The appellants were convicted of possessing 1,200 kilograms of contraband tobacco and sentenced to the minimum fine under s. 240 of the Excise Act.
They appealed, arguing that the minimum fine provisions constitute cruel and unusual punishment contrary to s. 12 of the Charter.
The Court of Appeal dismissed the appeal, finding that the minimum fine is not grossly disproportionate given the gravity of the offence and the direct connection between the quantity of illegal substance possessed and the size of the fine.
The court did, however, reduce the fine to $132,000 to correct a calculation error by the trial judge.