On December 6, 2019 the Supreme Court of Canada released its
decision in Weyerhaeuser Company Limited v. Ontario
(Attorney General). The Court held that a 1985 indemnity
granted by Ontario to Reed Ltd. and Great Lakes Forest Products
Limited, and intended to apply to their successors and assigns did
not protect Weyerhaeuser, a subsequent owner, from a director's
remediation order issued by what is now the Ministry of Environment
and Climate Change (MOECC) under the Environmental Protection
Act (EPA).
As part of a 1985 settlement of the Grassy Narrows English and
Wabigoon river mercury contamination litigation, the government of
Ontario agreed to provide Great Lakes an indemnification from
further liability related to its pulp and paper mill in Dryden,
Ontario. Great Lakes in turn released Ontario from 1979 and 1982
indemnities, given at those times to encourage its acquisition,
upgrading and continued operation of the mill.
