The Regional Municipality of York, City of Vaughan, and York Regional Rapid Transit Corporation brought a Rule 21 motion to stay the plaintiff's action for lack of jurisdiction, arguing that all claims constituted "injurious affection" under the Expropriations Act and fell within the exclusive jurisdiction of the Ontario Municipal Board (OMB).
The plaintiff conceded some claims (reduction in market value, business losses, quiet use and enjoyment during construction) were for injurious affection.
However, the plaintiff contended that claims for physical damage to its building and walkways, claims against Bell Canada and Robert B. Somerville Company Limited, and claims for ongoing vibrations were outside the OMB's jurisdiction.
The court found that while the work by Bell Canada and Somerville was under statutory authority, the alleged physical damage was not proven to be an inevitable consequence of the authorized work, a key requirement for injurious affection.
Consequently, the court stayed the conceded claims but allowed the claims for physical damage, those against Bell Canada and Somerville, and claims for ongoing vibrations to proceed in the Superior Court.