The Carleton University Students’ Association (CUSA) filed their statement of defence on Jan. 24 in a lawsuit regarding their former joint health plan with the Graduate Students’ Association (GSA).
According to the statement, CUSA denied allegations that they breached the health plan agreement, and also denied that a portion of the surplus funds from the health plan belong to the GSA.
CUSA said they passed a bylaw in July 2012 which gave them “the sole authority to make decisions in relation to its Health, Dental and Accident Plan.”
The statement argued the health plan agreement contained no clause preventing CUSA from amending their bylaws, therefore the referendum they held of CUSA’s Board of Trustees was legal.
Their agreement with the GSA was not intended to limit the “democratic or corporate affairs” of CUSA or the GSA, the statement said.
GSA president Kelly Black said this logic nullifies the whole point of a contract, which is to clarify the rights and responsibilities of the parties and the commitments they are making to each other.
“If this is the case, there is no point in having contracts,” he said.
CUSA argued the GSA is not entitled to any of the surplus funds from the health plan. According to CUSA, the agreement did not require the undergraduate union to subsidize the health and dental premiums or insurance of graduate students.
But Black said the reserves of the former health plan are jointly owned because they were paid into by both graduate and undergraduate students.
“The legal situation between CUSA and the GSA is not about one group being subsidized by another,” Black said. “Framing the situation in such a manner would appear to be misleading,” he said.
CUSA said they did not breach the contract, but rather that the GSA did so by refusing to cooperate and properly assess CUSA’s proposed health plan in the summer.
“[The GSA] impeded efforts to obtain more cost-effective health and dental insurance for undergraduate and graduate students at Carleton University,” CUSA said.
“The timeline according to CUSA’s statement doesn’t give the GSA enough time to ‘frustrate’, ‘impede’ or ‘persist’ at anything,” Black said.
According to the statement of defence, CUSA issued a public advisory to reveal the new health plan on July 21, and met with the GSA on July 26 to discuss the matter.
CUSA terminated the old agreement the next day, July 27.
Before a court date can be set, both parties are required to meet and attempt to mediate the matter, and to go over their documents, Black said.
“The GSA is committed to seeking a resolution that, if at all possible, does not result in large legal bills that have to be absorbed by students,” he said.
CUSA vice-president (finance) Michael De Luca said that CUSA was confident in their case, but said he could not comment further “due to the upcoming litigation.”
