CROWN |
Real Property |
Canada v. Crosson
A-532-99
Malone J.A.
24/11/00
6 pp.
Appeal from trial judgment ((1999), 169 F.T.R. 218) determining rents fixed by Minister for various properties fair, reasonable--Trial Judge accepting methodology, conclusions of Minister's expert appraiser, David Lenych in valuing leases based on Crown's fee simple estate--Standard of review on appeals from trial judges on question of law correctness--Findings of fact based on credibility of witnesses as determined by trial judge not to be interfered with by Court of Appeal unless trial judge making palpable, overriding error in law affecting assessment of facts--Appellants arguing "fee simple" approach inconsistent with wording in leases, particularly term "ground rent" in renewal leases and "full annual value of tenement" in original leases--Appeal dismissed--Methodology issue clearly addressed by Crown witness, Peter Nichol, expert in financial analysis--Assessment must first be made of value of owner's interest being leased, following which appropriate capitalization rate may be applied to calculate market rent--If valuation of owner's interest and capitalization rate in step with marketplace, resulting rent will recapture full annual value of owner's interest in land leaving no residual value, or leasehold interest, in hands of lessee--Lessor's interest is rent received, which, when capitalized, would equal ownership interest--Appellants arguing "leasehold interest" should be given value--But impossible to determine value of any "leasehold interest" without first knowing rent contracted for, very issue to be determined--Also fee simple methodology consistent with that applied in similar rent review cases across Canada--As to meaning of "tenement", definition can include both land and houses or buildings depending on context--No error in Trial Judge's decision endorsing Minister's right to allow one rate of seasonal rent reduction to residential lessees while commercial lessees not granted comparable rate as Crown's expert did consider seasonal restrictions in overall assessment of land values--Trial Judge correctly concluding tendering of complete discovery transcript of appellant James Murray not amounting to adoption by Minister of entirety of Murray's evidence--Merely evidence to be weighed with rest of testimony--Allegation of bias rejected as without evidentiary foundation, merit--Neither palpable, overriding errors in Trial Judge's assessment of facts nor errors of law.