ARTICLE · 07 DECEMBER 2010

Smith v. Inco, 2010 ONSC 3790: What Commercial Property Owners Should Know

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Smith v. Inco involved an environmental class action brought on behalf of approximately 7,000 residential property owners in the City of Port Colborne, where Inco operated a nickel refinery from 1918 to 1984.

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Reena Goyal

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Smith v. Inco involved an environmental class action brought on behalf of approximately 7,000 residential property owners in the City of Port Colborne, where Inco operated a nickel refinery from 1918 to 1984. The class proceeding arose primarily as a result of a number of phytotoxicological studies and testing conducted by the Ministry of the Environment ("MOE"), indicating that nickel levels in the soil in many parts of Port Colborne exceeded MOE guidelines.

Inco was found liable in private nuisance for the discharge of nickel and under the doctrine of strict liability for failure to prevent the escape of a dangerous substance. The class was awarded a total of $36,000,000 in damages for diminution in property values. In so deciding, the Ontario Superior Court of Justice made the following findings that may be of interest to business owners, as well as tenants and lessees of commercial properties:

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