Some Dundas Street businesses consider legal action over construction woes

Some businesses on Dundas Street have received a letter from a prominent law firm, asking if they feel they've been negatively impacted by ongoing construction in downtown London and saysthat they may be entitled to compensation.

The letter was sent after forensic accountant Sheri Gallant, of Matson Driscoll and Damico Ltd., started knocking on doors to find out if any of the businesses are losing money due to the construction.

Earlier this year, road crews ripped up Dundas Street to replace water lines. The work is expected to go on for months and is part of the city's larger plan to create the Dundas Place flex street downtown.

Laura Glithero, a partner at Cohen Highley Lawyers, said businesses along the street may be eligible for compensation for "injurious affection" under Ontario's Expropriations Act.

Usually expropriation involves the taking of land by the crown or a municipality without the owner's permission, but Glithero said injurious affection can also apply in other scenarios where land hasn't been taken.

"Under the expropriation legislation, under the scheme, compensation can be awarded where the claimant's enjoyment of the land is substantially and unreasonably interfered with," she explained.

"Part of being able to tell if the impact is substantial is obviously what sort of economic impact has it had on the business."

Glithero said her firm has been in contact with the accountant and several business owners, and began to consider whether other businesses may be affected.

She said it's still not clear whether those businesses could make a case for compensation from the city, but it's something they are investigating.

In an email to CBC News, manager of downtown projects Jim Yanchula said the city is aware of the letter but would not comment on it "because it references potential claims against the City."

'We knew that there was going to be disruption'

Some business owners on Dundas have felt a noticeable impact from the construction.

Jonathan Bancroft-Snell, who owns a ceramics and art gallery, said there has been a significant dip in sales at his store.

But Bancroft-Snell said he doesn't really understand what alegal claimis trying to accomplish.

"If lawsuits like that were successful, every city in Canada would be spending half their lives dealing with forensic accountants and lawsuits," he said.

"We've been aware [that] this was going to happen. We knew that there was going to be disruption."

Next door to Bancroft-Snell's gallery, Coffee Culture owner Shane Kenneth is similarly skeptical about any legal action.

Business at the coffee shop has been down 25 to 30 per cent during the construction, Kenneth said.

"When there was a giant hole in front of our restaurant it was 50 per cent," he said. "We have great customers, but unfortunately how it is right now, a lot of people are deterred to come down."

Still, Kenneth says a legal claim would only lead to hard feelings and likely won't have the financial payoff business owners are hoping for.

Sylvia Chodas, the office manager at Camera Canada, said although the construction can cause inconveniences, the work on Dundas Street is needed.

"Dundas Place will be a really beautiful place. The sewers really needed to be replaced, resurfacing of the road needed to be done," she said.

"I can see how some people's businesses would be affected but, I don't know, this is what you get with construction."