Summary

37204

City of St. John's v. Willis Lynch, et al.

(Newfoundland & Labrador) (Civil) (By Leave)

Keywords

None.

Summary

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Expropriation – Constructive expropriation – Compensation – Watershed protection – Municipalities – Whether land use zoning and development regulations and statutory building restrictions for watershed protection constitute constructive expropriation of private property entitling the owner to compensation from municipality.

The Lynch property was located in the Broad Cove River Watershed and in a Watershed zone under the City of St. John’s Municipal Plan and Development Regulations. To facilitate delivery by the City of pure and unpolluted water, the legislature prohibited building upon watershed land except in limited circumstances – only discretionary uses relating to agriculture, forestry and public utilities were permitted in the Watershed zone. However, following an inquiry to determine what level of development the City would allow on the property, the Lynches were informally advised by the City that they would not be allowed to develop the property in any manner and that the City was not willing to allow any discretionary uses or to consider any specific environmentally friendly uses. The City’s position was that the land must be kept unused in its natural state. To force the issue, the Lynches brought an application to develop a 10-lot subdivision on the property which was rejected by the City. Following that rejection the Lynches commenced an action for a declaration that the property had been constructively expropriated.

The Trial Division of the Supreme Court of Newfoundland and Labrador dismissed the respondents’ application, holding the regulation of the property by the City of St. John’s did not amount to de facto or constructive expropriation. The court further held the property did not lie within a public water supply area as defined in the Water Resources Act, S.N.L. 2002, c. W-4.01, and therefore did not attract the compensation provision of that Act. The Supreme Court of Newfoundland and Labrador Court of Appeal allowed the respondents’ appeal, finding the trial judge erred and the Lynches were entitled to claim compensation from the City for constructive expropriation.

Lower Court Rulings

January 16, 2015
Supreme Court of Newfoundland & Labrador, Trial Division

201301G3405, 2015 NLTD(G) 2
Respondents’ application for declaration property constructively expropriated, dismissed.
July 5, 2016
Supreme Court of Newfoundland and Labrador - Court of Appeal

201501H0010, 2016 NLCA 35
Respondents’ appeal, allowed; property declared to have been constructively expropriated by City of St. John’s.
 

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