James McIlroy

The appellant, Chicken Farmers of Ontario, appealed the dismissal of its motion for an interlocutory injunction to prohibit the respondents from producing and marketing chicken without a quota.

The respondents argued they were exempt from the provincial quota system because they exported all their chicken to the United States.

The Divisional Court allowed the appeal, finding the motion judge erred by treating the matter as a private law dispute and failing to recognize the public interest in enforcing the regulatory scheme.

Applying the RJR MacDonald test, the Court found a serious issue to be tried, irreparable harm to the integrity of the supply management system, and that the balance of convenience favoured granting the injunction.

The moving party, an agricultural marketing board, sought leave to appeal an interlocutory decision that refused to grant an interim injunction against the responding chicken farmers.

The motions judge had characterized the dispute as private litigation, conflicting with another judge's decision in the same action that granted intervenor status based on substantial public interest.

The Divisional Court granted leave to appeal, finding good reason to doubt the correctness of the motions judge's decision, as the claim involved a legislated federal-provincial marketing system and public law principles under the Farm Products Marketing Act.

The applicant sought judicial review of decisions by the Agriculture, Food and Rural Affairs Appeal Tribunal establishing a pricing formula for live chickens in Ontario and ordering the Ontario Farm Products Marketing Commission to amend its regulations to implement the formula.

Applying the pragmatic and functional approach, the Divisional Court determined the standard of review was reasonableness simpliciter.

The court held that the Tribunal had jurisdiction under the Ministry of Agriculture, Food and Rural Affairs Act and the Farm Products Marketing Act to establish the pricing formula, fix the starting price, and direct the Commission to amend its regulations.

The application for judicial review was dismissed.