Law360 Canada ( January 14, 2026, 9:11 AM EST) -- Appeal by the Corporation of the City of Hamilton (City) from the trial judgment awarding damages and injunctive relief to National Steel Car Limited (National). National’s property was periodically flooded for over 20 years due to wastewater overflow from the adjacent Kenilworth Avenue Drainage Channel (Channel), which was jointly owned by the City and ArcelorMittal Dofasco Inc. (AMD). Both owners ceased maintaining their portions of the Channel, resulting in sediment buildup and obstruction. During heavy rainstorms, excess wastewater from the City’s sewer system was diverted into the Channel, which, due to the obstructions, overflowed onto National’s property. National sued the City, AMD and the Hamilton Port Authority, seeking damages and injunctive relief. The trial judge found the City and AMD liable in nuisance, negligence and under the rule in Rylands v. Fletcher. He awarded National $5.3 million in compensatory damages, split equally between the City and AMD, and punitive damages of $400,000 against the City and $500,000 against AMD. A permanent injunction was also granted requiring both defendants to remediate and maintain their portions of the Channel. On appeal, the City challenged only the remedies, arguing that liability should have been apportioned unequally, that the trial judge erred by not finding that National failed to mitigate its damages, that punitive damages were unwarranted or excessive, and that the injunction’s wording was overly broad and should be varied....