The second stage of the test requires the court to ensure that the law does not create the spectre of unlimited liability to an unlimited class. It is at this stage that I must consider applicable legislation to determine whether it imposes an obligation on the City or if it provides an exemption from liability, and I must also analyze whether the City is exempt from liability on the ground that its actions constituted a policy decision (Just v. British Columbia 1989 CanLII 16 (SCC), [1989] S.C.J. No. 121 (at para. 13)). The law is settled that government actors are not liable in negligence for policy decisions but only operational decisions. Liability is excluded under the second part of the Anns test because it is inappropriate for courts to second-guess legislators on policy matters.
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