The appellant developer agreed to construct $1.08 million in extra infrastructure improvements for the respondent municipality in exchange for an implied commitment to maintain zoning for a waterfront development.
After the developer completed the improvements, the municipality down-zoned the property, preventing the development.
The Supreme Court of Canada previously ruled the municipality's zoning commitment was ultra vires and unenforceable as a contract.
In this unjust enrichment claim, the Court held that the municipality could not rely on the ultra vires contract as a juristic reason to retain the benefit of the improvements without paying for them.
The appeal was allowed and the municipality was ordered to reimburse the developer $1.08 million.