Judgments

Decision Information

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The Queen (Plaintiff) v.
Norman Daniel Sonnenberg and Mary Sonnen- berg (Defendants)
Trial Division, Kerr J.—Welland, May 10; Ottawa, June 16, 1971.
Expropriation—Dower right—Expropriation of farm— Wife's inchoate right of dower—Valuation of—Payment forthwith of present value—Expropriation Act, R.S.C. 1952, c.106, s.30.
S's farm in Ontario was expropriated for $18,708. His wife claimed, and S conceded, that she was entitled to a portion of that sum as compensation for her inchoate right of dower in the land. According to the tables in Cameron's Law of Dower (Toronto, 1882), for calculating the value of dower rights which, according to the Ontario Court of Appeal in Re Smith [1952] O.R. 135, are still usable in Ontario, the value of her dower right as of the date of expropriation "provided she survives her husband" was $1,234.60. Its value if paid forthwith (using the same tables) was determined to be $734.59.
Held, having regard to the relatively small amounts involved and the expense of putting $1,234.60 in trust for the wife until her husband's death, she should be paid $734.59 forthwith together with interest thereon at 5% per annum from the date she gave up possession of the land until the date of judgment. The Court had power to make such order under s. 30 of the Expropriation Act, R.S.C. 1952, c. 106.
EXPROPRIATION action.
E. A. Bowie for plaintiff.
D. Johnston for Mr. Sonnenberg, defendant.
A. H. Goodman, Q.C., for Mrs. Sonnenberg, defendant.
KERR J.—This is an Information in respect of certain property in the Township of Humber- stone, in the County of Welland, Ontario, expropriated on December 6, 1965, with the prior approval of the Governor in Council given by Order in Council P.C. 1965-2174 dated December 2, 1965, pursuant to s. 18 of the St. Lawrence Seaway Authority Act, R.S,C. 1952, c. 242, for the purposes of the said Act, in particular in connection with the diversion of the southerly section of the Welland Canal, by the deposit of a plan and description in the
Registry Division of the County of Welland on December 6, 1965.
There was no dispute at the trial that the expropriation of the lands in question was valid ly effected. In any event the evidence proves that such expropriation was validly effected and that the lands became vested in the St. Law- rence Seaway Authority on the 6th day of December, 1965.
The issues in dispute arise out of a claim by the defendant Mary Sonnenberg that at the time the lands were expropriated she, as the wife of the defendant Norman Sonnenberg, had an inchoate right of dower in the lands and conse quently was entitled to compensation; and that the amount offered by the Crown as compensa tion to all persons was too low and unduly reduced the compensation to which she was entitled.
Norman Sonnenberg does not dispute the suf ficiency of the amount of $18,708.00 offered by the Crown as full compensation. Initially in his pleadings he disputed his wife's claim that she had an inchoate right of dower in the lands, but by an amended Defence admitted that she had such right and is entitled to a portion of the total compensation payable for the taking of the lands.
There are thus two principal issues to be determined, namely, (1) the total amount of compensation payable, and (2) the portion thereof to which Mary Sonnenberg is entitled. A subsidiary issue is whether she is entitled to payment now of a determined amount or wheth er the present value (i.e. as of the date of the expropriation) of her right of dower, provided she survives her husband, should be held in trust for payment to her only if and when she survives her husband.
The lands consist of about 14.5 acres, of which about 11 are in hay, 2 in bush and 1.5 in pasture. Buildings on the land were a 6-room, 1 3/4 storey frame dwelling house, barn, garage, small granary and small poultry shed. Norman Sonnenberg worked on the railway and operat-
ed the property as a part-time farm. The build ings were usable, but quite old. The property is on the north side of Forkes Road, about &mile east of the Welland Ship Canal and about midway between the City of Welland and Port Colborne. The property is served by municipal water, hydro electric power and gas, but not by sewers. Forkes Road is a well-travelled east- west county highway. Photos of the property were received in evidence.
