The Mount Sinai Hospital Center relocated to Montreal after receiving promises from successive Ministers of Health and Social Services that its operating permit would be modified to reflect its long-term and short-term care services.
After the move, the Minister refused to issue the modified permit, citing financial reasons.
The Supreme Court of Canada dismissed the Minister's appeal, holding that the Minister had already exercised his discretion under s. 138 of the Act respecting health services and social services when he promised the permit and encouraged the relocation.
The subsequent refusal was not a valid reversal of that discretion and was patently unreasonable.
The Minister was ordered to issue the modified permit.