The applicants brought an application for judicial review to quash the respondent municipality's issuance of nine new taxicab owner licences to a competitor.
The municipality had used a Request for Proposal (RFP) process to select the recipient, rather than the criteria set out in its taxi by-law.
The Divisional Court held that the standard of review was correctness.
The court found the issuance was a nullity because the municipal council never actually passed a resolution approving the issuance.
Furthermore, the RFP process was unlawful because it imposed criteria and conditions not authorized by the taxi by-law or the Municipal Act.
The application was granted and the issuance of the licences was quashed.