The Supreme Court Expands on Test for Constructive Takings

The regulation of private property is a natural and incidental part of governance, particularly municipal governance, in Canada. Land is subject to designations under municipal plans, to zoning by-laws, and to other conditions imposed by regulation. However, as the Supreme Court of Canada recently affirmed, where such regulations go so far as to deprive the owner of the use and enjoyment of its property in a substantial and unreasonable way, the government body must compensate the owner for this constructive taking.