The Ontario Teachers' Federation (OTF) appealed a decision declaring its By-law X invalid.
By-law X required its affiliates, including the Ontario Secondary School Teachers' Federation (OSSTF), to collect and remit membership fees to OTF, and allowed OTF to suspend an affiliate for default.
The OSSTF had withheld a portion of the fees designated for the Canadian Teachers' Federation.
The Court of Appeal held that sections 1-5 of By-law X, which established the fee collection mechanism, were validly enacted under the Corporations Act as a matter of internal management.
However, section 6, which permitted the suspension of an affiliate, was ultra vires because it interfered with the OSSTF's statutorily protected role within the OTF.
The appeal was allowed in part.