Teal Cedar Products Ltd. v. British Columbia (Ministry of Forests)

Teal Cedar Products Ltd. v. British Columbia (Ministry of Forests)

The court found that the scope of compensation under s.60(4) of the Forest Act and the Compensation Act is a question of pure law and that common law expropriation principles apply where the statutes are silent; losses caused by the creation of Pinecone Burke Park that pre‑dated the formal AAC reduction (Park Creation Losses) are compensable; leave to appeal on that legal question was granted, the arbitrator's denial of compensation for Park Creation Losses was an error of law, and the matter of quantum is remitted to the arbitrator; leave was denied on the Moratorium Losses (found to be factual/mixed) and the Province's challenges to compound interest and costs were dismissed.

Citation
2011 BCSC 360
Parties
Petitioner (s106266); Respondent (s106286): Teal Cedar Products Ltd.; Respondent (s106266); Petitioner (s106286): Her Majesty the Queen in Right of the Province of British Columbia as represented by the Ministry of Forests
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
24 March 2011
Procedural Posture
Applications for Leave to Appeal Arbitration Awards Under the Commercial Arbitration Act and Subsequent Adjudication on the Merits / Leave to Appeal Argued; Leave Granted in Part; Merits Adjudicated; Remittal to Arbitrator for Quantum Recalculation
Outcome
Grant leave to appeal to Teal on the legal question whether Park Creation pre‑taking losses are compensable; deny leave to Teal on Moratorium Losses; deny Province leave on compound interest and costs challenges; on the merits, allow Teal's appeal in part, find arbitrator erred in denying compensation for Park...
Legal Topics
Compensation, Allowable Annual Cut (aac) Reduction, Pre Taking Losses, Interest (compound Vs Simple), Costs (indemnity Vs Party and Party), Leave to Appeal From Arbitration
Source Language
English
Arbitration Administrative Law Expropriation/compulsory Acquisition Statutory Interpretation Forestry Law Compensation Allowable Annual Cut (aac) Reduction Pre Taking Losses +3 more

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Parties

Teal Cedar Products Ltd.

Petitioner (s106266); Respondent (s106286)

Her Majesty the Queen in Right of the Province of British Columbia as represented by the Ministry of Forests

Respondent (s106266); Petitioner (s106286)

Procedural Posture

Applications for Leave to Appeal Arbitration Awards Under the Commercial Arbitration Act and Subsequent Adjudication on the Merits / Leave to Appeal Argued; Leave Granted in Part; Merits Adjudicated; Remittal to Arbitrator for Quantum Recalculation

Legal Issues

  1. 1 Whether losses attributable to creation of Pinecone Burke Park prior to the formal AAC reduction (pre‑taking losses) are compensable under s.60(4) of the Forest Act and the Protected Areas Forests Compensation Act
  2. 2 Whether losses during the earlier Moratorium period (Apr 5,1993–Jul 13,1995) are compensable or are factual/mixed issues
  3. 3 Whether arbitrator could include compound interest as part of compensation or only as post‑award interest under s.28 CAA

Ratio Decidendi

The court found that the scope of compensation under s.60(4) of the Forest Act and the Compensation Act is a question of pure law and that common law expropriation principles apply where the statutes are silent; losses caused by the creation of Pinecone Burke Park that pre‑dated the formal AAC reduction (Park Creation Losses) are compensable; leave to appeal on that legal question was granted, the arbitrator's denial of compensation for Park Creation Losses was an error of law, and the matter of quantum is remitted to the arbitrator; leave was denied on the Moratorium Losses (found to be factual/mixed) and the Province's challenges to compound interest and costs were dismissed.

Court Disposition

Grant leave to appeal to Teal on the legal question whether Park Creation pre‑taking losses are compensable; deny leave to Teal on Moratorium Losses; deny Province leave on compound interest and costs challenges; on the merits, allow Teal's appeal in part, find arbitrator erred in denying compensation for Park...

Orders

  • Grant leave to appeal on whether Park Creation Losses (Jul 13,1995–Apr 1,1999) are compensable under s.60(4) Forest Act and the Compensation Act
  • Deny leave to appeal on Moratorium Losses (Apr 5,1993–Jul 13,1995) as factual/mixed issue