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ARTICLE · 10 SEPTEMBER 2012

Contaminated Site Lawsuit: How Not To Win

Owners of a contaminated site are often too optimistic about their "rights" to compensation. Sometimes, chasing compensation for contamination just throws good money after bad

CanadaEnvironment

Owners of a contaminated site are often too optimistic about their "rights" to compensation. Sometimes, chasing compensation for contamination just throws good money after bad.

For example, Terrim Properties Ltd. wanted to build a gaming centre in Castlegar, B.C.  Their loan fell through when the groundwater proved to be contaminated, likely due to historic gasoline migration from a neighbouring property now owned by Sorprop.  Terrim sued Sorprop and another neighbour, in nuisance and under the BC environmental statute. The lawsuit was a complete failure: Terrim Properties Ltd. v. Sorprop Holdings Ltd.

Terrim's statutory claim had no basis. Under the BC Environmental Management Act (EMA), an action for remediation may only be heard by a court after a site is officially found to be contaminated, by a government "director".  In this case, no director had ruled that any of the properties were officially contaminated sites, so Terrim's claim for remediation was

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