The respondents sought to develop land subdivided via testamentary devise, a method that bypassed Planning Act controls.
When they applied for building permits, the appellant Town delayed processing and passed an interim control by-law, followed by a zoning amendment increasing minimum lot sizes, effectively halting the development.
The trial judge found the Town acted in bad faith, quashed the zoning amendment, and ordered the issuance of building permits and damages.
The Court of Appeal upheld the trial judge's findings of bad faith and the order for building permits, finding no palpable and overriding error, but allowed the appeal in part to adjust the interest rate on damages and the scale of costs.
