Jim Karygiannis reinstated as councillor for Scarborough-Agincourt

An Ontario Superior Court judge has reinstated Jim Karygiannis as councillor for Scarborough-Agincourt.

In a ruling released on Monday, Justice WilliamChalmers said he has grantedKarygiannis "relief from the forfeiture of the office" but the order does not stopthe city's compliance audit committee from continuingwith an audit of his election expenses or prevent it from proceeding with legal action.

"I find that Mr. Karygiannis acted in good faith with respect to the filing of the financial statements," Chalmers said in the ruling.

Chalmerssaidthere was "no attempt" by Karygiannis to hide abig dinner expense that sparked the controversy surrounding his election expenses.

The judge noted that the "relief" is granted only while anaudit proceeds, and given thata decision still needs to be made following that audit, it would be "unfair" for Karygiannisto be subjected to "extreme punishment" of leaving office.

Karygiannis, for his part, said he is "ecstatic" to return tocouncil. He repeated his position thatthere was an "error in filing."

"I'm happy to be returning to work to look after my constituents, respond to their needs and continue the work that we've been doing so far in Scarborough-Agincourt,"Karygiannissaid.

"I want to thank the people that reached out to me during this time and especially the strength of my family. Tomorrow is another day and tomorrow we start back at work."

Brad Ross, spokesperson for the city, said arrangements are being made to allow Karygiannis to attend council's regularly scheduled meeting on Tuesday as councillor for Ward 22.

Councillor removed from office in early November

City ClerkUlli Watkissserved noticed toKarygiannisin early November thathe wasno longer thecouncillor for Ward 22 over an alleged expense violation, specifically asupplementary financial statement he filed for the municipal election last year.

Karygianniswas told he was in default of theMunicipal Elections Act, which requires every candidateto file a financial statement for the election, and disqualified from being elected or appointed to any office until after the 2022 municipal election.

Under the provincial act, there isa limit on the amount of money candidates can spend in an election. For Ward 22 last year, that totalwas $61,207.95, with a maximum of 10 per centor $6,120.80 to be spent for "parties and other expressions of appreciation" after voting day.

Watkisshad said Karygiannis filed expenses under "parties and other expressions of appreciation" showingthat he spent $32,083.50, whichexceeds the expense limit by $25,962.70.

She had said she hadno "latitude or discretion" on the matter, and "forfeiture of the office" wasautomatic if a financial statement showedexpenses for"parties and other expressions of appreciation" after voting day exceed the amount permitted.

Karygiannis could still face punishment, judge notes

In the ruling, Chalmersnotes that penalties contained in the Municipal Elections Act don't apply if a judge were to find thatacandidate committed an offence inadvertently, or because of an error in judgment, while "acting in good faith."

Chalmers added that following the audit, there are several different possible outcomes.Karygiannismight notbecharged under the Municipal Elections Act; he could be charged but not convicted, or charged and convicted. If convicted, he could still face punishment, which includes being kicked out of office.

Adam Challef filed theapplication for a compliance audit of Karygiannis's expenses that led to his removal, pointing outKarygiannis raised over $217,000 during the election.

Challef, the City of Toronto andWatkiss are listed as respondents in the case.

"I'm disappointed with this decision and will be reviewing it and my legal options before determining next steps," Challef said on Monday.