Liberals settle $3M nomination lawsuit

Former cabinet minister and wife alleged interference in Trinity-Spadina riding race

OTTAWA— A settlement has been reached in a $3-million lawsuit that pitched a former cabinet minister and his wife against Justin Trudeau and a high-ranking Liberal operative, later appointed Canada’s ambassador to the United States.

The Liberal party announced the settlement “by mutual agreement” in a statement Friday afternoon.

Former Liberal minister Tony Ianno and his wife, Christine Innes, had sued Trudeau and then-Ontario campaign chair David MacNaughton for alleged defamation during a nomination battle in downtown Toronto in 2014.

“The Liberal Party of Canada acknowledges the many years of public service and deep and valued contribution that Ms. Innes and the Honourable Tony Ianno have made to public affairs and the people of Canada,” the statement said. “The Liberal Party of Canada regrets the circumstances that led to this lawsuit.”

Party spokesperson Braeden Caley declined to comment further when contacted by the Star.

The lawsuit was launched after Innes was denied the Liberal party nomination for a 2014 byelection to replace Olivia Chow in the west-end Toronto riding of Trinity-Spadina, who stepped down to run for mayor.

Innes claimed $1.5 million in damages from Trudeau and MacNaughton, alleging damage to her reputation after MacNaughton blamed her campaign for using “derogatory remarks” and “bullying and intimidation” on young volunteers in an effort to undermine the then-new Toronto-Centre MP, Chrystia Freeland.

Innes, who ran for the party in 2008 and 2011, told the Star, at the time, that she felt she was being blocked for not going along with the Team Trudeau plans for the 2015 election, and blamed the Liberal leader for breaking his promise not to interfere with local nomination battles.

“It was made clear to me that if I did not submit to their demands that they would ‘still get their way,’ ” Innes said at the time.

Three months later, in July 2014, her husband Ianno joined the lawsuit, but only sued MacNaughton, claiming another $1.5 million for damages to his reputation, emotional well-being and lost business opportunities.

“MacNaughton deliberately sacrificed Ianno’s reputation in order to create a smokescreen to shield Trudeau from public outcry for breaching his public vow of non-interference in local riding nominations,” Ianno said in his statement of claim.