The plaintiffs' home was flooded twice due to a cast iron water main breaking in front of their driveway.
They sued the City of Vaughan for negligence and nuisance.
The City argued its failure to replace the water main was a policy decision exempt from liability under the Municipal Act.
The court found the City's inaction was an operational decision, as it failed to follow its own internal barometer for replacing water mains with a history of breaks.
The City was found liable for negligence, and the plaintiffs were awarded agreed-upon damages of $480,000.