New Directions for Liability Reform in Ontario
Liability reform has long been an
objective of municipal governments across Canada and it’s becoming
easier to understand why. The legal regime of joint and several
liability makes municipalities and property taxpayers an easy target for
litigation. Just a fraction of fault can push municipalities to pay huge
damage awards, often targeted deliberately as insurers of last resort.
Joint and several liability principles are enshrined to varying degrees
in common law across the country. Mathew Wilson, Senior Policy Advisor,
Public Sector Digest, Winter 2011.
Joint and Several Liability Paper
The Association of Municipalities of Ontario has presented
its The Case for Joint and Several Liability Reform in
Ontario: Presented by the AMO Municipal Liability Reform Working
Group, on joint and several liability reform to the
Attorney General’s office. The paper highlights how municipalities
have become the targets of litigation when other defendants fail to have
the means to pay high damage awards. The price communities are paying is
steep - municipal insurance premiums and liability claims continue to
increase dramatically. This is despite enormous improvements to safety
including new standards for roads, playgrounds, pool safety, better risk
management practices, and the scaling back of some services.
Municipalities should not be insurers of last resort. Many other common
law jurisdictions have better approaches and others are pursuing
liability reform. It is time for Ontario to do the
same.
Staying the Course: AMO’s 2011 Pre-Budget Submission to the Standing Committee
on Finance and Economic Affairs
The submission includes information on
Municipal Liability and Insurance Costs. Municipal liability exposure
has led to ever increasing insurance bills. In 2010, Essex
County’s insurance rates increased by 47.5% and in 2011 they were
hit with a second staggering increase of 41%. The 2011 increase
alone is enough to trigger a 1% property tax increase in the
county.
