The appellant municipality appealed a Small Claims Court decision awarding the respondent damages for vehicle damage caused by a pothole.
The trial judge found the municipality had a reasonable inspection system but still concluded it ought to have known about the pothole.
The Divisional Court allowed the appeal, holding that the finding of an adequate inspection system satisfied the municipality's statutory defence under the Municipal Act.
As there was no evidence of inadequate inspection or repair at the specific location, the municipality was not liable.