Via Rail suing The Forks over nearly 40-year-old agreement on land use rights

Via Rail has filed a lawsuit against The Forks over land the rail company says it's had rights to use since a sale agreement reached nearly 40 years ago.

But The Forks describes the lawsuit as a "fairly standard process," with a major development project set to begin at the site, and Via says it's confident there will be "a mutually beneficial agreement."

Via Rail's statement of claim, filed March 4 in Manitoba Court of Kings Bench, alleges The Forks Renewal Corporation — which is responsible for implementing the redevelopment of the site — has challenged the railway's rights to an easement on land which is now part of The Forks.

In October 1986, the Canadian National Railway Company sold the historical site adjacent to Union Station — the Main Street rail station where Via's trains stop in the city — to The Forks Renewal Corporation.

Under the sale agreement, Via was granted an easement, giving the rail line the right to use the property, according to the lawsuit.  In March 1987, the railway company filed a caveat  — a notice from parties that claim rights or interest to land they do not own, it says.

However, The Forks has recently "been taking certain actions which purport to call into question the … rights of easement," Via's lawsuit says.

The Forks filed a request with the Winnipeg Land Titles office on Feb. 12 to issue a 30-day notice to Via Rail with respect to the caveat.

Via maintains The Forks "has no legal basis for challenging or otherwise refusing to recognize such rights of easement," and there "has been no action or conduct" on Via's part that "would cause the rights of easement to be terminated or to otherwise no longer be in force and effect," according to the statement of claim.

Zach Peters, the communications and marketing manager for The Forks, said in a written statement to CBC News the corporation is currently in talks regarding the parking lot space immediately behind Union Station, with work set to begin on Railside at The Forks — a planned housing development at the site.

"We have not received the claim yet but continue to work with Via to resolve the issue. We do not anticipate any impact on the development or Via's use of its property," said Peters.  

'Mutually beneficial agreement'

Via's lawsuit seeks a declaration from the court that its right to the easement is valid and legally binding, and claims unspecified loss and damages as a result of The Forks challenging the nearly 40-year-old caveat.

But Peters says the lawsuit is par for the course as the Railside project moves forward.

"As work on Railside at The Forks is set to begin, we are in conversation with Via about an old caveat on the land title," he said. "In order for the caveat to remain, Via had to file a claim, which is a fairly standard process."

A Via Rail media relations representative confirmed in a written statement Via and The Forks are currently discussing an "old caveat on title affecting both parties' properties," and the lawsuit was required to ensure the caveat remains.

"Neither party foresees any impact on the development project or Via Rail's operations, and we remain confident that Via Rail and The Forks will swiftly reach a mutually beneficial agreement."

Planning for Railside at The Forks has been in the works for more than a decade, and will turn a roughly 2.3-hectare (5.9-acre) parcel of land, including two surface parking lots, into a mixed-use residential and commercial neighbourhood.