Fired City Manager Sues City, Mayor, Lands Top Job Elsewhere
Her Consulting Firm’s Twitter Profile PIC (Mitchell’s Consulting)
From Medicine Hat’s "Glass Palace" to Lac Ste. Anne County's Council Chamber: A Controversial CAO's Swift Return
MEDICINE HAT, AB – Ann Mitchell, the former City Manager whose turbulent tenure in Medicine Hat became a textbook case of a misfit hire, has not only filed a lawsuit against the city but has immediately landed another top job in Alberta. Her new employer: Lac Ste. Anne County (LSAC), a municipality now governed by a completely inexperienced council.
Mitchell was fired by Medicine Hat "with cause" in October 2025, a move that triggered her lawsuit alleging wrongful dismissal and that now threatens to cost the city far more than the severance it sought to avoid. Simultaneously, LSAC announced her hiring on January 6, praising her "proven leadership" while omitting any mention of her firing or the pending legal battle.
A Question of Scale From the Start
Mitchell's was hired in Dec 2022, starting Feb 6 2023. After the August 21 2023 Shitshow Showdown Owl News looked into her background (which we can only assume was presumably more than the City and/or the City’s headhunter did at that time).
Mitchell’s prior experience was largely in smaller municipalities and regional districts - , the largest budget was $40 million, the largest staff was about 100. In stark contrast, Medicine Hat has over 1000 employees and a half-billion-dollar annual budget including an energy company.
This is a classic example of the "Peter Principle," where one is promoted to a level beyond their competency.
Mitchell’s 977 day Reign was marked by internal strife with accusations of
- violating the Administrative Organizational (AO) Bylaw
- nepotism
- favouritism
- abusive behaviour
The violation of the AO bylaw was when Mitchell did a reorganization without Council approval, presenting it at the August 21 2023 council meeting as a fait accompli. When Council approved the reorg on August 21 2023, it made the violation go away retroactively.
The AO Bylaw was later changed.
Mitchell was fired by the City in October 2025 after she was found in violation of the Respectful Workplace Policy. All deliberations were held “in camera”, we have no details as to what the allegations were.
Some City Hall workers have told the Owl that the atmosphere at the Glass Palace changed significantly, people were far less stressed. One person said it was like a cloud had been lifted.
The Costly Gamble of "With Cause"
At an early morning meeting (7am) on October 10, 2025, city council unanimously voted to terminate Mitchell "with cause,". That means she would not receive any severance and left the City open to a lawsuit. It likely would have been cheaper both financially (and reputationally) to pay the severance to Mitchell.
At the time, Owl News speculated that paying Mitchell's severance would be cheaper than risking a wrongful dismissal lawsuit. This was not idle speculation; Mitchell had already established a pattern of using litigation as a weapon. Her most brazen act was in November 2023, when she responded to criticism by threatening to sue Mayor Clark for defamation. To maximize the impact, she had the Mayor served with legal papers at her office in City Hall during business hours. This was far more than a legal formality—it was a public spectacle presumably designed to humiliate the Mayor, undermine her authority in front of staff, and send a chilling message to the entire council about the cost of opposition.
That speculation is now an expensive reality as Mitchell's lawsuit, filed in Court of King's Bench, alleges the termination was without merit and a breach of contract. She is allegedly seeking damages for lost wages, benefits, and harm to her reputation. Another lawsuit notably names Mayor Clark personally, alleging the mayor's conduct created a hostile environment.
That might be a hard row to hoe as Mayor Clark’s sanctions included one where she was not allowed to speak with any employees including the City Manager. IF Mitchell deigned to speak with the mayor in person, they had to be chaperoned. The mayor was also locked out of a large portion of City Hall even after most of the sanctions were lifted, Council took months to address the final one.
A "Soft Landing" in a Rookie Council's Lap
The irony is thick. While Medicine Hat braces for a legal fight, Mitchell has been appointed Chief Administrative Officer (CAO) of Lac Ste. Anne County. The county is currently paying out over $600,000 in severance to its previous CAO, Mike Primeau, whom it fired last year. The announcement praised Mitchell's "proven leadership" and "extensive experience," conspicuously omitting the circumstances of her departure from the Hat or the pending lawsuit.
Echoes of Past Tactics in a New Arena
LSAC’s social media announcement of Mitchell’s hiring saw a flurry of deleted comments and restricted engagement—a tactic familiar to observers of Mitchell's tenure. The county also has a Recording Device Policy that restricts recording public meetings, requiring media to ask permission to report but not reproduce proceedings. Critics say this policy violates section 2b of the Canadian Charter of Rights and Freedoms. This aligns with a pattern of controlling information.
However, in a potential sign of change, the new LSAC council began publishing meetings on YouTube in December 2025 and added a standing public participation item to agendas. A question now is whether Mitchell will seek to reverse these more transparent practices.
The Bottom Line: A Fiscal Hangover
The saga leaves Medicine Hat with a painful fiscal hangover. The city’s attempt to avoid a six-figure severance package by firing "with cause" has triggered a lawsuit that could cost significantly more in legal fees and potential damages. It also exposes the revolving door of senior municipal administration, where failure in one jurisdiction is no barrier to promotion in another—with taxpayers forever footing the bill for both the exits and the entrances.
The core question for Hatters remains: Did the city hire a leader unsuited to its scale, then compound that error with a legally risky firing? The courtroom will now decide, but the ledger of public trust has already taken a hit.
