‘These costs are not taken lightly’: Municipality to pay legal costs after losing appeal to oust councillor

A Manitoba rural municipality must cover the legal expenses of a councillor they attempted to oust after losing a court appeal.

A rural Manitoba municipality that tried and failed to oust a rookie councillor, launching a multi-year court battle, has now lost its appeal and has been ordered to cover tens of thousands of dollars in legal costs.

On Tuesday, Manitoba’s Court of Appeal dismissed an application from the RM of Thompson. The municipality, located about 90 kilometres southwest of Winnipeg, has been seeking to disqualify Coun. Donna Cox for the past two years.

“Of course, we are disappointed and confused with the decision,” Thompson Reeve Brian Callum said in a written statement to CTV News.

It all began in the spring of 2023, when Thompson councillors had Cox escorted out of council chambers, saying she was being disqualified for missing three committee meetings.

However, that is something the province noted only the court has the power to do.

Cox argued at the time she didn’t even know she was on the committee in question, adding the council changed the times of the meetings knowing it would be more difficult for her to attend.

The dispute ended up in Manitoba’s Court of King’s Bench, where the municipality pointed to a section of the province’s Municipal Act, which says a councillor is disqualified if they miss three consecutive council meetings or local urban district (LUD) committee meetings without leave.

In his February 2024 decision on the case, ruling in favour of Cox, Justice Chris Martin didn’t mince any words. He said the municipality ‘failed miserably’ when it came to the hallmarks of good governance.

Read More: ‘Failed miserably’: Court blasts rural Manitoba council for trying to oust elected official

While he noted there was no question Cox had indeed missed three consecutive meetings, he stated the meeting times were changed for “personal convenience reasons” of some members.

He called the actions of the committee and council “disingenuous” and “obstinate,” adding they should have known they were obstructing Cox from performing her duties. Martin noted further that there was no apparent consideration of the voters who elected Cox as their councillor.

The RM launched an appeal in January 2025, claiming Martin erred in interpreting the province’s Municipal Act.

Now, one year later, Manitoba’s Court of Appeal upheld Martin’s decision and dismissed the municipality’s appeal with costs—a move the area’s Reeve believes could cause problems for other municipalities.

“The appeal was about the Municipal Act. All municipalities must follow it. The decision says the act is open to a liberal interpretation, which is not stated in the act,” Callum wrote in his statement.

“We are glad to move on from this as the municipality is working on many other projects. Council has and will continue to work together to benefit the municipality.”

Cox declined comment on the matter.

How much this will cost residents in Thompson is unclear.

In his 2024 decision, Martin ordered the municipality to cover 95 per cent of Cox’s legal expenses, which totalled roughly $45,000. This was in addition to the $65,000 in legal fees the municipality spent on what he described as an “ill-conceived and failed venture” funded by the public purse.

CTV News asked how much this whole legal battle will cost the RM but was not given an exact amount.

“Council recognizes that the legal process resulted in a financial cost to the municipality. These costs are not taken lightly,” a written statement from the RM reads in part. “However, at the time decisions were made, Council acted in good faith and in a manner it believed was in the best interests of the municipality as a whole, based on the information and advice available.”

The RM added council is looking forward to putting this issue behind it and working “cohesively and respectfully together” for the benefit of the community.