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ARTICLE · 20 SEPTEMBER 2023

Supreme Court Of Canada Relaxes The Test For "Constructive" Takings

CLC (Canadian Litigation Counsel)
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The Supreme Court's recent decision in Annapolis Group Inc. v Halifax Regional Municipality, 2022 SCC 36 [Annapolis] clarified the test for a "constructive taking" by a regulatory body.

CanadaLitigation, Mediation & Arbitration
William G. Lane (McDougall Gauley LLP)
William G. Lane (McDougall Gauley LLP)

The Supreme Court's recent decision in Annapolis Group Inc. v Halifax Regional Municipality, 2022 SCC 36 [Annapolis] clarified the test for a "constructive taking" by a regulatory body.

Background

In that case, a private property owner (Annapolis Group Inc. ("Annapolis")) owned 1,000 acres of undeveloped land in the Halifax Regional Municipality (the "Municipality"). Annapolis' ambitions to develop its land were frustrated by the Municipality's bylaws and community plan, which combined to prohibit any development on Annapolis' land for at least 25 years. Annapolis sued the Municipality for $120 million, claiming that the Municipality's bylaws and community plan amounted to a "constructive taking" of Annapolis' property. A majority of the Supreme Court allowed Annapolis' appeal, and directed that Annapolis' claim proceed.

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