Wheatley explosion class action lawsuit dismissed

Residents and business owners affected by the explosion that occurred in August 2021 filed a class action lawsuit seeking over $100 million in damages, with the lawsuit being initiated by the Windsor law firm now known as Strosberg Wingfield Sasso in November 2022. The respondents named in the lawsuit were the Municipality of Chatham Kent and HSE Integrated Ltd., a safety equipment company based in Hamilton.

An update on the law firm’s website recently declared that the class action lawsuit has been “discontinued.” This decision was influenced by the fact that residents and business owners have received a total sum of $8.65 million, leading to a lack of individuals willing to step up as the lead plaintiff for the lawsuit. The distribution of funds included $7.2 million from the Wheatley Business Recovery Grant Program (WBRGP) allocated to 54 applicants, and an additional $1.45 million disbursed through the Wheatley Residents Assistance Program (WRAP). Though the exact amounts received by each applicant are undisclosed, the funding was confirmed to come from the Province of Ontario.

While the lawsuit website mentioned that Chatham Kent was allegedly “seeking costs against the Plaintiffs,” spokesperson Eric Labadie clarified to CTV News that this statement was inaccurate. Labadie disclosed that the council has instructed its insurance company not to pursue reimbursement for legal expenses. As a requirement of the class action lawsuit, the Municipality had to cover a $250,000 insurance deductible, and although the insurer may seek recovery for other legal costs, there is uncertainty surrounding this procedure.

Moving forward, the municipality plans to communicate with its insurer regarding the potential pursuit of legal fees and will provide updated information to council following a response. Legal representatives from Strosberg Wingfield Sasso have deferred interviews until they can formally request the discontinuation of the class action lawsuit in court, where approval from the court is essential to formally conclude the matter.

The explosion caused by hydrogen sulphide in downtown Wheatley on August 26, 2021, resulted in injuries to 20 individuals, fortunately without any fatalities. The complete destruction of the Erie and Talbot intersection has prompted the municipality to strategize the area’s redevelopment, outlining plans for its reconstruction.