A non-profit forest school located near Perth has successfully had a lawsuit filed against them by their local government dismissed with prejudice.
Tay Valley Township’s legal action against Blueberry Creek Forest School and Nature Centre was dropped in August, marking the end of another chapter in the ongoing dispute between the organization and the municipality, as reported in an April 2026 piece by the Whig-Standard.
In June 2025, the township informed Robyn Mulcahy, founder of the forest school situated just outside Perth, that they were being sued for renting out their main building on Airbnb during periods when they weren’t conducting forest school sessions.
The building – which functioned as a bed and breakfast before Mulcahy acquired it – serves as an educational space from Monday to Friday for over 50 children who participate in this not-for-profit outdoor learning program alongside their regular schooling, whether it’s through public, Catholic or private schools in the area or homeschooling.
During off-season times, the building is rented out for short stays to generate funds necessary for running the not-for-profit organization.
In April 2026, representatives from both Tay Valley Township and Mulcahy, along with her husband Scott Reid-who serves as a member of Parliament-attended a hearing at the Superior Court of Justice in Perth concerning this lawsuit. Justice Brian Abrams listened to arguments presented by both sides.
The township argued that the property did not fit its definition of a hotel – defined as “an establishment containing four or more guest rooms served by a common entrance. Accessory uses may include dining rooms, meeting rooms and similar uses” – but rather categorized it as a lodge or cabin. Such facilities were prohibited on Mulcahy’s property due to a floodplain designation that was only applied after she purchased it.
During this hearing, Justice Brian Abrams noted significant confusion surrounding how Tay Valley defines hotel, cabin, and lodge.
Blueberry Creek contended that their Commercial C zoning indeed satisfied the bylaw’s criteria for “hotel,” making their use of Airbnb permissible.
Robyn Mulcahy stands in one of the upstairs bedrooms in the building that houses Blueberry Creek Forest School and Nature Centre near Perth. The building operates as an Airbnb rental on weekends to help fund weekday not-for-profit supplementary education programs for kids. She’s pictured on Wednesday, April 15, 2026. Meghan Balogh / The Kingston Whig-Standard
On Aug. 18, an order signed by Justice Abrams from Ontario Superior Court dismissed the case with prejudice and mandated that Tay Valley pay Mulcahy $25,000 in legal costs. The township requested this dismissal.
“On further review, the Township made the decision not to proceed with litigation,” stated a press release from Aug. 19. “The Township continues to disagree with this interpretation of the By-Law. If the Court were to agree with the property owner’s interpretation of the By-Law, it would mean that Air Bn B is legal based on existing zoning at that location.”
“However, many short-term rentals within Tay Valley operate under zones where hotels aren’t allowed. The Township worries that accepting this argument could jeopardize hundreds of other rental properties across Tay Valley.”
Township staff declined to provide any further comments regarding this case.
Mulcahy expressed her relief about having received a favorable ruling but mentioned that Tay Valley’s withdrawal from litigation felt insufficient compensation after such long disputes.
“I feel like it should have never happened at all,” said Mulcahy. “The $25,000 merely covers legal expenses; it doesn’t compensate for those 15 months spent under threat of lawsuits or having Blueberry Creek constantly at risk along with our operating budget.”
Although it’s been Tay Valley’s first formal lawsuit against her forest school so far, they’ve issued multiple threats over eight years.
“Three times before they’ve sent us letters threatening court action,” she recalled. “They never followed through.”
Mulcahy has seen strong support from both her school community and broader public following these events.
“Currently there’s widespread sentiment that none of this should have occurred,” she stated. “With those currently running things at town hall, I won’t ever feel safe regarding Blueberry Creek.”
She noted several individuals within Tay Valley have reached out expressing both support and disbelief over what transpired.
For years now Mulcahy has kept records documenting her ongoing struggles with local authorities; filing multiple freedom-of-information requests resulted in hundreds of pages revealing discussions between township employees and an independent planner hired specifically to alter definitions regarding schools in local bylaws so that “the Blueberry Creek school would be covered under this definition.”
While she and Reid have invested nearly $500K fighting against Tay Valley for their right to operate their non-profit center successfully throughout these challenges; taxpayer money has also gone into opposing them directly.”
As reported by Whig back in April , Reid found documents via freedom-of-information requests showing Ta y Valley spent $66K trying unsuccessfully blocking document releases linked to conflicts involving Blueberry Creek. p>
“I can hardly believe how far some townships will go just trying year after year hurting nonprofit children’s centers,” she expressed incredulously. “It feels surreal.” p >
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