The applicant, a Toronto city councillor, brought an application for judicial review to quash municipal by-laws authorizing the reimbursement of legal expenses for three other councillors.
The expenses related to compliance audits of election campaign finances and defamation actions.
The Divisional Court held that the by-law reimbursing expenses for the compliance audits was ultra vires, as the expenses were not incurred in the councillors' capacity as members of council.
However, the court upheld the by-law reimbursing expenses for a defamation action brought by a sitting councillor, finding it was reasonably connected to her duties.
The application was granted in part.
