A class action lawsuit filed against the Municipality of Chatham-Kent related to the Wheatley gas explosion has been dropped, allowing the community to continue focusing on rebuilding and recovery, Municipal officials say.
Since the incident in August 2021, the Province provided significant funding of more than $8-million in support for affected residents and businesses, and in total provided over $30-million towards those costs and in support of the municipal investigation and well capping work at the site.
The Municipality extends its gratitude to the Province for its strong partnership and commitment to Wheatley throughout this challenging period.
Affected property owners in the primary evacuation area were also compensated for the sale of their buildings and properties at freely negotiated prices.
This step has been critical in ensuring residents and businesses have the support needed to move forward with security and confidence, Municipal officials say.
As part of the lawsuit, the Municipality was required to pay its insurance deductible of $250,000.
The remainder of the legal defence costs were covered by the Municipality’s insurance provider.
Under the terms of the policy, the insurance company may seek to recover those costs.
Decisions on whether to pursue recovery are made by the insurer, not by Municipal Council or administration.
At the August 25, 2025, Council meeting, Councillors Melissa Harrigan and Lauren Anderson brought forward a motion requesting that the Municipality inform its insurance company not to seek recovery of the deductible from the representative plaintiffs in the class action.
However, the insurer may still pursue recovery of other amounts it paid.
Municipal staff will be gathering additional information from the insurer and will provide Council with an update.
“We are relieved that this matter has been resolved and that the community can move forward,” said Councillor Harrigan, in a media release.
“The focus can now remain on supporting Wheatley’s recovery, rather than on a lengthy legal process. We are extremely grateful to the Province of Ontario for its partnership and the funding it provided to support residents, businesses, and mitigation work.”
“The people of Wheatley have shown incredible resilience throughout this ordeal. I am very pleased that Council supported our motion to ensure the Municipality will not seek to recover its deductible from the representative plaintiffs,” said Councillor Anderson, in a media release.
“This outcome allows us to focus on what matters most: supporting the community and continuing the journey towards recovery and revitalization.”
While ongoing monitoring remains necessary, the gas issue is now stable.
Planning is underway to transform the property where the event occurred into a community park, which will play a key role in Wheatley’s future growth.
The Municipality remains committed to supporting Wheatley residents and businesses as recovery efforts continue.
Plans for future developments in Wheatley can be found here: www.letstalkchatham-kent.ca/wheatley-updates.
