion constituency funds. M^cSuS^JS^JT"^ ' $2'°°° P3*"*" usi£ default candidate? °o»sttuency association actually provide W.000 to thf Questionable A counts for m„^.-T n (.|mj -4- beyond the control of the constituency association. None of those funds have been accounted for in the Southwest Alliance Campaign Fund records. The constituency association paid for some or all of the mail solicitations that went out during that time. In those mailers, members were asked to make donations payable to the "In Trust account The fact that the constituency association funded those mailers in our view, entitles the parly to full disclosure of all funds so received. What funds were received and where were they deposited? * ll b«tnewd m- ^donations were received at numerous public meetings that recordnte^frf*' of thosePTfl fundsif5md6d being * deposited*■ ^tmiency to the association constituency association however account. there isWhat no record keeping did the constituency association do in regards to cash donations? Where did those funds go? uuuouuibj . Constituency funds may have been advanced and placed under the control of a CampaignP^le candidate Fund waspnor apparently to his election established as candidate. before the candidate The Southwest selection Alliancemeeting. pnor£ta£ toiefeult the candidatecandidate selection or his close meeting? friends and advisors have access to that account • It appears that constituency funds were used to construct and advertise the default ^date's website (refer to March 10 mailer and March 2002 S^JZ r^ tT ZV^lF* d0nati0ns to an "In Trust" account rather thanlo to ST' ^S°^Wef AUlance Campaign Fund records disclose payments on WhatF^uary donations 27, 2002 were of $500.00 received byand the a "Insubsequent Trust" account payment from toof web $1,000 page laX^n? andhi ZZSSJ*"-compensated fOT *° «*-* —~ 5T£5 Abuse of Membership i.i«t. beforeAcandd^wasmailmgsoKcitationstomembenasearlyasDeceml)« that candidate became to default candidate in Ouestionahle Elections Act Practices Before the Calgary Southwest by-election was called mailers were sent out that appear to have been paid for with constituency inn* that des^d a mLTlf £ -5- S^^^i^is appropnate. Qrfa" Has there taw been any ta" breach *« of Election - to Act ** requirements?■** or not that OnestlonaMgO»..c«h.«follill pjimhirf ' uu^bS ^? T ^ by me ^^ Southwest bo^d to conduct un^tutional candidate selection meetings. Why was it necessary for National S S Z 2 S 3 S t o — - " * " * * » ^ S o u t h w e s t l S ^ S * s^fT65 °J meetmgS "**• been prePared ^mout referencing who moved or fectored in Tf aT? * J? irresponsible spending mat has taken place is $50.000.nn Unaccnnntod 17,*- account ^bE^SfflS^*""^"^* Questionable TaT Recrin* Fn.^^ng to Man,h^ • toiS3Kc "pohtical ffiemg3^^^1" cor^oTrax^wT?^!nafi8hi£,,,matwould nrfOT 'taines8 entitle -*-• them receLg20yrSap^rlterP' ** ^ M *** fa Naft>nal <*» Questionahle Conduct hm—*.,. r^,.,, p^^ been used for lawn signs, brochures, -6- advertisements^£S^SsbrateSesS^PreS; were paid for hv *T^Tthat mose lawn ^signs, ^^ brochure, ***** «*a Ptopertygone? ^ &r * *• constituency association. WheThTtS taestion»hi.^.nrf-^B^fialo |r Apparent rnnfllr^f^^rt • mdividuals with a clear ~«, i, ^"dhew^TeS^^ association have m return for the $40*00? " Property *» *» constituency Undocumented rtwh m.w. Thousands of dollars ha h "cemts^to what or mvoices the expenm^Cf^^0^ to substantiate "dividualSSSS^""" «"" with fe no-» where mdication aTto ^MMMtAtttrtlw of BTp^„. Numerous account*: r,Q^ u sirs £* =??.