FORT McMURRAY — The Regional Municipality of Wood Buffalo and its former human resources director have both dropped their lawsuits against one another, bringing a legal battle over more than $1 million in disputed management bonuses to an end.
Court of King’s Bench records show both the municipality’s lawsuit against former human resources director Kari Donnelly and Donnelly’s countersuit were discontinued in May.
“Thanks for reaching out,” Greg Bennett, strategist with the Office of the Chief of Staff, said in an email.
“We can confirm that the lawsuit has been concluded. Out of respect for the privacy of those involved, we will not be providing any further comment.”
The municipality sued Donnelly in June 2024, alleging she improperly approved more than $1 million in what it described as “illegitimate” bonuses paid to senior exempt staff in 2021 and 2022. The RMWB sought to recover Donnelly’s severance, bonuses she allegedly awarded herself, punitive damages and legal costs.
Donnelly denied the allegations and filed a $2.1 million countersuit against the municipality, former councillor Keith McGrath and CUPE Local 1505 president Craig Milley. She argued the payments were made under the municipality’s Exempt Compensation Plan, were approved by the chief administrative officer and followed existing procedures.
The lawsuits were discontinued before the allegations were tested in court.
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