Legal Blog

Municipality Liability

Breen v. Lake of Bays (TWP) 2022 Ont CA

Case discusses the legal framework governing construction permits and inspections under the Building Code Act. Under the Act, municipalities owe a duty of care to all who it is reasonable to conclude may be injured by the negligent exercise of its inspection powers. This includes subsequent purchasers of a building constructed for another owner. Once a municipality enacts a bylaw dealing with building permits, the municipality makes a policy decision to enforce the Act and its duties arise. A municipality is liable if the inspector derogates from the standards of an ordinary reasonably prudent inspector. The reasonably prudent inspector is not expected to uncover every latent defect.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.