Thunder Bay Sues Over Property Insurers

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Working to unify Thunder Bay would help build the city stronger
City Hall Thunder Bay

Working to unify Thunder Bay would help build the city stronger
City Hall Thunder Bay

THUNDER BAY – NEWS – The City of Thunder Bay has issued a Statement of Claim with the courts today to recover amounts owed to it under its property insurance policy.

On May 28, 2012 the Atlantic Avenue Sewage Treatment Plant was severely damaged following extensive flooding due to an unprecedented and exceptional rain event. The loss required urgent make-safe work and pumping of wastewater out of the facility to facilitate emergency repairs to temporarily restore service.

The loss also caused substantial physical damage to the Plant, which required extensive repairs and restoration. The City has incurred flood related costs of more than $58 million to complete necessary repairs to the Plant. These include plant-related repairs, emergency response to the facility, operating and capital costs.

There is a dispute between the City and its insurers regarding the adjustment of the property damage claim.

“We had coverage, and we paid for that coverage,” said Norm Gale, City Manager. “We simply want to get what is owed to us.”

The City has a $300 million property insurance policy, and the coverage exceeds the costs incurred. General damages in the amount of $30 million and punitive damages in the amount of $1 million are being sought.