Judge awards ex-Tahltan president more than $320K for wrongful dismissal

A BC Supreme Court judge has awarded the former president of the Tahltan Central Government (TCG) more than $320,000 for wrongful dismissal.

“(Chad Norman Alexander Day’s) suspension was not justified because the board failed to adhere to the procedural requirements that give it authority to place a director on administrative suspension,” wrote Justice Matthew Kirchner in a Thursday, July 17 ruling.

But the judge did not award aggravated or punitive damages because he was “not able to conclude that the (TCG) board acted in bad faith or with reprehensible conduct.”

Kirchner heard the case in Prince George over four days in May.

Day had been originally elected for a two-year term in 2014 but was re-elected three more times for three-year terms. His contract, which paid him more than $18,000 per month, was to expire June 30, 2025.

TCG governs approximately 4,000 Tahltan people, including two Indian Act bands, the Tahltan Band and the Iskut Band, which have their own band councils. The Tahltan territory covers 11 per cent of BC, and is rich in wildlife and resources. Its website says the area is comparable in size with Portugal and South Korea.

Kirchner heard that, under Day’s leadership, TCG grew from four or five full-time employees in 2014 to 55 by 2019 when Day was elected a third time. In addition to day-to-day duties, Day represented TCG in negotiations with government and industry, including Imperial Metals and Seabridge Gold for revenue-sharing deals.

Day’s lawyer told the court that his client’s home in Smithers was spray-painted by a vandal in October 2019 with a slur that translated to “white man” and the name “Chad Anderson,” a reference to the maiden name of Day’s mother, who is Caucasian.

Soon after winning re-election in 2022, “personality conflicts” arose with a group of five directors. He was accused of being rude to a fellow board member and not reporting on a business trip to Australia.

Directors also accused Day of conflicts of interest stemming from his father Norman Day’s inheritance of 10 per cent of the family’s guide outfitter licence and involvement in a business that subcontracted to mining companies on Tahltan Territory, including Skeena Resources Ltd.. A legal opinion ordered by the board said Day was in conflict of interest for participation in two meetings where the board voted on a Skeena-proposed mining project.

“Mr. Day was an elected official and held the highest elected office in the TCG,” Kirchner said. “It is to be expected that his leadership would be scrutinized by the electors, and it is not surprising they might, fairly or unfairly, hold him responsible for TCG’s financial circumstances, especially with him having served in that position for almost a decade. That is the way of elected office.”

The board decided Nov. 22, 2023 to put Day on administrative leave with pay.

“On March 28, 2024, with the suspension still in place after four months, Mr. Day decided to resign his position,” Kirchner wrote. “He maintained the suspension was unlawful and a repudiation of his employment contract. He purported to accept the repudiation and claimed to have been constructively dismissed.”

Kirchner awarded Day $279,295.50 for base salary plus $30,000 for a housing allowance, $12,500 for a development allowance, $27,939.55 for RRSP matching and $5,000 for an annual contractual bonus. Kirchner refused to provide compensation for vehicle repairs and mileage and satellite and cell phones.

Day’s contract included a term that, if the president is not re-elected, the president is entitled to two weeks’ salary for every full year of service. Day claimed $77,869.77. Kirchner, however, did not award the amount because he interpreted it as arising only if Day lost re-election.

In total, Kirchner ruled Day was entitled to $354,725. However, $34,000 was deducted for revenue Day earned during the dismissal period. So the award totalled $320,725.

Beverly Slater was elected TCG president in a June 2024 by-election to finish Day’s term. Tahltan members chose Kerry Carlick as the new president in the July 6 general election and Kimberley Marion vice-president.

Day has operated Thadu Consulting Corp. for the last year.