A former lawyer for one of Canada’s largest public-sector unions was arrested and spent several days in jail this past week after he was found in contempt of court for failing to provide financial records as ordered by an Ontario Superior Court judge.
Mark Mendl, a former external lawyer for the Ontario Public Service Employees Union, was apprehended by police on Monday, a rare measure in a civil lawsuit, where judges typically provide individuals with several opportunities to purge their contempt before seeking an arrest.
Mr. Mendl, who was released from jail on Wednesday, is being sued by OPSEU for his alleged role in what the union says was the misappropriation of $3.7-million in union funds – part of a broader effort by the union to recover money it says was improperly taken by OPSEU’s former leadership team.
In January, 2023, OPSEU sued three of its former executives, including former president Warren (Smokey) Thomas, alleging they improperly used millions of dollars in union funds for their personal benefit. That case is still before the courts and is being contested. Mr. Thomas has filed a countersuit against the union and denies any wrongdoing.
As part of its efforts to recover the funds, OPSEU has targeted four payments, totalling $3.7-million, to Mr. Mendl’s trust account between Dec. 8, 2021, and April 1, 2022, which was days before the union held its elections. None of the allegations have been proven in court, and Mr. Mendl’s lawyer, Bryan Badali, said his client will not comment on the case while its proceeding.
The union alleges in its lawsuit against Mr. Mendl, which was launched on May 3, that the funds transferred to Mr. Mendl’s trust account were disbursed to former OPSEU executives and employees, and to a personal account that he holds with his spouse.
The claim alleges Mr. Mendl received non-retainer payments from the union to his trust account that weren’t clearly explained by available documentation. These were: $450,000 in December, 2021; $450,000 in January, 2022; $500,000 in March, 2022, and $2.3-million in April, 2022.
“Most of the transfers were made without proper documentation or justification,” the statement of claim alleges.
Last August, Mr. Mendl was ordered to deliver his OPSEU client file and related financial records to the union. However, he missed a 15-day deadline to do so, and declined to respond to the union’s requests for the records, OPSEU alleges.
By December, Mr. Mendl provided 3,903 documents. However, the union alleges it “only identified a handful of the documents” that were potentially relevant to the first two trust payments, but not the others.
In March, Justice John Callaghan found Mr. Mendl in contempt stemming from his failure to provide the documentation. After Mr. Mendl missed two hearings in April, Justice Callaghan issued a warrant for his arrest on April 25.
After failing to surrender himself to Toronto police on May 1, something Mr. Mendl committed to, Justice Callaghan upheld the arrest on May 2. “Mendl continues to evade the process of this court,” the judge wrote.
Mr. Mendl was arrested on Monday, court documents show. Toronto Police didn’t comment, other than to say that no criminal charges were laid against Mr. Mendl.
He was held in custody at Toronto South Detention Centre until Wednesday, at which point he appeared before Justice Callaghan. He was released from custody on the condition that he remain in the province until further notice, surrender his passport and post a $30,000 bond, Justice Callaghan’s order states. Mr. Mendl must also attend all future hearing dates in person.
OPSEU said it is limited in what it can say, because of the continuing court proceedings. “However, the union does see these proceedings as an opportunity to seek justice for [its] members and we look forward to moving to the next steps, including with respect to Mr. Mendl,” said spokesperson Kim Johnston in an e-mailed statement.
Mr. Mendl worked for OPSEU from 2017 to 2022 as the union’s external legal counsel, according to the union’s statement of claim. In April, 2022, OPSEU elected a new president, JP Hornick, who replaced Mr. Thomas in a position that he had held for 15 years. New leadership subsequently asked an accounting firm to conduct a forensic audit and investigation to review the union’s finances.
OPSEU began a series of legal actions under its new leadership. One is scrutinizing how union money was used by former executives under the leadership of Mr. Thomas, the former president. Mr. Thomas has called the claims bogus, saying the current leadership is waging a “nasty, political campaign” against him. He has since filed a countersuit.
“Mr. Thomas strongly denies any wrongdoing and looks forward to his ultimate vindication in the courts,” his lawyer Frank Portman said in an e-mailed statement Friday.
With reports from Stephanie Chambers in Toronto.