Compensation in property case should be guided by zoning as watershed area: top court

OTTAWA — The Supreme Court of Canada says the zoning of a St. John’s, N.L., property as a watershed area should guide the process of compensating the owners for expropriation of the land.

In a 7-0 ruling today, the top court says compensation should be assessed based on the limited uses allowed by the zoning, not as if a housing development could have proceeded.

A formal application by the owners to develop the property was rejected in 2013, and a court declared the land had been constructively expropriated, opening the door to compensation.

The Supreme Court says an authority cannot freeze a property’s development in anticipation of the need to acquire the land, effectively reducing the property’s value in order to reduce the compensation payable.