Protection of property rights – The Law

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Published: August 8, 2002

Should property rights be protected by Canada’s constitution?

This question arose at the Canadian Alliance Party policy convention in

April. While the party has always supported constitutional protection

for property rights, it expanded its position.

Its policy now says even if an agreement can’t be reached with the

provinces to amend the constitution, the party as government, would

pass federal legislation providing “that full, just and timely

compensation will be paid to all persons who are deprived of personal

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or private property as a result of any federal government initiative,

policy process or legislation.”

What are some of the issues involved in such a constitutional change or

law?

Rights that are protected by the constitution have greater protection

and status than rights established by mere legislation. Once rights are

protected in the constitution they cannot be overridden easily by

provincial or federal laws, though certain rights can be overridden for

periods of up to five years.

The constitution can only be changed by federal and provincial

agreement. Parliament and the legislatures of seven provinces having at

least half of the population of Canada (at minimum either Ontario or

Quebec has to agree) must agree to any constitutional change. The

constitution would have to be amended to add protection for property

rights.

To date, most Canadian political leaders have been reluctant to

advocate such a change. They fear it would restrict government’s

ability to legislate and regulate.

Recognizing the difficulties in achieving constitutional amendment, the

Alliance Party has proposed that the federal government enact

legislation that would protect property rights. This differs from a

constitutional change in two ways. First, it would only apply to the

federal government.

Second, a subsequent government could change

or repeal the law.

While the constitution or legislation might purport to protect property

rights, a major question to be addressed is the extent of that

protection. Should such a law apply when property is taken away, when

there are major limits on its use or when there is even the slightest

interference?

Many laws interfere with property rights. Speeding laws restrict the

manner in which we can use our cars and trucks, but most people would

agree these laws serve a useful purpose.

Both American and Canadian courts have already grappled with this

dilemma. The United States constitution provides that no one is to be

deprived of property without due process or without just compensation.

A hundred years ago, when zoning laws were first introduced in the

United States, Amber Realty Co. complained that the zoning bylaws of

the Village of Euclid violated its constitutional property rights. The

U.S. Supreme Court rejected the challenge finding that the zoning

ordinances were necessary and that constitutional guarantees must keep

pace with the needs of a changing society.

Canada’s constitution provides that aboriginal and treaty rights are

“recognized and affirmed.” Canada’s Supreme Court has ruled that

aboriginal rights are a form of property rights.

However, the court has also said while the words “recognized and

affirmed” mean the government can’t take away those rights without

consent, it can regulate those rights.

Don Purich is a former practising lawyer who is now involved in

publishing, teaching and writing about legal issues. His columns are

intended as general advice only. Individuals are encouraged to seek

other opinions and/or personal counsel when dealing with legal matters.

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