The applicant municipality sought judicial review of two decisions denying eligibility of a golf course located on a Canadian Forces Base for payments in lieu of taxes under the Payments in Lieu of Taxes Act.
The respondent determined the golf course was not "federal property" because it was occupied by the applicant under a concession agreement.
The Federal Court granted the application for judicial review, finding that the respondent breached procedural fairness by failing to provide fair and effective notice of the case to meet, given the applicant's legitimate expectations based on past payments.
The Court also found the decisions unreasonable as they failed to adequately explain the departure from past practice and did not consider the factual matrix of whether the golf course was truly "occupied" by the applicant.
The matter was remitted for redetermination.