The respondent, who operated a body rub parlour licensed by the City of Vaughan, was charged with contravening a municipal by-law governing the hours of operation of body rub parlours.
He challenged the constitutionality of the by-law, arguing it was ultra vires the municipality because it constituted criminal law.
A justice of the peace and the Ontario Court of Justice agreed, finding the provisions were criminal in pith and substance and invaded federal authority.
The Court of Appeal allowed the appeal, holding that the pith and substance of the hours of operation provision was business licensing, falling within provincial authority over property and civil rights and licensing.
The court found the lower courts erred by focusing exclusively on extrinsic evidence while ignoring intrinsic evidence, and by failing to recognize that municipalities may legislate to suppress conditions conducive to crime when anchored in a valid provincial head of power.