Posted on November 20, 2024
Fixing drainage expected to cost city $5 million — on top of court-ordered damages already in the millions.
The city is budgeting $5 million to dredge a clogged stormwater channel that was the focus of a 12-year legal battle with National Steel Car over flooding.
The city hopes to wrap up the work in the northeast industrial zone between National Steel Car and steelmaker ArcelorMittal Dofasco (AMD) by mid-2025.
The $5 million is to cover the dredging of the city’s portion of the channel at the end of Kenilworth Avenue North in response to a court order this past July.
Likewise, Dofasco is expected to deal with its leg of the channel and clear out culverts that direct stormwater into the harbour, city staff said Monday.
The city and Dofasco aim to land a single firm for the overall job but with separate contracts for each party’s tasks in response to the court decision.
“That’s the lowest risk and will provide the best value for project,” Nick Winters, the city’s water director, told the public works committee.
In July, a Superior court judge ruled the city and Dofasco were jointly liable in “nuisance and negligence” for failing to maintain the channel, which has led to flooding on National Steel Car’s property at the end of Kenilworth Avenue North.
Justice Michael Gibson ordered the city and steelmaker to “immediately” start maintenance on the silted-up channel.
Moreover, the parties were to split the cost of nearly $5.3 million in damages and pay hundreds of thousands each in additional “punitive” damages.
Hamilton, meanwhile, has filed a notice of appeal in response to the court-ordered damages, citing alleged errors in fact or law and the need to protect “the best interest of the city and residents.”
In July, a Superior court judge ruled the city and Dofasco were jointly liable in “nuisance and negligence” for failing to maintain the stormwater channel that has overflowed on National Steel Car’s property at the end of Kenilworth Avenue North.
In an email Monday, the city confirmed it’s still pursuing the appeal but declined to comment further with the matter before the courts.
But Hamilton is forging ahead with clearing the channel, of which Hamilton’s portion is about 800 metres and Dofasco’s roughly 200 metres, Winters estimated.
The protracted court case was complex, he told councillors.
“Quite frankly, it was during the court proceeding that the city actually found out that we owned portions of this channel,” Winters noted.
“As a result, there’d been no maintenance by the city on this infrastructure over the years.”
To respond to the court decision as quickly as possible, the city and Dofasco formed a joint steering committee to get the work done, Winters said.
Dofasco didn’t immediately respond to The Spectator’s request for comment Monday about the collaborative effort.
In a separate ruling released in October, the judge tacked on more than $936,000 of prejudgment interest over the course of the litigation.
The city is also facing a related $3-million lawsuit over flooding that happened at National Steel Car during and after the trial in 2023.
“The city’s legal services team will be vigorously defending its case before the courts to protect the city and its residents,” the city said via email. “Given that the matter is still ongoing, we cannot provide further comment at this time.”
