The vendor of an apartment building appealed its property tax assessment and subsequently sold the property.
After closing, the assessment appeal succeeded, resulting in a tax refund that the City paid to the purchaser pursuant to s. 306(2) of the City of Toronto Act, 2006.
The vendor sought the refund, arguing unjust enrichment.
The Court of Appeal held that the right to the refund was a chose in action that did not run with the land and was not assigned to the purchaser.
The Court further held that s. 306(2) is merely an administrative provision and does not provide a juristic reason for the purchaser to retain the refund.