Travel nurse company launches 2 more lawsuits against Vitalité
A travel nurse company has launched two more lawsuits against Vitalité Health Network for allegedly breaching the terms of two contracts that expired last year.
Canadian Health Labs filed notices of action with the Court of King's Bench in Saint John Wednesday over the contracts, which were both signed in 2022 and expired in June and September 2024, respectively, according to the documents.
The Ontario-based company alleges, among other things, that Vitalité deployed fewer "human health resource professionals" than stipulated in the contracts, failed to pay invoices, and terminated a renewal "unilaterally and improperly."
It contends it has suffered losses as a result of the health authority's actions and is seeking compensation, including punitive, aggravated and special damages, as well as costs and pre-judgment interest at a rate of seven per cent.
Canadian Health Labs previously filed a lawsuit against Vitalité for allegedly breaching another contract that was slated to continue until Feb. 5, 2026, after the health authority cancelled the remaining shifts of its travel nurses in January.
Bill is 'as tight as we can make it,' minister says
The two new legal actions came to light Tuesday night when Health Minister Dr. John Dornan appeared before the legislature's standing committee on economic policy to discuss a number of proposed amendments to a bill designed to get the government out of that costly contract without facing any legal or financial penalties.
Green Party Leader David Coon questioned how the bill, entitled An Act Respecting Travel Nurses, got tabled in its original form "without the experts in contract law catching the problems" that prompted the numerous amendments, echoing earlier musings by Tammy Scott-Wallace, the Tory MLA for Sussex-Three Rivers, about whether the original was "scribbled on the back of the napkin."
Dornan told Coon that when the government first presented the bill, its "primary purpose, with advice from the [Office of the Attorney General], was to protect ourselves from the third contract, which was still in force."
Since then, "actions have arisen that included the expired contracts," he said.
Vitalité's lawyers had also raised concerns about the expired contracts not being included, Dornan said. So the government decided it would be "prudent, and perhaps safer, to nullify all three contracts," which covered from July 2022 to February 2026 and totalled $98 million, according to Auditor General Paul Martin.
The company charged about $300 an hour per nurse — roughly six times what a local staff nurse earns. "The contracts with private nursing agencies were not reflective of best practices and did not demonstrate value for money," Martin has said.
The bill passed second reading and will readily become law, given the Liberals' majority, but whether it will protect the government and Vitalité from being sued by Canadian Health Labs remains unclear.
"It's as tight as we can make it," Dornan said in response to questions from Scott-Wallace.
"It does not absolutely preclude these current actions or subsequent actions, but it does afford us a better protection than the original bill, and we feel that the actions commenced are less likely to be successful with these amendments," Dornan said.
Company lawyer slams bill
In response to the amended bill, Canadian Health Labs' lawyer Matthew Hayes fired off a letter to Justice Minister Rob McKee Wednesday, urging the province to reconsider.
"We assert that the Legislature's actions to deny Canadian Health Labs its contractual rights, while actively resisting transparency, represent an unprecedented and troubling misuse of legislative authority," he wrote in the letter obtained by CBC News, which was copied to Dornan, Premier Susan Holt, Coon and interim Opposition Leader Glen Savoie.
Hayes described the amended bill as a "deliberate act of legislative bad faith."
"As acknowledged by the Dr. Dornan, Minister of Health, Canadian Health Labs played a critical role in responding during a time of urgent crisis, saving lives in New Brunswick. However, once the contract was deemed no longer advantageous, the government appears to have taken steps to deprive Canadian Health Labs of the negotiated benefits," he wrote.
"The Minister of Health has also admitted that Vitalité Health Network continues to employ nurses from other agencies, raising questions about the fairness and intent of these actions."
In addition, Vitalité chose not to terminate its agreement with Canadian Health Labs, "seemingly to enable the government to attempt to legislate this commercial agreement out of existence," demonstrating a "lack of honesty, transparency and accountability," Hayes alleged.
None of the allegations in the statements of claim have been proven in court.
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