In a landmark ruling that has sent ripples through New Brunswick’s healthcare administration, former Horizon Health Network CEO Dr. John McKendy has been awarded $1.8 million following his wrongful dismissal claim against the provincial health authority.
The New Brunswick Court of Queen’s Bench delivered its verdict yesterday after a lengthy legal battle that began when McKendy was abruptly terminated in June 2023 without cause or proper notice. Justice Elaine Thompson, who presided over the case, determined that the dismissal constituted a “clear breach of contractual obligations” and failed to meet the standard of reasonable notice required under Canadian employment law.
“The manner in which Dr. McKendy was removed from his position demonstrated a troubling disregard for proper procedure and contractual obligations,” wrote Justice Thompson in her 42-page decision. “The evidence presented shows no performance issues that would justify immediate termination.”
According to court documents obtained by CO24, the $1.8 million settlement includes 24 months of salary continuation, compensation for lost benefits, and $250,000 for damages related to mental distress and reputational harm. McKendy, who had served as CEO for just over three years, had four years remaining on his contract when he was dismissed.
The case has drawn significant attention within Canadian healthcare circles as it highlights the complex relationship between healthcare administrators and government oversight. Sources close to the situation indicate that McKendy’s dismissal came amid tensions over budget allocations and disagreements about restructuring plans for several rural healthcare facilities.
Health Minister Thomas Weber declined detailed comment on the ruling, stating only that “the Department respects the court’s decision and will review the judgment carefully before determining next steps.” When pressed about whether the government would appeal, Weber indicated that all options remained under consideration.
Healthcare governance experts have pointed to this case as emblematic of broader issues in public healthcare administration. Dr. Elise Charbonneau, professor of health policy at the University of New Brunswick, told CO24, “This ruling underscores the importance of maintaining proper governance boundaries between political directives and operational healthcare management. When those lines blur, the consequences can be costly—both financially and in terms of public trust.”
The Horizon Health Network Board of Directors issued a brief statement acknowledging the court’s decision and indicating they are “working collaboratively with government partners to ensure stable leadership moving forward.” The statement notably lacked any indication of whether the health authority plans to appeal the ruling.
For McKendy, the victory comes after nearly two years of litigation. Through his attorney, Patrick Gallivan, he expressed “relief that this chapter is closing” and hopes that “the focus can return to improving healthcare delivery for New Brunswickers.” McKendy has since accepted a position with a healthcare consulting firm based in Ottawa.
This case raises critical questions about healthcare governance in Canada: As provincial health authorities navigate increasingly complex financial and political pressures, how can we ensure that leadership transitions occur with appropriate protections for all parties involved? And perhaps more importantly, at what point does political influence over healthcare administration begin to undermine the very systems it seeks to improve?
