Amanda J. McInnis

Following an application concerning the seizure of cigarettes under the Tobacco Tax Act, the applicant succeeded on a Charter challenge under s. 8 and obtained a remedy under s. 24(1) of the Charter requiring the return of seized cigarettes or payment of their value.

However, the respondents succeeded on the statutory interpretation issues under the Tobacco Tax Act.

The court considered costs pursuant to s. 131 of the Courts of Justice Act and Rule 57.01 of the Rules of Civil Procedure.

Exercising its discretion to allocate costs by issue, the court declined to award costs for the statutory issues and limited recovery to the Charter portion of the proceeding.

An all‑inclusive costs award of $50,000 was ordered.

A tobacco manufacturer sought declarations that a shipment of unmarked cigarettes seized by authorities under the Tobacco Tax Act was unlawfully seized and that it had a right to possess the tobacco.

The court found that the warrantless search and seizure of a delivery vehicle violated s. 8 of the Canadian Charter of Rights and Freedoms because the detention and search occurred without reasonable and probable grounds and because the authorized official improperly directed police remotely.

Although the court held that the applicant’s operations demonstrated substantial non‑compliance with the Tobacco Tax Act and its permit conditions, the Charter breach justified a remedy.

The court ordered the return of the seized cigarettes belonging to the applicant or compensation for their value if they had deteriorated.