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ARTICLE · 16 DECEMBER 2022

SCC Ruling Could Impact How Municipalities Deal With Property Owners

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Municipalities attempting to use private land for public uses could face greater risks in light of a recent Supreme Court of Canada (SCC) ruling.

CanadaReal Estate and Construction
Sharon Au
Sharon Au
Emily Stolz (Summer Student)
Emily Stolz (Summer Student)
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Municipalities attempting to use private land for public uses could face greater risks in light of a recent Supreme Court of Canada (SCC) ruling.

On October 21, 2022, the SCC released its 5-4 decision in Annapolis Group Inc. v Halifax Regional Municipality, 2022 SCC 36 (Annapolis v Halifax), which clarified the law surrounding constructive taking of private property by government authorities.

Constructive taking, also known as de facto expropriation or regulatory taking, refers to a government authority's taking of private lands through regulation. For example, the SCC previously found that a governmental authority's refusal to grant park permits to the owners of registered mineral rights within a provincial park constituted constructive taking.

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