Tom Marshall

The appellant airlines purchased liquor abroad and stored it in customs bonded warehouses in Ontario for use on domestic and international flights.

The provincial liquor authorities charged markups and gallonage fees on the liquor.

The airlines sought restitution of the fees and a declaration that the provincial liquor monopoly was constitutionally inapplicable to their federal aeronautical undertaking.

The Supreme Court of Canada held that the liquor was subject to the federal Importation of Intoxicating Liquors Act and that the provincial monopoly applied, as providing liquor is not an integral part of an aeronautical undertaking.

However, the Court ordered the provincial authorities to make full restitution of the gallonage fees wrongfully collected under an inapplicable licensing regime.

The appellant, Ken Gordon Excavating Limited, and other lien claimants sought to enforce mechanics' liens against a housing project undertaken by Edstan Construction Limited on land purchased from the Ontario Housing Corporation (OHC) and financed by the Ontario Mortgage Corporation (OMC).

The Supreme Court of Canada held that OHC was an 'owner' and the project was a 'public work' under the Mechanics' Lien Act.

The Court found that the ten lien claimants who failed to give written notice to OHC as required for public works had invalid claims against OHC's interest, but the two who did give notice had valid claims for the full amount owed, not limited to the statutory holdback.

Furthermore, the Court characterized payments made by OMC to OHC as 'advances' under the mortgage, meaning the registered liens of the ten claimants had priority over those advances and could be satisfied from the mortgage sale proceeds.