City to appeal decision in Maglio court case
By City of Castlegar
On June 9, 2017 the City of Castlegar issued a media release notifying residents that in 2013, the City of Castlegar went out to tender in order to construct the Millennium Natural Swimming Ponds project. This was a complicated project that involved optional pricing scenarios, water act approvals, archeological assessments, First Nation’s approval and monitoring of Columbia River Water levels. As such the City hired a geotechnical engineering firm to help with the tender process. The City made its tender selection under detailed advice from its City lawyers and its consulting engineers.
When challenged in court, the City’s insurer, the Municipal Insurance Association of BC (MIA), used their lawyers to defend the City’s contract award decision. Unfortunately, the trial judge accepted the plaintiff’s position and awarded judgement to them (Maglio’s).
On June 22, 2017 the Municipal Insurance Association of British Columbia filed a Notice of Appeal with the Appeals Court of British Columbia. The MIA had the trial judge’s reasons for judgement reviewed by separate legal counsel and have determined that an appeal is warranted.
Regardless of the outcome, the City’s liability exposure remains limited to its insurance deductible which is $10,000.
Original release:
In 2013, the City of Castlegar went out to tender in order to construct the Millennium Natural Swimming Ponds project. This was a complicated project that involved optional pricing scenarios, water act approvals, archeological assessments, First nation’s approval and monitoring of Columbia River Water levels. As such the City hired a geotechnical engineering firm to help with the tender process. The City made its tender selection under detailed advice from its City lawyers and its consulting engineers.
When challenged in the court, the City’s insurer Municipal Insurance Association (MIA) used their lawyers who reviewed the case and agreed with the City’s original selection. Unfortunately the judge accepted the plaintiff’s position. The amount of damages/costs has not been determined at this point. The City carries liability insurance with the Municipal Insurance Association of British Columbia
(MIA) and part ofthe insurance coverage is a liability protection agreement which covers the City in cases such as this case. The City’s liability exposure is therefore limited to its insurance deductible which is $10,000 regardless of the damages judgement. Following the judge’s decision which the City strongly disagrees with, the Municipal Insurance Association is currently considering whether to appeal.