The defendant Mary Sonnenberg testified that she thought the offered $18,708.00 is far less than the value of the property, looked at as their home. She did not put any figure on what she thought it was worth or offer any evidence of value except her own opinion. She had left the property and was working and living in Hamilton for a considerable period after it was expropriated but later moved back in to the dwelling house and refused to give up posses sion until a warrant of possession was ordered by the Exchequer Court and served on her in July 1969.
Norman Sonnenberg was the registered owner of the lands and he agreed with the St. Lawrence Seaway Authority to accept $18,- 708.00 in full settlement of the compensation payable for the taking of the property; and he was paid $13,708.00 by the Seaway Authority on May. 2, 1968, to be deducted from the amount otherwise adjudged owing to the defendants or any other person as a result of the taking, and delivered possession of the property to the Seaway Authority at that time. He also gave a warranty deed of the property to the Seaway Authority dated March 7, 1968.
Franklyn M. Griffiths, Judge of the County Court of the County of Welland, issued on May 10, 1968, on the application of Norman Son-
nenberg, an order under the Dower Act, R.S.O. 1960, c. 113, unconditionally dispensing with the concurrence of Mary Sonnenberg for the purpose of barring her dower in the subject lands.'
Evidence as to the market value of the prop erty was given by W. H. Burton, a qualified real estate salesman, broker and appraiser in the Welland area, who had appraised the market value for the plaintiff. His report was received in evidence under Exchequer Court Rule 164B. In his opinion the highest and best use of the property at the time of its expropriation was for commercial or industrial uses, based upon a division of the property into 2 parcels, one consisting of the dwelling and garage and the 66' x 165' lot on which they were located, the other consisting of the remaining 14.236 acres of land. In such a division he felt that the barn and other outbuildings would not be of service and would not add to the value of the property. He gave a value of $8,000 to the dwelling house and garage property; and a value of $500 per acre to the remaining 14.236 acres, for $7,118; making a total valuation of $15,118. Despite vigorous and searching cross-examination by counsel for Mrs. Sonnenberg, Burton held to his opinion.
I find that Burton's valuation of the property, based on its highest and best use, is reasonably close to the mark. No evidence of value was offered by Mrs. Sonnenberg except her own opinion. She obviously did not feel competent to place a definite or approximate value on the property and did not give evidence otherwise of its value.
I determine the compensation payable for the taking of the property at the amount offered by the Seaway Authority and accepted by Mr. Son- nenberg, namely, $18,708.
An old authority, Cameron on The Law of Dower, published in 1882 in Toronto, was used by all counsel in this case. That book contains tables for calculating the value of the right of dower, and the Court of Appeal of Ontario held in Re Smith [1952] O.R. 135, that those tables are still usable in Ontario for calculating dower values.
The parties agreed at the trial that, using the Cameron tables and assuming a total compensa tion award of $18,708, the "present value of the right of dower" of Mrs. Sonnenberg as of the date of expropriation, "provided she survives her husband", is $1,234.60. 2
Counsel for Mrs. Sonnenberg argued that she is entitled to payment of that amount now, with interest, and that payment should not have to await or be dependent upon her surviving her husband. Counsel for Mr. Sonnenberg argued that the said "present value" is qualified in the Cameron Table of Value, Appendix H, by the words "provided she survives her husband", and that the present value of Mrs. Sonnenberg's right of dower without being subject to the qualification of survival must be less than its value subject to survival, for the qualification is such that payment is dependent upon her sur viving her husband, an eventuality that possibly may not occur.
A calculation was put before the Court (again using the Cameron tables and making an adjust ment in the amount of present value to give effect to the qualification of survival) of the present value of Mrs. Sonnenberg's right of dower, if it is paid now, showing a value of $734.59.
There was no dispute as to the accuracy of the calculations. No other calculations of dower values or methods of calculating such values were offered.
