Sudbury Wins Right to Acquire Distribution System of Union Gas Limited

In a precedent setting decision with important implications for municipalities across Ontario, Madam Justice Anne Molloy of the Ontario Superior Court ruled in April, 2000 that the Corporation of the City of Sudbury has the contractual right under its municipal franchise agreement with Union Gas Limited to acquire Union’s system in the municipality.

Represented by Osler, Hoskin & Harcourt lawyers John F. Rook, Q.C., Arthur Peltomaa and Mahmud Jamal, Sudbury sought to exercise its contractual right only after its earlier attempt to exercise its right under the Public Utilities Act to acquire the gas distribution system failed because the Province repealed the provision with retroactive effect. Union Gas, represented by Blake, Cassels & Graydon LLP lawyers Glenn Leslie and Sharon Wong, has stated that it intends to appeal the decision to the Ontario Court of Appeal.