The applicant towing company sought a declaration that it was entitled to charge $70.80 per day for vehicle storage based on a contract with the regional police.
The respondent insurer argued the rate was capped at $60 per day by a municipal by-law.
The court found that the by-law clearly capped storage rates and did not contain an exception for police contracts.
The court also rejected the applicant's argument that the by-law was inconsistent with the Highway Traffic Act, finding no paramountcy issue.
The application was dismissed.