Why I’m suing my own council
The sun beamed down as I walked to the rural and provincial sector meeting in Wellington last week. The agenda content was technical and typically dry but the delegation from Southland seemed happy.
Locally, the weather has been kind for the A & P Show, the ICC Surf to City, and our Parks Week.
This week Invercargill hosts the National Pipe Band Championships and we look forward to the Multicultural Food Festival at Stadium Southland.
Despite all these successful events, set amongst the clear autumn weather there is a rather awkward black shadow hanging over my relationship with my own council as the news broke that I would have to sue the council to recoup the legal costs from former councillor Karen Arnold’s failed defamation case arising from columns written in 2014 and 2015.
I am aware that this has triggered Facebook outrage, as some venters feel they are being heartily ripped off for a huge amount of their rates.
The reality is I should not be in this position. Parliament has put measures in place to protect mayors from the vulnerability of unjustified lawsuits.
I am covered by section 43 of the Local Government Act, which sets out to protect elected members when they publish their views on council projects. Section 43, essentially, says that a member of a local authority is indemnified by that authority (the city council) for any costs or damages arising from a civil action while that member was acting in good faith and in pursuance of their responsibilities while acting as a member.
In a nutshell Parliament specifically laid out the conditions where the council must pay for the costs involved in being sued.
So, no, I am not trying to rip off the council. It may be expensive but it is the law.
The definitions in section 43 have never been tested in court. It’s rare for a councillor to sue their own mayor.
However, just up the road the legal dispute involving former Dunedin mayor Dave Cull and current Dunedin City councillor Lee Vandervis should serve as a precedent when resolving my own claim. In that instance the Dunedin City Council was covered by insurance with a $50,000 excess on the claim.
Councils generally shield their liability by taking out adequate insurance cover for this right of indemnity under section 43. It would seem to be that our council officers didn’t check the fine print of the council’s policy.
I was initially told I was protected by insurance cover until the council’s insurers found a way to sidestep their way out.
At this point, I received the official ‘‘Hasta la vista’’ from the council. ‘‘You’re on your own.’’
No challenges to the insurance cover, and councillors running for cover worried about expenditure near election year.
My hope is that my claim will establish the law so that no mayor has to go through six years of this hardship and stress ever again.
Another challenge facing the city is the demolition of the CBD and the $16 million shortfall in funds to finish the job.
Unfortunately, it seems that we can’t woo investor Geoff Thomson back given the current structure. I’m confident that HWR and the council will complete the project.
When you consider how much criticism the council received over the Auction House site, which now has one of the strongest and most desirable buildings in the city, it’s difficult to understand why those opposing this building were so passionate.
The other humdinger issue is the museum. The pyramid in the park is loved by visitors and locals alike, but – and there’s always a but – there have been issues over governance, ownership of the exhibits and even ownership of the building itself.
Twenty years ago we were told over and over again that the pyramid was not owned by the city. Now we are informed that the council has owned the building for about 60 years. It’s hard making decisions based on such information.
Do we want just a dated shed to hang out in with the kids when it rains, or do we want another expensive ratepayer investment that is a drawcard and allows a showcase of our province? It’s a battle between the two sides.
In the meantime it’s onward and upward, soldier on and prepare to fight the virus.