What's the Risk of Protecting our Property?
Several groups have asked me for clarification concerning the down side of our taking legal action to protect the interest of our North Waterloo Scouting Property. The question that has been posed by those groups is, What would be the financial impact if we lose? The short answer is that it is hard to say.
By way of background, the North Waterloo Scout Property Association was formed for the purpose of supporting our camps and giving the groups a say in the management of and priorities set related to our property. Stu Eley of the Provincial Incorporated Body was at the founding meeting. The members at that meeting decided to leave the question of legal proceedings off the table for the moment. In the meantime, no progress was made and our Council would not even undertake a neutral stand on the issue, much less support us. If we do nothing, the North Waterloo property will be able to be dealt with at the whim of the Provincial Incorporated Body, which is totally controlled by Scouts Canada, according to our By-laws.
The basic answer to the question regarding costs is that the court could decide to impose on us the full legal costs incurred by the Provincial Incorporated Body. On an application, those costs could range up to $60,000. Scouts Canada's interest in having the property free and clear of any trust obligation is, of course, huge so they will not see the costs as prohibitive.
There is only one case that I know of in which individuals were held liable to pay the costs related to an action by representatives of an association. That was a case in which the association was formed for no other reason than prosecuting a law suit. The chances of any individual being required by the Court to contribute to the costs is slim to remote.
The possibility of the groups being required to contribute if we lose is a certainty. Because the NWSPA is an unincorporated body, we require a representation order naming representative plaintiffs. The representative plaintiffs will need to feel that they are not personally vulnerable. This is why we are having a vote and making sure that every group that signs on is fully aware that they may have to contribute to any costs award. The representative plaintiffs also risk personal liability if the represented groups would or could not pay. I am prepared to be a representative plaintiff.
The real question is, What is at stake and is it worth the risk? If we do not fight, we will lose control of Camp Everton and it will probably be sold. What is at stake is over 60 years of financial contributions, toil, sweat, and commitment by the North Waterloo Scouting community.
Will we win? In my view, the Provincial Incorporated Body is a bare trustee. We have a deed that says "in trust" right on its face. We have proof by minutes of our District that the properties were paid for by North Waterloo members. Both the evidence and the equities of the situation are on the side of North Waterloo. We have a strong case.
We have 30 groups in North Waterloo, if we all stand behind this the distributive risk is, in my view, worth the benefit. Over the last 60 years, we have made a huge contribution. This is not the time to let it go through apathy.
The stewardship of North Waterloo's property is our heritage. Either we are prepared to stand up or we should just let it go. Ask yourself: Who will make the personal commitment to a property that would be under the continuing threat of disposal? Why would anyone contribute time, money, management talent, planning, committee work, not to mention sweat equity, to a property that is controlled by a corporation that has zero accountability to the membership? Why would local organizations like the Lions, Masons, Rotary, etc. contribute one cent to a provincial or national body? It will not happen.
If you would like to discuss this, feel free to call me at 578-9010x233 or email. More information is in the article "A Matter of Trust — A Backgrounder on Legal Issues concerning Scouting Property". You can also listen to this podcast. I am on near the end if you want to scroll through. Information about the ownership situation is in "On the ownership of North Waterloo Property".
