Whitehouse v. Sun Oil Co., (1982) 40 A.R. 380 (CA)

• Judge: Lieberman, Laycraft and Stevenson, JJ.A.
• Court: Court of Appeal (Alberta)
• Case Date: September 10, 1982
• Citations: (1982), 40 A.R. 380 (CA)

Whitehouse v. Sun Oil Co. (1982), 40 A.R. 380 (CA)

MLB headnote and full text

Whitehouse v. Sun Oil Co. Ltd.

(Appeal No. 14015)

Indexed As: Whitehouse v. Sun Oil Co.

Alberta Court of Appeal

Lieberman, Laycraft and Stevenson, JJ.A.

September 10, 1982

Summary:

A farmer leased 7.93 acres to Sun Oil for a well site. The farmer applied to the Surface Rights Board for a determination of the annual compensation payable to the farmer under the lease. The board awarded the farmer annual compensation of $2,032.00. The farmer appealed to the Alberta Court of Queen's Bench.

The Alberta Court of Queen's Bench allowed the appeal and increased the annual compensation to $4,086.00. The judgment of the Alberta Court of Queen's Bench is set out below - see paragraphs 26 to 37. Sun Oil appealed to the Alberta Court of Appeal.

The Alberta Court of Appeal allowed the appeal and fixed the annual compensation to the farmer at $2,386.00.

Mines and Minerals - Topic 6144

Compensation to owners of surface rights - Awards - Judicial review of awards - The Alberta Court of Appeal referred to the principle that the courts should give "substantial evidentiary value" to decisions of the Surface Rights Board - The court stated that the principle is only applicable when adequate reasons are given by the board to enable the courts to determine the "expertise" that the board used in reaching its decision (see paragraphs 11 and 12).

Mines and Minerals - Topic 6103

Compensation to owners of surface rights - Awards - Relevant considerations - The Alberta Court of Appeal referred to the primary components in fixing a compensation award to a farmer (see paragraph 17).

Mines and Minerals - Topic 6156

Compensation to owners of surface rights - Awards, loss of use of 7.93 acres of farmland - The Alberta Court of Appeal calculated the annual value of the loss of use of the land at $170.00 per acre (see paragraphs 19 and 20) - In addition the court sustained an annual award of $142.00 per acre for adverse affect on the surrounding land (see paragraphs 22 and 23).

Mines and Minerals - Topic 6114

Compensation to owners of surface rights - Costs of appeal - Surface Rights Act, s. 24(10) - The Alberta Court of Appeal stated that the special circumstances which would deprive an owner of solicitor and client costs under s. 24(10) would include the circumstance when an owner attempts to maintain an untenable position (see paragraph 25).

Words and Phrases

Special circumstances - The Alberta Court of Appeal discussed the meaning of the words "special circumstances" as found in s. 24(10) of the Surface Rights Act, R.S.A. 1980, c. S-27 (see paragraph 25).

Cases Noticed:

Caswell v. Alexander Petroleum, [1972] 3 W.W.R. 706, ref'd to. [paras. 8, 35].

Lamb v. Canadian Reserve Oil and Gas Ltd., 8 N.R. 613, [1977] 1 S.C.R. 519, ref'd to. [paras. 8, 35].

Chieftain Developments Co. Ltd. v. Lachowich, 32 A.R. 449, [1982] 1 W.W.R. 37, ref'd to. [para. 8].

Livingston v. Siebens Oil and Gas Ltd., 8 A.R. 439, [1978] 3 W.W.R. 484, ref'd to. [para. 8].

Northwestern Utilities Ltd. v. Edmonton, 23 N.R. 565, [1979] 1 S.C.R. 684, ref'd to. [para. 10].

O'Hanlon et al. v. M.D. Foothills No. 31, 21 A.R. 179, [1979] 6 W.W.R. 709, ref'd to. [para. 10].

Murray et al. v. Council of Municipal District of Rockyview No. 44 et al. (1980), 21 A.R. 512, 12 Alta. L.R.(2d) 342, ref'd to. [para. 10].

Redwater Disposal Company v. Shopsky (1979), 20 A.R. 60, 10 Alta. L.R.(2d) 308, ref'd to. [para. 19].

Livingston v. Siebens Oil and Gas Ltd., 8 A.R. 439, [1978] 3 W.W.R. 434, ref'd to. [para. 21].

Statutes Noticed:

Surface Rights Act, R.S.A. 1980, c. S-27, sect. 24 [para. 4]; sect. 24(10) [para. 25]; sect. 37 [para. 2].

Authors and Works Noticed:

Richards and Price, Surface Rights Acquisition and Compensation (1982), 20 Alta. Law Review, [para. 19].

Counsel:

T.H. Ferguson, for the appellant;

F.L. Scott, for the respondent.

This appeal was heard by LIEBERMAN, LAYCRAFT and STEVENSON, JJ.A., of the Alberta Court of Appeal. The judgment of the Court of Appeal was delivered by STEVENSON, J.A., at Calgary, Alberta, on September 10, 1982.