Friday, July 29, 2011

Judge's reasons

Justice Peter Lauwers gave a lengthy and detailed explanation of how he came to find whistleblower Norman Bourdeau in contempt of court in the lawsuits swirling around the Ontario egg industry.

He notes that Bourdeau, during cross-examinations in May, 2010, assured Gray's lawyers that he had turned over all documents he had taken from L.H. Gray and Sons Ltd. Later, it became apparent that Bourdeau had kept copies and used them to prepare a 170-page submission to the Ontario Farm Products Marketing Commission and to circulate information to about 170 others.

Lauwer says "Mr. Bourdeau sees himself as a 'crusader' and instrument of justice" and calls himself a "whistleblower".  As such, Lauwers said Bourdeau seems to think he's above the law that required him to turn over all of the documents.

He said it's "disingenuous" of Bourdeau to argue a year later, in May of this year, during another cross-examination that he thought the order applied only to originals and did not prevent him from keeping copies.

Bourdeau said he kept and used copies to provide information to regulators and police forces. Gray's lawyers complained that he also contacted Gray's clients, including supermarket chains, and some egg farmers.

Lauwers says Bourdeau's "animosity towards Gray is especially palpable and may explain some of his behaviour" and says that he can understand why Bourdeau feels that way, given the terms of his dismissal from employment at L.H. Gray and Son Ltd.

Lauwers said Bourdeau was "indifferent to the terms of the court order and reckless."

The lawyers are to appear before Lauwers again on Oct. 13 in Oshawa to present their views about an appropriate penalty and whether Bourdeau should pay Gray's legal bills for this case and, if so, how much.

All of this, in the words of Justice Roland Haines in London court, is merely a small side issue to the main court action, which is lawsuits Svante Lind of Best Choice Eggs has filed against Gray, against Burnbrae Farms and against the Egg Farmers of Ontario marketing board.

Lauwers made it clear that this case is separate from Lind's lawsuits which are still a long way from trials and decisions.

Gray wins in Oshawa

Justice Peter Lauwers, in a scathing 20-page judgment, has found whistleblower Norman Bourdeau guilty of contempt of court in the ongoing egg-industry legal battles.

Allison Webster, lawyer for L.H. Gray and Son Ltd., successfully argued that Bourdeau was in contempt for continuing to circulate confidential information from electronic files that were placed under court protection here.

The judge not only found Bourdeau guilty, but also said he lacks credibility.

His judgment came hours after Justice Roland Haines in London court dismissed another contempt-of-court charge Webster filed against Bourdeau. Baines said Webster was unable to demonstrate “beyond a reasonable doubt” that Bourdeau “deliberately and willfully” missed a deadline by one week to provide a list of everybody he circulated information and allegations to about Gray’s egg-grading business.

The lawyers are due back in court here Oct. 13 and Lauwers said he will listen then to lawyers arguments about the penalty he should impose.

On that day he is also scheduled to hear a request from lawyer Donald Good, acting on behalf of Svante Lind of Best Choice Eggs, to merge three lawsuits against Gray, Burnbrae Farms and the Egg Farmers of Ontario marketing board, and then to decide whether information from the electronic files ought to be allowed as evidence and, if so, which files that contain e-mails and egg-grading records.
         

Thursday, July 28, 2011

Gray loses case

L.H. Gray and Son Ltd. has lost its motion to have whistleblower Norman Bourdeau convicted of contempt of court for missing a deadline by five working days.

Justice Roland Haines also rejected Gray's request to be awarded court costs. Nor will Bourdeau's lawyer get costs.

Justice Peter Lauwers has yet to hand down his decision on another Gray motion to cite Bourdeau for contempt of court. In that case, one of the key issues is whether the documents Bourdeau took from Gray were put into court protection to keep Gray from destroying evidence, or if the intention was also to keep Bourdeau from circulating information from those files.

While he's pondering the case, Lauwers has all of the reams of court files on the egg cases in his chambers. Gray's lawyers asked to have the records sealed, but Lauwers made no decision on that request. Keeping them in his chambers, however, ensures the public can't look at them.

Egg board offers incentive

The Egg Farmers of Ontario marketing board is offering an incentive to persuade farmers to stick with 12-month flock replacement.

The move comes because there are indications that many more farmers are considering a switch to 13 months and the board is concerned that may result in shortages in peak demand periods just before Christmas and Easter and in poorer egg-shell and interior-egg quality.

The incentive is an extra half of one per cent hens that can be placed with the next new flock.

Harry Pelissero, general manager of the egg board, said "the trade" indicated concerns about how many are considering going to 13 months, so it convened a meeting to discuss the situation. He said about nine per cent are now on a 13-month cycle and there were indications that might increase to 20 to 25 per cent.

Wednesday, July 27, 2011

Bourdeau faces contempt charge

Whistleblower Norman Bourdeau was in court in London today facing another contempt of court charge.

