Danforth (London) Ltd. ("Danforth") sued the City of London ("City") for $53 million in damages, alleging negligence and failure to act fairly and in good faith regarding a proposed development and rapid transit (RT) routing.
Danforth's related company had applied for a zoning by-law amendment in 2015, but withdrew it after City staff requested significant street dedications for a then-proposed RT route.
In 2017, the City approved a different RT route that did not require these dedications.
Danforth claimed that an earlier routing decision would have allowed its development to proceed.
The City moved for summary judgment, arguing no duty of care was owed in negligence and that Danforth could not complain about the exercise of discretionary power as the application was withdrawn before a council decision.
The court granted summary judgment, finding that the City's RT routing decisions and the pre-approval process were "core policy" decisions, immune from negligence claims, and that no private law duty of care was owed.
The claim of unfairness or bad faith also failed because no final decision was made by City council, and there was no evidence of bad faith in staff's earlier requests.
The court also noted statutory protection under the Municipal Act, 2001.