It was the wIt was the worst fire in the history of Welland. At $1$:$00$ a$.$m$.$ on January $1,2024,$ a fire

started at a Home Depot lumberyard located at $1$ Main Street. The fire eventually spread

to Welland's commercial district. By the time it was extinguished on January $3,2024,$ the

entire commercial district of $38$ buildings was destroyed.

Cleo owned the building and operated a bookstore at $52$ Main Street, approximately

$1,200$ metres from where the fire started. She estimates that her losses total $$1,500,000,$

consisting of the building value of $$1,000,000$ and book inventory of a retail value of

$$500,000.$

The fire inspector determined:

$1.$ The fire originated at an unfenced, unlocked, and unused shed at the Home Depot

lumberyard at $1$ Main Street. Further, it was determined that the fire started either:

$($i$)$ by the combustion of old paint$/$solvent products stored in the shed, or

$($ii$)$ by careless smoking or intentional action which ignited the solvents.

$2.$ Bill, the owner of the Home Depot lumberyard at $1$ Main Street knew that the shed

was frequented by an employee, Drew, during his break, and at times saw Drew

smoking. Bill knew that the sorst fire in the history of Welland. At $1$:$00$ a$.$m$.$ on January $1,2024,$ a fire

started at a Home Depot lumberyard located at $1$ Main Street. The fire eventually spread

to Welland's commercial district. By the time it was extinguished on January $3,2024,$ the

entire commercial district of $38$ buildings was destroyed.

Cleo owned the building and operated a bookstore at $52$ Main Street, approximately

$1,200$ metres from where the fire started. She estimates that her losses total $$1,500,000,$

consisting of the building value of $$1,000,000$ and book inventory of a retail value of

$$500,000.$

The fire inspector determined:

$1.$ The fire originated at an unfenced, unlocked, and unused shed at the Home Depot

lumberyard at $1$ Main Street. Further, it was determined that the fire started either:

$($i$)$ by the combustion of old paint$/$solvent products stored in the shed, or

$($ii$)$ by careless smoking or intentional action which ignited the solvents.

$2.$ Bill, the owner of the Home Depot lumberyard at $1$ Main Street knew that the shed

was frequented by an employee, Drew, during his break, and at times saw Drew

smoking. Bill knew that the shed was also frequented by teenagers and

transients. Bill had stopped locking the shed since there was nothing of value

stored there and it had been broken into numerous times.

$3.$ The fire started at approximately $1$:$00$ a$.$m$.$ and spread to the Home Depot

lumberyard by $1$:$20$ a$.$m$.$ It spread to the adjoining building at $3$ Main Street by $1$:$30$

a$.$m$.$ Patrons of a bar across the street noticed the smoke and called $9-1-1$ at $1$:$15$

a$.$m$.$

$4.$ Main Street recently was converted from a one$-$way street to two$-$way traffic. The

$9-1-1$ dispatcher was not aware of the change and directed the fire trucks on an

alternate route, resulting in a delayed response. Firefighters arrived at $1$:$45$ a$.$m$.$

$2$

$5.$ The City inspected the Home Deport lumberyard at $1$ Main Street on December $1,$

$2023,$ discovered that there was no alarm or sprinkler system and ordered Bill to

clean up the property and to install the systems by December $7,2023,$ or be

prosecuted under the City's bylaws. No work had been done and the City had not

reinspected or commenced prosecution.

$6.$ The firefighters initially attempted to extinguish the fire in the buildings located at $1$

and $3$ Main Street rather than attempt to prevent the fire from spreading to the

adjoining buildings. Fire Departments from adjacent cities were not called for

assistance until the fire had spread to both sides of Main Street.

$7.$ Cleo was aware of the fire on January $1,2024($as was the rest of the City$),$ but

assumed that it would be confined to the vicinity of the lumberyard at $1$ Main

Street. She took no steps to protect her premises or remove any inventory.

Following the incident, Cleo developed a severe phobia of sirens given their connection to

the fire that destroyed her business. She does not leave her house due to the fear that

she may hear sirens out in public, which causes her extreme mental anguish.

Cleo calls Bill and tells him that she considers him responsible for her losses. Bill denies

responsibility and tells Cleo it is her fault for not removing the contents once the fire

started. He also blames the fire department for not responding or acting properly.

After their heated call, Bill starts to tell other business owners in Welland's commercial

district that Cleo is a terrible business owner that does not properly run her business. Bill

has even gone as far as to offer a discount on Home Depot supplies to others if they

cancel any contracts they may have with Cleo's business.

Cleo wishes to commence a legal action and sue Bill.

Required: Discuss the potential actions that Cleo should consider, the issues which will

be raised as part of the legal actions, and the likely result. Be certain to explain the

applicable legal principles as part of your answer.