A former top executive at London Health Sciences Centre (LHSC) has filed a LHSC wrongful termination lawsuit, seeking over $528,000 in damages after being fired during the hospital’s sweeping restructuring efforts to address a $150 million budget deficit.
Abhi Mukherjee, who served as LHSC’s chief financial officer until August 2024, claims he was terminated without notice and without cause despite being recruited with promises of secure, long-term employment. His statement of claim, filed on February 20 in London court, alleges the dismissal was unjust and financially damaging.
Mukherjee is seeking $500,000 for the loss of salary, bonuses, benefits, and relocation expenses. He is also requesting an additional $28,811.33 in unpaid performance bonuses, as well as unspecified damages related to pension entitlements.
Mukherjee Says He Was Recruited with Promises of Stability
The lawsuit states that Mukherjee left his position at the Ottawa Hospital based on assurances of job security and professional growth. He held the CFO position at LHSC for just under two years before being dismissed during a leadership shake-up in summer 2024.
Mukherjee’s contract allegedly included annual performance-based bonuses totaling $75,160 on top of a base salary of $375,800. His claim argues that the unpaid bonuses were a key part of his compensation and should have been honored.
LHSC Denies Wrongdoing, Cites Fiscal Mismanagement
In its statement of defence, LHSC denies all allegations of wrongful dismissal. The hospital argues Mukherjee was terminated in line with his contract and was not induced to join the organization. LHSC claims he made a conscious choice to accept a better-paying position closer to home.
The hospital further contends that Mukherjee severely understated the 2024-25 deficit and failed to produce a viable cash flow plan, which only came to light when David Musyj was appointed interim CEO in May 2024. Musyj, now serving as the hospital’s provincially appointed supervisor, is tasked with addressing LHSC’s “concerning financial performance.”
A public report detailing Musyj’s findings and financial restructuring is expected once his term ends.
Hospital Defends Cuts Amid Surging Executive Growth
In defending its decision, LHSC revealed that the number of managers increased from 284 in 2020 to 384 in 2024, with executive assistant roles rising from 74 to 114 in the same period. Mukherjee, hired during Jackie Schleifer Taylor’s presidency, was replaced in November by Nicholas Vlacholias as chief financial officer and vice-president of facilities.
Mukherjee Not Alone as Lawsuits Mount Against LHSC
Mukherjee is not the only executive to take legal action following LHSC’s restructuring. Brad Campbell, the hospital’s former chief operating officer, also filed a wrongful dismissal lawsuit in October 2024, seeking approximately $1.5 million in damages.
Both lawsuits remain before the courts, and all claims and defences have yet to be tested.
