Lawsuit ‘extremely puzzling’

A Lynn Lake councillor and the town’s fire chief say they learned from the media that they had been named as plaintiffs in a lawsuit filed by their insurance company against a gold mining firm in relation to last spring’s wildfire.

Coun. Eugene Shin and his wife Ashtyn, as well as fire chief Paul Grimmer, are named as plaintiffs in a lawsuit filed against Alamos Gold Inc. in the Manitoba Court of King’s Bench this month.

Shin and Grimmer say the suit was initiated by Optimum Insurance, without their knowledge.

“It is extremely puzzling,” said Shin, who added they did not instruct anyone to start the legal proceeding.

The lawsuit does not mention the insurance company, but one of the lawyers who filed the claim, Brent Ross, confirmed Tuesday it was filed on behalf of an insurer connected to the plaintiffs.

Erik Knutsen, a law professor at Queen’s University, said insurance firms frequently file such claims, in which plaintiffs are named without their knowledge, through a process known as subrogation.

Insurers file subrogated claim lawsuits to recover money paid out to policy holders following insurance claims, in cases in which the insurance company believes the losses were the result of another’s wrongdoing, said Knutsen, an expert on Canadian insurance law.

Shin said he assumes the five other property owners named as plaintiffs in the lawsuit — who the claim says incurred costs from being evacuated during the wildfire — were also unaware they were named in the court filing.

Shin said he and his wife got a per-day payout from the insurance company to cover expenses while they were evacuated.

The insurance company’s lawsuit also seeks money in relation to damages to the fire chief’s cottage at Burge Lake. He was unaware of the litigation filed in his name.

Shin said the lawsuit has “already caused confusion” in the community and noted Alamos is a key economic partner and employer. It operates MacLellan gold mining site located about 7.5 kilometres northeast of Lynn Lake.

“As a councillor for the town as well, we’re working very closely (with Alamos) to build a future up here.”

He said Alamos has “been phenomenal in terms of the recovery efforts here.”

“As a councillor for the town as well, we’re working very closely (with Alamos) to build a future up here,” said Shin. “They’ve invested heavily… they’re donating tremendously to the community effort’s of developing its infrastructure as well.”

He said the mining company is buying a fire truck for Lynn Lake, among its various other efforts following last year’s fire.

The northern town was evacuated in late May 2025 after a wildfire encroached on it.

Provincial conservation officials who investigated the wildfire alleged in search warrant documents last year that the blaze began May 7, 2025, after a permitted controlled burn pile reignited at the company’s mine site near Lynn Lake.

The insurance company’s lawsuit accuses Alamos of negligence or of being strictly liable for damages.

The government said Monday the fire is still being investigated.

Knutsen said the vast majority of negligence lawsuits filed in Canada on behalf of individuals are subrogated claims in which insurance companies seek money paid out to the named plaintiff from the defendant’s insurer.

“It’s a very odd thing about Canadian law that we essentially are using the tort system, a negligence lawsuit, to basically help move money for the insurance world.”

“Most people would not expect this, it’s a very odd thing about Canadian law that we essentially are using the tort system, a negligence lawsuit, to basically help move money for the insurance world, and it isn’t clear to most people,” said Knutsen.

An insurance company once filed a claim in his name against the City of Kingston over flood damage to his home, said the professor, putting him in an awkward position.

“I have a great deal of sympathy for the plaintiffs (in the Alamos case) — it’s very surprising,” said Knutsen.

Alamos has yet to respond to the claim in court.

erik.pindera@freepress.mb.ca