The appellant, Hummel Properties Inc., appealed a lower court decision that dismissed its application to quash interim control by-laws enacted by the Town of Niagara-on-the-Lake.
The by-laws prohibited the subdivision of land, including condominium creation, and were challenged on grounds of illegality (not relating to "land use" under the Planning Act, infringing s. 38(7) by applying a second interim control by-law, and illegal process) and bad faith.
The Court of Appeal found that the by-laws were illegal because they purported to control land division, not land use, and violated s. 38(7) by applying a second interim control by-law to the same land.
The court also found errors in the application judge's assessment of the process and bad faith.
The appeal was allowed, the by-laws quashed, and the matter remitted to the Superior Court for a trial on damages for negligent misrepresentation and misfeasance in public office.