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rotornut
6th Jul 2004, 15:05
The Globe & Mail

City faces $505-million bridge suit

Taxpayers must bear cost of cancelling link to island airport, entrepreneur says

By KATHERINE HARDING


UPDATED AT 11:01 AM EDT Tuesday, Jul 6, 2004

The city has finally been slapped with a long-threatened $505-million lawsuit over its decision last December to scrap the proposed $22-million bridge to the island airport, and the federal government could be next to be sued.

"It will be the taxpayer who will lose as a result of what really has been opportunistic political manoeuvring on the part of the mayor and, more recently, the federal government," Robert Deluce, the owner of Regional Airlines Holdings Inc., a start-up airline, said shortly after the city was served with a statement of claim that alleges a breach of contract. The 17-page document -- which also alleges that Mayor David Miller "abused his powers" for "improper purposes" during his successful crusade last fall to kill the 122-metre structure -- was filed with the court in January.

Until now, Mr. Deluce had not yet actually served the city or any other defendants, such as the mayor, who were named in his January statement of claim. The threat stayed empty until that happened. Now the city will be required to defend itself and will begin racking up legal costs that Mr. Deluce may have to cover if he fails to prove his accusations.

Mr. Deluce said the lawsuit was purposely not served until yesterday because he wanted the situation to "be resolved in a favourable manner." He said those hopes were dashed when the federal government put forward a draft regulation late last month that could soon make a bridge to the money-losing airport impossible.

If Ottawa doesn't back down on this move to kill the bridge, it will be added as a party to the suit, Mr. Deluce warned. His company was planning on setting up a new airline at the struggling downtown airport, but only on the condition that the bridge was built.

Mr. Miller isn't troubled by the latest development in the bridge saga, which has dragged on since he was elected last November on a promise that killing the controversial project wouldn't cost more than a toonie.

"I think we have an exceedingly strong [legal] position," Mr. Miller told reporters.

"The law is very clear. A municipality is entitled to change its mind on policy issues. We have no legal contract with Mr. Deluce. . . ."

"In fact, I think his lawsuit is thicker, in terms of paper, than his company is," Mr. Miller joked.

He conceded that the impending legal fight could be expensive, but added that it's "worth it because it's about rejuvenating the city."

A spokeswoman for Transport Minister Tony Valeri wouldn't talk about the possibility of the federal government being included in Mr. Deluce's lawsuit, but did say its regulation regarding the bridge is far from being made final.

Mr. Deluce's 17-page statement of claim alleges that Mr. Miller, who campaigned in last fall's mayoral race on a promise to axe the bridge, "abused his powers" by threatening councillors, having Toronto Fire Services and Toronto Hydro "interfere with the construction of the fixed link," and even by lobbying the federal government to "withhold certain permits" that the Toronto Port Authority, the federal agency that operates the airport, needed to proceed with the bridge.

The statement of claim also alleges that just days before the Nov. 10 election, either Mr. Miller or his campaign team aide, Peter Donolo, a former press secretary to prime minister Jean Chrétien, "induced" Air Canada to send a damaging letter to the port authority requesting that it allow jets at the island airport. Mr. Donolo and representatives of Toronto Fire Services and Toronto Hydro have all denied that they were involved with any plan by Mr. Miller to stop the bridge.

MarkD
6th Jul 2004, 21:52
well, someone from AC should answer why that letter was sent then. It could only have been intended as a spoiler.

I see the new film studios are located east of 08/26 - talk about creating a reason to close the airport. Maybe notices should be put up there like Pearson has at the new housing estates in Mississauga, warning people not to complain if it's noisy!