May 09, 2008 - 04:30 AM

By Jeff Mitchell

OSHAWA -- Ousted Oshawa Generals president Trish Campbell has sued the club and its ownership for wrongful dismissal, claiming clashes over contracts and questionable financial wrangling created a dysfunctional corporate climate at the General Motors Centre.

Ms. Campbell, who was fired by the club in January midway through a five-year contract, is seeking $1 million in damages from the team and owners John Davies and Rocco Tullio.

In an interview, Mr. Davies vehemently denied allegations in the suit. He characterized the legal action as an attempt by a disgruntled former employee to inflict damage on the organization.

"(Ms. Campbell) was absolutely dismissed with cause," Mr. Davies said.

The firing came about as a result of a disagreement over an agent hired to sell advertising at the GM Centre, Mr. Davies said. Ms. Campbell claims the agent failed to meet sales targets and should have been let go; Mr. Davies said he overruled the president's call for a review of the advertising contract because he was pleased with the agent's results.

"When I bought the team (advertising) revenues were $166,000," Mr. Davies said. "They'll exceed $1.1 million this year."

In a statement of claim filed last month in Superior Court in Whitby, Ms. Campbell claims she was fired despite performing duties outlined in her contract. She says in the claim that Mr. Davies and Mr. Tullio undermined her authority and created a "poisoned" work environment in which she was harassed and disrespected.

Mr. Tullio declined to comment for this story.

The lawsuit claims Ms. Campbell, the first female president of a club in Ontario Hockey League history, was fired without cause, even though she excelled at her job, which paid $150,000 a year in addition to benefits and performance bonuses.

"In the year 2006-07 (Ms. Campbell) succeeded in driving sales revenues to new levels, including increasing the season ticket base from approximately 800 fans to over 2,000 fans," the claim asserts. ". . . attendance has risen steadily resulting in many sold-out team home dates."

The statement of claim contains allegations that have not been proven in court. No statements of defence from the defendants were on file at the Whitby courthouse Wednesday.

Among the allegations in the claim:

- Ms. Campbell alleges that in May 2007 Mr. Davies requested funds to reach a settlement with his ex-wife. But when a company filed a construction lien on the GM Centre, seeking more than $1 million owed for work on the new arena, the Gens had to dip into season ticket revenues to pay the bill, the claim says.

In August Mr. Davies called Ms. Campbell from a bank where he was trying to certify an $80,000 cheque for his ex-wife but had found there were insufficient funds in the team's account, the suit claims. The suit says Mr. Davies sought Ms. Campbell's authorization to transfer funds from an advertising revenue account the Gens shared with the City of Oshawa to the team's operating account.

Ms. Campbell declined to give authorization but Mr. Davies told staff at the bank she had done so and the transfer occurred, the suit claims. The bank later instructed Mr. Davies to replace $31,000 transferred from the shared account, according to the lawsuit.

Mr. Davies denied that chain of events occurred, explaining that at the time in question he was the sole owner of the team and was entitled to move money as he saw fit.

"I don't need Ms. Campbell's authorization to do anything with my money," Mr. Davies said. "I'll move money between whatever accounts I want to."

He disputed the implication he'd used money earmarked for the City for personal purposes: "I remit money to the City of Oshawa . . . they get their money on a timely basis," he said. "That's the long and short of it."

- The suit says Ms. Campbell clashed with Mr. Davies over a contract with independent marketing agent Michael O'Beirne, who she claims failed to meet projected revenue targets. Ms. Campbell claims that when she attempted to enforce a clause of the agent's contract requiring an evaluation prior to the contract being renewed Mr. Davies overruled her, declaring a new agreement with the agent had been reached.

But Mr. Davies said Mr. O'Beirne has greatly increased revenues for the Gens and deserved to have his contract extended.

"I can prove beyond a shadow of a doubt the Oshawa Generals are second among 20 (OHL) teams in advertising sales," Mr. Davies said.

"This guy (Mr. O'Beirne) is a superstar."

- The filing of construction liens by Cloke-Kirby Construction to collect on unpaid invoices for work on dressing rooms and other facilities at the GM Centre left the club so strapped for funds in May 2007 that the Gens were unable to reimburse players for their tuition costs, the suit says. The club dipped into ticket sales funds, GST returns and money raised during the team's alumni golf tournament to meet payroll obligations, the suit claims.

- Mr. Davies and Mr. Tullio "engaged in a conscious effort" to undermine Ms. Campbell's authority, the suit says.

Although he insisted he hadn't been served with the statement of claim Mr. Davies called the suit "a minor annoyance" and said he looks forward to defending against it.

Mr. Davies confirmed it was he who hired Ms. Campbell.

Ms. Campbell, hired as president and chief operating officer of the Generals in 2004, was fired in mid-January. At the time Mr. Tullio refused to comment on the move, but said he and Mr. Davies concurred on the firing.