Judge sides with PHA
Tim Hodgkinson sought $103,680 after contract was terminated
A judge has sided with Penticton Hospitality Association in a long-running legal dispute involving its former operations director.
Court records show the lawsuit brought by Tim Hodgkinson, who was seeking a judgement against the association of local hoteliers in the amount of $103,680, was dismissed Nov. 22 in Kelowna. Hodkinson was also ordered to pay costs.
Reasons for the decision, which was rendered following a B.C. Supreme Court summary trial based on documents and affidavits rather than testimony in a courtroom, are not yet available.
Hodgkinson had claimed his deal with the PHA entitled him to 18 months’ pay after his contract was terminated without his consent in 2015. He said Sunday he hadn’t yet discussed the judgement with his lawyer and was therefore unable to provide detailed comment.
“I think, unfortunately, they have spun this out for over two years, and I haven’t been able to match either their legal budget or influence,” Hodgkinson added.
PHA president Barb Haynes said Sunday the judgement clears the way to formalize the 2016 merger with Tourism Penticton to form Travel Penticton.
“We’re just really thrilled with the outcome and now we can move forward,” said Haynes, who was at the helm when Hodgkinson was let go. “We’re thrilled that the final touches of that amalgamation can happen.”
The case centred on a contract Hodgkinson claimed to have had with the PHA to provide administrative services.
In his most recent notice of claim filed Oct. 5, 2017, Hodgkinson alleged he and former PHA president Ed Brown had in July 2012 come to terms on an 18-month contract that paid him $60 per hour to assist with marketing efforts that consumed about 24 hours per week.
Brown died in 2012 before the contract was signed, but, according to Hodgkinson’s claim, it was executed later by Brown’s replacement as president, Rob Appleman.
The contract was signed only by Appleman and not an additional director as required by PHA bylaws, Hodgkinson said, but it was understood other deals had been executed in the same fashion and Appleman “had the authority to contractually bind the PHA and was authorized to do so.”
Hodgkinson alleged the contract was rolled over for a second 18-month term before he was informed by PHA board in September 2015 his services were no longer required.
He claimed the contract entitled him to the equivalent of 18 months’ pay on termination.
In its response filed Oct. 23, the PHA argued its deal with Hodgkinson was on an as-needed basis and that Brown “was not known to negotiate and conclude agreements” on behalf of the organization without the board’s approval.
It goes on to claim Brown had instructed the PHA’s lawyer to draft a contract with Hodgkinson, but Appleman later told the lawyer one had already been drawn up by Hodkinson himself.
There were stark differences between the two deals: the contract authored by Hodgkinson stipulated he would work a minimum of two days per week and be entitled to 18 months’ pay on termination, while the contract drafted by the PHA lawyer made clear there was no minimum commitment to Hodgkinson and the deal could be killed by either side with 90 days’ notice.
The PHA also in its application opposed the matter being heard by summary trial because the credibility of Appleman, described as a friend and business associate of Hodgkinson, needed to be “tested” under cross-examination.
The case marks the second major legal victory for the PHA, which in 2014 fended off the City of Penticton’s efforts to freeze $310,000 in hotel room tax revenue the local government claimed the association wasn’t spending fast enough on tourism marketing efforts.