University of Waterloo Federation of Students News ReleaseWATERLOO, ON, March 4 /CNW/ - The University of Waterloo Federation of Students today launched legal action seeking $11,000,000 in damages from the University of Waterloo over its arbitrary closure in mid-January of two student-operated establishments that were licenced to serve alcohol on campus. In a Statement of Claim filed in the Ontario Superior Court of Justice and served on the University administration, the Federation alleges that the University, as the holder of the liquor licence for Federation Hall and The Bombshelter Pub, has been in non-compliance with the Liquor Licence Act for many years by contracting out the sale and service of liquor. This practice is prohibited by the Alcohol & Gaming Commission of Ontario. On January 20, 2003, the University arbitrarily shut down these facilities, claiming that it was forced to do so in part because of an incident that occurred in a parking lot adjacent to Federation Hall in the early hours of New Year's Day. The claim alleges that the University could have consented to the Federation either obtaining its own liquor licence or become a co-licensee, which would solve the contracting out problem and bring the establishments into compliance with the law. The Federation is seeking damages on a number of grounds, including negligence, breach of contract, breach of fiduciary duty, breach of trust, negligent misstatement and misrepresentation, trespass, conversion, unjust enrichment and intentional interference by the University in their economic relations. The Federation is also asking the court to issue injunctions compelling the University to reinstate the student run operations at Federation Hall and The Bombshelter Pub, and to cease unreasonable interference in their operations. Additionally, the Federation is requesting that the University consent to an application by the Federation to obtain a liquor licence. "There are agreements in place between the Federation and the University, the first one dating back to 1976, which govern the operation of these facilities and which give the Federation the right to operate these businesses for the benefit of the students," said Chris Di Lullo, the Federation's Vice-President, Administration and Finance. "The University should respect the agreements and their spirit, and not act arbitrarily." "The University's failure to recognize or deal with the contracting out situation over the course of many years has led to this problem," said Mr. Di Lullo. "It had - and still has - the options of allowing the Federation, as the operator of the facilities, to either acquire its own licence or become a co-licensee to bring the establishments into compliance with the Act. Instead, it attempted to radically diminish our rights and role in managing the facilities and, when we objected, shut them down." Mr. Di Lullo noted that the student federations in at least eight other post-secondary institutions have approval from the AGCO to operate their bars as either the sole liquor licence holder or co-licensee. "The University seems to be saying that undergraduate students at Waterloo are somehow less capable, less responsible, and should be treated differently than their counterparts at York or McMaster or Carleton, or the Waterloo Graduate Students' Association." Under an agreement in 1984, the University agreed to build an entertainment facility called Federation Hall for the sole and exclusive use of the Federation in return for receiving a portion of student fees amounting to approximately $3 million over 20 years. "The University collected these funds from students for the past 19 years to build Federation Hall for our sole and exclusive use. Those doors should be open now," said Mr. Di Lullo. "These establishments are a very important source of revenue for the Federation. We are losing $130,000 a month because of the shut down," he added. "This is money badly needed to provide students with jobs, to fund over 60 clubs, and to provide services such as the Wellness Centre and the Food Bank." The University has asserted that it was simply acting out of concern for the safety and security of students after an altercation in a nearby parking lot. "This was a tragic, but isolated, incident," said Mr. Di Lullo. "We have been operating Federation Hall and The Bombshelter Pub professionally, responsibly, and safely for many years. This is something that the University has continually acknowledged even after this altercation occurred" Federation President Brenda Koprowski said she regretted having to take legal action. "Overall, the administration and students have a very positive working relationship," she said, "but the University's actions and stance on this particular issue left us with little choice." "The real issues are the autonomy of the Federation, maintaining control over our operations and the revenue from them, as well as adherence to legal agreements between the two parties," said Ms. Koprowski. "We are deeply disappointed with the lack of respect the University has shown for us and our rights in this instance. -30-
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