Counsel for Mr. Sonnenberg proposed 2 alternatives, (1) payment of $734.59 now to Mrs. Sonnenberg, or (2) setting aside $1,234.60
in trust until survivorship is determined by the death of either Mr. or Mrs. Sonnenberg, to be paid to her if she becomes the survivor, to him if he becomes the survivor, with the annual income to be paid to him while both are alive. This latter alternative is along the lines of an order made in Taylor v. Taylor [1971] 1 O.R. 715.
In my opinion the present value of Mrs. Son- nenberg's dower interest, provided she survives her husband, is $1,234.60; and if it is not sub ject to that provision and is payable now, it is $734.59.
I sensed a feeling on the part of all parties that payment now of whatever amount is deter mined by the Court would be preferable to putting money in trust with distribution to await and be dependent upon survivorship. In any event, having regard to the relatively small amounts involved and the inconvenience and expenses that putting the money in trust and administering it would involve, I think that the ends of justice would be better served by pay ment to Mrs. Sonnenberg now of $734.59 rather than requiring $1,234.60 to be held in trust to await survivorship. She will also be entitled to payment of interest on $734.59 at 5 per cent per annum from July 15, 1969, when she gave up possession, to the date of judg ment. Mr. Sonnenberg received $13,708 on May 2, 1968 and gave up possession at that time, and he will be entitled to payment now of $4,265.41 3 with interest at 5 per cent from that date to the date of judgment. Judgment will be to that effect. I think that the Court has power to make such an order by virtue of s. 30 of the Expropriation Act, R.S.C. 1952, c. 106, which reads as follows:
30. Such proceedings, so far as the parties thereto are concerned, bar all claims to the compensation money or any part thereof, including any claim in respect of dower, or of dower not yet open, as well as in respect of all mortgages, hypothecs or encumbrances upon the land or property; and the Court shall make such order for the distribution, pay ment or investment of the compensation money and for the
securing of the rights of all persons interested, as to right and justice, and according to the provisions of this Act, and to law appertain.
As to costs, Mrs. Sonnenberg testified that no one from the Seaway Authority ever negotiated with her or made an offer to her. Counsel for the plaintiff submitted that the dispute between the defendants respecting distribution of the compensation was not attributable to the plain tiff. However, Mrs. Sonnenberg found it neces sary to defend her right in court, and there was a real issue between the defendants respecting distribution of the compensation money and an absence of agreement between them and the plaintiff, as to such distribution. In the circum stances, I think that the defendants should have their costs of these proceedings, to be taxed.
Judgment will, therefore, be rendered
(1) declaring that the lands described in para graph 2 of the Amended Information became vested in the St. Lawrence Seaway Authority on the 6th day of December, 1965;
(2) that the amount of compensation payable for the aforesaid lands and for all damages resulting from the expropriation thereof is $18,708;
(3) that the defendant Mary Sonnenberg, upon her delivering to the plaintiff a valid and sufficient release of all or any claims in respect of her inchoate right of dower or other interest in the said lands that may have existed upon the lands at the time of the said expropriation, is entitled to be paid by the plaintiff the sum of $734.59, with interest thereon at 5 per cent per annum as from July 15, 1969, to the date of judgment herein;
(4) that the defendant Norman Daniel Son- nenberg, upon his delivering to the plaintiff a valid and sufficient release or releases of all and any claims, liens, charges or encumbrances of any kind or nature whatsoever (other than claims by the defendant Mary Sonnenberg referred to in the next preceding paragraph 3) that may have existed upon the said lands at the time of the said expropriation, is entitled to be paid by the plaintiff the sum of $4,265.41 with
interest thereon at 5 per cent per annum as from May 2, 1968, to the date of judgment; and
(5) that the defendants are entitled to be paid by the plaintiff their respective costs of this action, to be taxed.
1 At the trial, counsel for Mary Sonnenberg submitted that the lands had been expropriated before that order was issued and therefore the order was not effective. I do not need to rule on that point.
2 Adjustable according to the amount of compensation actually awarded.
3 Being $18,708 minus the aggregate of $13,708 and $734.59.
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