E. Robert A. Edwards

The federal government introduced legislation to limit its cost-sharing obligations to certain provinces under the Canada Assistance Plan.

British Columbia referred questions to the Court of Appeal regarding whether the federal government had the authority to unilaterally limit its obligations and whether the doctrine of legitimate expectations prevented the introduction of such legislation without provincial consent.

The Supreme Court of Canada held that the federal government had the authority to amend the Plan, as parliamentary sovereignty allows Parliament to amend its statutes.

The Court further held that the doctrine of legitimate expectations does not apply to the legislative process and cannot create substantive rights to veto proposed legislation.

The appellant airlines challenged the application of British Columbia's Social Service Tax Act to their aircraft and parts, as well as to in-flight sales of alcoholic beverages.

The Supreme Court of Canada held that the Act, properly construed, did not apply to aircraft and parts brought into the province temporarily for interprovincial flights.

The Court also held that in-flight liquor sales lacked sufficient presence in the province to attract the tax.

Furthermore, the Court ruled that Air Canada could recover the taxes unlawfully collected on its aircraft and parts, despite being paid under a mistake of law, but could not recover the taxes collected from passengers for liquor sales, as it acted merely as a tax collector.

The airlines sought to recover gasoline taxes paid to British Columbia between 1974 and 1976 under a statute that was ultra vires because it imposed an indirect tax.

The province amended the statute in 1976 to make it a valid direct tax, and in 1981 enacted retroactive legislation to impose the valid tax for the 1974-1976 period and confiscate the invalidly collected taxes.

The Supreme Court of Canada held that the 1976 and 1981 amendments were constitutionally valid.

The Court also held that, as a general rule, taxes paid under an unconstitutional statute are not recoverable, rejecting the application of restitutionary principles in this context due to public policy concerns about fiscal chaos.

The appellants, police officers, sought to quash a provincial Order in Council establishing a commission of inquiry into the alleged assault of a prisoner while in police custody.

They argued the inquiry was ultra vires the province as it intruded into federal jurisdiction over criminal law and procedure.

The Supreme Court of Canada held that the province has the constitutional authority under s. 92(14) and s. 92(6) of the Constitution Act, 1867 to establish an inquiry to investigate and report on alleged wrongdoings by members of a provincial police force.

The inquiry's purpose was not to determine criminal responsibility but to investigate police misconduct that undermined the administration of justice.