The township will be affected by an $18.38-million settlement in a class action suit against municipal electrical utilities (MEU), but Mapleton’s portion is just a fraction of the total.
In 2002 Mapleton sold its utility to Hydro One Networks Inc., but according to Clerk Patty Sinnamon “Hydro One did not assume any liability” for the class action suit launched four years earlier.
The suit, which made it all the way to the Supreme Court of Canada, alleged MEU practices of charging late penalties and calculating interest contravened the Criminal Code. After the Supreme Court twice ruled in favour of the plaintiff, a tentative settlement totalling $18,382,125 was reached.
“Based on information provided by the MEUs on the amount of late payment penalties and interest charged and the method of calculating same, the Township of Mapleton is responsible for a portion of the settlement,” Sinnamon said in a report to council.
Mapleton’s portion of the settlement is $1,795 – or less than 100th of one percent.
“The settlement appears to be reasonable in the circumstances and has a nominal affect on the [township],” said Sinnamon, who added she discussed the matter with other MEUs.
Councillor Mike Downey asked from where the money comes to cover Mapleton’s portion of the settlement. Sinnamon replied it would come from Drayton reserves, since that is where the money from selling the utility went in the first place.
Council unanimously approved a resolution to accept the settlement, pay the $1,795 and “obtain a full and final release” on behalf of the township.
