The appellants sued the City of Oshawa for negligence, alleging the City incorrectly advised them that no building permit was required for a deck, and subsequently negligently investigated and prosecuted them under the Building Code Act.
The trial judge dismissed the action, finding the City acted reasonably.
On appeal, the Court of Appeal upheld the dismissal, confirming the trial judge applied the correct standard of care for negligent investigation.
However, the Court allowed the appeal on costs, reducing the trial judge's award from substantial indemnity to partial indemnity, as the appellants' conduct was not reprehensible.