The Ontario government cancelled an electric car subsidy program but extended it for a two-month transition period.
The applicant, Tesla Motors Canada ULC, was explicitly excluded from this transition program by a condition limiting it to "franchised automobile dealerships." Tesla sought judicial review, arguing the exclusion was arbitrary, unlawful, and made for an improper purpose without procedural fairness.
The court found the decision to exclude Tesla was arbitrary, unrelated to the stated policy goal of protecting small to mid-sized dealers, and constituted an egregious exercise of discretion for an improper purpose.
The court quashed the minister's decision to implement the transitional program.