No wonder Gord Henderson said this:
It’s still the case as I shall demonstrate.
Frankly, on the most superficial level, the only people who should be worried about the Estrin lawsuit are his partners. Why should we care about some esoteric issue about conflicts of interest between a lawyer and his client?
The Star foolishly said yesterday:
"The city is not named in the lawsuit, so there are no financial implications for local ratepayers."
Doesn't the Star understand that the future of Windsor is at stake, not just the hundreds of millions in damages that will be sought down the road if the parties keep on fighting. Can the Star be this silly or is it really trying to minimize what has been done so as not to panic the locals! If you think we have budget problems now…
Is this the best the Star can do if they knew about the lawsuit back in November and had all of this time to prepare a response? Of course we need to expect a counter-attack! And it has started.
We saw four whole lines of quotes from the Bridge Co. President and paragraphs from Eddie and Estrin in the Star story. True balanced reporting.
I could not believe the arrogant comment from Estrin “When it was brought to our attention we basically fired them as a client.” This was right after he had admitted his firm made a mistake: "Every firm tries its best, but sometimes the conflict screen breaks down," Estrin said.
Not every error is actionable in law. But is this an admission of negligence on the part of the firm by a partner?
While it may appear that mistakes can be made in a firm of “more than 700 lawyers at eight offices across Canada and one in Moscow,” it also seems to suggest that they should have the best conflicts recognition system in Canada. The issue of a conflict in such a large firm is an issue every time a client is taken on.
If you were a Gowlings client today, would you wonder who might be acting as counsel against you? How would you like to be “fired” as a client? Is Gowlings going to lose business and see its reputation diminished as this case moves forward?
I thought you might be interested to know who some of Gowlings other clients might be and relationships they have. Do some of their other clients have an interest adverse to that of the City of Windsor that the Mayor and Council should be concerned about? In fact, as you may recall, I made a presentation at Council about conflicts of interest in the border file a long time ago.
Gowlings acts or acted for:
- City of Windsor
- Borealis
- Peace Bridge Authority
Another of Gowlings’ partners is Chair of the Board of the Detroit and Canada Tunnel Corporation and Deputy Chair of the Board of Macquarie Canadian Infrastructure Management Limited. That’s the Detroit-Windsor Tunnel connection.
Sam Schwartz (whom Estrin retained) did the Schwartz Report but also acted for the Windsor Tunnel Commission and the Blue Water Bridge.
It should be obvious what each of these groups have in common as well. Each of them has an interest in opposing what the Ambassador Bridge wants to do and in some cases is a competitor!
I found it interesting as well that Gowlings acts for 2 infrastructure companies who might well be involved together or in competition for a P3 in Windsor for both the Tunnel and a new bridge crossing and road. Billions could be involved. Oh, Estrin’s partner is on the Board as well of the Canadian Council for Public-Private Partnerships.
I have no interest in the lawsuit other than what it signifies. And it tells me a lot.
IT IS PERSONAL NOW TOO
It is more than just about money.
In spite of its size, the Ambassador Bridge Company is a family-run business. Its principals, both father and son, come in every day to run their operations. They believe that they have contributed and are contributing to the well-being of the Windsor/Detroit region.
Imagine then hearing yourself being called an “enemy” of Windsor by a City Councillor. Imagine hearing the Mayor say that he is using taxpayer money and “slowed the bridge company.” Imagine a senior Councillor stating “the city is in a battle for its future with four powerful, tightlipped competitors,” one of which is described as your company. Imagine the City’s hired lawyer trying to discredit you by saying in a presentation to your Regulator “that information provided in the bridge company's application is "clearly erroneous, and in other places misleading and inaccurate."
This is personalizing a commercial matter in a most disgusting manner.
THE BRIDGE CO. WILL SUE
I am surprised it has not happened before now given the fact that several of the parties have tried to egg on the Bridge Co. Make them sue so that they really can be described as the enemy who is stalling a border solution. Make them the common enemy as concerns are raised about their actions "not only by people in the neighbourhood, but also among First Nations and archeological groups" as is the most recent example.
Hmmmm, how many times has the City threatened the Senior Levels with litigation. That is not "distracting" in the Mayor's terms I guess. But when the Bridge Co. actually sues, then it is.
The Mayor huffs and puffs while the Bridge Co. acts. Just like with the back-ups. To clear them up on Huron Church Road---what did the City do except whine? The Bridge Co. sued the US government to open new truck booths. I'll take that kind of "distraction" any day thank you.
I heard people say to me over the years that they will never sue. Sure they are litigious but not in Windsor was what I heard. Did these same people forget about the dozen years fighting the Government of Canada over FIRA.
As a former litigator, I was asked why would anyone want to go through the Discovery process and then go in front of a judge at a trial to have one's future decided? They will never start a lawsuit because they cannot afford the bad publicity in Windsor I heard. They won’t sue because the Governments are too powerful and can legislate against them. The Morouns are smart enough to know that the value of their bridge can be diminished quickly and will seek an accommodation with the Governments once the Governments flex their muscles. All the reasons why smart businessmen should not move forward
I guess the lawsuit fooled them
THE LAWSUIT WILL BE FOUGHT IN THE UNITED STATES OR IN CANADA
Now the US jurisdictional move by the Bridge Co. was unexpected. It signals a completely different approach. I wonder what other surprises they have?
