The Middlesex-London Health Unit has gotten the all-clear from Ontario's superior court to proceed with the lease agreement that would allow it to move its headquarters to Citi Plaza.

In a decision handed down Friday, Justice J.N. Morrisette said that Middlesex County's decision March 6 to withhold consent for the move was 'invalid,' and ruled that this decision be set aside.

Morrisette's decision cited both illegality and a reasonable apprehension of bias in Middlesex County's decision to withhold consent for the lease, both of which are considered grounds for the judge to quash the decision.

Perception of bias

The county's financial stake in the lease was a major point in the case, and in Justice Morissette's decision.

Middlesex County owns the health unit's current downtown headquarters, and collects more than $600,000 annually in rent from them. That number is about half of what the county gives in funding to the health unit.

That means they have a direct interest in keeping the health unit on as a tenant, Justice Morissette wrote.

Complicating matters further is the fact that, at the same time the county withheld consent for the move to Citi Plaza, it was also exploring rezoning applications for the health unit's current location.

"By withholding consent, the county can see what it can do with 50 King St. in the future, while keeping the MLHU captive in the contract," said Morisette.

Illegality and bad faith

While the county said they refused to give consent for the move because of unanswered questions about service delivery and impact on costs, Justice Morissette said those factors were irrelevant.

In terms of cost, Justice Morissette said the evidence showed MLHU wouldn't incur any extra costs by moving as planned. Staying on at the county-owned 50 King St. building was also found to be more costly than moving.

Middlesex County maintains that they withheld consent because the health unit didn't provide satisfying answers to questions about the move, and not because they were trying to protect a revenue source. (Colin Butler/CBC)

Evidence also showed the proposed move wouldn't have any impact on services, and that residents will continue to be served in Middlesex communities, Justice Morissette said.

"The county's attempt to justify the decision on the basis of entirely irrelevant factors is disingenuous," she said.

"These actions taken by the county are clearly its attempt to accomplish by indirect means an object which is beyond its authority—namely, protecting its financial interests by ensuring that the MLHU remain at 50 King St."

County 'disappointed'

Middlesex County's chief administrative officer Bill Rayburn said the county was 'disappointed' and did not agree with Justice Morissette's ruling.

He said they acted in good faith by asking questions about the move, and ultimately withheld consent because the health unit didn't provide satisfying answers—not because they were trying to protect a cash cow.

"We submitted evidence that showed that County Council would actually increase their revenue from the property if the MLHU relocated," said Rayburn in an email.

"At our next council meeting, we will present county council with their legal options in regard to this matter."

Dr. Chris Mackie is CEO of the Middlesex-London Health Unit. (Paula Duhatschek/CBC)

Dr. Chris Mackie, CEO of the Middlesex-London Health Unit, said he understands where the county was coming from, and thinks they can continue to work together.

"The county's point was that they wanted us to make sure that we were well able to serve residents of the county, even though we were moving our operations in London," said Mackie.

"They wanted to make sure it would have a positive impact on the county, and we felt fairly strongly based on the research we did to bring this forward that we would be able to better serve people."