If a $6M defamation lawsuit leveled at Mayor Naheed Nenshi goes to court, it may be taxpayers that could end up paying for it.
Nenshi says he isn’t backing down from a lawsuit from home builder Cal Wenzel, who says the mayor defamed him for political gain.
Wenzel says he could drop the lawsuit if Nenshi apologizes, but it’s clear that he isn’t backing down.
“This suit, including the outrageous damages that Mr. Wenzel is seeking is clearly designed to scare me and to scare others,” he said.
Nenshi says that he is not a wealthy man and implied that taxpayers would be on the hook for the legal fees and possible damages from the suit.
That is leaving residents uneasy.
“I think he didn’t think about what he was saying and I don’t think it’s out responsibility to pay his legal fees,” one resident says.
“It was a personal remark that he was making from himself and he is responsible,” says another. “If he made it on behalf of the city, defending some action, then the city should pay.”
The city does have insurance to pay for damages against councillors for things they do on the city’s behalf, but it’s unclear if this situation qualifies.
Councillors are not saying anything.
“I have no comment on that,” says Diane Colley-Urquhart. “It’s really beyond the scope of what we need to clarify in camera today as far as the legalities of who pays, if they pay and, secondly, members of council need to be very, very careful that this matter is proceeding to the courts on what they say.”
Even if the lawsuit is tossed out of court, the cost of legal fees remains. Nothing will be decided until after councilors meet with the city’s legal department.
The last time a Calgary mayor faced a lawsuit like this, it was in the 1970s.
Then mayor Rod Sykes ended up paying for his own costs.
