Yves Mayrand

The Supreme Court of Canada heard two appeals arising from a motion for a declaratory judgment filed by Hydro-Québec in the Superior Court of Quebec.

Hydro-Québec sought a declaration regarding its rights under a Power Contract with Churchill Falls, following an Order in Council by Newfoundland requiring Churchill Falls to supply it with power.

Newfoundland filed a declinatory exception, arguing the Quebec courts lacked jurisdiction over it, while Churchill Falls filed a motion to dismiss, arguing Hydro-Québec lacked sufficient interest and raising lis pendens.

The Court allowed Newfoundland's appeal, holding that the jurisdiction clause in the Power Contract did not bind Newfoundland, which was not a party to it.

The Court dismissed Churchill Falls' appeal, finding that Hydro-Québec had a real interest in resolving the genuine legal problem created by the threat to its contractual rights, and that there was no lis pendens with the proceedings in Newfoundland.

The City of Montreal appealed a decision quashing By-law 4876, which increased the special tax on private parking grounds and calculated it based on square footage.

The respondents challenged the by-law on several grounds, including that the City lacked the authority under its Charter to calculate the tax based on area.

The Supreme Court of Canada dismissed the appeal, holding that municipal corporations must exercise only those taxing powers expressly conferred by the legislature.

Because the Charter did not expressly authorize the City to impose a variable tax based on area for parking lots, the by-law was ultra vires.