The respondents challenged the constitutionality of s. 435.01(1) of the Canada Elections Act, which restricts direct public financing to political parties that obtain at least 2% of the national vote or 5% of the vote in constituencies where they run candidates.
The application judge found the thresholds violated ss. 3 and 15 of the Charter and could not be saved under s. 1.
On appeal, the Court of Appeal held that while the thresholds violate s. 3 by exacerbating disparities in the capacity of smaller parties to communicate, the infringement is justified under s. 1 as a measure to preserve the integrity of the electoral process and prevent the misuse of public funds.
The Court also found no violation of ss. 15, 2(b), or 2(d), and held that political parties lack standing to sue in their own names outside of proceedings under the Act.
