New $75M lawsuit claims city conspired to dump contaminated soil on land with mob ties - Action News
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Hamilton

New $75M lawsuit claims city conspired to dump contaminated soil on land with mob ties

The city says it's checked and can't find evidence that this happened.

The city says it's checked and can't find evidence that this happened

A new lawsuit alleges the city hauled contaminated dirt from the Woodward Wastewater Treatment Plant to a property in Flamborough. The city says it's looked into it and has no evidence of this. (Samantha Craggs/CBC)

Anew $75-millionlawsuit filed in Hamilton court alleges that city officials conspired with people with mafia ties todump contaminated dirt in rural Flamborough.

A lawsuit filed by Waterdown Garden Supplies, a Troy company owned by Gary McHaleof Binbrook, names the city, a bylaw enforcement officer and a construction manager.

In the suit, McHale and others allege that the city shipped more than 1,000 loads of industrial soil from the Woodward Wastewater Treatment Plant, which is getting a $340-million upgrade right now.The soil, the suit says, is contaminated by boron, cadmium, mercury and benzo(a)pyrene.

The suit also alleges the city shipped more than 1,000 loads of heavily contaminated soil from a Governors Road site in Dundas. That soil, it says, is contaminated with zinc, petroleum hydrocarbons, and Tetrachloroethylene.

None of the claims have been tested in court. City spokesperson Matthew Grant says the city has reviewed its records around soil haulage and can't find any evidence that this happened. It's asked the plaintiffs for evidence, he said, and they haven't given any either.

Gary McHale is president of Waterdown Garden Supplies, but says he can't access his own property. ((CBC))

Nevertheless, "the city has taken the precautionary measure of placing the staff members to take a paid leave while the city investigates the allegations," he said in an email.

The suit, filed byMcHale, Waterdown Gardens Supplies and 2593860 Ontario Inc.,saysthe city sent dirtto a Highway 5 property owned by McHale but controlled by Havana Group Supplies, whichhas links to"Hamilton crime boss" Pat Musitano.

In 2018, the suit says, Musitano and two others with Havana Group Supplies "conspired with City of Hamilton employees to illegally dump contaminated soil at Waterdown."

One employee covered up the dumping, the suit says, and gave Havana Group Supplies a heads up when bylaw officers would visit the site.

The claim also says the city fined Waterdown Garden Supplies $100,000 while also dumping dirt there.

McHale and his two fellow plaintiffs allege two city staffers personally gained from the arrangement.

The three parties are asking for $10 million for the dumping of soil and "malfeasance of public office," $5 million for the loss of their business and $6 million for loss of use of the property.

The suit also claimsMcHale's charter rights were violated, and he's asking for $1 million so he cancomply with environmental standards.

The first mortgage holder on the property,2593860 Ontario Inc., is asking for $3 million. Additionally, the suit asks for $50 million in aggravated, exemplary and punitive damages.

Grant says the city received the statement of claim on Wednesday. Waterdown Garden Supplies first approached the city in the fall with allegations about the dirt dumping, and "alleged the involvement of city staff," he said in an email.

"At that time, the city encouraged the representatives to provide any evidence they had to city staff, the police, and/or the city's fraud and waste hotline," he said."This was not done to the city's knowledge."

The city reviewed its records and receipts related to third-party soil haulage from the two sites and "found no evidence that contracted haulers took contaminated soils to non-permitted sites," he said.

"The city would encourage anyone with evidence of wrongdoing of any kind in any matter to take their concerns and evidence to the city's fraud and waste hotline and the Hamilton Police Service."

Toronto lawyer Daniel Ciarabellini is representing the plaintiffs.