The appellants appealed a decision of the Quebec Court of Appeal which held that the respondent telephone company is an interprovincial work and undertaking within the legislative authority of the Parliament of Canada.
The Supreme Court of Canada dismissed the appeal, agreeing that the undertaking falls under federal jurisdiction pursuant to ss. 92(10)(a) and 91(29) of the Constitution Act, 1867.
The Court found that the nature of the services provided and the mode of operation, which allowed subscribers to send and receive interprovincial and international communications, placed the telecommunication signal carrier service within federal authority.