Expropriation and Disturbance Damages: What Property Owners Should Know

When a public authority acquires private land for a public project, compensation is not always limited to the market value of the property taken. In many cases, property owners may also be entitled to disturbance damages: compensation for losses caused by being displaced, disrupted, or forced to reorganize because of the taking.

Disturbance damages are meant to put the owner, as much as money can, in the position they would have been in if the acquisition had not occurred. These damages can arise in both residential and business contexts, and they are assessed separately from compensation for the land or the leasehold interest itself. In some cases, disturbance damages can represent a significant portion of a property’s overall compensation claim.

For homeowners, disturbance damages may include reasonable moving expenses, temporary accommodation costs, and other expenses directly related to relocation. In some cases, owners may also incur costs tied to purchasing a replacement property, such as legal fees, land transfer taxes, mortgage penalties, or increased financing costs.

For business owners and commercial tenants, disturbance damages can be more complex. A taking may result in relocation costs, business interruption losses, loss of goodwill, loss of tenant improvements, expenses associated with securing replacement premises, and the cost of adapting and outfitting a new location for continued operations. Legal, appraisal, accounting, and other professional fees may also form part of a claim.

Owners should not assume that the initial compensation offer reflects their full entitlement. The scope of a disturbance damage claim will often depend on the owner’s unique circumstances, making it important to seek professional advice to ensure all potential disturbance damages are identified and properly claimed.

If you have questions about expropriation or the disturbance damages you may be entitled to, please contact Amy Salak, Paralegal, at 604.580.7066 to schedule a free, no-obligation meeting with Doug Conolly to discuss your options.

This article is intended for general information only and does not constitute legal advice.

Article by: Tanya Motani and Douglas Conolly