Featured News
Liberals ignore municipalities’ calls for liability reform: Pettapiece
August 19, 2014
(Perth-Wellington) – There will be no relief from rising insurance premiums for municipalities, the government announced today.
During the annual Association of Municipalities of Ontario (AMO) conference, today Premier Wynne announced that her government will not be introducing any joint and several liability reform measures.
“I am extremely disappointed that the government has refused to take any action to assist municipalities on this issue,” said Pettapiece following the Premier’s announcement.
Pettapiece has been pushing the provincial government to reform the joint and several liability model – an issue driving up municipal insurance premiums and, in turn, property taxes.
AMO President Russ Powers stressed the need for reform in his opening speech: “We need to regain control over insurance costs by placing fair and reasonable limits on municipal liability. This week the Ontario government informed AMO that it would not act on this.”
Under the current joint and several liability model, 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 percent responsible. This is putting municipalities on the hook when other defendants lack the ability to pay.
In February, Pettapiece introduced a private member’s motion, passed by all parties, calling for reform. His motion won statements of support from the Association of Municipalities of Ontario (AMO), the Insurance Bureau of Canada, insurance brokers, and over 210 municipalities across Ontario.
He followed up by briefing the Attorney General upon her appointment in March, and asking for updates during question periods in April and July. In her July response to the legislature, Minister Meilleur stated: “At my ministry, the Ministry of the Attorney General, and in the legal community, two options are under consideration. One of the models is modification of joint and several liability…another model will limit municipal liability for negligence in road maintenance to two times the proportion of damage.”
Despite extended government consultations and efforts by municipalities, insurers and AMO, today’s announcement signals that the government will not be adopting either of the studied models, instead maintaining the status quo, risking increased insurance rates and property taxes.
“Rising insurance premiums have been an issue since I was a councillor in North Perth,” stated Pettapiece. “It is unacceptable that after years of consultation, the government still refuses to reform the current system.”
- 30 -
