Shift in Litigation Landscape: Canadian Businesses Confront Surge in Public Nuisance Lawsuits Across Diverse Industries

Across Canada, a rising trend in litigation over public nuisances is posing new challenges and liability risks to businesses. In a departure from traditional environmental issues like pollution, claims based on the broad doctrine of public nuisance are now encompassing product liability, class actions, and mass torts. These litigations assert that industries’ operations harm various public rights, such as health and safety, straying into territories like manufactured goods, cosmetics, and digital services.

Legal definitions typically outline public nuisance as an act negatively impacting public rights, demanding that complainants demonstrate an unreasonable interference with these rights. While historically focused on the interference with public resources like water and air, modern claims have expanded to include less tangible rights under the broad themes of health, safety, and convenience.

Such litigation is notably on the rise, exemplified by Québec’s legal framework, which doesn’t specifically use the term “public nuisance” but employs analogous legal principles. The Québec Civil Code, combined with the Québec Charter of Human Rights and Freedoms, protects against “unlawful interference” with recognized rights, potentially covering claims against environmental degradation and public health threats.

Public nuisance litigation introduces several risks to businesses. A notable case is the 2019 decision by the Superior Court of Québec which allowed residents to file claims against Volkswagen Group Canada based on general environmental rights, regardless of direct purchase or use of their vehicles. Decisions such as this significantly widen the potential scope of plaintiffs, exposing companies to legal action from an indeterminate group with whom they have no prior relationship.

Further, there are cases where public nuisance litigation supports novel product liability claims. Although attempts to label indirect harms such as those related to gun violence or opioid addiction as public nuisances have seen limited success, these cases indicate a persistent interest in leveraging public nuisance in class actions and mass litigation.

Looking forward, as seen with trends in the United States, Canada may expect to see an increasing blend of environmental, product liability, and healthcare claims treated as public nuisances. For instance, recent legislations and court decisions have paved the way for multi-province class actions against opioid manufacturers. This expansion could potentially extend to issues like contamination from chemicals in various consumer products, leading to a broad spectrum of litigation across several industry sectors.

In British Columbia, recent class actions allege that substances like polyfluoroalkyl have contaminated water supplies, infringing on public rights and causing widespread health and environmental impacts. These cases demonstrate the potential for the public nuisance doctrine to address a range of contamination and health-related issues.

The utilization of public nuisance claims could also extend to digital products like social media platforms, as demonstrated by actions from Ontario school boards alleging that certain digital activities compromise public education rights.

However, the expanding application of public nuisance also brings critical challenges and potential overreach. Some Canadian courts have cautioned against transforming public nuisance into an overly broad legal tool that bypasses established negligence principles. They emphasize the need for clear demarcations in legal responsibilities to prevent this doctrine from becoming a catch-all category that could unjustly extend businesses’ liability.

Recognizing the evolving landscape, businesses and their legal teams must act swiftly and strategically to manage risks associated with these expansive interpretations of public nuisance. Proactive identification of potential legal exposures and rapid response strategies are essential in this dynamic legal environment.

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