Principles of Compensation

Principles of Compensation

Where land is expropriated, the compensation to the owner is based on the market value of the land and, depending on the circumstances, damages for disturbance and for injurious affection (devaluation of the owner’s remaining land, where only part of his or her land is taken), and the value of any special economic advantage that the owner enjoyed because of occupying the land. The purpose of compensation is to make the owner, as much as possible, “whole”. The Expropriation Act sets out additional guidelines for assessing compensation for special purpose structures and for compensating business owners, tenants, and holders of security interests. It also sets out various factors that must be disregarded when determining compensation, such as the fact that the expropriation was compulsory, how the land will be used by the expropriating authority, and any changes in the value of the land that are connected with the expropriation proceedings.

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