Frankel Steel Construction v. Metro Toronto

Frankel Steel Construction v. Metro Toronto

Majority held that there was no binding agreement by the municipality to pay the full fair cost of moving absent a properly authorized contract/by-law; therefore compensation for the expropriation of the leasehold is measured by what a prudent person would pay rather than be ejected and, on the facts, is the present worth of interest at 6% for the enforceable unexpired term (3 years 2½ months) on the fair cost figure determined by engineers; Court of Appeal measure affirmed and appeal dismissed.

Citation
[1970] SCR 726
Parties
Appellant/claimant: Frankel Steel Construction Limited; Respondent/contestant: Municipality of Metropolitan Toronto
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 March 1970
Procedural Posture
Expropriation / Appeal to Supreme Court of Canada From Court of Appeal for Ontario Judgment on Arbitration Award
Outcome
Appeal dismissed (majority); Cartwright C.J. and Spence J. dissenting
Legal Topics
Compensation for Leasehold Interest, Measure of Damages on Expropriation, Agreement to Pay Moving Costs, Lease Renewal Contingency, Municipal Authority and Binding Agreements
Source Language
English
Expropriation Property Law Municipal Law Contract Law Administrative Law Compensation for Leasehold Interest Measure of Damages on Expropriation Agreement to Pay Moving Costs +2 more

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Parties

Frankel Steel Construction Limited

Appellant/claimant

Municipality of Metropolitan Toronto

Respondent/contestant

Procedural Posture

Expropriation / Appeal to Supreme Court of Canada From Court of Appeal for Ontario Judgment on Arbitration Award

Legal Issues

  1. 1 What is the proper measure of compensation for expropriation of a leasehold interest?
  2. 2 Whether the municipality agreed to pay the claimant the fair cost of moving and was bound to do so
  3. 3 Whether the claimant is entitled to compensation for the probable renewal period of the lease beyond the enforceable term

Ratio Decidendi

Majority held that there was no binding agreement by the municipality to pay the full fair cost of moving absent a properly authorized contract/by-law; therefore compensation for the expropriation of the leasehold is measured by what a prudent person would pay rather than be ejected and, on the facts, is the present worth of interest at 6% for the enforceable unexpired term (3 years 2½ months) on the fair cost figure determined by engineers; Court of Appeal measure affirmed and appeal dismissed.

Court Disposition

Appeal dismissed (majority); Cartwright C.J. and Spence J. dissenting

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of Appeal for Ontario affirmed