OTTAWA — The zoning of a St. John's, N.L., property as a watershed area should guide the process of compensating the owners for expropriation of the land, the Supreme Court of Canada has ruled.
A formal application by the owners to develop the property was rejected in 2013, and a court declared this amounted to constructive expropriation, opening the door to compensation.The issue of how compensation should be determined wound its way through the Newfoundland and Labrador courts, leading to an appeal to the Supreme Court of Canada by the City of St. John's.
Writing on behalf of the high court, Justice Sheilah Martin said the watershed zoning was an independent enactment, and the market value assessment of the property must take into account that the land is limited to discretionary agriculture, forestry and public utility uses."It would compensate them for something they never would have had absent the expropriation: unencumbered land to develop residential housing.
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