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ARTICLE · 25 FEBRUARY 2011

Smith v. Alliance Pipeline Ltd.

WeirFoulds LLP
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In this case the Supreme Court of Canada held that it was reasonable for an arbitration panel formed pursuant to the National Energy Board Act to award substantial indemnity costs to an individual whose land has been expropriated.

CanadaLitigation, Mediation & Arbitration
Hilary Book
Hilary Book
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2011 SCC 7 (Released February 2, 2011)

Expropriation – Standard of Review – Costs – National Energy Board Act

In this case the Supreme Court of Canada held that it was reasonable for an arbitration panel formed pursuant to the National Energy Board Act to award substantial indemnity costs to an individual whose land has been expropriated.

Pursuant to an expropriation agreement between the two parties, Alliance Pipeline Ltd. ("Alliance") obtained a right-of-way over Smith's land. Alliance then failed to reclaim the land in a timely manner, as required by the agreement, and refused to compensate Smith fully for Smith having done so in Alliance's place. Smith brought arbitration proceedings pursuant to the National Energy Board Act ("NEBA") to recover his costs related to the reclamation.

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