Judge leaves Orangeville voteless in rail decision

A Superior Court judge has ruled that Orangeville's county councillors have a conflict of interest in the sale of the county owned rail bed, on grounds Orangeville is contractually obligated to assist Highland Rail Group in its efforts to buy the line.

Justice Francine Van Melle's decision, released Tuesday, was based in part on Orangeville's conditional sales agreement with Highland and in part on her finding that "nowhere in the Municipal Conflict of Interest Act is a pecuniary interest defined as being limited to a private interest."

If upheld on appeal, the decision would preclude Mayor Rob Adams and Deputy Mayor Warren Maycock, the Orangeville county councillors, from participating in any manner in discussions of the county's sale of the rail bed to Highland.

County Council had postponed further action on the proposed sale of its rail corridor until the conflict-of-interest issue has been resolved. The council voted to obtain a judicial interpretation of the potential application of the Municipal Conflict of Interest Act in the particular circumstances.

The opinion of Dufferin lawyer Stanley Makuch was that Orangeville's representatives had a conflict of interest in any sale of the countyowned rail corridor north from Orangeville, and therefore were disqualified from participating in deliberations or voting on the issue.

Orangeville's counsel, Bill Stutz, cited a legal opinion that since neither the mayor nor the deputy mayor had a personal pecuniary interest with respect to the sale they were able to participate in discussions and vote on the issue.

"It is unfortunate that this issue was blown so far out of proportion and ended up in a court battle that certainly was not the intention when the County sought a legal opinion," said Mono Mayor Lorie Haddock. "Requesting the legal opinion was simply good business sense and a matter of the County doing its proper due diligence on behalf of the taxpayers."

In her reasoning, the judge said "the conflict in this case is rare. Moreover, there is no evidence of any other instance where one of the local (Dufferin) municipalities has executed an agreement, the final fulfillment of which can be so significantly affected by (Dufferin) entering into a separated legal agreement for the sale of land which it owns."

She ruled that the wording of the Orangeville/ Highland sales agreement "places the interests of Orangeville squarely in conflict with those of Dufferin."

She said "it would not be possible for Adams and Maycock, who are arguably contractually bound (to assist, co-operate with, and support Highland in the purchase) to vote against (sale of the rail bed)."

On her award of costs, Justice Van Melle found the costs outline submitted by Mr. Makuch excessive, and reduced the award to $15,000 from between $42,150 and $50,089.70. "I find that an excessive amount of time has been spent on this matter," she said.

Mayor Adams said he was disappointed by the decision.

"Orangeville taxpayers have a lot at stake. Insuring the continued operation and viability of rail infrastructure is an extremely important economic matter.

"I will be reviewing the decision with our solicitor and with (Orangeville) council to determine our next course of action."

As for the possibility of appealing the judge's decision, Mr. Adams said

"I would not discount it. It will have to be one of our serious considerations."