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Compensation for Injurious Affection - Supreme Court of Canada restores Ontario Municipal Board's Order

Mar 07, 2013

The Expropriations Act, R.S.O. 1990, c. E.26 provides a right to compensation for loss or damage caused by injurious affection.

On 7 March 2013, the Supreme Court of Canada issued its decision in Antrim Truck Centre Ltd. v. Ontario (Transportation), 2013 SCC 13, setting aside the order of the Court of Appeal and restoring the order of the Ontario Municipal Board.  The Board had awarded the appellant, Antrim Truck Centre Ltd., compensation for business loss and decline in market value of its land resulting from highway construction by the Province of Ontario.

In restoring the order of the OMB, the SCC indicated that:

The Board properly understood that the purpose of the statutory compensation scheme for injurious affection was to ensure that individuals do not have to bear a disproportionate burden of damage flowing from interference with the use and enjoyment of land caused by the construction of a public work. It was reasonable for the Board to conclude that in all of the circumstances, the appellant should not be expected to endure permanent interference with the use of its land that caused a significant diminution of its market value in order to serve the greater public good.

Author(s): Sharmini Mahadevan

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