*« srir—- - a f % — ^ _ ^ m , - T,« i j, . 1. Launch an investigation into what h*c ♦ u -7- SHttS?£5*"* ^^ * ***** *"— °-**" F»»d The undersigned members also ask that following a full and thorough investigation due SZSS&; *"foUowin&" -- * *e Secretoriat - sssls Z SerfJT? f "T^ " dvfl remedies ** may be available to secure recovery of all assets which may have been misappropriated or diverted from to membership, including civil judgements against responsible indivi^^L*6 3' SssearySanCti0nS * aCC°rfanCe "*" * 3 (d) <*> of me P"* <™"*ution as *************************** We to undersigned members support to request for an immediate investigation and NOTE: fa the space of only 38 days, between December 17, 2002 and r?U"Z2'?m m°re *■" 150 ***** C*"«H» Allianimembei ?£■ Hundreds more would have signed but it was essential that the ■ 25SS: ^t0 fte Secretariat for fnves ** ■ - £ £ Members who prepared and signed the petition include lons-standins SSdentaS" 'S ^T* "* "^ *Mt »nd -SKfi ™ « ~ g TOth members wh0 *«™ Md or do currently hold Membersexecute office from positions the following or directorships ridings signed on constituentboards the ComS? cZrv Calgary Southeast, Macleod, Wildrose, Edmonton Strathcona. The names and signatures of the members who signed that document ComplaintcIelwrem°Ved were promised *?" IS* that Cmail the party ^b^on. would Member be asked sigmTae t?5 im names m strict confidence to avoid relation from tnTpeoileZ^ -8- conduct was being investigated - these are people with a track record of belligerent and bullying behaviour. Every member of this party who cares about political decencv and honesty should immediately contact the Leader's Office^Son Stephen Harper - Phone (403) 253-7990, the Executive Sor sss^ssl phxr 2r90) fte Natie^c^r calgarysw@a„Lcom) to demand to know what hasten done to address the very serious questions raised in this complaint rtZJSEZfT"**,*other ridings. It is MSnot fair C0mpIaint to those ridings conttoue or to party to memberss«* ^»*™l to tLZ of these important questions unanswered. ^ members to leave The party has^responsibility to its members to perform and conclude bZlZEttST,** PUbMy CXOnerate *•" that tove bet demand that the party not shirk froXa^ryf ^ *" * ** to MEMBER ADVISORY Gf?sSpSECTEn0N^UvfCJrSUSPECTED...SAME GROUP '* CAlGARy NOW TARGETING SOUTHWEST CALGARY CENTRE ! WHO'S NEXT? IMMEDIATE ACTION REQUIRED MEMBERSHIPS OF ANY RESPONSIBLE FOR MISCONDUCT S H O U L D B E R E V O K E D May 2003 Canadian Alliance Friends, musttssszzxz tell the truth/even MXmKoirofr^rw^^e^by4e6Mand whenftw. •nTI ,??*£^^A"131106 movement beBeved that poUticians ReWAmance^^£6l^?ork"SOM adhereDCe * * "trU,r *"** —*"* m *« members, so too, is the CanadianI Amln^™^^ ,Pju*y. ""P'odcd when it turned its back on its growth. The decent JmS^S^to^^SZ 2 "T? ¥J* T* ^ wh° nurtured ite Jhan enforcing our own mSS enZn^T? ***? differently" are being ignored. Rather blind eye to cLuption XXS^S^^SSSi ttSPXtZS* f* n^^overmtootorridmgs-andtoproblemwUlcontmu^r^^ proven. The Complaint was foSd'to tofeeS r? f tn»I,»nestParty«»«»l»«-could tolerate if Council, Secretariat in JanuaryMmI^!^ "^ ^ fOT deHvBiy to *• National relied on the party to act butunCf™^ *ow'the concerned members who uncovered this scandal have ^bsuntia.determined to shelve the Comolaint c^^^T^V^^^J^^^r^6^^Nowi^timZ £?*u u ^ *e conceras and apparently seems what members allow S^^^^^^^ INTEGRITY f 5 NOT LET 1HE PARTY ABANDON HONESTY AND earlier? TheConXncJaanrrhr^aw'^OoT ahn°St $'0'°00 "^ f0Br m°nth8 » S90,000-more than enough JSRj^Sj^ *" "" em,rty' "*- * * *" had • Money from members in Cala • Money donated by honest Reform/a »: The SCARV fhinff ;« - thr 2. 