Expropriation refers to the compulsory acquisition of private property for public use. It is a complex legal process with significant implications for private landowners. Although expropriation is a necessary part of government operations, it is an exercise of power that can result in a distressing experience for the individuals involved. In Ontario, the provincial Expropriations Act governs this process, outlining the rights of landowners and the expropriating authority.

This blog post will delve into the key aspects of expropriation law in Ontario, common disputes, and the types of compensation available to landowners.

What is Expropriation?

The term “expropriate” is defined in the Expropriations Act as “the taking of land without the consent of the owner by an expropriating authority in the exercise of its statutory powers.”Expropriation is a multi-step process that occurs when the government or a government-authorized body (including municipalities and provincial government) acquires private property for public use projects, such as public utilities, infrastructure or highway development. Although expropriation is generally viewed as a necessary tool for modern government and societal advancement, it can be disruptive and financially challenging for landowners. It is a controversial practice as it largely interferes with a citizen’s private property rights and often results in legal disputes between the parties.

If you are a landowner who is facing expropriation, it is important to consult with an experienced expropriation lawyer who can advise you on your rights and options as soon as possible. It is also important to note that the expropriating authority is required, by statute, to pay reasonable legal costs incurred by the property owner that are associated with the expropriation process.

Navigating the Expropriation Process

The expropriation process is a complex legal process that typically involves the following steps:

1. Decision to Expropriate: Once a decision has been made to expropriate a piece of land, the expropriating authority must seek approval from the “approving authority” before beginning the expropriation process.
2. Notice of Intention: The expropriating authority serving a notice of intention to expropriate the property. This document outlines the purpose of the expropriation and identifies the land required for the project’s completion.
3. Hearing of Necessity: Landowners have 30 days after the date of service to request an inquiry as to whether the expropriation is “fair, sound and reasonably necessary.” At the hearing, an independent inquiry officer will allow the landowner to present their case. The hearing officer will prepare a report and the approving authority must consider the report before deciding whether to approve the expropriation.
4. Registration of expropriation plan: If it is approved, the expropriating authority will register the expropriation plan and will officially acquire the land. However, the authority may approve the expropriation if no inquiry is requested. After the plan of expropriation has been registered, in accordance with section 9 of the Expropriations Act, the landowner must be served with a notice of expropriation, a notice of possession including the date that property possession is required, and a notice of election permitting the landowner to select the date on which compensation for the expropriated land will be based.
5. Compensation offered: The value of the expropriated property and any compensation owed to the landowner is determined through a formal process. After an appraisal report has been prepared for the land in question, the expropriating authority will provide a copy to the registered owner with an offer of compensation for the owner’s interest in the expropriated land, pursuant to section 13 of the Expropriations Act. Owners may choose to accept the offer in full settlement of all claims under the Expropriation Act. Alternatively, the owner may choose to accept the offer while preserving the right to claim additional compensation under section 26 of the Expropriations Act. Such a claim may be commenced through negotiation or arbitration.
6. Possession: When compensation is agreed upon, or determined by a tribunal, the expropriating authority can take possession of the land.

Expropriation Disputes and Compensation Entitlement

The legislation provides safeguards that protect property owners during the expropriation process. However, a power imbalance exists between the expropriating authority and the landowner. When expropriation disputes escalate, they may be heard by the Local Planning Appeal Tribunal (LPAT) in Ontario.

Some common disputes that arise during expropriation include:

• Negotiations with an expropriating authority;
• Challenging an authority’s decision to expropriate land;
• Valuing the land to be expropriated; and
• Damages for the effects of expropriation on a business, landowner or tenant.

Under section 13(2) of the Expropriations Act, an expropriated property owner must be made “whole” and, therefore, may be entitled to compensation for:

• Fair market value of their land (plus interest from the date of possession);
• Damages due to disturbance;
• Damages for injurious affection (i.e. the negative impact on the remaining property due to the expropriation); and
• Damages for special difficulties in relocation.

Determining the amount of compensation a landowner is entitled to is a highly complex and technical calculation that requires guidance from experienced and knowledgeable expropriation lawyers.

Key Takeaways Regarding Expropriation in Ontario

Expropriation is a formal legal process with specific timelines and steps that must be completed. While expropriation is a necessary government function, private property owners have certain rights throughout the process, including the ability to challenge the necessity of the expropriation. Landowners may also seek to negotiate compensation or claim additional compensation beyond the initial offer by the expropriating authority. However, landowners should seek legal advice as soon as possible to ensure their interests are protected throughout the process.

Contact the Toronto Lawyers at Baker & Company for Trusted Representation in Expropriation Matters

If you are facing expropriation, contact the experienced and strategic expropriation lawyers at Baker & Company. We only represent landowners, business owners and other parties affected by expropriation and seek to secure our clients more compensation than what was originally offered. Our team understands the immense stress and financial uncertainty that comes with expropriation, which is why we help clarify the process and highlight your legal rights to ensure that impacts on your property or business are as minimal as possible. Contact us at 416-777-0100 or reach out to us online to schedule a consultation with a member of our team and learn how we can assist you.