The University Health Network (UHN) was formed through the amalgamation of several hospitals, each of which previously held an express statutory exemption from retail sales tax.
The amalgamation statutes repealed the individual hospital acts, including their tax exemptions, but contained 'continuation of rights' clauses.
UHN sought a declaration that these clauses preserved its tax-exempt status.
The Court of Appeal held that even if a tax exemption is a 'right' under the continuation clauses, it did not survive the repeal of the specific statutes granting the exemptions.
The court applied principles of statutory interpretation, including implied exclusion, to conclude that the Legislature did not intend to continue the tax exemptions for UHN.
