In Teal Cedar Products Ltd v. British Columbia (Ministry of Forests), the British Columbia Court of Appeal clarified the circumstances surrounding compensation provided under s. 7 of the Protected Areas Forest Compensation Act ("Compensation Act") and s. 60 of the Forest Act. Justice Saunders held for the court that compensation can only be calculated starting from the date of the reduction in the allowable annual cut.
In April 1993, Teal Cedar Products Ltd purchased a forest license under the Forest Act to harvest a stipulated volume of wood annually from an area called Chart Area 112. Shortly before the purchase, the Ministry of Forests had suspended logging in part of the area while considering the possibility of a provincial park, which materialized in July 1995. Although the park's creation prohibited further logging in that part of Chart Area 112, Teal's allowable annual cut was not impacted until it was reduced on April 1, 1999. British Columbia appealed from an order to compensate Teal for its loses from July 1995 to April 1, 1999.
Saunders J. held that although the government's actions were a "taking," the relevant compensation scheme was dictated by s. 7 of the Compensation Act and s. 60 of the Forest Act, rather than the provincial Expropriation Act. Justice Saunders disagreed with both the arbitrator and trial judge's interpretations and found that the two provisions provided a complete code of compensation. She distinguished this case from Toronto Area Transit Operating Authority v. Dell Holdings, which provided compensation for losses from a preceding period where they were caused by a scheme associated with the "taking", holding that the language of s. 60(4) of the Forest Actonly provides compensation from the date of the reduction in the allowable cut. Saunders J. held that compensation commences from April 1, 1999 when the allowable annual cut was reduced, and allowed British Columbia's appeal.
February 13, 2012
Link to Decision
Adrienne Ho
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