A pair of lawsuits filed this week against Advocis raises new questions about the organization’s comeback from a crisis that forced the industry association to withdraw $2.7 million from its contingency fund.
Our Michelle Schiver reported on Monday that Net-Patrol International Inc., a cybersecurity firm in Burlington, Ont. is suing Advocis and Advocis Broker Services Inc. for more than half a million dollars, for breach of contract and breaching its duties to act in good faith.
It is also suing Geoff Le Quelenec, vice-president of technology and innovation with Advocis, and his corporation Jacobs L P Inc. for the same amount, for breach of contract and “intentional interference with economic relations.” The claim also asks for $200,000 in damages and legal costs.
Monday was meant to be a messaging day for Advocis, in advance of this month’s Advocis Regulatory Affairs Symposium. CEO Kelly Gorman delivered an online fireside chat to talk about the association’s efforts beyond stabilizing its finances. “We’ve turned a corner on it,” she said, “and I really want to focus on now thriving financially.”
Gorman declined our request for comment on the Net-Patrol suit.
Advocis issued a note to members on Tuesday over Gorman’s signature, following the fireside chat and our report on the lawsuit. It said that the claim “is without merit.”
Late Thursday, Schriver learned of a second lawsuit, this one filed by SeeWhy Financial Learning Inc. in Huntsville, Ont. Advocis settled a prior claim by the company last year.
Schriver invited Advocis to respond, and received a message back 90 minutes later that an email had been sent to members addressing both suits. That one went out over association chairman Al Jones’ signature, and said that the board considers both suits “to be without merit.”
Then, this.
“The board has also become aware of an Ontario Human Rights Commission complaint brought forward against Advocis relating to alleged conduct during the tenure of the former interim CEO. Legal counsel has been retained to represent Advocis in connection with this matter.”
Details of the complaint have not been made public. Jones’ note promised a new association whistleblower policy.
No allegation of wrongdoing under Gorman’s leadership has been made. If either of the suits or human rights complaint does turn out to have merit, the Advocis board must take responsibility.
