A British Columbia resident has been awarded about $350,000 in compensation from the township of Spallumcheen.
Anthony Brent Morgan, a 57-year-old carpenter, lost his home when the local government sold it in September 2017 for “pennies on the dollar” without telling him.
“Negotiations with the then owner, Ms. Jensen, ensued and an agreement was reached whereby the plaintiff would purchase the Property for $160,000 with a down payment of $40,000 and a mortgage back to Ms. Jensen (“Mortgagee”) of $116,000 (including $10,000 for supplying water to the Property). Mortgage payments were agreed at approximately $1,000 per month,” the court documents say.
Prior to living in the township, Morgan spent much of his adult life in Surrey, and then decided to move back to the North Okanagan area in which he was raised to establish new roots for his family and begin a carpentry business. He chose to seek out a new home in the Vernon area by liquidating assets.
As the court documents summarize, Morgan had sought to improve upon the property, installing utilities and constructing a roof system. He ultimately wanted to build a house, barn, and workshop for the benefit of his business, but began to experience some difficulty paying for the property over the next few years.
“The plaintiff had attempted to continue his trade in Vernon but struggled financially,” the documents say.
“He had difficulty paying the annual property taxes on the Property and fell into arrears. By September 2017, he owed property taxes of approximately $6,700. On September 24, 2017, the defendant sold the Property at the annual municipal tax sale for $11,300. The redemption period for the Property ended one year later on September 24, 2018.”
The judge, Justice G.P. Weatherill, ruled that the local government is endowed with the authority to sell off properties to recover any delinquent taxes, but it must inform the owner and ensure they are given a one-year redemption period. In this case, Weatherill concluded that the “Plaintiff was unaware of the Tax Sale or the redemption period until after the redemption date expired.”
Going further, Weatherill said that the consequence of this was that Morgan was unable to keep the property and then reap the benefits of the increase in its value over time.
The township of Spallumcheen thus admitted their error and have agreed to pay Morgan a settlement amount of $352,316.28, which is to represent “the value of the Property as at the date of the trial ($360,000) less the delinquent taxes ($7,683.72).”
