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The Ontario Court of the Drainage Referee has decided that Ontario’s Drainage Act, 1990, applies to federal railways, and—like all landowners—they must pay the cost of municipal drainage work apportioned to their property. The decision comes from litigation between the Municipality of Chatham-Kent, the Canadian Pacific Railway (CP), and the Rural Ontario Municipal Association (ROMA), which was granted status as a legal intervenor.
While Ontario’s Drainage Act now legislates landowner responsibility for the cost of maintaining these systems, over the last several years, federally regulated railways have not paid their share. Before this ruling, the stated reason was that they were not subject to doing so in provincial legislation. This has left municipalities relying on their property tax base to cover the costs of railway maintenance and upkeep.
Based on ROMA’s 2023 research, unpaid maintenance costs from CP and other railways are more than $500,000. Unpaid capital construction projects are more than $1 million, and about $1.7 million in construction projects have been delayed due to a lack of cooperation by railway companies.
While it is likely that CP will appeal the ruling, the decision provides a basis for municipalities to collect outstanding costs under any existing bylaws.