The plaintiffs were injured in a motor vehicle accident involving an underinsured taxi.
The plaintiffs and their insurer, the appellant, sued the respondent municipality, alleging it negligently failed to enforce its taxi licensing by-law which required $1,000,000 in liability coverage.
The trial judge found the municipality owed a duty of care but did not breach the standard of care.
The Court of Appeal dismissed the appeal, holding that the municipality did not owe a private law duty of care to the plaintiffs, as the claim was for pure economic loss and lacked sufficient proximity.
Furthermore, the trial judge made no palpable and overriding error in finding the municipality met the standard of care.