REGINA — A judge has struck Canadian National Railway’s lawsuit against two rural municipalities, ruling the railway waited too long to sue over a 2022 train-grader collision that caused a derailment, a hazardous spill, and a month-long cleanup.
In a decision released earlier this month, Justice Andrew S. Davis of the Regina Court of King’s Bench found CN’s negligence claim against the R. M.’s of South Qu’Apelle and the Town of Edgeley was “plainly out of time” under the one-year limitation period set out in The Municipalities Act.
The case arose from a May 26, 2022, incident where an RM employee operating a road grader at a level crossing was struck by a CN freight train. The grader operator died, several rail cars derailed, and fuel and other hazardous materials spilled onto CN’s right-of-way and nearby private land. Court documents reveal that CN and contractors spent a month or more remediating the site.
CN filed its lawsuit 13 months later, claiming negligence and nuisance. The RM countered the claim saying CN filed its claim too late.
Attempt to use environmental limitation period
CN argued that because the derailment involved a hazardous spill, the six-year limitation period in Saskatchewan’s Environmental Management and Protection Act should apply.
Justice Davis disagreed, calling the one-year municipal limitation period “categorical” and broad enough to cover all claims against municipalities, including those with environmental elements.
“It is plain to me that the Legislature did not intend to create a special status for municipalities with one piece of legislation and then undermine it with another,” wrote Justice Davis.
CN’s attempt to amend claim also fails
More than two years after the collision, CN sought to amend its lawsuit to add claims of unjust enrichment and trespass, arguing it had provided a benefit to the RM by doing the cleanup.
Justice Davis rejected the amendments. He described the unjust enrichment theory as a “singularly awkward fit” for the facts.
Entire action dismissed
The court struck the negligence claim as an abuse of process and the nuisance claim for failing to disclose a cause of action. The proposed amendments were denied.
The ruling ends CN’s civil action against the two municipalities unless the railway seeks to appeal to the Saskatchewan Court of Appeal.
ljoy@sasktoday.ca
