Campus radio station CKLN is suing Ryerson University and the Ryerson Students’ Union (RSU) for more than $500,000, the latest move in a lengthy dispute over student levies stretching back to last year.
In a statement of claim filed in an Ontario court in January, CKLN is seeking $400,000 for breach of contract, as well as $150,000 in punitive damages.
“Despite repeated requests by CKLN, RSU continues to refuse to provide an accounting of the funds collected from students,” the claim said. “The loss of goodwill . . . caused CKLN to have to borrow funds on a line of credit.”
As well, CKLN claims the university is responsible for the money it collects in tuition and turns over to the union, including whether it ends up in the station’s coffers.
“Ryerson University has an obligation to the student body . . . to ensure that said fees are used in accordance with the purpose for which they are collected,” the claim said.
All full-time undergraduate students pay $2.75 out of their tuition each year into a levy that the RSU gives to the radio station, amounting to some $50,000 annually.
CKLN volunteer co-ordinator Daibhid James said the RSU has not paid CKLN its levy money since last July.
“We’ll fight it all the way. That, or move to another school,” he said. “Bottom line is it’s our money, they have no right to do this.”
However, RSU president Muhammad Ali Jabbar said he wants to give the money back to CKLN, as soon as it gets its act together.
The dysfunctional station has had two competing boards of directors since last February. The RSU, on the advice of its lawyers, placed the money into a trust until CKLN worked out its problems.
“We’ve said, ‘Resolve your issues and we’ll give you the money,’” Jabbar said. “We don’t know who to give the money to.”
The station has had to lay off several staff members, including James, who came back as a volunteer. As well, it did not hire work study students from Ryerson this year, and has not printed a program guide.
However, Jabbar said the RSU’s lawyers have released enough funds from the trust to allow CKLN to pay its staff and run the station.
“When CKLN says they haven’t gotten money they’re lying,” he said. “I know I signed two, maybe three cheques.”
The RSU board of directors knows about the continuing problems with the station, including a warning letter CKLN’s lawyers sent to the union last September. However, Jabbar hasn’t told the directors about the lawsuit, even in private.
“We haven’t told anyone. We’re still waiting for direction from the lawyers,” he said. “It’s not something open for conversation.”
The last board meeting was Jan. 15, and Jabbar said the station served notice some time just after that. The board’s next meeting will be in February.
This is just the latest in a slew of recent legal troubles for the union. In 2007, former president Rebecca Rose settled a $3,000 wrongful-dismissal lawsuit with the RSU after a protracted legal battle, and staff grievances jumped to 17 from one in the two previous years.
Former president Nora Loreto (then vice-president education) was also sued in 2007 for $425,000 in a defamation lawsuit.
The legal headaches mean the RSU may burn through its $20,000 legal budget again, after going some $5,000 over budget last year.
RSU vice-president finance and services Toby Whitfield, who is the union’s representative on both CKLN boards, refused comment.
Julia Hangisberg, Ryerson’s general counsel, could not be reached for comment.
There is no word yet on a court date, as the union’s lawyers are still working on a statement of defence.
“We are not doing anything illegal and our lawyers are confident they don’t have a case,” Jabbar said.