On an appeal from the dismissal of an application for judicial review, the court held that ministerial discretion under the Hospital Labour Disputes Arbitration Act remains reviewable for compliance with natural justice even where no Charter breach is pleaded.
The Minister's abandonment of the long-standing practice of selecting mutually acceptable labour arbitrators from the roster, and unilateral appointment of retired judges to chair compulsory hospital interest arbitrations, created a reasonable apprehension of bias and the appearance of interference with institutional independence and impartiality.
The court emphasized the essential-services context, the government's financial interest in the outcome, the labour-specific expertise required, and the lack of tenure and security for retired judges as ad hoc appointees.
The Minister also failed to meet the unions' legitimate expectations arising from representations that the existing appointment system would continue.
The appeal was allowed, declarations were granted, and the Minister was prohibited from making appointments outside the roster unless the appointee was mutually acceptable to the parties.