The appellant municipality enacted a by-law requiring employees of adult entertainment parlours who work partially or fully nude to pay a special 'dancer' licence fee.
The respondents successfully challenged the by-law at first instance.
On appeal, the Court of Appeal held that the municipality lacked the statutory authority under the Municipal Act, 2001 to create a separate class of employees based solely on their state of dress while performing services.
The court found the by-law discriminatory and ultra vires.
Furthermore, the court upheld the finding that the licence fee was improperly calculated as it included general policing costs not directly related to the administration and enforcement of the by-law.
The appeal was dismissed.
