Question 1 It was the worst fire in the history of Welland. At 1:00 a.m. on August 1, 2023, 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 August 3,2023 , the entire commercial district of 38 buildings was destroyed. Andrea owned the building and operated a coffee shop 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 has determined: 1. The fire originated at an unfenced, unlocked, and unused shed of the Home Depot lumberyard at 1 Main Street. Further, it was determined that the fire started either: (i) by the spontaneous combustion of the 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 lumberyard by 1:20 a.m. It had 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. 5. The City inspected the Home Deport lumberyard at 1 Main Street on June 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 June 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. Andrea was aware of the fire on August 1, 2023 (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, Andrea developed a severe phobia of sirens given their connections 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 severe mental anguish. Andrea.

1. Question 1 It was the worst fire in the history of Welland. At 1:00 a.m. on August 1, 2023, 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 August 3,2023 , the entire
commercial district of 38 buildings was destroyed. Andrea owned the building and operated a
coffee shop 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 has determined: 1. The fire
originated at an unfenced, unlocked, and unused shed of the Home Depot lumberyard at 1 Main
Street. Further, it was determined that the fire started either: (i) by the spontaneous combustion
of the 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 lumberyard
by 1:20 a.m. It had 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.
5. The City inspected the Home Deport lumberyard at 1 Main Street on June 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 June 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. Andrea was aware of the fire on August 1, 2023 (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, Andrea developed
a severe phobia of sirens given their connections 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

2. severe mental anguish. Andrea calls Bill and tells him that she considers him responsible for her
losses. Bill denies responsibility and tells Andrea 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 call, Bill starts to tell other business owners in Welland's commercial district that
Andrea is a bad 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 contract for coffee
services they have with Andrea. Andrea wishes to commence a legal action against any parties
that might be responsible and would be obligated to compensate her. Required: Discuss the
potential actions that Andrea 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.