The applicant, an icewine producer, challenged the validity of rules, by-laws, and regulations under the Vintners Quality Alliance Act, 1999, after its membership in the VQAO was terminated and approvals for its wines were revoked.
The applicant argued that the VQAO's taste test requirement and membership rules were ultra vires, and that the provincial scheme conflicted with its rights under the federal Trade-marks Act and Canada Agricultural Products Act.
The Divisional Court dismissed the application, finding that the VQAO's rules and by-laws were reasonable and properly enacted, the new regulation was intra vires, and there was no operational conflict or frustration of purpose invoking the doctrine of federal paramountcy.
