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In Westcan Recyclers Ltd. v. City of Calgary, 2025 ABCA 67, the Alberta Court of Appeal considered whether a municipal road closure by-law was enacted through a procedurally fair process. The decision highlights the scope of procedural fairness in municipal decision-making, particularly when a municipality acts both as regulator and project developer.
Procedural Fairness in Municipal By-Law Making: Westcan Recyclers Ltd. v. City of Calgary (2025 ABCA 67)
Westcan Recyclers Ltd. v. City of Calgary, 2025 ABCA 67, illustrates how the Alberta Court of Appeal evaluates whether a municipal by-law is enacted through a procedurally fair process. The case highlights key lessons for municipalities and landowners, particularly when a city acts both as regulator and project developer, and underscores the importance of transparent decision-making to reduce legal risk in municipal by-law implementation.
When a municipality passes a by-law that directly affects a landowner, how fair must the process be?
That question was at the centre of Westcan Recyclers Ltd., et al. v. City of Calgary, 2025 ABCA 67, a recent decision issued by the Court of Appeal of Alberta. The case focused on whether the City of Calgary (the "City") followed a procedurally fair process when enacting a road closure by-law.
Case Background: Road Closure By-Law and Westcan's Challenge
Westcan Recyclers Ltd. ("Westcan") operates a recycling facility in southeast Calgary, with direct access to 68th Street SE. As part of a larger industrial development project, the City widened that road from two lanes to four. The expansion required closing Westcan's direct entrances and replacing them with new access points from side streets.
Westcan argued the alternative routes were unsafe and would seriously disrupt its operations. The company went to court and obtained an injunction stopping the roadwork near its property. Meanwhile, the City Council passed a by-law formally closing Westcan's old access.
The chambers judge sided with Westcan, finding that the by-law process was procedurally unfair and quashing it. On appeal, the majority of the Court of Appeal overturned that decision, upheld the by-law and lifted the injunction. One Court of Appeal judge dissented, saying the process should start over because the City had blurred important internal roles.
Why Did Procedural Fairness Matter?
In this context, the legal principle of procedural fairness requires government decisions that directly affect someone's rights or property to have a process that is fair. That usually means clear notice, a real opportunity to participate in the decision and transparent decision-making.
In this case, the court focused on the City's Real Estate & Development Services ("REDS") unit. REDS was acting as the developer of the industrial project, but it is also part of City administration. Westcan argued that REDS wore two hats, promoting its own development obligations while also advising the City Council as if it were a neutral administration. According to Westcan, this led to a lack of clarity which tainted the process.
The chambers judge agreed, finding that the City may not have been clearly told when REDS was speaking as a developer and when it was speaking as City administration. In the chamber judge's view, that lack of transparency meant Westcan did not receive a fair hearing.
The majority of the Court of Appeal disagreed. It held that REDS is not legally separate from the City and cannot act outside the City's public mandate. The City had received written and oral submissions from Westcan, knew about the ongoing court dispute and understood the context. The Court of Appeal decided that the process met the legal standard of fairness for passing a municipal by-law.
The Bigger Picture
This case serves as a reminder that although municipalities have broad statutory authority to pass by-laws, courts will scrutinize how those powers are exercised. Clear role delineation and transparent processes remain critical to protecting municipal decisions from judicial review.
Municipalities should keep this in mind when passing by-laws. Decisions made for the broader public benefit can be challenged if the process appears unclear or unfair, and defending those decisions in court can be costly and time-consuming.
Notably, the case has now been granted leave to appeal to the Supreme Court of Canada. The forthcoming decision by the Supreme Court of Canada will provide important national guidance on procedural fairness in municipal by-law making, particularly where administrative and development functions intersect.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
