Consider a scenario where a government authority (federal, provincial or municipal) advises you that it will be expropriating your residential or business property.
What compensation are you entitled to?
The British Columbia Expropriation Act, RSBC 196, c. 125, provides that the property owner is entitled to "market value" of the owner's interest in the property (plus reasonable damages in appropriate cases).
The determination of market value can be a challenging one. For example, in the recent case of Chen v. Township of Langley, 2024 BCSC 154, the British Columbia Supreme Court ultimately determined that the Chens were entitled to an increased payment of more than 37% above what the Township offered and paid as "market value".
In the Chen decision, the BC Supreme Court viewed the evidence and found that the Township's approach to market value was not correct. The judge noted that the Township's appraisals did not properly consider relevant sales information and did not adequately account for the property's value in a rising real estate market.
Further, the Court reaffirmed that because expropriating authorities have significant powers, the courts must strictly interpret expropriation statutes in favour of the parties whom have an interest in the property. This can include tenants as well as property owners.
The legislation and case law regarding expropriations set out various principles to be considered and applied to the determination of "market value" as well as business losses that can occur in expropriation cases.
The legislation also provides a basis by which a property owner or business owner can recover the legal costs relating to the expropriation.
For these reasons, a property owner or business owner who is affected by a pending expropriation will be better informed if they seek legal advice prior to negotiating a settlement with a government entity that is expropriating land.
About Mackrell International – Canada - Lindsay Kenney LLP is a full service business law firm with offices in Vancouver and Langley, BC and a member of Mackrell International. Mackrell International – Canada is comprised of four independent law firms in Alberta, British Columbia, Ontario and Quebec. Each firm is regionally based and well-connected in our communities, an advantage shared with our clients. With close relations amongst our Canadian member firms, we are committed to working with clients who have legal needs in multiple jurisdictions within Canada.
This article is intended to be an overview and is for informational purposes only.