City of Toronto v. Prince

City of Toronto v. Prince

Where a municipal corporation's statutory powers to acquire land or to settle compensation require exercise by by-law under seal, a mere council resolution or communications by municipal officers cannot create a binding contract to acquire land or fix compensation; an expropriating by-law that does not authorize entry or use does not itself commit the municipality to acquisition or payment.

Citation
[1934] SCR 414
Parties
Defendant/appellant: Corporation of the City of Toronto; Plaintiff/respondent: Elizabeth Lillian Prince; Plaintiff/respondent: Whirlwind Carpet Cleaners, Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 February 1934
Procedural Posture
Appeal Concerning Municipal Expropriation and Contract Claim / Appeal to Supreme Court of Canada From Court of Appeal for Ontario; Judgment on Appeal
Outcome
Appeal allowed; judgment of Court of Appeal reversed; action dismissed
Legal Topics
Expropriation, Municipal by Laws, Compensation, Authority to Contract, By Law Formalities, Entry on Land, Arbitration Under Municipal Act S.351
Source Language
English
Municipal Law Property Law Contract Law Administrative Law Expropriation Municipal by Laws Compensation Authority to Contract +3 more

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Parties

Corporation of the City of Toronto

Defendant/appellant

Elizabeth Lillian Prince

Plaintiff/respondent

Whirlwind Carpet Cleaners, Ltd.

Plaintiff/respondent

Procedural Posture

Appeal Concerning Municipal Expropriation and Contract Claim / Appeal to Supreme Court of Canada From Court of Appeal for Ontario; Judgment on Appeal

Legal Issues

  1. 1 Whether a binding agreement fixing compensation was concluded in fact between respondents and the City
  2. 2 Whether a council resolution alone can bind a municipal corporation to acquire land or to pay compensation absent a by-law under seal
  3. 3 Whether an 'expropriating by-law' that does not authorize entry or use operates to commit the municipality to take the property or to pay compensation

Ratio Decidendi

Where a municipal corporation's statutory powers to acquire land or to settle compensation require exercise by by-law under seal, a mere council resolution or communications by municipal officers cannot create a binding contract to acquire land or fix compensation; an expropriating by-law that does not authorize entry or use does not itself commit the municipality to acquisition or payment.

Court Disposition

Appeal allowed; judgment of Court of Appeal reversed; action dismissed

Orders

  • Action dismissed with costs throughout