Case information

Municipal law — Bylaws — Statutory powers — Natural person powers — Municipal government assuming sole responsibility for development project started by private developer — Municipality enacting bylaw to close access to applicants’ property from road being widened as part of requirement of subdivision approval for development project — Whether municipalities are required to distinguish between the exercise of statutory authority and the exercise of natural person powers — How, if at all, may a municipality exercise its statutory authority in the presence of a collateral, commercial purpose to ensure procedural fairness for impacted parties and to avoid bad faith and potential conflicts of interest.

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

The applicant 664078 Alberta Ltd. owns a property along 68th St. SE in Calgary, and the applicant Westcan Recyclers Ltd. (collectively “Westcan”) operates a scrap metal recycling facility on this property. Trucks and other vehicles access the property via two entrances on 68th St.

A private developer was originally responsible for an industrial development farther south along 68th St. One of the conditions imposed upon the developer as part of the subdivision approval was the widening of 68th St. The developer experienced financial difficulties, and the respondent, the City of Calgary, bought its interest in and assumed sole responsibility for the development in 2017. The City’s Real Estate and Development Services (“REDS”) business unit leads the project.

In 2020, the City’s Development Approvals department approved REDS’ plan to expand 68th St. The plan requires that access to Westcan’s property from 68th St. be permanently closed and that new access points to the property be built from other adjacent streets. This, in turn, requires modifications to the property itself and to Westcan’s operations. Westcan objected to the plan, disputing the safety and adequacy of the new proposed access points, and filed a statement of claim against the City. Moreover, it sought and obtained an interim injunction to prevent the expansion of 68th St.

In 2022, the City’s Development Approvals department approved REDS’ design for new access points to Westcan’s property from adjacent streets. Shortly thereafter, City council enacted a bylaw to close access to Westcan’s property from 68th St. pursuant to its power under s. 28(3) of the Highways Development and Protection Act. After enacting the bylaw, the City brought an application to vacate the injunction. In response, Westcan brought a cross-application for judicial review of the bylaw, seeking to have it quashed. The chambers judge dismissed the City’s application and granted Westcan’s cross-application, thereby quashing the bylaw. The City appealed to the Court of Appeal of Alberta, and the majority set aside the order quashing the bylaw and vacated the injunction.