Nicole Pelaia

Following a trial where the defendants were found liable in nuisance and negligence for flooding the plaintiff's lands, the parties disagreed on the calculation of prejudgment interest (PJI).

The plaintiff sought PJI based on the Canadian bank prime rate compounded annually, while the defendant argued for the statutory rate under s. 128 of the Courts of Justice Act.

The court exercised its discretion under s. 130 of the Act to award compound interest at the prime rate, finding that the statutory rate would under-compensate the plaintiff and provide an unwarranted financial windfall to the defendants who had avoided maintenance costs for decades.

The plaintiff, National Steel Car Limited, brought an action against the City of Hamilton, ArcelorMittal Dofasco Inc., and the Hamilton Port Authority for damages caused by reoccurring flooding to its property from the Kenilworth Avenue Drainage Channel.

The court found the City and AMD liable in nuisance, negligence, and strict liability under the rule in Rylands v. Fletcher for failing to maintain the channel and altering its flow, which caused substantial and unreasonable interference with the plaintiff's property.

The action against the Hamilton Port Authority was dismissed.

The court awarded the plaintiff over $5.2 million in compensatory damages, granted a permanent mandatory injunction requiring the City and AMD to remediate and maintain the channel, and awarded punitive damages of $500,000 against AMD and $400,000 against the City.

The plaintiff sought a mandatory interlocutory injunction requiring the defendants to remediate a drainage channel that was allegedly causing flooding on its property.

The plaintiff argued that the defendants had obstructed the channel in breach of a municipal by-law and committed nuisance.

The court found a strong prima facie case but dismissed the motion, holding that the balance of convenience did not favour an injunction given the complexity of the required remediation and that the plaintiff's ten-year delay in seeking relief cast doubt on the prospect of irreparable harm.