Lawyer Allison Webster, acting on behalf of L.H. Gray and Son Ltd., has filed four contempt of court charges, plus a couple of motions, all aimed at silencing and punishing Bourdeau who alleges Gray has cheated egg farmers and consumers by representing undergrades, mainly cracks, as Grade A eggs.

Two of the charges have been settled by the lawyers with a fine of $500 each and $1,000 to be paid to Gray for each case. One is awaiting a decision by Justice Peter Lauwers in Durham Regional Court in Oshawa. This case is now in the hands of Justice Roland Haines who said he will have a decision by Friday.

The short version is that Webster was hard-pressed to "prove beyond a reasonable doubt" that Bourdeau acted "deliberately and willfully" in missing a deadline of March 4 by one week. He said he was ill with pneumonia and unable to compile and furnish a list of everybody he has provided with an outline of his allegations against Gray.

The long version includes Webster's arguments that Bourdeau's claim of illness lacks credibility, that he has a pattern of failing to comply with court orders and his allegations threaten serious harm to Gray's egg-grading business.

Lawyer Rod Refcio, acting for Bourdeau, has taken only a tenth as much time as Webster to argue his client's positions.

Webster wants the judge to fine Bourdeau more than $5,000. Refcio argued for a "not guilty" verdict and said if the judge does find him guilty, the fine should be the same as the two other cases - $500 to the court, $1,000 to Gray.

Webster said if Gray wins, she wants more than $5,000 in court costs. Refcio said if he wins, he will be satisfied with $2,000 in court costs.

One minor point that greatly interested me was Webster's reference to Bourdeau's allegations, saying they amount to "defrauding egg farmers and consumers."  It's the first time "fraud" has been mentioned in open court.

Fraud is, of course, a criminal offence.

Tuesday, July 26, 2011

Nutri Ouef replies

Richard Decelles, general manager of Nutri-Oeuf, has taken issue with my July 5 post about business deals in the egg-grading and egg-processing industry.

First, I was wrong in saying that his Nutri-Ouef, a Quebec-based co-operative owned by 35 farmers, has a partnership or interest in Sparks Farms near Calgary.

I was right about Phil Carnovale buying the egg-processing plant that Global once owned and that Nutri Ouef is now an investor in that business. Decelles said it became a shareholder last year in this business, Supreme Egg Products.

Decelles said when Global sold the facility to a real estate investor, it never thought a competitor would open up there. Carnovale was a former Global partner. Global rolled its business in with Gray and they call their new egg-processing plant and business Egg Solutions.

He says I am wrong in suggesting that Bill Gray of Gray Ridge Farms is in any way an investor in Nutri Ouef or any of its affiliates and partnerships. He says Gray and the Hudson family, owners of Burnbrae Farms, are stiff competitors to Nutri-Ouef.

What Decelles did not say is that Bill Gray is a partner with Meb Guiliani of Sparks Eggs of Alberta in owning Ovale in Quebec.

Decelles says Nutri-Oeuf is in Manitoba, not Alberta. It's interest in Countryside in Manitoba, however, means it has some interest in Countryside's partner in National Egg whose other partners include Gray Ridge, Sparks, Golden Valley (half owned by Gray, half by B.C. egg producers) Ovale and Star Egg Company Ltd. of Saskatoon.


Decelles says Nutri-Oeuf also lost some farmers after Ontario Pride Eggs, which is one of its affiliates, bought Best Choice from Svante Lind.

That, Decelles notes, means Nutri-Ouef now has some Ontario shareholders. Maybe more egg farmers will join the co-operative to distance themselves from Gray Ridge and Burnbrae.

But, then again, the egg-grading and egg-processing industry is so intertwined now that almost all of the players are partners to one degree or another. And where is the Bureau of Competition Policy? And does anybody supervising supply management marketing boards care to take notice of how the whole system is being perverted for the benefit of a handful of multi-millionaires?

Monday, July 25, 2011

Food banks questioned

Food banks ought not to be necessary, according to a column in today's Globe and Mail written by Elaine Power of the School of Kinesiology and Health Studies at  Queen's University, Kingston.

When they were begun in the midst of a severe recession in the early 1980s, they were supposed to be temporary. The real fix, it was argued, was adequate social assistance so all people can afford food and housing.

Instead they have steadily grown every year, through recessions and booms, summer and winter, spring and fall.

Yet, Power says citing government-funded surveys, many people remain hungry, partly because they are too ashamed to ask for food, partly because the food offered is insufficient or inappropriate to their dietary requirements.

Food banks have also become a convenient dumping ground for food-processing companies. It "solves" their surplus or quality challenges and makes them look good.

I agree wholeheartedly with Power. My daughter worked for a time at a food bank and provided some revealing insights. One is that attention is focused on increasing donations and recipients, not on helping wean people off assistance.

This results in ever-larger facilities with bigger and better trucks, freezers, etc. And, I learned a few years ago, the local food bank approached centres for housing seniors, encouraging them to ask for free food.

Power is also right in concluding that "tackling poverty means wresting with diverse ideas about causes and solutions.

"It's time to begin that political conversation," she says. "But first we have to remove the obstacle that food banks have become."