3. 4. Contact the Nanonal j^ . e ^^^ to obtam answers to the jerryJi,^canadiaiuiHiancec^Stotr,fretanat (A«ention Jerry m<* PLEASKAr«TiVmv^ ^^^^^ -**ur I IMTTATIOV nr ^r^ T ^^ ^ f ^ January 24,2003 Canadian Alliance 300, 717-7th Avenue SW Calgary, Alberta T2P 0Z3 ATTENTION: Mr. C. TERRY HORKOFF, EXECUTIVE DIRECTOR w^w^mmww.wvwnmwni,ffl—rrfmr^ Dear Sir, Southwest constituency, since N?vem^Soi ^ *" *" °Uga,>' signature of those members. In com^ncewitt,SLI^ ComP^t forwarded under the mentioned "Compliant and iSSm^SS^St enclo8ed.Plea8e *< the above signed by dozens of Canadian AOm^SS^^^0^ ACtfon" Which ta »*« Southwest We would urge you to lookcSE 2 mmerous nd">gs in and outside of Calgary party members who are &££aSS^'^'?m' ?*• l0B* standing, commit party members who wan. this p£ySS^&7 "^T* ^ *U are dedicated honesty that brought ustotoSinto^fiSn^^ ?epl^ple8ofmte«rityand m significant party roles. All lWgiVeTtoTtfc^"15' *"" T"* OT m cunently »«ving will not stand idly by as others *££*££%? ^^ * *" ^^ of «• P** and to sign this Complaint howev^K™eK f^1"^ to ask for to opportunity soon as possible. Accordingly, aTaMticSemb^K8 mt0 mehand» °f the Secretariat « torn to your attention. "oonional member signatures are coUected we will forward w^SowXa^^ requesting2°°l^eaweU4mowntrack™rd^^^ that the names of all individuals!S ^ S? reaSon we ■» ^^ty the reputation of those who are to be to mMtZSZ?* fj0?*to 8ecure si6"atures, given only on coupon that coi^dentiaSwo^ re^esentation that would b,TextendSl^ySSrrleVe,0f8npp0rtfor^ business. The only reason that it has beenn^e^o^arnt^r0'0^6'10'' y ior mis Complaint to come forward in this *************♦****♦*•••**♦♦♦**** Attachments Included- • Southwest Alliance Cainnai^p ^ r,. •. SfflC^^^^FMdF^^S^^-^uary,7,2oo2toApra^ ^ S F ^ ^ f 2=£}a:£2l3Sa*'ttr",'*ifc*'"-- • MaSo5'22rSe8tto^Co^tuenciesfbrfunds • Brochure #2 • PAL Letter- Canada Post 7023157 COMPLAINT & REQUEST FOR INVESTIGATION AND CONSEQUENTIALACTION December 17,2002 Canadian Alliance Party National Council Secretariat Dear Members, foUow-uPMtionf«^gp acaon as you ** timedeem to appropriate consider this ™arenal material and 9„h recommending such If basic concepts of "right" a » -2- Specifically, the possible__misconduct sueeested hv th» «Q^«i -j Questionable Fund-rising Snlirifarinnc practice and isnt that similar to to land rfUbZX ? 7*^nd ? fendraism8 has questioned in the House of Co™? ""* fcndnUSmg "* this party Questionable Repr«.,nh,H,.,s to NflHnn.i mn. forJWwfto a loan Calgary representations Southwest were Constituency all«.<.Hi„ m. Association j„ a. *..■. <**"U™-Ilca approached UB to partynartv min AnrilApril riding i-ocLon IhSSSveteST^ ""* CreditorS ples8mS me Southwest Alliance S!1 b^lection campaign expenses. Examination of to debts that are not its responsibility ? ^ the parry been asked to fund Questionable Use of n—Hh^ ^„,d8 anJ ,„ constituencyNatio^uSfSSSrhaSblentr funds The sameT*£2p- been ""ded using ^^Calgary *— Southwest to forconstitoencTexpetes^drm^/m^er^InZ by to constituency association arenot Senrffif.T .photocoPyffl8 USed-b°,h a*™** fc paid ^ ^westAlhanc«cU^ -3- was used to craft the W h£™n™ !