The respondent, TeleZone Inc., brought an action for damages against the federal Crown in the Ontario Superior Court of Justice after its application for a telecommunications licence was rejected by Industry Canada.
The Attorney General of Canada challenged the jurisdiction of the Superior Court, arguing that based on the Grenier principle, the claim was a collateral attack on the Minister's decision and that TeleZone had to first seek judicial review in the Federal Court.
The Supreme Court of Canada dismissed the appeal, overruling Grenier.
The Court held that the Federal Courts Act and the Crown Liability and Proceedings Act grant concurrent jurisdiction to provincial superior courts to hear damages claims against the federal Crown, and there is no requirement to first quash the underlying administrative decision via judicial review in the Federal Court.
