The federal government introduced legislation to limit its cost-sharing obligations to certain provinces under the Canada Assistance Plan.
British Columbia referred questions to the Court of Appeal regarding whether the federal government had the authority to unilaterally limit its obligations and whether the doctrine of legitimate expectations prevented the introduction of such legislation without provincial consent.
The Supreme Court of Canada held that the federal government had the authority to amend the Plan, as parliamentary sovereignty allows Parliament to amend its statutes.
The Court further held that the doctrine of legitimate expectations does not apply to the legislative process and cannot create substantive rights to veto proposed legislation.
