The appellant generic drug manufacturer sought damages against the federal Crown for losses incurred when Health Canada prohibited the sale of its drug.
The Crown successfully moved for summary judgment in the lower courts on the basis that the appellant was required to first invalidate the prohibition decision via judicial review.
The Supreme Court of Canada allowed the appeal, applying its companion decision in TeleZone.
The Court held that section 17 of the Federal Courts Act grants concurrent jurisdiction over claims for damages against the Crown, and nothing in the Act requires a plaintiff to successfully challenge the underlying administrative decision on judicial review before pursuing a tort action.
