One of B.C.'s highest-profile Indigenous leaders is suing the First Nations Health Authority in B.C. Supreme Court for $381,250.

Grand Chief Doug Kelly, president of the Sto:lo Tribal Council, is also seeking aggravated and punitive damages.

In a notice of civil claim, Kelly has alleged that "the defendant repudiated the contract between them following the plaintiff's persistent campaign against the defendant's mismanagement, conflicts of interest and contraventions of the Societies Act".

None of the allegations have been proven in court and the First Nations Health Authority has not filed a statement of defence.

The FNHA's annual budget in 2017-18 was nearly $600 million and it posted an operating surplus of $39.5 million. More than $530 million came from the federal government and another $60 million was advanced by the province.

Kelly chaired the board of the FNHA from June 2010 to July 2019.

"In or around 2017, the Authority's chief executive officer at the time, Joe Gallagher, recommended to the Board the creation of a new senior manager position of vice-president of policy, planning and quality," Kelly stated in his notice of civil claim. "This new position would report directly to the CEO. He also recommended that his former spouse, Harmony Johnson, fill that role on an acting basis and without holding a competition."

The board accepted that recommendation, which, according to Kelly, led to a "large salary increase and significant new responsibilities".

Kelly also alleged that Gallagher did not formally disclose any conflict of interest.

In 2018, the board amended its conflict of interest policy to deal with working alongside relatives, saying they should not be excluded from employment on the sole basis of a relationship.

Earlier this year, the FNHA advertised for a permanent new vice president, which, according to Kelly, has not been filled.

"In or about late June 2019, the Board directed Gallagher in writing to terminate Johnson," Kelly alleged. "Gallagher refused to comply with the Board's direction."

The following month, Kelly and another board member were removed as chair and deputy chair of the First Nations Health Council, which is a political and advocacy organization. Kelly continued to be paid through August but he alleged he has not been paid in subsequent months. His contract calls for $15,250 per month, according to the notice of civil claim.

In October, Gallagher lost his job as CEO of the FNHA. Johnson is still a vice president.

The FNHA's most recent annual report cites its first goal as being to "enhance First Nations health governance".

"Success is marked by how well First Nations values, perspectives and principles are 'hardwired' into the provincial health system, and how firmly this systems transformation is grounded in the voices and priorities of BC First Nations," it states.

The second goal is to "champion the BC First Nations perspective on health and wellness". The third is to "advance excellence in programs and services" and the fourth is to "operate as an efficient, effective and excellent First Nations health organization".

In May 2019, a board evaluation summary by Watson Inc. concluded that it had a positive working culture and healthy dynamics.

Moreover, Watson Inc. concluded that the board was conducting its strategic planning process well and that the board was performing its role appropriately.

"Management supports the Board effectively, but more could be done to leverage their expertise and value to the Board," Watson Inc. wrote. "For example, Management would like more feedback on how they can better meet the Board's needs and their engagement with the Board could be increased."