A $450,000 defamation suit filed by Ward 11 Coun. Bill Leduc against the City of Greater Sudbury and a resident of his ward has been dismissed.
What is still before the courts, however, is the case that began the back and forth: an investigation into Leduc’s 2022 election finances.
In 2023, the defendant, Ward 11 resident Anastasia Rioux, submitted a complaint to the Election Compliance Audit Committee alleging that Leduc had breached election campaign rules in 2022.
In response, Leduc was seeking $450,000 from the City of Greater Sudbury and Rioux: the lawsuit alleges that Rioux defamed him and that the city’s Election Compliance Audit Committee was biased against him and “engaged in unlawful conduct.”
“In light of the recent dismissal of the civil lawsuit initiated by Councillor Bill Leduc and his subsequent withdrawal of the case, I am relieved that the primary issue of election finance compliance can now proceed without further delay,” wrote a press release from Ward 11 Christopher Duncanson-Hales.
“The defamation suit, which the city itself called ‘an abuse of process,’ created lengthy postponements that frustrated the clear intent of the Municipal Elections Act to ensure swift resolution of such matters. With this distraction now removed, I am hopeful the focus can return to the findings of the independent KPMG audit.”
Duncanson-Hales has had his own run-ins with Leduc, including running against him in the 2022 municipal election, accusing him of improper campaigning at a 2022 Grandparents Day event and even hijacking Leduc’s web domain.
Duncanson-Hales also filed a complaint with the Election Compliance Audit Committee, which was dismissed as redundant with Rioux’s already filed.
One of the major points of alleged defamation in Leduc’s motion include Rioux’s assertion that a 2022 Grandparents’ Day event was used to boost Leduc’s campaign, which was the key point she brought forward for the Election Compliance Audit Committee to investigate.
Both the committee and a third-party investigation by KPMG concluded there were reasonable grounds to support Rioux’s assessment, which is why it is progressing through the court process.
Defamation case
The now-dismissed defamation case against Rioux and the city surrounds the allegations that the Grandparents’ Day event was used to boost Leduc’s re-election campaign, which Leduc’s lawyer claimed in court documents are “false and were made with malice and the intent to harm Mr. Leduc’s reputation.”
Another point of alleged defamation by Rioux, according to Leduc’s statement of claim, was that Leduc was guilty of “wasting millions trying to get an arena/casino combination built in our ward to no fruition.”
Approximately $4.38 million was spent on the Kingsway Entertainment District, an arena/events centre/casino/hotel project, which Leduc supported. It was never built due to city council cancelling the project in 2022.
Included in the alleged defamation Leduc cites is that Rioux accused him of improperly placing campaign signs during his 2022 re-election bid, and that Leduc made false statements about video evidence from Grandparents Day being tampered.
During his 2022 civic election campaign, Leduc accused vandals of relocating his signs to places they were not allowed.
In 2023, former city integrity commissioner David Boghosian censured Leduc for “objectionable and impertinent” comments after Boghosian said Leduc wrongfully claimed that complainants used “tampered evidence” of the Grandparents’ Day event.
Rioux’s response to dismiss Leduc’s lawsuit accused the city council member of filing a frivolous ‘SLAPP’ lawsuit.
SLAPP lawsuits are “aimed at chilling public discourse generally by discouraging, intimidating, and silencing the defendant and those like her, from exercising their legal right to free speech and lawful public participation on matters of public interest,” the statement of defence notes.
Meanwhile, the city’s statement of defence similarly asked that Leduc’s lawsuit be dismissed, saying “any impact to Mr. Leduc’s political ambitions, if any has been suffered, are a result of his own failures to ensure compliance with the campaign finance rules.”
And although Leduc’s statement of claim noted that his reputation had been damaged, Rioux’s statement of defence stated that any damages he had allegedly suffered “is the result of (his) conduct in his capacity as a city councillor and not a result of the statements made by (Rioux).”
According to her defence, Rioux stated she only filed a complaint with the Election Compliance Audit Committee because there was reasonable grounds to believe Leduc had broken campaign finance rules, and the committee was determined to have been the proper avenue to investigate these concerns.
Counsel for all will now have to submit to Justice Patrick Boucher to determine costs.
Campaign finances
As for the investigation into the campaign finances, in 2023 the committee determined there were “reasonable grounds” to pursue an audit of Leduc’s campaign finances, and they enlisted KPMG to conduct a third-party investigation.
KPMG’s report reaffirmed the committee’s finding of apparent breaches in campaign election rules which merit a closer look, and the committee decided the case should proceed to the provincial offences court system for a final decision.
Leduc’s apparent contraventions “are serious and threaten to undermine the important public policy goals animating the campaign finance regime,” according to the committee’s written notice of decision in July, 2024, noting that this includes “maintaining a level playing field amongst all candidates, and ensuring proper records are kept of campaign finance activities so as to enable a high degree of public scrutiny.”
The written notice of decision tabled in 2024 also said there is “no credible basis” to suggest Leduc exercised a level of due diligence to avoid apparent contraventions of the Municipal Elections Act, and that he did not express “any contrition of remorse for the apparent contraventions.”
In his press release announcing the dismissal of the defamation case, Duncanson-Hales states his hope is for a “just resolution that provides the residents of Ward 11 with the assurance that all candidates are held to the same high standard.”
“The proceedings under the Municipal Elections Act are a serious matter, stemming from an audit that found apparent contraventions and involving automatic penalties designed by the Legislature to uphold electoral integrity,” he wrote. “These legal challenges will inevitably require the Councillor's significant and ongoing attention. The residents of Ward 11 deserve representation that is fully focused on the needs of our community, without the burden of such a prolonged and significant distraction.”
Duncanson-Hales also wrote of Rioux, calling her a “Friend and colleague” who he recognized for her “strength and courage.
“It was Ms. Rioux who filed the official compliance audit application that began this process. For upholding her civic duty, she was targeted with a $450,000 lawsuit that she correctly identified a SLAPP suit intended to chill public discourse,” he wrote. “Her perseverance in the face of such personal and financial pressure is a testament to her commitment to accountability. Our community is better for her principled stand, and I thank her for her determination to see this process through to a just conclusion.”
You can find the full text of Duncanson-Hales’ press release below:
In light of the recent dismissal of the civil lawsuit initiated by Councillor Bill Leduc and his subsequent withdrawal of the case, I am relieved that the primary issue of election finance compliance can now proceed without further delay. The defamation suit, which the City itself called "an abuse of process", created lengthy postponements that frustrated the clear intent of the Municipal Elections Act to ensure swift resolution of such matters. With this distraction now removed, I am hopeful the focus can return to the findings of the independent KPMG audit.
My hope is for a just resolution that provides the residents of Ward 11 with the assurance that all candidates are held to the same high standard. The proceedings under the Municipal Elections Act are a serious matter, stemming from an audit that found apparent contraventions and involving automatic penalties designed by the Legislature to uphold electoral integrity.
These legal challenges will inevitably require the Councillor's significant and ongoing attention. The residents of Ward 11 deserve representation that is fully focused on the needs of our community, without the burden of such a prolonged and significant distraction.
Finally, I want to formally recognize the strength and courage of my friend and colleague, Anastasia Rioux.
It was Ms. Rioux who filed the official compliance audit application that began this process. For upholding her civic duty, she was targeted with a $450,000 lawsuit that she correctly identified a SLAPP suit intended to chill public discourse.
Her perseverance in the face of such personal and financial pressure is a testament to her commitment to accountability. Our community is better for her principled stand, and I thank her for her determination to see this process through to a just conclusion.