The Ontario Superior Court of Justice decision in Egan v. National Research Council of Canada, 2026 ONSC 1429, is a landmark in Canadian environmental class action law. For the first time, punitive damages have been certified as a common issue against the federal government in a PFAS (“forever chemical”) drinking water contamination class action, based on the government’s delay in notifying residents of potential contamination.
The claim for punitive damages is for $2 million and is distinct from the separate $40 million claim for compensation related to the diminution in class members’ property value due to the stigma associated with PFAS contamination in their drinking water.
Legal Context and Procedural History
The plaintiffs allege that the National Research Council of Canada (NRC) failed to warn residents about PFAS contamination risks to their properties and drinking water. They claim the NRC knew, or ought to have known, of the risk as early as March 2013, but did not notify residents until December 2015— making this 2.5-year delay a basis for punitive damages.
Initially, the court declined to certify punitive damages due to insufficient evidence of deliberate delay. However, the Certification Order (2021 ONSC 4561) allowed for amendment if further evidence emerged:
“If evidence is discovered that NRC knew and failed to advise the proposed class members of possible contamination of their drinking water by toxic PFAS compounds for approximately 2 years, then it is not plain and obvious that they would not be successful on such a claim. The claim is premature at this time and if such evidence is discovered, the pleadings could be amended.” (para 43)