Samantha Whalen, a councillor of the Fort McMurray 458 First Nation (FMFN), uncovered financial irregularities involving a $600,000 payment to defendant Bradley Callihoo through his company.
Following her discovery and confrontation with Mr. Callihoo, she filed a lawsuit in August 2018 alleging various financial improprieties.
Defendants' Position:
Defendants sought dismissal of the case due to a long delay under Alberta Rule of Court 4.33(2), which mandates dismissal if no significant action occurs within three years.
Legal Issues:
Primary Issue: Whether the lawsuit should be dismissed for long delay under rule 4.33(2).
Analysis:
Rule 4.33 Principles:
Requires dismissal if no significant advance in action within three years.
Period does not include the time between service of Statement of Claim and Statement of Defence.
Actions in related cases can be considered if they are inextricably linked.
Settlement Discussions:
Settlement discussions and resolutions related to Christmas bonuses and severance payments advanced the case.
Such negotiations can constitute a significant advance if they narrow issues or reflect agreement on aspects of the dispute.
Court's Findings:
Significant Advances:
Settlement discussions and resolutions concerning Christmas bonuses and severance payments were significant advances in the litigation.
Emails showing agreement on discontinuing the action and reimbursement of legal costs demonstrated progress.
Decision on Related Actions:
The court found that advances in related actions (Injunction Action and Judicial Review Proceedings) did not significantly advance the current action as they were not inextricably linked.
Conclusion:
The application to dismiss the action for long delay was denied.
Parties were ordered to attempt to agree on procedural orders within 30 days, or appear in Chambers to resolve outstanding issues.
