Media Release - Maglio Installations Ltd. v. Castlegar (City).
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 of the 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.