It was a “suit filed in U.S. District Court… Estrin was served with paperwork pertaining to the lawsuit minutes before he was to represent Windsor in November at a U.S. Coast Guard hearing.” It was in Cleveland I believe. I wonder how long it took him to tell his other client, the City about it.
I would have thought it would be started in Canada since Gowlings is a Canadian law firm but instead I assume it was US based since Estrin acted in a US matter in a US regulatory hearing to oppose what the Bridge Co. wanted to do in the US. And he did so on behalf of Windsor in the US. Estrin had a choice to use a US lawyer but it seems that he chose to make a presentation personally to the US Coast Guard in the United States.
It should not be that shocking once you think about it. Do you really think that the Bridge Co. is going to litigate only in Canada? Fortunately for them, they are both a US and a Canadian company and so have their choice of jurisdiction. They will go where it best suits their interest.
GOWLINGS WILL NOT BE THE LAST TO BE SUED
We all know that Eddie is next. And he knows it too.
Yes it's predictable. Eddie's bravado. Eddie wrapping himself in the City flag to be our saviour. Eddie's Teflon speech where it is not his fault if something happens. YOU, dear reader, have to be made to go to his side. I can hardly wait to read how the predictable Columnist will fume.
The Estrin suit is merely a warning shot, a shot over the bow to get people’s attention. Start with the insignificant and work your way up. Clearly Eddie has figured this out in over 2 months since the papers were served and the Senior Levels will too.
He knows he is at risk. Now certain others will know that the Bridge Co. has stopped being so nice and that they are at risk too. Smears and innuendo are actionable as well. So are bad faith actions designed to delay. The gloves are off.
I wonder if Eddie has shared his concerns with the other Councillors or did they find out about the lawsuit, as an example, when they read the Star the other day. I wonder if Council really has the faintest idea what is going on in the border file. Do they know what is going on now at the Detroit/Windor Tunnel, a City asset that seems to be in trouble with a drop of 10% in traffic? Imagine a Star reporter being given documents and a Councillor having to beg the Mayor for them in a public Council session. Clearly there is no respect for Councillors. What a disgrace!
It will be interesting to see how Eddie handles the pressure when his neck is on the line as he is deposed or on the witness stand. We saw how he reacted to Alan McKinnon at the Tecumseh meeting when he was criticized. Imagine when a real Perry Mason does it to him. His appearances in front of John Fairley on Face-to-Face will be child’s play compared with a tough cross-examiner in an American court-room! Eddie won’t just be skating on thin ice as John suggested, he may be under water!
I can think of all kinds of causes of action to start….some against corporate entities and some against individuals personally.
I have never seen the City’s insurance policy as an example. If it is the usual type of liability policy, it is for “negligence” not deliberate and planned actions. As Eddie claims “The timing on this speaks volumes," Francis said. "It also speaks to the effectiveness of our strategy to protect residents of Windsor.” In other words, Eddie and the City knew exactly what they were doing. It planned its actions. There was no “negligence.”
It may mean, if I am right, and the City is sued, taxpayers are looking at millions in legal fees and possible hundreds of millions in damages given some remarks that have been made. All of it not covered by insurance!
And then it should be obvious who will be next! That will definitely not be pretty as the Senior Levels' files are opened up for the first time.
As a side effect, we may actually find out the truth about the border file by the time this is all done 15 or 20 years from now. I will find out which one of my theories is closest to reality, if any!
Just to make this even more fun for certain people, as was said in the Senate debates:
"We have seen decreases in numbers of crossings at various places, including the tunnel from Windsor to Detroit. By the way, the committee that oversees that tunnel is chaired by guess who? The Mayor of Windsor. I would suggest perhaps the Mayor of Windsor may have a conflict as he debates how other people see this."
If the Senators can see the issue that quickly, don't you think the Bridge Co. has as well. I have talked before about the "inherent conflict of interest" that an individual has who is Mayor of Windsor and also Chair of the Windsor Tunnel Commission. [Tuesday, October 25, 2005 Windsor Mayors' Conflict Of Interest.] That may bite some people too if lawsuits get started.
And don't you believe that Eddie does not have a concern about it. Read the Senate transcript of his evidence where he tries to protect himself.
I WANT MY MONEY BACK, AND YOURS TOO
Notwithstanding Eddie’s and the CAO’s spin, are we going to pursue the Gowlings firm too? If in fact they are negligent in doing conflicts searches and must resign from the file, what has the City spent that has been wasted and what will the City spend to educate a new lawyer. Why is it at City expense?
In fact, did our so-called legal technocrat ask Gowlings if there was a conflict in the first place? What steps did our lawyer/Mayor take to ensure that Gowlings could act for us? He knew about Borealis; he knew about DCTC. What else did he know?
