Village of Lytton files lawsuits over 2021 wildfire

The Village of Lytton has filed a lawsuit against its insurer and, along with the local regional district, another against CN Rail, CP Rail, and Transport Canada.

Both lawsuits have not been served to the defendants but could be used in future to realize compensation for the 2021 fire that destroyed the village, according to the village.

The suits, one filed in B.C. Supreme Court on June 16 and the other filed on June 23, are being used as placeholders should the village require legal action in the future to cover the losses sustained in the fire.

"The Village of Lytton has no current intention to pursue this lawsuit and has not served MIABC at this time," it said in a statement on Thursday about the June 23 suit, which names the Municipal Insurance Association of British Columbia (MIABC) as the defendant.

"MIABC is aware and supportive of the Village filing this Notice of Civil Claim."

The statute of limitation, or expiry date to bring claims such as this, is two years, which means the paperwork needed to be filed before June 30, 2023, to extend the timeline.

The suits detail the devastation wrought by the fast-moving fire, and one of them establishes an argument over how negligence could have played a role in the destruction of Lytton. The other outlines a requirement for the insurer to fulfil the obligations of a property insurance policy purchased by the village in December 2020.

The civil suit filed in B.C. Supreme Court on June 16 was actually submitted by MIABC on behalf of the village and the Thompson-Nicola Regional District and says the rail companies and the federal regulator breached their duty of care to the Fraser Canyon village just before the fire on June 30, 2021.

Hundreds of people living in and around the village had to leave that day in the community 260 kilometres northeast of Vancouver, and two people died. More than 90 per cent of the village was charred.

While the devastating fire was suspected to have been caused by humans, the Transportation Safety Board (TSB) did not find evidence linking nearby train activity to the fire.

However, with rebuilding progress slow even two years later, the village and the regional district are seeking costs and damages from the rail companies and Transport Canada. The costs to rebuild the village have ballooned over a hundred million dollars.

"On June 30, 2021, despite the extreme weather conditions, current wildfire risk and the ongoing wildfires in the area, both CP Rail and CN Rail continued railway operations in the area of the village," reads the lawsuit.

The lawsuit states that a train travelled through the village 18 minutes before the fire sparked at 4:48 p.m. on June 30. 

CP either owned or operated the train, which was operated by CN crews, according to the lawsuit. The TSB had previously found the fire started "within five feet" of the railway track, which runs right through the community.

The lawsuit alleges that, among other things, the train companies did not monitor the weather conditions — with a historic heat wave causing an "extreme" fire risk — and failed to ensure that appropriate fire prevention safeguards were in place.

It also contends that Transport Canada failed the village by not ordering CP and CN to stop the trains on that day and that they ought to have known it was unsafe to operate.

None of the allegations have been proven in court. 

The Thompson-Nicola Regional District says in a statement the notice of civil claim has not yet been served on the defendants, and the lawsuit cannot progress until the defendants have been served.

The district says that the claim was filed with the court registry by the Village of Lytton's property insurance company and the TNRD. According to the district, if evidence comes to light that an at-fault party caused the fire, the insurer would have the legal right to recover costs from the at-fault parties.

CBC News has reached out to the defendants for comment. Only CP Rail and Transport Canada responded, both declining to comment on the matter at this time.

"Transport Canada reiterates that the safety and security of Canada's transportation network, including our railway system, remains of the utmost importance to the department," wrote a spokesperson for Transport Canada.

Cause still unclear

The cause of the 2021 Lytton fire has not been conclusively determined two years later.

Locals alleged sparks flying from the nearby railway likely ignited bone-dry terrain, made prone to fire by the extreme heat wave that week.

A proposed class-action lawsuit against CP and CN from village residents remains before the B.C. Supreme Court as of publication time.

While the village and regional district did not list exact dollar figures as they seek damages from the three defendants, the Insurance Bureau of Canada says the damages likely total up to $102 million.