During a labour dispute, veterinarians employed by the Canadian Food Inspection Agency (CFIA) stopped working, halting meat inspections at Quebec slaughterhouses.
The CFIA subsequently ordered the uninspected meat destroyed.
The slaughterhouse operators sued the veterinarians and their union for damages in the Quebec Superior Court.
The defendants brought recourses in warranty against the CFIA.
The CFIA moved to dismiss, arguing the Superior Court lacked jurisdiction because its decision had not been quashed on judicial review by the Federal Court.
The Supreme Court of Canada dismissed the CFIA's appeal, holding that judicial review is not a prerequisite for a civil action for damages against the federal Crown, and that a lawful administrative decision can still constitute a civil fault under Quebec law.