The Superintendent of Bankruptcy appealed a decision allowing 407 ETR to enforce pre-bankruptcy toll debts against a discharged bankrupt by directing the Registrar of Motor Vehicles to refuse to renew the bankrupt's vehicle permit under s. 22(4) of the Highway 407 Act.
The Court of Appeal found no operational conflict between the provincial legislation and s. 178(2) of the Bankruptcy and Insolvency Act, as dual compliance was possible.
However, the Court held that s. 22(4) of the Highway 407 Act frustrated the federal legislative purpose of providing a discharged bankrupt with a financial 'fresh start'.
Consequently, the doctrine of federal paramountcy applied, rendering s. 22(4) inoperative to the extent that it thwarted the fresh start purpose of the BIA.
