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