Island Realty Ltd. v. Corner Brook (City),

• Jurisdiction: Newfoundland and Labrador
• Judge: Roberts, J.
• Citation: (1992), 103 Nfld. & P.E.I.R. 161 (NFTD)
• Court: Supreme Court of Newfoundland and Labrador (Canada)
• Date: 02 November 1992

Island Realty v. Corner Brook (1992), 103 Nfld. & P.E.I.R. 161 (NFTD);

    326 A.P.R. 161

MLB headnote and full text

Island Realty Limited (appellant) v. The City of Corner Brook (respondent)

(1989 No. C.B. 886)

Indexed As: Island Realty Ltd. v. Corner Brook (City)

Newfoundland Supreme Court

Trial Division

Roberts, J.

November 2, 1992.

Summary:

A taxpayer appealed the assessment of its business property to the Court of Revision. The taxpayer appealed the decision of the Court of Revision.

The Newfoundland Supreme Court, Trial Division, in a decision reported at 69 Nfld. & P.E.I.R. 200; 211 A.P.R. 200, allowed the appeal and remitted the matter to the assessor for a new assessment. The taxpayer appealed the new assessment.

The Newfoundland Supreme Court, Trial Division, allowed the appeal.

Interest - Topic 5483

As damages (prejudgment interest) - Par­ticular claims - Tax refund - A municipal taxpayer paid its taxes as assessed - It successfully appealed the assessment and claimed interest on the overpayment of tax - The municipality submitted that interest should not be awarded because the As­sessment Act did not provide for payment of interest on a refund and there was no cause of action (as provided in s. 4(1) of the Judgment Interest Act) until the appeal provisions of the Assessment Act were exhausted - The Newfoundland Supreme Court, Trial Division, declined to award interest - See paragraphs 13 to 18.

Real Property Tax - Topic 3575

Valuation - Business property - Rental or income value - General - An assessor used a blend of 70% cost approach and 30% income approach in arriving at the assessed value of a shopping mall - A municipal taxpayer appealed his assess­ment arguing that market value of an income producing property is best deter­mined by the income approach - The assessor argued that the paramount con­sideration under the Assessment Act was uniformity and other taxpayers had been assessed using the 70/30 blend - The Newfoundland Supreme Court, Trial Divi­sion, held that the assessed value was the valuation arrived at by the income approach - See paragraphs 1 to 12.

Real Property Tax - Topic 8334

Payment of taxes - Refunds - Interest - [See Interest - Topic 5483].

Cases Noticed:

Halifax Developments Ltd. v. Director of Assessment and City of Halifax (1983), 55 N.S.R.(2d) 455; 114 A.P.R. 455 (Co. Ct.), refd to. [para. 9].

Zaidan Group Ltd. v. London (City) (1988), 28 O.A.C. 365; 49 D.L.R.(4th) 681 (Div. Ct.), revd. (1990), 36 O.A.C. 384; 64 D.L.R.(4th) 514 (C.A.), affd. (1991), 129 N.R. 227; 50 O.A.C. 1; 85 D.L.R.(4th) 488 (S.C.C.), refd to. [para. 14].

Statutes Noticed:

Assessment Act R.S.N. 1970, c. 14, sect. 18(1), sect. 18(2) [para. 3]; sect. 38 [para 10]; sect. 41 [para. 9].

Assessment Act, S.N. 1986, c. 43, sect. 17(1), sect. 17(2) [para. 8]; sect. 38 [para. 10]; sect. 53 [para. 9].

City of Corner Brook Act, R.S.N. 1990, c. C-15, sect. 144 [para. 15].

Judgment Interest Act, R.S.N. 1990, c. J-2, sect. 4(1) [para. 16].

Counsel:

Carl R. Thompson, Q.C., for the appellant;

Brian V. Murphy, for the respondent.

This appeal was heard on September 30, October 1 and 8, 1992, before Roberts, J., of the Newfoundland Supreme Court, Trial Division, who filed the following judgment on November 2, 1992.