^? *" coastltaeDV contributed to, ^oufcwestconstin^^^^ W« November 2001. Cc^SoSSS i?ST O-*"-* Association to disclosed that an ■ InS^^^-^^itw. takeover of the board at the Noven," Sj AjSr";" "f^'8 *** was used to finance that same inHiwCi. I ' GM and *"*me »"» account fundraising solicitatC £1225 totXT T**** se,ecti°"- Numerous Calgary Southwest C^^Ta^^Z ^^^^^^^ securedtort^i^lOT^^tiZZZ^" after the November 21,2001 "dividual AGM? ^ member in Calgary d°nations tbe Calgary Soutn^S^EEa^*~rf,M*- payment was made? Was ftatnm^T ^ Membere want to know why that candidacy deposit PaynMait ^ ">ade to fund the individual's requied the records of the SoutowesTAIhW3^?m™e^ctPa^ts are described in "fitodraising", bo^^SZ^T*^ "T* " payments "^ for association are irrunedi^lySXfTf^^8108 deposits to *• constituency to pay -commissions" J^S'STSTrr^^^^ constituency association. Why wenf W ^f raised belon8 to to done for those "commissions"? Wh^L w^HL ^ ^ Questionable ^counting fn-^,.^..^ „„,„„. maaetoan in Trust" account that was -4- beyond to control of to constituency association. None of those funds have been accounted for in to Southwest Alliance Campaign Fund records. The constituency association pari for some or all of the mail solicitations that went out during that tima In those mailers, members were asked to make donations payable to the "In Trust account The fact mat toconsrituency association funded those mailers, in our vrew, entitle, to party to full disclosure of all funds so received. What ftods"^ received and where were toy deposited? "»."«* . ft is believed that cash donations were received at numerous public meetings mat were My or partiaU,-funded by the constituency association however Sst ttSS.ZSlS*^'S keeS M""* T*" assodatiQn * me °™*»«y *ta relation regards account. to -* What *-•-' • Constituency &nds may have been advanced and placed under to control of a cZ^JT*^ '*' to J* eleCti0n " ««** ™e SouthwesTZiance SSCf/^ was apparently established before the candidate selection meeting pnorSit t^*S^* to OT to "• candidate Cl0Se fiiends selection »d ««*" >»• meeting? access to «*«uni that^un, ' lt apPfai? tta1C0Mtin«ncy funds were used to construct and advertise to default candidate's website (refer to March 10 mailer and March 2002 mX/and to website was ton used to solicit donations to an "In Trust" account rather fC to to *eDruary 27, 2002 of $500.00 and a subsequent payment of $1,000 in that regard. What donations were received by the "In Trust" account from to web page andhal ZZSSJT ""compeM for *•—•-— "*£ Abuse of Membership f .irtc A candidate was mailing sohcitations to members as early as December 3 2001 Ion* before ft* candidate became the default candidate m CaWluS and ZK* "Sf ""*? ^ Candidate WM «»*" to * "OP? of^e memSpS SSKolunT^/V001 sh™mat the candidate wasnotrnterviewedunfl HowH^Tw did • tot^ L"? individual fy^ was obtam consequently access to Calgary entitled Southwest to the membershipUstsTIs membership lists) ftat Questionable Elections Act Practice Before the Calgary Southwest by-election was called mailers were sent out that appear to have been paid for with constituency funds ^SS^J^J^ -5- candidate as his Official Agent Questions have been asked as to whether or not th* « appropnate. Has there been any breach of Election Act req^SsT OaestionahlBrnn.rth.qona! cnn*„* ' unStS ZS-f? T ^ by me ^^ Southwest •^ to conduct unconstitutional candidate selection meetings. Why was it necessary for National ' SonS"tlr**88 b*n ^ Prq,ared without referen<*« who moved or seconded motions, no executive minutes have been produced, resnonsiMe WenShSk "t f \direCt0rS meeting " to constituency finances ™£££E?JTaTwere presented to the °rmeS°'Ca"edSouthwestAmaaeeC^gnFund board it wasn't the Treasurer who offered an *t*LzZ1 * Zsxspt**sqparate accounts. Members -*** are asking wh° what standards *- ^Se^sr/mi0: are expected of directors and mentis^ *??" ? Ca,galy S°Umwest *«"«««" ftTllSJdnVS ■SfcTSW *?" 