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ARTICLE · 07 OCTOBER 2020

Expropriation Of Contaminated Land And Its Fair Market Valuation

McMillan LLP
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The expropriation process in Ontario is governed by the Expropriations Act (the "Act"), which provides property owners with a right to compensation for land confiscated by a statutory authority...

CanadaEnvironment
Talia Gordner
Talia Gordner
Courteney Rickert (Articling Student)
Courteney Rickert (Articling Student)
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The expropriation process in Ontario is governed by the Expropriations Act (the “Act”),1 which provides property owners with a right to compensation for land confiscated by a statutory authority, being a municipal or provincial government or delegated authority.2 Compensation for expropriated land is determined in accordance with sections 13 and 14 of the Act and hinges on its fair market value.3

The determination of an expropriated property's fair market value can become a contentious and drawn out process where the property is environmentally contaminated. One of the unique features of the expropriation process in this context is the push and pull between the expropriating authority seeking to reduce the amount of compensation to the property owner based on the existence of environmental contamination and the property owner seeking to limit the negative impact of the property's environmental condition on its valuation and therefore their compensation.

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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