Questions raised about e-gaming lawsuit
Opposition says government’s legal defence contradicts Auditor General report
Opposition MLA Steven Myers raised questions about the ongoing $50 million e-gaming lawsuit during Friday’s question period.
The province is named as one of 14 defendants in a $50 million lawsuit initiated by Capital Markets Technology Inc. CMT was a company that engaged in negotiations with the province in 2012 related to a financial services platform for a subsequently scrapped plan to establish an internet gaming regulatory regime on P.E.I.
The province has filed a motion to dismiss the lawsuit. Friday was a deadline for the province to file affidavits and evidence for the dismissal motion.
Myers began by asking Justice Minister Jordan Brown how much the province had spent on legal fees for the lawsuit, and how many of the 14 defendants have had their legal costs covered by the province.
Brown responded that he did not know the amount spent by the province, but noted a judge had recently dismissed an appeal of a motion to have CMT pay security costs of $300,000 to defendants named in the lawsuit.
“When we have folks that are acting in their capacity as agents of the government, there is a duty to defend them,” Brown said.
Myers then asked whether the province had filed their response to the CMT statement of claim.
Brown said the province’s legal defense is being handled by a risk management fund. Brown said legal decisions were being handled by the lawyers involved.
“I’m not going to sit here in this Chamber and purport to be able to dictate the strategy that would be employed in terms of the defense of the claim that the honourable member is referring to,” Brown said.
Myers then noted a 2016 report prepared by P.E.I.’s Auditor General differed from some details described in the province’s legal filings.
In one example, the statement filed on behalf of the province states the Mi’kmaq Confederacy of P.E.I. initiated and lead the e-gaming initiative.
The report of the Auditor General paints a picture in which the legal counsel of MCPEI was funded and possibly directed by the province and played a leadership role in the initiative.
“Do you support the findings of the Auditor General or do you support the last legal defense that your government filed in the e-gaming lawsuit?” Myers asked Brown.
“We do recognize and have indicated an acceptance of the report of the Auditor General,” Brown responded. “She did a report in a very professional manner, and we took the time at public accounts to listen to the findings of that report. We put a lot of credence into them.”