LETTERS – A citizen’s question: who will pay for Coun. Neustaeter’s legal bills?

EDITOR: An interesting exchange between resident Kathrine Wunderlich and City Hall regarding the payment of legal expenses for Coun. Katie Neustaeter. 

Re: Public Funding for Councillor Katie Neustaeter’s Legal Expenses – Civil Claim Filed 31 July 2025

Dear Mayor and Council,

I am writing to formally inquire whether the City of Kamloops plans to fund the legal defence of Councillor Katie Neustaeter in relation to the civil defamation claim brought against her by Mayor Reid Hamer-Jackson on 31 July 2025.

As you are aware, under British Columbia law, elected officials are personally liable for defamatory statements they make, even if these statements are made in the course of their duties. Defamation is a personal tort, and unless the comments were made explicitly as part of official city business and under legal obligation or privilege, public funds should not be used to cover legal costs. The courts have consistently ruled that defamatory conduct, even by elected officials, does not automatically qualify for public indemnification.

Based on publicly available information, Councillor Neustaeter’s remarks seem to have been made independently and outside any formal council proceedings or authorised city communications. Therefore, I urge the City Council to consider the precedent this could set: using taxpayers’ money to defend personal actions, including potentially defamatory behaviour, might weaken public trust and lead to future liability for actions that the City neither directed nor approved.

I respectfully request a clear and public statement from the Council regarding:

1. Whether the City has committed or intends to commit any funds toward Councillor Neustaeter’s legal defence in this matter; and
2. If so, under which policy or authority was that decision made?

Kamloops taxpayers deserve transparency and accountability when it comes to the use of public funds, particularly in matters of personal legal liability by elected officials.

Thank you for your attention to this critical matter. I look forward to hearing back from you.

Sincerely,
KATHRINE WUNDERLICH

Coun. Neustaeter’s response:

Kathrine

“Reid, you initiated the lawsuit. So you independently chose the path you now claim no responsibility for.

“Ms Wunderlich, is it accurate that the mayor’s new lawyer (also the lawyer involved with the unsuccessful AAP lawsuit) is a family member of yours? It is helpful if motivation and transparency are practised in good faith by all participants in inquiries such as these. I’m happy to be disavowed of that impression if it’s isn’t accurate. I’m sure that would also be good information for the Kamloops taxpayers you claim to be acting in the interest of.”

KATIE NEUSTAETER,
Kamloops City Councillor

Kathrine Wunderlich’s response to Coun. Neustaeter:

Dear Councillor Neustaeter,

Thank you for your recent reply to my question about whether the City of Kamloops plans to fund your legal expenses concerning the civil defamation claim filed against you by Mayor Reid Hamer-Jackson on July 31, 2025.

I note that rather than addressing the substance of my letter – specifically, whether the City is indemnifying you – you redirected the conversation to a question about my relationship with the mayor’s legal counsel. I will not dignify that deflection, as it has no bearing on the core issue at hand: the potential use of public funds to cover what appears to be a personal legal matter.

As a resident and taxpayer of Kamloops, I am asking a reasonable and legitimate question about the use of municipal resources. It deserves a clear and direct answer:

1. Are you receiving, or do you intend to seek, financial support or indemnification from the City of Kamloops for your legal defence?
2. If so, under what legal authority or City policy is that support being provided?

Kamloops taxpayers are entitled to transparency and accountability, particularly when it comes to the funding of legal actions stemming from allegations of personal misconduct.

I look forward to hearing back from you.

Sincerely,
KATHRINE WUNDERLICH

Coun. Bill Sarai (deputy mayor for August) responds officially:

Hi Katherine (sic),

As the deputy mayor for the month of August, on behalf of council, we thank you for your continued interest of how  legal funds are spent on behalf of our taxpayers.

As the mayor has initiated another lawsuit, and this matter is now registered before the courts, it is in the best interest of fairness to both parties, that we do not interfere in the legal process.

We can assure you that the information you requested will be made available at the appropriate time.

That is the law under the Provincial government that sets and oversees municipal policies for local governments.

This is the same government who approved our AAP process, and whose framework for local government that we will continue to follow and request guidance  when required.

Hope that information is satisfactory and that any further questions on this matter will be addressed after the case is decided.

Regards,
BILL