Student unions engage in legal brawls
Ksenia Prints, Central CUP Bureau Chief
The Canadian Alliance of Student Associations (CASA) dropped its lawsuit against the University of Manitoba’s Student Union (UMSU) for alleged backlogged membership fees, after the two reached a financial settlement.
CASA will proceed with similar claims against the Students’ Society of McGill University (SSMU), with a preliminary hearing expected this fall.
“It is very positive that we were able to settle our dispute in an amicable way for both sides,” said Zach Churchill, CASA’s national director.
Last week’s agreement followed extended negotiations outside of court between the organizations’ lawyers. It includes a cash settlement which cannot be disclosed for legal reasons.
Garry Sran, UMSU’s president, was out of town and could not comment before print time. Other UMSU representatives refused to comment on the agreement.
CASA originally filed claims against UMSU and SSMU in April 2007. It demanded the remaining membership fees for the fiscal year of 2004-05 plus compounded interest, calculated at a rate of three per cent every 15 days.
For UMSU, which left CASA in February 2005, the remaining membership fees came to $28,808.
CASA’s claim states UMSU paid $12,346 of its fees around May 12, 2004.
According to CASA’s constitution, the organization’s fiscal year lasts from May 1 until April 30, with 30 per cent of membership fees paid by July 1. The remainder is to be paid in full by October.
The constitution also stipulates that a withdrawing member will not be refunded any remaining fees, and is responsible for full payment of next year’s fees if the notice of withdrawal is given on or after March 15.
“We’re a very small organization with a very small budget, any amount is vital to us,” Churchill explained the constitution’s logic.
“We make annual budgets with year long projections, and if someone has the ability to rip funds away at any point, it puts us in danger.”
UMSU responded to CASA’s claim in May 25, 2007 with a request for particulars. It required “a description of the alleged benefits . . . enjoyed by the defendant,” and the date of UMSU’s entrance into the organizations and the adoption of the constitutional clauses mentioned in the claim.
In its request for particulars, UMSU suggested that if the fiscal bylaws on which CASA relied in its lawsuit were constituted after UMSU joined, it is not mandated by them.
Churchill disagreed.
“When all student unions joined CASA, they signed onto membership. Our members made all of these decisions, so UMSU would be bound by them,” he stated.
SSMU withdrew from CASA in October 2005, having paid $12,000 in fees. It was then sued for the remaining $28,000.
Unlike UMSU, SSMU offered settlement soon after the claim was filed, said Max Silverman, vice-president external of the SSMU.
The additional $8,000 would have completed their payment to a half a year’s worth of fees, despite the fact the association was not with CASA for six full months.
“[We] made an offer in good faith to put an end to this conflict, and they rejected it,” said Silverman.
Silverman is critical of CASA’s constitution.
“The second you leave an organization, you’re not bound by their rules,” he said. “The CASA bylaws could say the moon is purple, but it’s not true in reality.”
Accusations abound that the two student unions were sued only for their subsequent joining with the Canadian Federation of Students (CFS), CASA’s rival organization.
“I can’t imagine they’re happy with that,” Silverman stated.
Churchill denies any relevance.
“We’re a flexible organization, members are allowed to join or leave as they see fit . . . All they had to do was pay their fees.”
He remains hopeful an understanding can be achieved with SSMU in the future, claiming the union has not approached CASA after May.
“We’re hoping they will take UMSU’s leadership example,” he stated.
“We’ve been in dialogue via legal council, and we’re hoping we can settle it out of court.”
