CASUAL LEGAL: Finders, Keepers? Or, is Possession 9/10ths of the Law?

Attention: AMSC Members – Please distribute to all appropriate personnel

Finders, Keepers? Or, is Possession 9/10ths of the Law?

By Daina Young

Reynolds Mirth Richards Farmer LLP

AMSC Casual Legal Service Provider

Section 610 of the Municipal Government Act contains provisions with respect to lost or unclaimed property which comes into the possession of a municipality.

The municipality must retain lost or unclaimed property that comes into its possession for at least 30 days, unless the property is unsafe, unsanitary or perishable in which case the municipality can dispose of it at any time.

If the property remains unclaimed after 30 days, it becomes the municipality’s property and the municipality may dispose of the property by public auction or as Council directs. The ability for Council to direct an alternative process is important, as not all property will warrant the expense of a public auction procedure. However, the alternative process directed by Council must be reasonable in the circumstances.

Once a person purchases lost or unclaimed property from the municipality, whether through the public auction process or as directed by council, that person becomes the absolute owner of the property. This prevents the former owner of the property from being able to require the return of the property.

The prior owner is entitled to the proceeds of any sale by the municipality, less any expenses incurred by the municipality with respect to the sale, provided that the prior owner makes a claim to the municipality within 90 days of the sale and can establish ownership. If the sale proceeds are not claimed within 90 days, the sale proceeds belong to the municipality.

This provision may be of assistance to municipalities that come into possession of personal property as a result of tax sale proceedings. However, municipalities that come into the possession of personal property in this way should still endeavor to provide the previous owner of the property with an opportunity to retrieve their belongings. The municipality must give the previous owner a reasonable opportunity to retrieve any personal property the person left behind, and clearly communicate to the person that if the personal property is not retrieved, the municipality may proceed to dispose of it.

It is possible that lost or unclaimed property that comes into the possession of the municipality will include or reveal personal information. The municipality should take care to ensure it is complying with its obligations under the Freedom of Information and Protection of Privacy Act when dealing with property of this nature.

To access AMSC’s Casual Legal Helpline, AUMA members can call toll-free to 1-888-668-9198 or email casuallegal [at] amsc.ca (casuallegal[at]amsc[dot]ca) and reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please contact Will Burtenshaw, Director – Risk Management Services, at (780) 409-7450, or toll-free at 310-AUMA (2862) or via email at wburtenshaw [at] auma.ca (wburtenshaw[at]auma[dot]ca). Any Regular or Associate member of the AUMA can access the Casual Legal Service.

DISCLAIMER: This article is meant to provide information only and is not intended to provide legal advice. You should seek the advice of legal counsel to address your specific set of circumstances. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this article to be outdated.