Ontario’s Divisional Court has dismissed Waterdown Garden Supplies Ltd. and Gary McHale’s appeal of a security of costs order in their lawsuit against the City of Hamilton.
McHale and the corporations (the plaintiffs) were ordered to provide $376,976 in security of costs to be allowed to proceed with a lawsuit seeking $70-million in damages, alleging city staff conspired with slain Mobster Pat Musitano to allow the dumping of contaminated soil on the Flamborough property.
The Hamilton Spectator 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. Krawchenko ruled that the plaintiffs had arranged their assets to shelter them from a potential cost award if their litigation was unsuccessful.
Additionally, Krawchenko found the litigation may be funded by an investor-supported, for-profit enterprise.
Appeal Late and Dismissed
The plaintiffs filed their motion for leave to appeal the December 29, 2023, judgment on January 29, 2024. The filing was two weeks later. The Divisional Court accepted the explanation the plaintiffs mistakenly thought the deadline for the motion was 30 days after the ruling.
During the following months, the plaintiffs missed numerous deadlines and did not proceed in a timely manner.
The plaintiffs requested an extension of time to finalize an appeal.
Justice Wendy M. Matheson dismissed the appeal. The plaintiffs have been ordered to pay the City and other defendants $20,000 in costs for the appeal.
They must now either pay the security for costs, or file an appeal of the Divisional Court dismissal.
Production Details
v. 1.0.0
Published: March 20, 2025
Last updated: March 20, 2025
Author: Joey Coleman
Update Record
v. 1.0.0 original version