The respondent employees were transferred from the Ottawa Police Force to the City of Ottawa.
They alleged that prior to the transfer, the City entered into a pre-employment agreement guaranteeing they would retain their previous terms and conditions of employment.
After the transfer, they were placed under a collective agreement with reduced benefits and brought an action for damages.
The City moved to strike the claim, arguing the dispute fell under the exclusive jurisdiction of a labour arbitrator.
The Supreme Court of Canada held that the essential character of the dispute concerned a pre-employment contract, not the collective agreement, meaning the courts had jurisdiction.
Furthermore, the factual dispute regarding the existence of the contract could not be resolved on a preliminary motion to strike.