Travel ban ensnares doctor, volunteer hospital board

Dr. Paul Woods, the former CEO of London Health Sciences Centre, launched a $2.5-million lawsuit in January against his former employer for defamation and bad faith termination, which will probably succeed in the unlikely event that the employer does not settle the matter quickly with a substantial settlement offer. The case is yet another embarrassing revelation of the amateurism rife in Ontario's hospital fiefdoms and the frequent blundering of the volunteer boards overseeing them.

Dr. Woods is a Canadian citizen who, prior to becoming CEO of the London, Ont.based hospital, was an executive at a hospital based in Michigan. He holds permanent residency status in the United States where his immediate family and fiancé currently live.

All of this, of course, the LHSC board was well aware of. In 2020, he took five trips back to Michigan to visit his family following the federal government's restriction of all non-essential travel to the U.S. The lawsuit states that the doctor raised this issue at least three times over the course of the year with LHSC's board chair and chief legal officer, seeking direction on whether it was reasonable for him to travel to the U.S., how frequently and whether he should bring the matter to the full board. The lawsuit states that each time he received assurances from the chair that he could effectively work remotely and that “one visit every two months seems to hit the mark as a (painful) compromise.”

The determination of what is essential travel is ultimately left up to the individual — unless or until it enters the court of public opinion. It was not until former Ontario finance minister Rod Phillips apparently attempted to deceive the public while vacationing in St. Barts in December 2020, that a collective Canadian light was shone on the travel habits of leadership of all stripes.

It's not surprising, or likely coincidental, that Dr. Woods' termination came just 10 days after Phillips resigned — it was the height of the witch hunt for elitist travel offenders and, in the frenzy of the hunt, everyone was fair game.

Dr. Woods was terminated on Jan. 10, 2021, by the board chair of LHSC — the same chair who, Dr. Woods alleges, had been thrice consulted with respect to his plans to travel to the U.S. to visit his family.

Schizophrenic messaging to the public by LHSC preceded and followed the termination. On Jan. 8, 2021, two days prior to his termination and in an apparent attempt to get out ahead of a story in the press, LHSC issued a media statement informing the public of Dr. Woods' U.S. travel and noting that he “received the support of the board” and that the board believes it is important to “maintain stability at the CEO level at such tumultuous times.”

Two days later, he was fired. One day after that, a statement was issued by LHSC stating that the board “had no advance notice of and did not approve his travel outside Canada” and that “there is no process for the Board of a public hospital to approve a chief executive officer's personal travel.” To my mind, this is a blatant attempt by LHSC board members to get around the fact that their own board chair sanctioned his travel. Further, apropos of nothing, the statement goes on to say: “None of the elected directors of LHSC have travelled outside Canada since the onset of the pandemic.”

Amy Walby, the chair of the board of directors at LHSC, has resigned her position since then.

In a written statement to the CBC, the hospital confirmed that Dr. Woods was terminated without cause, and in a statement of defence denied the allegations, noting that, “To the extent that Dr. Woods' reputation has been harmed, it is a result of his own poor judgment and hypocrisy.”

Dr. Woods, his travel and his ongoing role as CEO of LHSC should have been handled quietly within the institution, not publicly using the media. Did Dr. Woods exercise poor judgment in travelling to the U.S. as often as he did? Perhaps.

Should the board chair have brought this matter before the full board for discussion before signalling her approval? Likely. Did the institution defame Dr. Woods and mislead the public when they said that the board “had no advance notice of and did not approve his travel outside Canada,” especially as it had conceded days ago that “the Board of Directors is aware Dr. Woods continued to travel for personal reasons?” Absolutely.

In releasing this statement, the board acted with unbridled self-interest, throwing their former CEO to the angry mob of public opinion while attempting to save themselves, and likely violating directors' duty to act in the best interests of the corporation they serve. As for the multi-million-dollar bill? It's on Ontario taxpayers.

There is one solution that I would recommend if I acted for the hospital. The other board members should also resign, and the hospital should apologize and invite Dr. Woods back immediately. If he does not return, he has failed to mitigate his damages and will be entitled to nothing beyond his damages to date. If he does return, the lawsuit will be resolved.

Financial Post

Got a question about employment law during COVID-19? Write to Howard at levitt@levittllp.com. Howard Levitt is senior partner of LSCS Law, employment and labour lawyers. He practices employment law in eight provinces. He is the author of six books including the Law of

Dismissal in Canada.