The appellant developer purchased land to build a recreational and residential project.
After the developer's building permits expired, the newly elected municipal council amended the zoning by-law to require a comprehensive development program and construction adjacent to public roads, effectively halting the project.
The developer sued the municipality for loss of profits, alleging bad faith.
The Supreme Court of Canada dismissed the appeal, holding that a municipality enjoys relative immunity when exercising its regulatory powers and can only be held civilly liable under the Civil Code of Québec if it acts in bad faith or irrationally.
The Court found no evidence of bad faith, as the municipality's objective to protect the natural environment was legitimate.
