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Newfoundland Town Wins Expropriation Case

A Newfoundland court has awarded two land parcels to a municipality that expropriated them from a developer.

The Supreme Court of Newfoundland and Labrador ruled that the Town of Paradise acted properly when it rezoned the land for conservation and claimed it from Index Investments.

“The decision affirms the principle that cities and towns do not owe compensation to private landowners whose lands are reduced in value by the reasonable exercise of municipal zoning authority,” wrote lawyers Stephen Penney and Matthew Raske in an assessment of the decision.

Index argued that the expropriation was an improper use of the town’s legal authority, granted the municipality a beneficial interest in the properties and was otherwise unreasonable.

But the court ruled that Index failed to prove that the town gained from the move and all of the land’s reasonable uses were removed.

“The onus was on the developer to show that these possible uses were not reasonable uses. It failed to do so,” wrote Penney and Raske.


Inside The Story

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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