In the event the Minnow Lake Restoration Group fails in their legal challenge against the city in relation to the Kingsway Entertainment District, who should cover the city’s $37,041 legal bill?
This is the question a trio of judges led by Justice Thomas Lederer is expected to answer alongside whether the City of Greater Sudbury followed fair procedure in the lead up to a July 14, 2021, vote of city council members to proceed with the municipal arena project.
Both parties’ cases were presented in virtual court on Monday, and the results of the judicial review are legally required within six months.
“Typically, when a decision is reserved it could be weeks, but more likely it could be months,” city solicitor and clerk Eric Labelle told Sudbury.com.
“(Lederer) did hear quite a bit of argument and there was public interest, so I feel like he’s going to take his time to write something fairly detailed,” deputy city solicitor Kelly Gravelle added.
Representing the Minnow Lake Restoration Group, lawyer Eric Gillespie told Sudbury.com that it’s likely the court recognizes the fact that Gateway Casinos has put their investment in the KED on pause, in part to wait on the results of the judicial review.
“There is no way to know, it could be within a couple of weeks or a couple of months, but our thinking is the court will be sensitive to the fact that the whole issue is time-sensitive,” Gillespie said, adding that he expects a response “sooner rather than later.”
On Monday, the city submitted a partial indemnity claim of $37,041 and the Minnow Lake Restoration Group submitted a claim of $29,407.
These figures include legal fees, disbursements and taxes in relation to the legal challenge but do not cover all associated expenses. As Labelle explained to Sudbury.com, “When you get costs in court you don’t ever get the full true cost.”
A formula is applied to legal costs, which typically covers approximately 50 to 60 per cent of total costs, which Gravelle said leads to the partial indemnity total.
In most court cases, the losing party covers the winning side’s partial indemnity claim, but the Minnow Lake Restoration Group has applied for the case to be considered Public Interest Litigation. If their application is successful and Minnow Lake is unsuccessful in the judicial review, they will not have to pay the city’s $37,041 claim.
Gillespie’s argument, as expressed on Monday, is that the judicial review “incorporates the whole city of Sudbury and a very huge amount of public engagement and involvement.”
Case law has been cited by both sides and the judges are expected to release their decision at the same time as they issue their verdict on the judicial review – at least, Gillespie said, that’s normally the case.
The city’s total legal expense to date in relation to the KED is $770,000, including the Minnow Lake Restoration Group case, Gravelle told Sudbury.com. A cost estimate of $850,000 presented during a city council meeting in September 2021 was made in mistake, she said, clarifying there was no overpayment, just an incorrect figure cited to council.
The city’s total cost in relation to the Minnow Lake Restoration Group has been approximately $54,000 to date, including an estimate for Monday’s appearance.
Tyler Clarke covers city hall and political affairs for Sudbury.com.
