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Lawsuit against Rossland politicians settled

A $1 million lawsuit brought by a local businessman against five current and former members of Rossland city council has been settled out of court.

Warren Hamm said in an email that an agreement was reached following mediation in Vancouver on Sept. 22. However, details of the negotiations are covered by a non-disclosure agreement.

“We are pleased that this matter has been resolved fairly and expeditiously,” Hamm said. “This outcome affirms the importance of transparent and lawful decision-making in public service, and we look forward to continuing our contributions to Rossland’s growth and development.”

The case, which had been scheduled to go to trial in March 2026, was officially dismissed on Oct. 15 by consent. Each party is required to pay its own costs.

Hamm is the principal of three companies that started the action in 2023 against current mayor Andy Morel, former mayor Kathy Moore, current councillor Stewart Spooner, and former councillors Dirk Lewis and Terry Miller.

All five objected to granting permits to Hamm to log properties he owns. Hamm subsequently sued the City of Rossland and a judge found council acted in bad faith by denying the permits and immediately adopting a beefed-up tree management bylaw.

Hamm then filed another suit naming the five council members, alleging they intended to hurt him financially and breached their duty to act fairly.

However, the five insisted they did nothing wrong. In their joint statement of defence, they said they acted in good faith, “guided by the interests of the community as reflected in the official community plan,” when they voted against granting the permits.

Morel confirmed the case has been resolved but said he wasn’t able to provide any other comment.

The City of Rossland was not named as a defendant in the latest suit, and it has never been clear if the city was picking up part or all of the legal tab. The city’s indemnification bylaw doesn’t explicitly state whether the municipality assumes legal costs for people who no longer hold public office, or in cases where the city is not a co-defendant.

However, the statement of defence was filed by Victoria law firm Stewart McDannold Stuart, which routinely provides legal services to local governments.

Neither Morel nor city manager Bryan Teasdale replied this week when asked how much the city spent on legal fees. Teasdale said the city had no comment on the case.

Vista Radio has filed a freedom of information request to learn what amount, if any, the city paid.

The full statement of claim is here: Hammerhead Equities et al V Individual Councillors. The full statement of defence here: Response to Civil Claim Rossland. The consent order ending the suit is here: Consent Order.

Greg Nesteroff
Greg Nesteroff
Greg has been working in West Kootenay news media off and on since 1998. When he's not on the air, he's busy writing about local history. He has recently published a book about the man who founded the ghost town of Sandon.

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