Sault Ste. Marie (City) v. Algoma Steel Corp.

Sault Ste. Marie (City) v. Algoma Steel Corp.

The phrase "such a transportation system" in s.37(4) must be read in context of s.37 as a whole and the subsection's history; it is limited to transportation systems operated to provide transportation service to the public (public-utility or street/electric railway type) and does not extend to an industrial company's intra-plant railway used primarily to move its own goods; therefore the respondent's rails were not exempt and assessment stands.

Citation
[1961] SCR 739
Parties
Appellant/defendant: The Corporation of the City of Sault Ste. Marie; Appellant/defendant: M.G.E. Danby; Respondent/plaintiff: Algoma Steel Corporation Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
3 October 1961
Procedural Posture
Taxation — Assessment Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario; Final Judgment Issued
Outcome
Appeal allowed. Trial judgment set aside. Respondent's action dismissed.
Legal Topics
Assessment Act S.37 and S.44, Exemption for Transportation Systems, Industrial Versus Public Railway Assessment, Interpretation of Legislative Amendments
Source Language
English
Taxation Property Law Statutory Interpretation Assessment Act S.37 and S.44 Exemption for Transportation Systems Industrial Versus Public Railway Assessment Interpretation of Legislative Amendments

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Parties

The Corporation of the City of Sault Ste. Marie

Appellant/defendant

M.G.E. Danby

Appellant/defendant

Algoma Steel Corporation Limited

Respondent/plaintiff

Procedural Posture

Taxation — Assessment Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario; Final Judgment Issued

Legal Issues

  1. 1 Whether rails and related structures owned and operated within an industrial plant constitute a "transportation system" within s.37(4) of The Assessment Act and are therefore exempt from assessment under s.44
  2. 2 Whether the 1944 amendment replacing specific railway terms with the composite term "transportation system" broadened the exemption to include intra-plant industrial railways
  3. 3 How to construe "transportation system" in context of the Act

Ratio Decidendi

The phrase "such a transportation system" in s.37(4) must be read in context of s.37 as a whole and the subsection's history; it is limited to transportation systems operated to provide transportation service to the public (public-utility or street/electric railway type) and does not extend to an industrial company's intra-plant railway used primarily to move its own goods; therefore the respondent's rails were not exempt and assessment stands.

Court Disposition

Appeal allowed. Trial judgment set aside. Respondent's action dismissed.

Orders

  • Trial judgment set aside
  • Respondent's action dismissed