Alberta judge allows union to discipline overcompensated pension trust trustees, denies trust's request to halt proceedings
September 18, 2024
An Alberta judge has allowed a union to proceed with disciplinary actions against three union members who were appointed by the union to act as trustees of a pension trust.
The union launched the disciplinary case after learning that its appointees were among the trustees who amended the trust's terms to include a right to trustee compensation and then approved and paid compensation to themselves.
The union also initiated a separate court action to void the amendments, obtain disclosure of the compensation paid, seek recovery of any compensation already paid to trustees under the amendment, bar further compensation, and seek other relief.
The union-appointed trustees filed an application to stay the union’s disciplinary proceedings, which was denied. After the union-appointed trustees’ application was denied, the trust sought an interim injunction, citing perceived harm to both the union-appointed trustees and the trust itself.
The Alberta Court of King’s Bench denied the trust’s application for an injunction, finding that the disciplinary proceedings and the recovery proceedings were focused on entirely different legal issues.
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