A decision at the crossroads of legislative reform and housing pressure
In Ville de Sept-Îles c. 9379-1242 Québec inc., one of the first substantive decisions under the Act respecting expropriation (the “ARE”), the Administrative Tribunal of Québec (the “ATQ”) clarified how compensation for expropriation is determined when a land parcel has distinct development potential and a developer has already spent years preparing it for development.
The decision arises against a backdrop of legislative reform. The ATQ noted that the dispute had to be decided under the ARE regime, which came into force in 2023, replacing the former Expropriation Act. The Tribunal also emphasized that, despite this new framework, the fundamental principles remain the same. First, expropriation is still an exceptional infringement of property rights. Second, the expropriated party should, to the extent possible, be restored to the same financial position as before the expropriation, without any enrichment or
