N.B. court upholds record $2M payout to fired Horizon CEO Dr. John Dornan
The New Brunswick government has lost its bid to have a $2 million payout to the fired head of Horizon Health Network quashed.
A Court of King's Bench judge has upheld a labour arbitrator's decision in the case of Dr. John Dornan.
"On the issues raised by the employer in this matter, namely consideration, mitigation, and aggravated damages, I am not persuaded that the adjudicator issued an unreasonable decision," Justice Kathryn Gregory wrote in her 20-page decision issued Tuesday.
"Nor were there errors made relating to procedural fairness or jurisdiction," Gregory said, awarding Dornan costs of $4,000 plus HST and "reasonable disbursements."
Dornan declined an interview Wednesday, but did email a written statement.
The fact that these actions have been proven to be wrong and without merit by a reasonable and fair judicial process brings a level of transparency to the type of thinking inside the Premier's Office. - John Dornan
"We knew the action taken by Premier [Blaine] Higgs' office related to my premature dismissal was wrong and without merit," the statement said.
"The fact that these actions have been proven to be wrong and without merit by a reasonable and fair judicial process brings a level of transparency to the type of thinking inside the Premier's Office.
"Their lack of consideration and respect for an engaged creative and successful leader with 45 years of education and innovation sends an insincere and dubious message."
Fired in health leadership shakeup
Dornan served as president and CEO of Horizon for only four months of his five-year contract when Higgs announced his firing during a news conference July 15, 2022.
It was part of a larger shakeup of New Brunswick's health-care leadership that saw the health minister replaced and the boards of both Horizon and Vitalité removed.
Higgs cited a growing health-care crisis that included the "traumatizing" death of a patient on July 12 in the waiting room of the Dr. Everett Chalmers Regional Hospital's emergency department.
Dornan filed for unjust dismissal under the Public Service Labour Relations Act.
Kelly VanBuskirk, one of Dornan's lawyers, said the case was complex because it dealt with legal principles that have been applied differently in different parts of the country. (Pierre Fournier/CBC)
In February, adjudicator George Filliter awarded Dornan special damages of about $1.8 million, representing the value of lost salary, pension contributions and health benefits, plus $200,000 in aggravated damages for "breach of the employer's implied obligation to act in good faith when dismissing him."
It was the largest employment compensation award in the province's history, according to Dornan's lawyers.
Last month, Jamie Eddy and Jessica Bungay, who represented the Department of Health and Horizon, argued Filliter "erred in fact and law and made an unreasonable decision."
They argued it should be thrown out or the grievance should be sent to another arbitrator.
Appeal still possible
Donan's lawyer Kelly VanBuskirk said he and co-counsel Howard Levitt of Toronto are pleased the judge dismissed the province's application and hope Dornan will "be able to move forward now.
"Having had to fight this matter for quite some time, our hope for his sake is that that will be the end of the matter," he said.
The province has not decided yet whether it will appeal, according to Department of Justice and Public Safety spokesperson Sarah Bustard.
"The Office of the Attorney General is reviewing the decision and considering all options, including an appeal," she said in an emailed statement.
