August 23, 2023, photo credit: Robyn Brady/CKXS News.
An added motion at Monday’s council meeting aimed to dispel some rumours on the recently dismissed Wheatley explosion class action lawsuit.
Councillors Melissa Harrigan and Lauren Anderson brought forward a motion to have the municipality advise its insurance companies that it will be waiving the recovery of the $250,000 insurance deductible from the Wheatley Class Action Lawsuit.
In November 2022, Strosberg Sasso Sutts LLP (now Strosberg Wingfield Sasso LLP) brought forth the lawsuit against the municipality and HSE Integrated Ltd. on behalf of six Wheatley residents and businesses.
Earlier this year, the law firm representing the plaintiffs concluded that a class action lawsuit would not be pursued, as compensation and support from the municipality and government were sufficient.
Director of Legal Services, Dave Taylor, spoke to dispel the rumour that the municipality was seeking to recover legal costs.
“This idea to seek legal costs against those persons, that’s not a decision that was made by municipal administration, and not a decision made by municipal council,” said Taylor.
“That is not a decision we get to make. It’s because when a lawsuit like this happens, Chatham-Kent has to pay the first $250,000 under our insurance policy, but above that, the costs are paid by the municipality’s insurance company.”
Taylor explained it is the insurance company that makes the decision about major steps in the litigation, including whether or not to seek reimbursement of legal costs.
“When the insurance company is taking those steps, they are still doing it in the name of the insured person, in this case, the municipality,” explained Taylor.
“In the court records, it says Chatham-Kent is seeking these legal costs, but actually it is the insurance company standing in the shoes of Chatham-Kent because they paid this money out.”
Council voted unanimously in support of Councillors Harrigan and Anderson’s motion, with Councillor Alysson Storey absent from the meeting.
The motion also directs administration to contact the insurance companies about waiving the municipality’s recovery and return with further information.