Toronto Class Action Lawsuit Swells to $32 Million, Names TTC as Defendant
A significant class action lawsuit against the City of Toronto and its former security contractor, One Community Solutions (OCS), has dramatically increased in scope and financial demand. The legal claim, which was initially filed seeking $22 million, has now ballooned to $32 million in damages. In a notable development, the Toronto Transit Commission (TTC) has been added as a defendant in the amended lawsuit draft, which is scheduled for formal filing this Wednesday.
Contract Termination and Licensing Issues Prompt Legal Action
The escalation of this lawsuit follows the City of Toronto's decision to terminate its contracts with OCS, a private security provider that handled duties at shelters and other sites related to homelessness, including transit stations. This termination came after the Ministry of the Solicitor General informed city officials that OCS employees were not properly licensed to act as security guards. Consequently, these workers were ordered off the job last Friday, leaving hundreds without employment.
Despite being incorporated only in 2020, OCS had secured approximately $40 million in contracts with the City of Toronto, along with additional undisclosed amounts from agreements with third-party entities managing Toronto's shelter system. The sudden collapse of OCS's operations has created significant disruptions in service delivery at critical locations across the city.
Expanded List of Defendants and Allegations
The amended lawsuit now names an expanded list of defendants, reflecting new information gathered from whistleblower workers who have come forward since the legal action was initiated two weeks ago. In addition to OCS and the City of Toronto, the defendants now include:
- The numbered company operating as One Community Solutions
- OCS founders Damion Dunston and Jason Segree
- Safecity Solutions Inc.
- Nan Hu (also known as David Hu)
- Safeway Solutions Inc.
- Bojan Kladnjakovic
- The Toronto Transit Commission (TTC)
According to Ryan O'Connor and Gurpreet Farmaha of the Taylor Mergui Law Group, who are handling the class action, "dozens of whistleblower workers have contacted us" since the lawsuit was launched. Their courage has helped uncover the involvement of additional legal entities and individuals allegedly connected to employment standards violations.
Specific Allegations and Corporate Relationships
The lawsuit contains detailed allegations about the relationships between various entities involved in OCS's operations. It claims that Safecity Solutions Inc. and Safeway Solutions Inc. each acted as an "alter ego" of OCS, while Kladnjakovic allegedly managed human resource matters for OCS workers who were paid exclusively in cash. Previous reports have suggested that OCS maintained a WhatsApp group chat to manage these cash-paid employees.
Meanwhile, Nan Hu and his company Safeway Solutions OCS are accused of handling recruitment, deployment, and payment for OCS's private security guards, who were organized into what city officials refer to as community safety teams (CSTs). These individual guards are commonly known as CSTs within Toronto's shelter system.
It is important to note that all allegations in the lawsuit remain unproven in court. A former representative for OCS, who is no longer with the company, has previously denied any wrongdoing when speaking to media outlets.
City and TTC Responses to Growing Legal Challenge
In response to inquiries about the lawsuit, Stuart Green, a spokesman for the TTC, stated via email that the transit agency would not "comment on legal matters." City hall officials, when asked for comment, indicated they could not respond to questions about OCS in time for publication but promised a response on Wednesday.
The city has not addressed questions about West Egg Security, which is reportedly now handling work at sites previously managed by OCS. West Egg Security has been used by the City of Toronto in the past and maintains a visible presence at Union Station, though the company did not respond to requests for comment about the current situation.
Broader Impacts and Service Disruptions
The termination of OCS contracts has created ripple effects throughout Toronto's social services network. Dixon Hall, one of the city's shelter operators, confirmed they had been affected by the sudden laying off of OCS's community safety teams. While Dixon Hall stated their staff would continue to provide services, they did not elaborate on how operations would change without OCS employees on site.
According to the Taylor Mergui Law Group statement, "Hundreds of workers are now out of work, and the city, jointly with its contractor, will now be responsible for paying severance to these employees over this mass termination." This mass termination occurred despite the fact that OCS contracts were technically set to expire on March 1, not January 30 when they were officially terminated.
The Ministry of the Solicitor General and representatives for the County of Simcoe, which employed CSTs from OCS's Barrie-based operation, did not respond to requests for comment. Similarly, the Toronto Police Service indicated they were not "aware" of any meetings between officers and shelter operators in recent days regarding either proactive enforcement measures or criminal investigations related to OCS's operational collapse.
As this complex legal situation continues to unfold, Toronto residents and stakeholders await further developments regarding the $32 million lawsuit and its implications for municipal contracting practices, employment standards enforcement, and service delivery to vulnerable populations.
