A class-action lawsuit in relation to the flooding of Mud Lake near Happy Valley-Goose Bay has cleared one hurdle but run into another.

  In May 2017, residents of the tiny community had to evacuate after the Churchill River flooded homes and property.

  John Chiasson had filed a claim against both Nalcor and the provincial government, pointing to the development of Muskrat Falls as the cause of the flood.

  The Court of Appeal has ruled that while the claim against Nalcor can proceed, the case against the provincial government has little chance of success.