2" il?8p0nsible «»** ** »« takeTpK Executivetutored m. have If to thosedirectors executive themselves officers were breached relying theirfiduciary on to advice du^ of totolmber^ board S50.0QQ.On Unaccounted Pai» mSSSS^P 2r *"? * ««** Meeting a motion was passed to Questionable Tax Recrint Inaction, to M^.^ teSoT^ Jh™1.* COnt?^ to " "* TraSt"account for "««**■ ex**™" 2JSSSSSi5sr*tT»pS cSS„ ^f "^ to * Ttn'bUte wbich m wouM a fashion -*fc ** Nationai "on,d entitle offi<* tnem Questionable Conduct Snrmnnrtjng Consti*,^ p^p.-^. ^f 2* Pr0P?1y ^ &r *** constituency association funds are not in the donated by members were to have been used for lawn signs, brocra^T -6- secured personal bieftmr fcL , constltuency association and have thereby entities. One Svtff^Jla^^^^ benefit «* their corporal tospending himself and he was *££^£^£EF**& afcoTe ST- T? f S?ufl,west *?T Alliance m Campaign *« «S-* Fund allowed to receive sZTbenefirfw^^ ^ "f^ for? Why was this individual associationhavem^K^^ UndocumpnfArf P^11nents vra^ Ouestionahk Attrihnrtnn «f P^^.Tn, ' ^ e n ^ ^ s S consumables have been ZTiJESPii. ■**** ■**»»» expenses such that been paid fJr i£m an^ln^f ! constituency association but durables have breach of ^"du^to^S^^^*'»»-«'"• practices? Why did directors noTnro^^ * f °W- SnCh *"■*■"*»■ business candidatonotp^mete^uiSSi "* " * *** Questional,!* ».«,.■,■ Ky ?Ttnrd fa Pm f^^ 1. Launch an investigation into what has taken nlace in a. r- i c . Constituency from November 21 2001 ZJkT^ . m e Ca,gary s«tthwest external investigative unfe andw • f"'^ WWS Such mtenlal "sources, to ascertain XmT^£^*T1 TS?"" " "**• - neceW of aU to Calgary S^^tT4"1^^ Cher as yet undisciosed accounts direct^ tTSSS ttZ&ZS -7- S&tSPZS"* i"*-b* *• S0U,hWeSt *"— <> ■ •*■ Fund deem it to be a^roSe? ^* M ^ rf me Secretariat and National Council 2. Migenuy pursue all criminal or civil remedies that may be available to secure membership, including civil judgements against responsible individuals or directors. 3' SssarT0*"18." aCC°rfanCe WM' S' 3 (d) (Hi) °f *• party consti,utfon " « £ a S ^ S a ^ h ^ r ^ * * ° " m e m b e l S ^ * " * - * — * ■ ' a*************************. We the undersigned members support the request for an immediate investigation and NOTE: In the space of only 38 days, between December 17, 2002 and Jannary 24, 2003 close to 200 (177 with many wanting to sign who missed the very short timeline) dedicated Canadian Alliance members, together.MiT^L „Hundreds P?UtiCal more h0neSty would have and signed ***** but P«tit was this essential Complaint that the CjwnnJaini be forwarded to the Secretariat for investigation as quickly Members who prepared and signed the petition include long-standing presidentsUS Vtm^n along ?? with ,0yaMsts members and who many have held P8* or «* do current currently ridinihold executive office positions or directorships on constituency boards. Members from the following ridings signed the Cjunpfaint: Calgary Calgary££T? ^g^Ce,nta!'Southeast, Macleod, CalgZry Wildrose, North Edmonton East, Calgary Strathcona. Nose hS, The names and signatures of the members who signed that document have been removed from this email distribution. Members signing the namesnZZ^Z'? m stnct V'Vaktd confidence *■* *• to par*avoid wouldretaliation be from <*** the topeople «ceep whose all -8- 2' Sf?r?eil^r'''l0mee(emaat0!l"tn«^»»'«"""i-T~ /phone- 4- ?ssssssz^*ssi^ *7i"- -—* proud members of tEZZ£ZZ?!?L 'mCertato terms ** tte Integrity J "^ WaBt to praserve