In what circumstances will a municipality revoke a building permit?

Alberta, Canada


The following excerpt is from Farm Credit Corp. v. Cherniwchan, 1986 CanLII 1924 (AB QB):

In Town of the Pas v. Porky Packers Ltd. (1976), 1976 CanLII 147 (SCC), 7 N.R. 569; 65 D.L.R.(3d) 1 (S.C.C.), one of a group of businessmen approached the defendant municipality with a view of acquiring land in the municipality on which to build and operate abattoir. The municipality was made aware of the intended use of the property. The municipality passed a resolution to sell certain lands to the said businessmen. Objection was taken to the resolution by some rate payers. Notwithstanding the objection, a building permit was granted to the businessmen. The rate payers succeeded in having the resolution to sell the land to the businessmen qushed. The municipality had taken no steps to revoke the building permit. The building was completed and the business was commenced, in spite of the challenge to the said resolution. An action was taken to quash the resolution and the resolution was quashed. The abattoir business could not be legally carried on upon the land sold to the businessmen, because of the planning provisions of the defendant municipality. The municipality attempted to amend its planning scheme but failed to do so. The plaintiff businessmen (through a company which they had incorporated) sued the municipality for damages for loss of its investment and loss of profits.

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