Can a municipality be held liable for damage caused by negligence in the sewerage system?

Section 517 of the Local Government Act conferred the power on the defendant to operate a municipal sewer system. It chose to do so, and so acquired a duty of care towards those who, in the reasonable contemplation of the municipality, might be damaged by carelessness on its part. A municipality is only liable for damage caused by negligence at the operational level or for damage caused as a result of a policy decision taken in bad faith or irrationally. Where the damage results from a policy decision taken bona fide, there is no liability. A policy decision may be made at the highest level, as in the decision to exercise a power. It may also be made at a lower level (a secondary policy decision). It is the nature of the decision, not the decision-maker that determines whether it is a policy decision. Typically, policy decisions involve social political or economic considerations. The operational area is concerned with the practical implementation of policies, and these decisions are made with reference to expert opinion, technical standards, and general standards of reasonableness. (Brown v. British Columbia (1994) 1994 CanLII 121 (SCC), 89 B.C.L.R. (2d) 1 (S.C.C.)).