The appellant provincial telephone utility appealed a decision holding that, although it was a federal undertaking, it was not immune from federal telecommunications regulation.
The Court held that the utility's participation in an integrated national telecommunications network, together with its interprovincial transmission activities and organizational arrangements, made it an interprovincial undertaking under s. 92(10)(a) of the Constitution Act, 1867.
The majority nevertheless concluded that, as an agent of the provincial Crown, it was protected by s. 16 of the Interpretation Act because the Railway Act did not clearly bind the Crown and the utility had not waived immunity through its conduct.
The appeal was allowed, with one judge dissenting on waiver.
