INTERESTS IN LAND - Easements - Extinguishment of easements - Release by dominant owner - By implication - Abandonment

Law360 Canada ( July 19, 2017, 9:10 AM EDT) -- Appeal by Metrolinx from a decision dismissing its application for a declaration that an Access Easement was valid and ordering it to be relocated. The easement was located on property owned by the respondent, Remicorp Industries Inc. (Remicorp). The Access Easement provided access to an uncontested easement for maintenance of the railway tracks on which the appellant operated its trains (Maintenance Easement). In 2002, the Canadian National Railway Company (CN) conveyed its property to the respondent, but reserved the Access and Maintenance easements to itself. Both easements were for the benefit of CN and its successors and assigns. The Access Easement was then expressly addressed in a 2003 Easement Agreement between CN and the respondent in the nature of an option agreement in favour of CN. The Easement Agreement provided that on the registration of a Part 1 easement in accordance with the terms of the Agreement, on the respondent’s written request, CN was to release the Access Easement. CN never exercised its option, the Part 1 easement was never registered on title, and there was no evidence of the Committee of Adjustment’s consent or a release of the Access Easement from CN. In 2010, CN transferred its interest in the rail corridor lands to the appellant. The transfer included CN’s rights to the Access Easement and the Maintenance Easement. The appellant never exercised any rights to the Access Easement. The application judge found that the easement had been abandoned by implied release and was extinguished by operation of law. He concluded however, that the appellant was entitled to its easement, but it was to be relocated....
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