Town of Spallumcheen sold resident's land in tax sale without notice | iNFOnews | Thompson-Okanagan's News Source
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Town of Spallumcheen sold resident's land in tax sale without notice

Round Lake Road, Spallumcheen.
Image Credit: GoogleStreetView

A North Okanagan man who had his property sold for unpaid taxes without him knowing has won a legal case against the Township of Spallumcheen.

According to a May 5 B.C. Supreme Court decision, Anthony Brent Morgan fell into arrears for his property taxes for an empty piece of land he owned in 2017.

The decision says Morgan bought the property outside of Armstrong in 2011 and planned to build a house on it.

Together with his family, he lived on the site in a trailer for nine months before bylaw officers told him that he had to move because he had no permit and the site didn't have a septic system.

He then moved to a rental in Vernon but struggled financially. By 2017 he'd fallen into arrears with his property tax.

In September 2017 and with $6,700 of unpaid taxes registered against the plot of land, the Township of Spallumcheen sold the nine-acre site in a tax sale.

While the land was valued at $159,000 someone scooped it up for $11,300.

However, Morgan was unaware the property had been put up for a tax sale and that the land had been sold.

He then headed to the courtroom arguing the Township of Spallumcheen had failed to follow the correct legal proceedings.

Just before the case was due to go to trial, the Township of Spallumcheen admitted it hadn't followed the law regarding the sale.

However, the Township of Spallumcheen argued Morgan should only be compensated for the value of the land from September 2018, when the tax was completed.

READ MORE: Penticton to pay vulnerable woman $140K for selling her home for unpaid tax bill

Morgan argued he should receive the current fair market value, a difference of $190,000.

Luckily for Morgan, the judge agreed.

"Had the tax sale not taken place or had he been notified of it and redeemed the property, the plaintiff would have continued to own the property and would have enjoyed the increase in its value over the years," Justice Gary Weatherill said in the decision. "The Tax Sale has deprived him of that increase."

The Justice also had strong words for the Township of Spallumcheen.

"The power given to local governments... to sell private land for the non-payment of delinquent taxes is an extraordinary remedy. If a local government is going to exercise that power, it must ensure the pre-conditions to a tax sale, including giving notice to the property owner... (is) complied with," the justice said. "Failure on the part of the local government to follow the legislation, including failure to notify the owner... should bring with it in my view, significant consequences."

The Justice then ruled the Township of Spallumcheen pay Morgan the current value of the land at $360,000, minus the $7,683 in unpaid taxes.

Morgan also argued because he could not afford a lawyer to fight his case against the Township, he had no option but to enter into a 30 per cent contingency fee arrangement with his lawyer.

Morgan argued the Township of Spallumcheen should pay his pricey lawyer fees.

However, the Justice disagreed.

While the justice did award costs to cover Morgan's legal fees, it was at a government-mandated rate which was lower than his lawyers had charged.

The decision says there are no other reported cases in B.C. similar to this one. 

Township of Spallumcheen Mayor Christine Fraser was apologetic about the situation.

"We understand it was difficult for the person that lost the property... and we apologize for any hardship this may have caused and we have put measures in place to make sure it doesn't happen again," Mayor Fraser said.

The mayor reiterated the process had been changed and it now had a very clear policy and a very definite set of procedures.

The Mayor said the Township was insured and the added cost would not be passed on to taxpayers.

"It was an unfortunate situation and we are going to make sure it doesn't happen again," she said.

READ MORE: 'Just one phone call:' Sister of woman who lost home in Penticton tax sale demands change

— This story was updated at 2:25 p.m. Tuesday, May 10, 2022, to include comment from Township of Spallumcheen Mayor Christine Fraser.


To contact a reporter for this story, email Ben Bulmer or call (250) 309-5230 or email the editor. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

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