co" *»■«• of- honesty and 5 voT^r^!? °f *•■ ^"r^ Coveri"6 «*» "* Complaint to all computed " Md PriB' °ff COp,es to *~ to -■■*« without 2LW" *%^M fa *" C«PWrt continue to seek control of withholds vital information. * ° ** lf tte Party -9- candidates *m*lZJE£fiL **"+* exami" P«ten«ai Canadian Alliance Z^ u *" to every ofl>e«- riding. Every 9M\\E Pagelof2 ■) T?m'' tS,»^-akuJa" Gus Baron" ALLIANCEi » » . CANADIAN CANADIENNE MEMORANDUM To: Don Plett, President, National Council 'From: Walter Wakula, President, Calgary West West Executive3*6'"16'1 H"P"i TSnSff ^ ^' GUS BaTOn' Geo*e Lane- C*«y Date: 8 June 2003 B^ Solutions for the Paltry Prohtei^ ?i^Sht^ by their Boards aid members.^^^v«2Z^rere fn?WemS *■»needed to be solved meeting I am appalled to bn nCEtaXa 2ES? ^ ^^ O™*1*** Council . The Mowing are our proposed solutions for these problems: SffJariLwS:g^-T^,?^^6853"06; ^soMon- then, is easy. ThefM,,, Garments exce^ina M n ^ ^u rf tnmml 7 ^,?ftM fTi ^ *"* ""^ " "'•'1pd1l1p nf mtoseresults.ZvZaZ™r^XST,i^Wlaeynew ^ftwertprarnnewenw,^^ P rfNfmwhmrt"TnT-Hf Best regards, Walter Wakula CANADIAN ALLIANCE To MEMORANDUM ^ ^ ^ ^ ^ s i d e n t . C a l ^ W e , StephenHarper.JohnHynn.Gn.p •ta.20» ^^^'^^^^ecutivecornmirtee This memorandum provide h. l. 8 ^gat,0ns *°" the Calgary SW situation- theprt,We^ « follows: • ^^^onsofrnalfeasancefnA ) ' ^^onaofrm^^.fes^8ofcor^ruenCyr0^. 2]. ■ W*™0l^^orAllianceofficials. • It is rumoured that tLr j ™ B ^c«^* with tfe-,,? ^ 3- Several Alliance member* ^ ) C*T 25,cata» Cmcluding SSi?" "f- * """""d to b^am^^ ? Some «* of back * «r hope rt can be redressed? * ProWem ^^8 this JL^SjE**" <***> backer, of is out there nevertheless and 2003. Action No.: 0301-09784 NOTICE TO THE DEFENDANTS: GARRY HENNAN, JOHN FLYNN, WALTER IN THE COURT OF QUEEN'S WAKULA A AUDREY CEP^VF-NAC. ANNE BENCH OF ALBERTA DAVENPORT. HAROLD DAV™PORT. MARIA nTTHAIME. DAVTD FULTON, GEORGE LANE. JUDICIAL CENTRE OF CALGARY TT.AKENCE PATTON. RODE^TCK W. PEDEN, RT?V PFEFFER -TTM STEVENSON. LINDA TOEWS. JOHN TRABER. and ELIZABETH TRABER BETWEEN: MICHAEL COOPER, EZRA LEVANT You have been sued. You are the Defendant. You MARVIN LEVANT and SEAN have only 15 days to file and serve a Statement of McKINSLEY Defence or Demand of Notice. You or your lawyer must file your Statement of Defence or Demand of Plaintiffs Notice in the office of the Court of Queen's Bench in Calgary, Alberta. You or your lawyer must also and leave a copy of your Statement of Defence or Demand Notice at the address for service for the GARRY HENNAN, JOHN FLYNN, Plaintiff named in this Amended Statement of Claim. WALTER IYiHTT *i A "ir^i^rPinrVffNAC. ANNE nwtnPT ^ROrr^v^PORT, MARLADUHAML Warning: If you do not do both things within D^^^Vk, npnPfiR LANE. H ARENCE PATiuFT 15 days, you may automatically lose the lawsuit. The Plaintiffs may get Court judgment against you if TTNDA TOEWS, JOHN TRABJE and ELIZABETHTRABER you do not file, or do not give a copy to the Plaintiff, or do either thing late. Defendants This Amended Statement of Claim is delivered by A G. Scott Watson, solicitor for the Plaintiffs whose address for service is in care of the said solicitor at: A AMENDED STATEMENT OF CLAIM The Plaintiffs EZRA LEVANT, MARVIN LEVANT and SEAN McKINSLEY are residents of Calgary, Alberta. The Plaintiff MICHAEL COOPER is a resident of St. Albert, Alberta. The Defendants A, as far as is known, are residents of Calgary, Alberta. A ParW McLaws LLP G Scott Watson 3400" Phone: (403) A29£7038 Fax: (403) a 294^006 File: 58275-4 DEC 2 O2004 (rC:\cdox\0058275\000004\C4139514.DOC;2}