The appellant airline brought a direct action in nullity to challenge a municipal by-law and subsequent resolutions that imposed a business tax.
The municipality's enabling legislation required the business tax to be imposed by by-law, but the municipality passed a by-law delegating the power to set the annual tax rate to itself by way of resolution.
The Supreme Court of Canada held that the municipality exceeded its jurisdiction by authorizing itself to do by resolution what the legislature required to be done by by-law.
The Court allowed the appeal, quashed the by-law and resolutions, and ordered the municipality to reimburse the taxes paid.
