The applicants sought judicial review of a decision by the City of Hamilton to revoke their adult entertainment parlour licence.
The municipality had passed a by-law to reduce the number of such parlours, allowing revocation if a business was not actively carried on within a reasonable time.
The applicants had not opened for business because they were waiting for a liquor licence, which was delayed due to unpaid retail sales tax from another business.
The Divisional Court dismissed the application, finding no procedural unfairness, bias, or bad faith.
The court held that the municipality's finding that the business had not opened within a reasonable time was not patently unreasonable, as the delay in obtaining a liquor licence was not the municipality's responsibility.