Law360 Canada ( January 6, 2026, 9:41 AM EST) -- Appeal by City of Kelowna (Kelowna) from trial decision granting Watermark Developments Ltd.’s application to cancel restrictive covenants. In 2009, Kelowna approved the rezoning and subdivision of Watermark Developments Ltd.’s property on the condition that two restrictive no-build covenants be registered to protect a corridor envisioned as a future roadway linking Kelowna International Airport and UBC’s Okanagan campus as an alternative to the congested Highway 97. Originally conceived as the “Central Okanagan Bypass,” the project evolved into the Central Okanagan Multi-Modal Corridor and later the Clement Avenue Extension, which was divided into three segments. The covenants specifically safeguarded what is now Segment 3 while Segments 1 and 2 progressed, including partial construction of Segment 1. Watermark applied under s. 35(1) of the Property Law Act to cancel the covenants, arguing that they became obsolete due to evolving project plans, long delays, and the lack of near-term funding or confirmed construction for Segment 3. The trial judge granted the application, finding the covenants’ purpose too remote to remain relevant and that cancellation would not injure Kelowna. On appeal, Kelowna argued that the judge misapplied the legal test for obsolescence, erred in assessing potential injury, and improperly balanced the parties’ interests....