Leonard F. Marsello

Three cross-appeals arose from the interpretation of a 1985 environmental indemnity granted by the Province of Ontario to former pulp mill owners, their successors and assigns, in the context of the settlement of mercury contamination litigation brought by two First Nations.

The majority held that the indemnity did not cover first party regulatory compliance orders, as the motion judge made palpable and overriding factual errors, and the indemnity, properly read as a whole, was intended to cover only third party pollution claims.

The appeal of the Province was allowed; the appeals of the corporate successors were dismissed.

The dissent (Côté, Brown and Rowe JJ.) would have dismissed the Province's appeal and allowed the appeal of Resolute, concluding the indemnity covered the Director's remediation order, that the fettering doctrine did not render the indemnity unenforceable, and that Resolute — as Great Lakes' corporate successor — was entitled to the indemnity's protection, but Weyerhaeuser was not, as neither an assignee nor a corporate successor of Great Lakes or Reed.

Three cross-appeals arose from the interpretation of a 1985 environmental indemnity granted by the Province of Ontario to former pulp mill owners, their successors and assigns, in the context of the settlement of mercury contamination litigation brought by two First Nations.

The majority held that the indemnity did not cover first party regulatory compliance orders, as the motion judge made palpable and overriding factual errors, and the indemnity, properly read as a whole, was intended to cover only third party pollution claims.

The appeal of the Province was allowed; the appeals of the corporate successors were dismissed.

The dissent (Côté, Brown and Rowe JJ.) would have dismissed the Province's appeal and allowed the appeal of Resolute, concluding the indemnity covered the Director's remediation order, that the fettering doctrine did not render the indemnity unenforceable, and that Resolute — as Great Lakes' corporate successor — was entitled to the indemnity's protection, but Weyerhaeuser was not, as neither an assignee nor a corporate successor of Great Lakes or Reed.

The Court of Appeal for Ontario considered whether a 1985 indemnity provided by the Province of Ontario to Great Lakes and Reed covered the costs of complying with a 2011 Director's Order requiring remedial work at an abandoned mercury waste disposal site near Dryden, Ontario.

The motion judge had granted summary judgment in favour of Weyerhaeuser and Resolute, finding both were entitled to indemnification.

The appellate court was divided.

The majority (Brown and Lauwers JJ.A.) held that the 1985 indemnity did cover the costs of complying with the Director's Order, but found that Resolute had no legal interest in the indemnity because Bowater had assigned the full benefit to Weyerhaeuser in 1998.

The majority remitted the issue of Weyerhaeuser's rights as assignee to the trial court.

Justice Laskin dissented, arguing the 1985 indemnity covered only third-party pollution claims, not first-party regulatory compliance costs.

This case concerns the interpretation of a 1985 indemnity agreement granted by the Province of Ontario to Great Lakes Forest Products Limited (now Resolute FP Canada Inc.) and its successors and assigns, regarding mercury contamination.

Weyerhaeuser Company Limited, a subsequent owner of the property, and Resolute sought indemnity from the Province for costs incurred complying with a 2011 environmental remediation order issued by the Ministry of the Environment.

The court granted summary judgment, finding that the indemnity's broad language covered statutory claims by provincial agencies and that the fettering doctrine did not apply to this business agreement.

Weyerhaeuser was also found to be able to rely on the indemnity as a successor or assignee.

The appellant operated a truck stop on Highway 17 that was effectively put out of business when the province constructed a new section of Highway 417, severely restricting access to the property.

The Ontario Municipal Board awarded compensation for injurious affection under the Expropriations Act.

The Court of Appeal set aside the award, finding the Board failed to adequately balance competing rights and to recognize the elevated importance of public utility.

The Supreme Court of Canada allowed the appeal, holding that reasonableness of interference must focus on whether the individual claimant has shouldered a disproportionate share of the burden of construction, not on whether the public benefit outweighs private harm.

The Board's decision was restored.