Lawsuit against ex-Saint John councillor to proceed

The long-standing court case against John Ferguson, a former Saint John councillor, who isbeing sued by the city's pension board for defamation will proceed on Monday, a judge has ruled.

Justice William Grant, of the Court of Queens Bench, said the pension board of trustees does have the right to commence and maintain action against Ferguson because the collection of individuals does have a reputation to protect.

It should be up to a jury to decide whether Ferguson maliciously defamed the board, as the board alleges, Grant ruled on Friday.

The trial is scheduled to last six weeks.

The case has been dragging on for about five years.

Itrevolves around allegedly defamatory comments Ferguson made in 2005 about the board's handling of the pension fund, which had a $47-million deficit. The pension plan's deficit has since ballooned to $190 million.

Rod Gillis, the lawyer for Ferguson, had been seeking to have the case dismissed.

He argued Thursday the pension board does not have the legal prerequisite of "standing," meaning it couldn't show it was harmed by any statements made.

Gillis had also argued there is a three-month limitation on starting any legal action against a councillor, based on the Saint John City Government Act of 1955.

Ferguson is now the town administrator for St. Stephen.