Recovering No-Fault Clean Up Costs Post Kawartha Lakes

Recovering No-Fault Clean Up Costs Post Kawartha Lakes

A recent decision of the Ontario Court of Appeal, Kawartha Lakes (City) v. Ontario (Environment), 2013 ONCA 310, may result in significant unanticipated expenses for municipalities that are ordered to clean up and remediate municipal lands contaminated through no fault of their own. This decision clarifies that property owners, including municipalities, are responsible for cleaning up their property and preventing further contamination in the event of a spill, even though such a property owner may be completely innocent. The Ontario Ministry of the Environment ("MOE") has the power and the willingness to make such orders as it deems necessary to ensure that prevention and cleanup is undertaken. Clean up and remediation costs incurred by municipalities in response to such MOE orders have the potential to devastate municipal budgets and reserves.  Read more...