Flames consume motor homes at the Hazelmere trailer park after a hot air balloon its basket engulfed in flames, crashed there shortly after takeoff on Aug. 24, 2007. Flames consume motor homes at the Hazelmere trailer park after a hot air balloon its basket engulfed in flames, crashed there shortly after takeoff on Aug. 24, 2007. (Don Randall/AP/Canadian Press)

A lawsuit has been launched in connection with the August 2007 hot-air balloon crash that killed two people, injured 11 others and burned down several mobile homes in Surrey, B.C.

The B.C. Supreme Court lawsuit launched by the mobile home owners blames SRP Adventure Tours, pilot Stephen Pennock and the Attorney General of Canada.

The hot-air balloon carrying 13 people caught fire mid-flight and came crashing down into the Hazelmere trailer park on Aug. 24, 2007.

The burning balloon and basket landed on the homes of Paul Pecton, Arlene and Dean Mullin, Roland Belanger, Bruce Allen and Justin Wyler. Most of the homes were destroyed.

The lawsuit claims the pilot wasn't properly trained, modifications had been made to the balloon that weren't approved by the manufacturer, and proper government inspection had not been conducted.

"The accident occurred as a result of the fault, negligence and/or breach of duty of care," the lawsuit states.

A Transportation Safety Board report issued in September of last year found the balloon had numerous safety problems, including a modification to accept a fourth propane tank.

The report said the issue might have been uncovered by Transport Canada inspections but there was no requirement for inspections.

Mother, daughter killed

That issue is also singled out in the lawsuit, alleging negligence by Transport Canada for not "issuing a special flight operation certificate to the defendant Pennock without conducting an inspection."

Shannon Knackstedt, 49, and her daughter Jemma, 21, died in the crash.

The TSB report found hot-air balloon operators had very limited regulation and recommended Transport Canada boost its oversight over commercial balloon operators similar to those of fixed-wing aircraft and helicopters.

After the report was released Pennock said the crash had a deep impact on him and that he regretted the terrible incident.

He said the balloon was being operated within the standard practices of the industry at the time.

None of the parties named in the lawsuit have yet filed a statement of defence.