Eddie took a calculated risk in hiring Gowlings. He hired them so that the DRTP CEO could not complain that the City hired an incompetent firm. After all, didn’t our ex-Mayor hire Estrin as the City’s lawyer when the border plans of the JMC came out? How could he object to Eddie using him?
Unfortunately, it may now turn out that there was a risk but one that the Mayor did not take into account. Or, if he knew about it, then he gambled and we are losing
THE COUNTER-ATTACK HAS STARTED
Did you really think that Councillor Halberstadt came up with the idea of kissing and making up with the Feds and Province all on his own?
He wrote in his BLOG:
- "members of the new Council, including myself, have asked for a Council session to review the border file and perhaps alter the cloak-and-dagger approach to border issues"
- "At some point we need to stop acting like a petulant child. We need to end our adversarial relationship with the senior levels of government if at all possible and come to the table to discuss technical strategies that will work for all
- It is time for the City of Windsor to take a more conciliatory stance and discuss pros and cons face-to-face with the other agencies, rather than communicate at arms length through expensive legal letters."
Yup, we need to line up with the strong guys, the Senior Levels. I think, but I am not yet 100% certain, that Councillor Valentinis by now has finally figured out why no one will listen to Windsor on border issues!
So Eddie’s new strategy is to line up everyone against the big, bad Bridge Co. Eddie’s motto must be: My enemy is your enemy until they are beaten and then you are my enemy again.
Will the Senior Levels be that dumb to fall for this obvious act of desperation? Will the Windsor Provincial Liberal Cabinet members be that afraid of Eddie and the Star, given an election, that they will buckle under? Eddie is counting on it.
Is this really the City’s strategy you ask? You remember Councillor STOPDRTP who threatened to sue the Senior Levels a few months ago. Not any more. He said on CKLW the other morning that the message he got at the Ward 1 session was “try and work with the Feds and Province.” Now Dave, who was still a Schwartz supporter during the election campaign if you can believe it would never dare make such a statement without knowing that he would not get in trouble over it. He is spreading the new Eddie strategy as well.
Council is on-side now, an new united front. A new Eddie PLAN. Let Marra have the doomed tunnel road idea and let Alan and Dave be the ones to boost their Mayoral chances by suggesting a deal with the Senior Levels.
Geee, don't you find it odd that no one wants to work with the Ambassador Bridge Company who only owns the bridge crossing. It is a shame that Eddie did not read the Senate Report on Bill C-3 or he will know his strategy is doomed to fail. Just like he failed with Schwartz withing days after Sam's presentation.
Eddie is isolating Windsor again as the Senior Levels are discovering that they have to accommodate the Bridge Co.'s interests.
HELP WE NEED A SOLUTION THAT WORKS
The last three years under Eddie Francis have proven that there is no City border plan. Eddie’s only interest so far is whatever deal he can make with Detroit on the Tunnel. The reasons should be obvious. After all, the only significant deal that he made with the Senior Levels was over the Tunnel Improvement Plan. And what did that have to do with trucks going across the border?
Estrin served his purpose and, unfortunately for him, he is no longer needed. He can be replaced by some other hired gun, right. With Sam gone and Estrin going, what is Eddie to do?
The Bridge Co. is not so dumb. They can figure out Eddie’s new Plan if I can. They know how to sue and where and why. And they have the resources to do it and the motivation. Heck, it’s only their company at stake.
If one looks at where the Bridge Co. is now in the process, they are better off now than before Eddie took power. They are in their EA process in both countries and there is recognition that they have the right to build. Where once they wanted to partner with Windsor, now they do not need Windsor. Their opponents are falling away---DRTP and Mich-Can are virtually invisible. They don’t need a Presidential permit or mega-billions to build a new crossing from Governments that have no cash but the DRIC bridge does (By the way, the Star did not report on another significant story in Michigan, but they can go and find it themselves!). Transport Canada’s C-3 attack was muted by the Senate.
If I wanted to put this all together, my interpretation of what the Bridge Co. has done is to say to all of the Governments on both sides of the border: let’s talk or you will force us to litigate.
They will NOT talk from a position of weakness but as an equal. If Government wants to sit down together and work out something that is best for everyone, then they want to do so and now. That is the message conveyed by the Gowlings lawsuit.
The time is NOW, even for Windsor. Windsor can take time and pause and think about what it is going to do. It can hire another lawyer (and even Councillor Jones would be against that!) and waste multi-millions or work with the Bridge Co.
We will see if this Council has any guts unlike the last one that gave into Eddie’s whims. I hope for our sake that they have the nerves of steel of the Council in Hurst’s last term. Those Councillors effectively took over the running of the border file from a Mayor who was out of touch.
We do not need more conflict that will last for decades. We need a consensus and people who are prepared to act in good faith to reach it, one that meets the needs of all of the parties.
That is the challenge that is in front of this Council, with or without the Mayor. Several have already advocated meetings not petulance but without the key player. Isn’t it time they stopped being so afraid of the Bridge Co. and stopped listening to the disinformation being spread? Isn’t it time that they acted as responsible legislators acting in the best interest of Windsor to achieve what they were elected to do?
Isn’t it time for politics to stop and a proper long-term solution reached!