A municipality owned a large tract of land that had been a municipal landfill site many years…

A municipality owned a large tract of land that had been a
municipal landfill site many years before. Custom Construction Inc., a land
development corporation, moved into the municipality from another city, and was
anxious to establish itself in the community as a quality developer. When it
discovered that the municipality had a tract of land for sale, it approached
the municipality to determine if the land could be purchased for residential
development. The municipality was anxious to dispose of the property, and
agreed to sell to Custom Construction Inc. A price was agreed upon, and the
»

A municipality owned a large tract of land that had been a
municipal landfill site many years before. Custom Construction Inc., a land
development corporation, moved into the municipality from another city, and was
anxious to establish itself in the community as a quality developer. When it
discovered that the municipality had a tract of land for sale, it approached
the municipality to determine if the land could be purchased for residential
development. The municipality was anxious to dispose of the property, and
agreed to sell to Custom Construction Inc. A price was agreed upon, and the
purchase was completed after the lawyer for Custom Construction Inc. had
examined the title to the property, and found that the municipality had a good
title to the tract of land. During the preparation of the land for house
building, Custom Construction Inc. employees noticed that a methane gas smell
was rising from the excavations for house basements, and also that a coloured
liquid was seeping into a small stream that crossed the property. When Custom
Construction Inc. queried the methane gas smell, and seepage into the stream at
the municipal office, it was advised at that time that the land had previously
been the municipal landfill site. The revelation that the property had been a
landfill site in the past effectively precluded Custom Construction Inc. from
proceeding with its housing development. Discuss the issues raised in this
case, and advise Custom Construction Inc. Speculate as to the outcome of this
case if Custom Construction Inc. should decide to take matters to court.

»

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