City Wins Security for Costs in Legal Case Involving Waterdown Garden Supplies Property – TPR Hamilton | Hamilton's Civic Affairs News Site

January 17, 2024
Waterdown Garden Supplies Ltd. and Gary McHale must pay into the Superior Court a total of $376,976 to be held in trust for security of costs if they wish to continue their legal action against the City of Hamilton.
WGS and McHale are seeking $70 million in damages, claiming city staff conspired with slain Mobster Pat Musitano to allow the dumping of contaminated soil on a Flamborough property.
TheSpec has extensively covered the stunning story, which includes a City of Hamilton manager admitting to having lunch with Pat Musitano. Read their coverage for more.
In the rare security of costs ruling, Superior Court Justice John Krawchenko expressed concerns about how the WGS is funding its litigation.
The “parties have made arrangements to fund this litigation through a scheme incorporating suspension of debt, forfeiture of shares, granting of shares all in exchange for a percentage of damages received. Key to this is the insulation of funding, by keeping it in the hands of non parties.”
The Justice ruled this raises concerns about the ability of the City to recover its legal costs in the event the City succeeds against the claims, writing some “evidence supports a finding that although there appears to be sufficient assets to cover costs, the plaintiffs have arranged their affairs to protect the assets and to shelter them in the hands of non parties in order to make it difficult to enforce a costs award.”