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ARTICLE · 22 MAY 2024

Constructive Expropriation And Fair Market Value

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Through a new municipal law case, St John's (City of) v Lynch, 2024 SCC 17 [Lynch], a unanimous Supreme Court of Canada clarified how fair market value is to be assessed in situations where a municipality...

CanadaReal Estate and Construction
Milad Alishahi
Milad Alishahi
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Through a new municipal law case, St John's (City of) v Lynch, 2024 SCC 17 [Lynch], a unanimous Supreme Court of Canada clarified how fair market value is to be assessed in situations where a municipality constructively expropriates land. Moving forward, municipalities should take note of the principles set out in Lynch to help ensure they fairly compensate landowners in situations of constructive expropriation.

The facts in Lynch are as follows. The landowners owned land within the City of St. John (the "City") that was on the Broad Cove River watershed (the "Land"). The Land was used for the City's local water supply, making it subject to The City of St. John's Act (the "Act") and the City's Development Regulations.

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