The former owner of James Island has failed to overturn a court order that it pay $4.75 million to the island’s current owner as reimbursement for environmental cleanup.
In a unanimous decision released on Friday, the B.C. Court of Appeal backed the Supreme Court of B.C.’s
2014 decision that PPG Architectural Coatings Canada Inc. (previously ICI Canada Inc.), must pay the money to
J.I. Properties Inc., headed by Seattle telecommunications billionaire Craig McCaw.
James Island is located off the Saanich Peninsula. It was used to manufacture and store explosives between about 1913 and 1985.
The island is valued at $51.6 million by B.C. Assessment.
At close to 780 acres, the private island features an 18-hole Jack Nicklaus-designed golf course, a main house, guest cottages, a western-themed village, and conservation area.
ICI owned James Island 1954 to 1988. It sold the company to another owner, who in turn sold it to J.I. Properties in 1994.
Between 1986 and 1988, ICI carried out a remediation program for lead, mercury, TNT and DNT in the soil. Remediation criteria was worked out with B.C.’s Ministry of Environment and Parks.
In July 1988, the ministry wrote ICI stating that the company had met the agreed-upon criteria for the contaminants, given a restricted allowed use, and did not “perceive any further environmental concern,” the decision said.
A restrictive covenant was placed on the property that year.
J.I. Properties knew of the covenant when it bought the island, the decision said.
In 2004, the province imposed a new regime of environmental regulations. They included obligations to remediate contaminated lands and also brought in liability for those responsible.
After buying the island,
J.I. Properties had more environmental evaluation completed and ended up spending $5.3 million cleaning up areas that had not been remediated in the 1980s, the decision said.
The Appeal Court agreed with the trial judge that the ministry’s letter did not meet the legal definition of a certificate of compliance for remediation.
It also agreed that PPG is not exempt from liability for the cost of environmental remediation carried out by the current owner.
