Casual Legal: Consider the Risks
DISCLAIMER: This article is meant to provide information to Alberta Municipalities members only and is not intended to provide legal advice. You should seek the advice of legal counsel to address your specific set of circumstances. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this article to be outdated. This content is not intended for the general public.
By Mikkel Arnston
Reynolds Mirth Richards Farmer LLP
Alberta Municipalities Casual Legal Service Provider
A councilor might be approached by a rate payer to allow fireworks on municipal lands or dig a well on municipal lands for grazing cattle on those lands but there may be implications to the rest of the rate payers in the municipality that need to be considered. When municipalities enter into an agreement or arrangement with a rate payer the municipality does so primarily at the risk of taxpayer dollars. If the municipality provides a lease or license over municipal lands or engages municipal employees to pursue a rate payer’s objectives the taxpayer is the one paying for it. The taxpayer not only pays for the municipal resources, but it is also taxpayer dollars exposed to potential liability.
Where a municipality purports to grant a license or lease over property for which the municipality is responsible, it is prudent to consult with legal and insurance advisors to understand the potential risks and liabilities created. A municipality might grant a ‘grazing license’ over a road allowance used by oil field equipment not thinking about the liability if livestock and vehicles intersect. A municipality might grant a rental of a vacant parcel for a rodeo without considering the risks of attendees parking in a vacant field, including damage to vehicles or injuries to persons from something as simple as a gopher hole.
A municipality can mitigate potential risk using a variety of tools such as indemnity agreements, third party insurance coverage confirmation, or security. Risks cannot be eliminated but can be foreseen and reduced. If there are situations that the municipality is considering it is prudent to discuss with your insurance provider and legal advisors to see what tools are available to the municipality to mitigate potential liabilities.
To access Alberta Municipalities Casual Legal Helpline, Alberta Municipalities members can call toll-free to 1-800-661-7673 or casuallegal [at] abmunis.ca (email )to reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please call 310-MUNI (6864) or riskcontrol [at] abmunis.ca (email) to connect with Alberta Municipalities Risk Management staff. Any Regular or Associate member of Alberta Municipalities can access the Casual Legal Service.
