The Crown appealed decisions of the Ontario Municipal Board awarding compensation for injurious affection to two groups of landowners following the expropriation of land for Highway 407.
The Crown argued the lands' value was already limited by the Parkway Belt West Plan and had no urban development potential.
The Divisional Court dismissed the appeals, upholding the Board's findings that, but for the physical construction of the highway, the lands would likely have been released from the Plan and developed.
The loss of this opportunity was directly caused by the highway's construction, constituting compensable injurious affection.
