Overview

Section 534 of the Municipal Government Act provides a remedy for persons entitled to receive compensation from a municipality that has constructed a public work.

Eligible owners may be entitled to make a claim for “injurious affection”. Injurious affection is the permanent reduction in the appraised value of land as a result of the existence, but not the construction, erection or use, of a public work or structure.

Other applications under the Municipal Government Act include:

  • Section 15 – Direction to expropriate whole parcel of land when only a portion is expropriated.
  • Section 23 – Closing a road by bylaw.
  • Section 26 – Operating a temporary road or right of way.
  • Section 664.2 – The taking of conservation reserve on subdivision.

Section 15 claims may be started by filing an Application by Notice of Motion with the Land and Property Rights Tribunal.

Section 23, 26 and 664.2 claims may be started by filing an Application for Determination of Compensation (ADC) with the Tribunal.

How to apply

The process to make a section 534 claim differs from an Application for Determination of Compensation. Claimants are encouraged to read section 534 in its entirety to ensure the proper steps are taken in their claim.

According to section 534 of the Municipal Government Act, the municipality must notify owners of land that abuts land on which a public work or structure is situated that they may be entitled to compensation from the municipality within one year after the construction is completed.

If the owner and the municipality do not agree on the amount of compensation for injurious affection, they may agree to have the amount determined by binding arbitration. If they do not agree to binding arbitration, the Tribunal must determine the compensation for injurious affection.

Except in exceptional circumstances, the Tribunal will not award solicitor-client costs for costs incurred in a section 534 application.

Step 1. File a claim with the municipality

Once an owner of land receives a notice from the municipality that construction is complete, the owner has 60 days to file a claim with the municipality.

The claim must include:

  • the amount claimed
  • the particulars of the claim

In order to establish a claim, you will likely require an appraisal.

Step 2: Discuss the claim with the municipality

Once an owner files a claim with the municipality, the claimant and the municipality discuss the particulars of the claim.

Step 3: Arbitration

If the parties disagree on the amount of compensation for injurious affection, the claimant and the municipality may agree to have the amount determined through binding arbitration.

Step 4: Applying to the Land and Property Rights Tribunal

  1. If the parties do not agree on binding arbitration, a claimant may file an application with the Tribunal, and the Tribunal determines compensation.
  2. Section 534 claims may be started by filing an Application for Determination of Compensation (ADC).
  3. Even though a section 534 claim is different from an expropriation claim, the Tribunal will follow the procedures in the Expropriation Act and the Expropriation Act Rules of Procedure and Practice to the greatest extent possible.

Other claims

Alberta Land Stewardship Act

An owner may apply to the Crown for compensation if they suffered a compensable taking as a result of a regional plan or an amendment to a regional plan.

The owner must apply within 12 months of the regional plan or amendments coming into force, Alberta Land Stewardship Act (ALSA).

If the dispute continues for more than 60 days, the owner or the Crown may apply to the Tribunal to resolve whether the registered owner suffered a compensable taking or the amount of any compensation payable in respect to the compensable taking.

An owner may also apply to the Tribunal for a determination of compensation if the owner and the Crown cannot agree to compensation payable under a conservation directive.

Irrigation Districts Act

Although a party cannot dispute the right of the district to remove a parcel from the district in accordance with the Irrigation Districts Act, an owner may appeal the amount of compensation related to the removal.

An irrigator receiving a written notice may enter into an agreement with the district for compensation with respect to the parcel. When the irrigator and the district fail to reach an agreement, the owner refers the matter of compensation to the Tribunal within 60 days after the date they receive a written notice.

According to the Irrigation Districts Act, the Tribunal may order the district to compensate the owner for the parcel.

Compensation is based on the difference between the market value of the land and improvements with irrigation acres and the market value of the land and improvements once irrigation acres are deleted from the assessment roll and the parcel is removed from the district.

Water Act

Under the Water Act, if the director amends a licence, suspends or cancels a licence, cancels a preliminary certificate, or issues a water management order, the director must authorize payment of compensation to the licensee for any losses incurred as a result of the amendment, suspension or cancellation or water management order, in a manner and amount the director considers appropriate.

If the licensee or preliminary certificate holder does not agree with the amount of compensation authorized, the licensee or preliminary certificate holder may appeal the amount to the Tribunal.

Contact

Connect with the Land and Property Rights Tribunal:

Hours: 8:15 am to 4:30 pm (closed 12 pm to 1 pm, open Monday to Friday, closed statutory holidays)
Phone: 780-427-2444
Toll free: 310-0000 before the phone number (in Alberta)
Fax: 780-427-0986
Email: [email protected]

Address:
Land and Property Rights Tribunal
2nd Floor, Summerside Business Centre
1229 91 Street SW
Edmonton, Alberta  T6X 1E9

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