The applicants, owners of hookah lounges in Toronto, challenged a City of Toronto by-law prohibiting hookah smoking in licensed establishments.
They argued the City lacked the power to pass the by-law, that it was confiscatory, conflicted with provincial legislation (Occupational Health and Safety Act), and was passed in bad faith.
The court dismissed the application, finding the by-law was validly enacted under the City of Toronto Act's broad health and safety powers, was not confiscatory, did not create an operational conflict with the OHSA, and that there was no evidence of bad faith on the part of City Council.
The court emphasized the broad and purposive interpretation of municipal powers and deference to democratic decisions of municipal councils.
