The Nova Scotia legislature amended the Residential Tenancies Act to create a new dispute resolution mechanism, empowering a provincially appointed Director and Board to investigate, mediate, and adjudicate residential tenancy disputes.
The constitutionality of these unproclaimed provisions was referred to the Court of Appeal, which found the Board's powers ultra vires.
On appeal to the Supreme Court of Canada, the Court held that the provisions do not violate s. 96 of the Constitution Act, 1867.
The Court found that at the time of Confederation, superior courts did not exercise exclusive jurisdiction over residential tenancy disputes, as inferior courts shared this jurisdiction.
Therefore, conferring this power on a provincial tribunal is constitutionally permissible.