Several local councils have added their voices to a growing list of municipalities supporting a call for changes to liability legislation that makes taxpayers an easy target for lawsuits.
Perth-Wellington MPP Randy Pettapiece is pushing the provincial government to reform “joint and several liability” – an issue driving up municipal insurance premiums and, in turn, property taxes.
In December Pettapiece introduced a private member’s resolution calling on the province to act.
Currently, if two or more parties are found at fault or negligent in a lawsuit, damages can be recovered from any defendant, even if the party is deemed only one per cent responsible.
In a Feb. 12 press release, Pettapiece cites a 2007 case in which an Ontario Superior Court found a municipality 50% liable for a crash involving a young driver under the influence of alcohol who ran a stop sign. The municipality should have had better signage, the court found, because drivers in the area had a habit of running stop signs.
“Local property taxpayers shouldn’t have to pay the price in cases like these,” Pettapiece states in the release. “We need the government to come up with a plan that is fair to all concerned.”
The MPP’s resolution calls on the government to implement a comprehensive solution to reform joint and several liability insurance for municipalities by June 2014.
The Association of Municipalities of Ontario has urged municipalities to provide “immediate written support” for Pettapiece’s resolution, which has already received over 90 supportive resolutions from municipalities, including several in Wellington County.
Mapleton council unanimously endorsed the resolution at its Feb. 11 meeting.
The township’s annual premium for all forms of coverage in 2014 is $176,945. That’s up about 3% from the $170,989 the municipality paid in premium for the 2013 term.
In 2011, AMO released the results of a survey showing municipal insurance rates had increased by 22% over previous five-year period.
Puslinch township council passed a similar resolution to the one currently being circulated in September of 2013.
Minto council passed a resolution supporting both the AMO’s position and Pettapiece bill at the Feb. 18 meeting.
Because the issue affects municipalities across Ontario, Pettapiece states he is hoping to win support from MPPs of all parties. Debate on the private member’s resolution is scheduled for Feb. 27.
