City of Surrey ordered to pay additional $200K to car dealers whose land it expropriated
A B.C. Supreme Court justice has ordered the City of Surrey to pay more than $200,000 to the former owners of a car dealership the city partially expropriated back in 2012.
In a decision delivered Tuesday in New Westminster, Justice Nitya Iyer ruled that the city had not sufficiently compensated the former landowners for the negative impact of the construction project for which the land was expropriated on land's value for future use.
The city also failed to adequately compensate the owners for the dealership's losses during the construction period, according to Iyer's decision.
The justice rejected the owners' other claims, however, including a claim that the expropriation had "forced" them to sell the remaining property for more $6 million in 2013, and that they therefore should be entitled to compensation for the property's increase in market value since the sale.
The property in question is located on the Langley Bypass near 196 Street. The land was undeveloped when Dan and Reuben Springman purchased it with their friend Larry Visco in 1997.
The Springman brothers ran a car dealership on the property through October 2013, at which point they sold the land and the business to the owner of a nearby dealership.
The city appropriated part of the land in March 2012 for the construction of an overpass, and it provided compensation to the owners for both the land itself and the disruption to the business.
Surrey paid nearly $270,000 for the portion of the land it acquired, plus temporary and permanent rights of way. The city also entered an agreement with the Springman brothers' dealership to compensate them for their lost revenue during construction.
These payments varied from month to month and were calculated based on the difference between the company's actual revenue for a given month and the revenue it had earned during the same month the previous year.
In all, Surrey paid more than $760,000 to the Springman brothers' company through these "float payments," according to Iyer's decision.
The brothers and Visco each filed lawsuits against the city claiming that the compensation they received for the land was insufficient, that they should have received additional funds for "injurious affection" of the land that remained after the expropriation, and that they had been unable to benefit from the continued increase in the land's value between 2013 and 2019 because of the city's actions.
The current value of the property is estimated to be more than $7.4 million, according to BC Assessment.
The brothers also claimed that their company was entitled to additional compensation for the disturbance caused by construction, and that the company suffered ongoing losses between 2013 and 2019 because they were forced to sell.
In her decision, Iyer rejected both of the claims for ongoing damages on the grounds that Visco and the Springman brothers sold the property voluntarily.
"I sympathize with the anxiety, uncertainty and disruption the Springman brothers had to endure over the course of the overpass project," Iyer wrote in her decision.
"I accept that they were frustrated and exhausted. However, that does not make the sale a forced sale. Even if I were to find that the plaintiffs sold the property at less than fair market value (which I do not), it was because they did not have the appetite or energy to maximize their economic interests, not because of the expropriation."
Iyer also rejected the claim that the city had not adequately compensated the owners for the land it expropriated, but she accepted the brothers' and Visco's assertion that the expropriations had lowered the value of the remaining land.
As a result, she awarded them $154,114 for the "injurious affection" claim. She also concluded that the brothers' business was entitled to $65,182 in additional compensation for their losses attributable to the overpass project.
CTVNews.ca Top Stories
DEVELOPING Live updates as Stormy Daniels testifies at Trump hush money trial
Adult film star Stormy Daniels will take the stand a second time Thursday as former U.S. president Donald Trump’s hush money case continues in Manhattan. Follow live updates here.
BREAKING Sheldon Keefe out as head coach of Toronto Maple Leafs
The Toronto Maple Leafs have fired head coach Sheldon Keefe. The team made the announcement Thursday after the Original Six franchise lost to the Boston Bruins in seven games in the first round of the Stanley Cup playoffs.
Bank of Canada says financial system is stable, but risks remain
The Bank of Canada says the Canadian financial system is stable, but risks remain due to debt servicing costs among households and businesses and stretched valuations of financial assets.
Why these immigrants to Canada say they're thinking about leaving, or have already moved on
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
Ontario man frustrated after $3,500 paving job leaves driveway in shambles
An Ontario man considering having his driveway paved received a quote from a company for $7,000, but then, another paver in the neighbourhood knocked on his door and offered half that rate.
RateMDs violates privacy of health professionals, class-action lawsuit claims
A lawsuit against RateMDs has been given the go-ahead by a B.C. Supreme Court judge who found the claim that the website violates the privacy rights of medical professionals is not 'bound to fail.'
Capital gains tax change 'shortsighted' and 'sows division' business groups tell Freeland
Forging ahead with increasing Canada's capital gains inclusion rate 'sows division,' and is a 'shortsighted' way to improve the deficit, business groups are warning Finance Minister Chrystia Freeland.
Court to hear about search for remains as Winnipeg murder trial enters second day
A courtroom in Winnipeg is expected to hear testimony today about the search for the remains of the four victims of Jeremy Skibicki.