Case Summary: Clarifying the Law of De Facto Expropriation

  • October 19, 2022
  • Alex Cockburn, articling student, Barriston LLP

The Supreme Court of Canada is set to determine whether a parcel of land in Nova Scotia was effectively (“de facto”) expropriated by the Halifax Regional Municipality (“HRM”).

In 2017, Annapolis Group Inc. (“Annapolis”) began legal proceedings against the HRM. One of the claims made against the HRM was that it had effectively taken over lands which were owned by Annapolis. In response, the HRM filed a motion asking the Court to dismiss the claim, arguing that there were no facts to support it.

Background

This matter revolves around a parcel of land located northwest of Halifax, Nova Scotia (the “Annapolis lands”).

In 2006, HRM Council passed a Regional Municipal Planning Strategy (“RMPS”) which was intended to serve as a guide for land development in the municipality over a time span of 25 years. Included in the RMPS were the subject lands, owned by Annapolis.

Some portions of the Annapolis lands were reserved for possible future serviced development, while others were reserved for the potential creation of a regional park. However, no portions of the land were formally zoned as being for public use. Despite this, Annapolis claimed that the HRM had gone on to place signage on the property encouraging public use. Annapolis also claimed that the HRM financially supported organizations that encourage people to use its lands.

In 2007, Annapolis began seeking approval to develop the land. In 2016, the HRM passed a resolution refusing to begin the approval process. Annapolis commenced an action against the HRM soon thereafter, arguing that the actions of the HRM amounted to what was effectively an expropriation of its land. In response, the HRM filed a motion to dismiss the expropriation claim.