Windwagen, been there done that before. I had a similar incident in the winter with a bulge in one of my tires and filed a pretty extensive claim with pictures and evidence showing where the city failed to meet the standards in the law. However, it's an adjuster in Mississauga that handles the claims and while she was ready to give me the money, she wanted an invoice proving the age of the bad tire. Since I had bought the tire second hand (off here actually), the seller did not have an invoice and the DOT date doesn't suggest road mileage, there was no way for me to prove the age of the tire. I could've gone to small claims court with the evidence I had, but I didn't think it was worth the effort over $200.
This situation is a bit different. The tires came with the car, so I'm not sure how they view that. I'm also concerned there may be suspension damage that I can't see, and likely can't claim.
We would avoid all this if they actually inspected the roads and blocked off (if they can't repair right away) road hazards like the law says they are supposed to.