The City of Windsor appealed a Divisional Court decision upholding an Ontario Municipal Board (OMB) award for the expropriation of the respondents' lands.
The OMB had determined the market value of the expropriated lands and awarded injurious affection damages for the remaining lands based on an expropriation scheme dating back to 1983.
The Court of Appeal allowed the appeal, finding that the OMB unreasonably failed to consider the negative impact of the 1996 Provincial Policy Statement (PPS) on the lands' market value, as the PPS was not part of the expropriation scheme.
Furthermore, the OMB erred in law by assessing injurious affection damages based on the entire expropriation scheme rather than limiting them to the diminution in value caused specifically by the City's acquisition of the lands.
A new hearing was ordered.
