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ARTICLE · 27 NOVEMBER 2013

Buyer Can’t Void Purchase Of Contaminated Land

Siskinds LLP
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Crosslink Bridge Corp. purchased contaminated land from CN Railway in 2008 to develop a tourism, entertainment, retail and sports venue in the Niagara region.

CanadaEnvironment
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Crosslink Bridge Corp. (Crosslink) purchased contaminated land from CN Railway (CN) in 2008 to develop a tourism, entertainment, retail and sports venue in the Niagara region. Crosslink received a box of environmental reports, including the Certificate of Requirement (also registered on title) that revealed the existence of a Ministry of the Environment Director's order relating to a risk assessment of the contamination. It was not clear, however, whether Crosslink had actually received the order. Could they void the transaction five years later, in the first case ever decided under s. 197 of the Environmental Protection Act?

Crosslink tried to void the transaction in late 2012, after an attempt to sell the land failed because of the contamination. Crosslink claimed $5.913 million from CN for the costs of purchasing, carrying, maintaining and developing the property, on the basis that it had not been provided with a copy of the Director's Order. The Court rejected

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