OGRA asks municipalities to contribute to MMS Litigation Fund

UCPR says association is “double dipping” with financial request

Regional mayors feel the Ontario Good Roads Association (OGRA) is "double dipping" in its attempt to secure financial contributions from municipalities for its MMS Litigation Fund.

At the counties council meeting held on Tuesday, August 24, the UCPR decided not to contribute money to the fund since most municipalities already made financial contributions.

"I think it's stupid to ask municipalities to contribute money and then come to the united counties and ask for more money," said Hawkesbury East Mayor Robert Kirby. "It's not right to ask for money from two levels of government. It's one or the other, but not both."

OGRA is currently embroiled in a legal battle over the Minimum Maintenance Standards (MMS), a set of guidelines created to help Ontario municipalities manage their risk from legal action stemming from personal injury on municipal roads.

Unfortunately, OGRA noted, claims are repeatedly being brought against road authorities for personal injury and property damage alleging "inadequate maintenance of roads, signage or failing to provide proper winter sanding and/or plowing."

OGRA says the MMS has been very successful in defending municipalities against these claims.

Recently, an application was filed with the Superior Court of Justice to have the MMS declared null and void, OGRA states. The application has been filed by individuals who have also filed suit against a municipality for a "winter-related accident."

OGRA executive director J.W. Tiernay said that if the application to declare the MMS null and void is successful, it will have huge implications on all Ontario municipalities.

"Municipalities will no longer have a viable defence against spurious claims of liability," he remarked. "With no viable defence, claims that might otherwise be thrown out will continue on to expensive trials and old claims could possibly be refiled. The courts may once again start rewarding large settlements which will result in higher insurance premiums for municipalities."

As a result, Tiernay said OGRA has created a MMS Litigation Fund because it does not have the financial resources to depend this applications or any subsequent appeals. OGRA suggested each municipality consider contributing 10 cents per capita with the maximum contribution capped at $50,000 and the minimum being $1,000.

The Nation Mayor Denis Pommainville said while it was important to make a contribution, most municipalities at the table already had. He said it wasn't right to expect the counties to contribute more money.

"We accept that this is a serious problem and will do what we can to help," he commented. "But expecting us to give twice is a little bit much."

Wednesday, September 1, 2010

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