Travel CUTS settlement announced, costly court battle avoided
Four universities now own 24 per cent of CFS subsidiary
Ross Prusakowski
the Gateway (U of A) and
Paul Evans
the Ubyssey (UBC)
EDMONTON (CUP) — A pre-trial settlement between the Canadian Federation of Students-Services (CFS-S) and four student societies has ended a dispute lasting more than ten years over the ownership of Canadian Universities Travel Service Limited (Travel CUTS).
Under the terms of the agreement, the student societies of the University of Western Ontario, University of Alberta, Queens University and UBC will gain 24 per cent ownership of Travel CUTS, a discount train and airplane ticket sales company with an office in University Centre, while the CFS-S will retain the remaining 76 per cent.
“All the organisations decided that a protracted lawsuit would not be serving the interests of Travel CUTS and the students they served,” said president of UBC’s Alma Mater Society, Spencer Keys.
He explained that the share of Travel CUTS owned by the student societies will be administered by a newly formed non-profit corporation.
Two new members will be added to the Travel CUTS board of directors, bringing the total up to eight, and will be appointed by the new owner.
For both sides, it was the prospect of an eight to ten week trial and the resulting legal costs that persuaded them to find an equitable settlement that will affect the governance structure of Travel CUTS but not the day-to-day operations.
“I think that this settlement vindicates the Students’ Union position and decision to peruse this matter and see it through to a conclusion,” said University of Alberta Students’ Union president Graham Lettner.
“Absolutely I think the SU and student’s money was well used in pursuing this action.”
The ownership battle began when the four student societies alleged that the transfer of Travel CUTS from the now-defunct Association of Student Councils Canada (AOSC) to the CFS-S in 1987 happened inappropriately.
The settlement resolves a protracted dispute between the student governments and CFS-S, a national student services organization that began in 1991. It arose after the Association of Student Councils Canada (ASOC) in which the plaintiff schools were members of transferred all of its assets and liabilities, which included Travel CUTS, to a successor organization, CFS-S. The plaintiff schools claimed this transfer was inappropriate, the decision to go forward with it reached at a meeting where they weren’t adequately represented.
Link disputed that the transfer was inappropriate.
“I don’t think anyone can argue that is wasn’t the intention of ASOC to have these assets and liabilities transferred to its successor organization, said CFS-S executive director Philip Link. “We we’re trying to be true to the members of AOSC and when I say members I’m obviously talking about the majority of the members because with any decision there’s a small minority of people who are always against things.”
But, he said, the settlement is in the best interests of Travel CUTS.
“This now means that all parties are working towards the same thing so it’s a positive outcome,” said Link.
“We thought we were treated unfairly and you can never put a cost on
justice” added Ryan Dunn, President of the University Students’ Council at the University of Western Ontario. “I think that this settlement works out for both parties and I think that CFS-S and the plaintiff schools are happy that we’ve finally finished with the action.”
