American Iron & Metal takes province to court over scrapyard licence being revoked

American Iron & Metal is taking the province to court over its salvage dealer licence being revoked at its Saint John harbourfront scrapyard.

The company has filed a request for a judicial review with the Court of King's Bench.

Public Safety Minister Kris Austin revoked AIM's salvage dealer licence on Dec. 29, based on the joint provincial-Port Saint John task force investigation into the massive fire that erupted at the site on Sept. 14.

The task force concluded future fires at the scrapyard are likely, and a "catastrophic" fire could happen again. It also found that AIM's waterfront location, not far from hundreds of west side homes, is "entirely inappropriate given its now known hazards and risks."

"As minister responsible, I am not convinced that AIM has adequately addressed these serious concerns," Austin said at the time. "As such, it is clear to me that it is in the public interest to revoke their licence."

In court documents filed Wednesday, AIM argues the decision to revoke for an indefinite period was "unreasonable," when a narrower order would have been sufficient, and wants a judge to quash it.

The company alleges Austin exceeded his jurisdiction under the Salvage Dealers Licensing Act and breached his duty of procedural fairness by failing to consider AIM's submissions on why a revocation was "unnecessary."

It also claims he failed to act in an unbiased manner by relying on the task force, which AIM alleges did not have statutory or regulatory authority to make any factual finding.

The matter should have been investigated by the Department of Environment and Local Government, which has jurisdiction over the facility, the company argues. But neither the Department of Environment nor the Department of Public Safety had representatives on the task force.

Instead, three of six members were from the port, which AIM alleges was in a conflict position as the company's landlord, who, shortly before the fire, had urged AIM to consider relocating "for the purpose of allowing another industrial tenant to take over the property," according to the documents. AIM told the port it wasn't interested in moving.

Seeking costs

The task force's findings were "highly prejudicial," AIM argues. The report made repeated references to "explosions" and to WorkSafeNB compliance issues, including two workplace fatalities, "which were immaterial to the incident."

It also claims the task force did not consider all relevant evidence, including the fact that the province considered, or ought to have considered, the risks associated with the facility and its location when it first issued the licence.

None of the allegations have been proven in court.

AIM is seeking costs and any other relief the court deems just and reasonable.

It notes the Gateway Street facility generated $10.2 million worth of labour income, more than 200 jobs from direct and supply chain impacts across the province, and $3.8 million in tax revenue in 2017 alone. "These socio-economic benefits increased from 2018 to 2023," the notice of application states, although no other figures are provided.

Fredericton lawyer Romain Viel, who is representing AIM, did not respond to a request for comment Thursday. 

The province has not yet filed a response.

American Iron & Metal is also fighting the environment minister's decision to suspend its approval to operate following the fire.

On Sept. 19, Environment Minister Gary Crossman suspended AIM's approval to operate because he was "of the opinion that there was an unauthorized release of contaminants in contravention of Section 17" of the Clean Air Act.

Operations have remained suspended since then.

The company wants a judge to quash that decision too.

Group asks city to prepare for possibility AIM will resume operations

 A community group in Saint John is calling on the city to prepare for the possibility American Iron & Metal will resume operations at its waterfront scrapyard, pending the outcome of the legal action by the company.

Liveable Saint John wants the city to take a leadership role in gathering data on AIM's health and environmental impacts on the community, including testing soil for contaminants following the fire.  

It also wants the city to push for more stringent regulations, revisit Saint John Energy's agreement to provide power to AIM and any possible liability involved, and develop a relocation and remediation plan.

"We feel that the city is in a unique position because they are not a regulator," or a landlord, member Raven Blue told the city's public safety committee during a presentation Wednesday night.

I think any return to business as usual, or business close to as usual on the AIM site, is a failure of government at every level.- David Hickey, Saint John city councillor

Meanwhile, the province, which is the regulator, is in the middle of legal action he said, and Port Saint John is the landlord.

"Some of these are big asks, some of them are small asks," Blue said. "But we think these are things that can really help to move this file along to the public."

Coun. David Hickey, who chairs the committee, said he's been pleased with the city's advocacy on the file to date, citing four letters and numerous meetings with provincial officials about closing AIM since 2018.

"I think any return to business as usual, or business close to as usual on the AIM site, is a failure of government at every level," he said.

AIM deadline to seek judicial review extended

Liveable Saint John believes there are three possible outcomes: AIM could close its waterfront facility, it could relocate, or it could resume operations "in some way," said Blue.

But it's difficult to say what will happen because "there's complex jurisdictional things going on; the wheels are turning legally."

Even if AIM succeeds in getting the Department of Environment suspension lifted, its salvage dealer licence for the port site remains revoked and operations remain suspended, according to Public Safety spokesperson Allan Dearing.

"A salvage dealer licence is required and must be obtained from the Department of Justice and Public Safety when a person owns or operates a salvage yard where salvage is stored or carries on the business of buying or selling salvage in the province," he said in an emailed statement to CBC News.

"An approval to operate issued by the Department of Environment and Local Government is related to ensuring that conditions for safe operation of a facility defined from an environmental impact assessment are followed."

Still, Liveable Saint John is urging the city to consider all of the possible outcomes and what it can do to "bring us to the best possible outcome," said Blue.

Impacts on properties, health

The group wants to be proactive, fellow member Bryan Wilson told CBC.

It has been gathering the views of residents through public meetings and an online survey, and shared its findings with the committee Wednesday.

"People talked about not having the ability to simply just enjoy their yard," or open their windows, because of the dust or noise, said Wilson.

One woman said she moved because of the noise, while some people said they were afraid to speak out for fear it would hurt their ability to sell their homes or affect their property values, he said.

Of the roughly 50 respondents, nearly half said AIM's operations have affected their physical health and nearly half said their mental health has been impacted, Blue told the committee.

Complaints ranged from respiratory illness to lost sleep, anxiety and depression, he said.

"And a lot of people feel that there's been reputational damage to the city."

Coun. Barry Ogden said his home overlooks the harbour and AIM. "I see it every day and can smell anything coming from it and can hear everything coming from it," he said.

"So I would encourage you to keep up your advocacy."

The committee unanimously approved a motion to have city staff report back on the group's recommendations.