Residents drop $100M gas explosion lawsuit against Ontario municipality

A $100-million class action suit launched against Chatham-Kent relating to the 2021 Wheatley explosion emergency response has been dropped.

The matter came before council Aug. 25, when West Kent councillors Melissa Harrigan and Lauren Anderson brought forward a motion directing administration to contact the municipality’s insurance company, asking them not to seek the $250,000 deductible from the representative plaintiffs paid out by the insurer when the lawsuit was launched.

The remainder of the legal costs incurred during the case were supplied by the municipality’s insurance provider.

According to C-K director of legal services Dave Taylor, the lawsuit was dropped as a result of the “significant” compensation and service from Chatham-Kent and the province, which provided more than $8 million to affected residents and businesses.

All told, the Ontario government funneled $30 million towards the extensive investigation and well capping work.

“A good-news story that the class action lawsuit is over and also a reflection of the significant effort that was done in support of Wheatley both around this table and the province really stepping up,” Taylor said of the recent development.

Why innovative customer experience will define the future of personal auto insurance Image

Insights Paid Content

Why innovative customer experience will define the future of personal auto insurance

Technology is helping insurers reimagine how they support personal auto customers — and it starts the moment a collision is reported, say experts at Accident Support Services International.

By 

Sponsor Image

Focus on renewal

Both Harrigan and Anderson said the Wheatley community can now focus on renewal.

“We are relieved that this matter has been resolved and the community can move forward,” Harrigan said in a media statement after the meeting. “The focus can now remain on focusing on Wheatley’s recovery, rather than on a lengthy legal process. We are extremely grateful to the province of Ontario for its partnership and the funding it provided to support residents, businesses and mitigation work.”

In her comments, Anderson said the “outcome allows us to focus on what matters most: supporting the community and continuing the journey towards recovery and revitalization.

“The people of Wheatley have shown incredible resilience throughout this ordeal,” she added. “I am very pleased that council supported our motion to ensure the municipality will not seek to recover its deductible from the representative plaintiffs.”

Information circulating that the municipality itself is attempting to recoup legal costs isn’t accurate, Taylor said.

“The piece that we really wanted to clarify is that this is not a decision to seek legal costs against those persons,” he said, adding it’s the insurer’s decision if they proceed in trying to recoup the money.

Planning is underway to transform the property where the blast occurred into a community park.

A report on the matter will return to a future council meeting.