Brant Dairy Co. v. Milk Commission of Ontario

Brant Dairy Co. v. Milk Commission of Ontario

Majority held that a delegated regulator (the Board) cannot meet a statutory requirement to 'provide' by regulation merely by restating the statutory grant of discretion; where the regulation contains no standards it is ultra vires. Applying that principle, s.4 of O.Reg.52/68 and s.3(4) of O.Reg.68/68 were declared ultra vires. The Commission's delegation in O.Reg.294/65 and most challenged Board regulations were otherwise valid, and the constitutional challenge failed because the regulations were construed as intra-provincial.

Citation
[1973] SCR 131
Parties
Plaintiff/appellant: Brant Dairy Company Limited; Plaintiff/appellant: Walkerton Dairies Limited; Defendant/respondent: Milk Commission of Ontario; Defendant/respondent: Ontario Milk Marketing Board
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
18 October 1972
Procedural Posture
Administrative Law Appeal / Appeal to the Supreme Court of Canada From the Ontario Court of Appeal
Outcome
Appeal allowed in part; convictions of ultra vires in specified regulatory provisions; constitutional challenge rejected.
Legal Topics
Delegation of Legislative Power, Ultra Vires Review of Regulations, Quota and Licensing Regulation, Applicability to Integrated Producer Processor Distributors, Transport Regulation
Source Language
English
Administrative Law Constitutional Law (trade and Commerce) Delegation of Legislative Power Ultra Vires Review of Regulations Quota and Licensing Regulation Applicability to Integrated Producer Processor Distributors Transport Regulation

Case Brief

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Parties

Brant Dairy Company Limited

Plaintiff/appellant

Walkerton Dairies Limited

Plaintiff/appellant

Milk Commission of Ontario

Defendant/respondent

Ontario Milk Marketing Board

Defendant/respondent

Procedural Posture

Administrative Law Appeal / Appeal to the Supreme Court of Canada From the Ontario Court of Appeal

Legal Issues

  1. 1 Whether the Milk Commission could validly subdelegate regulation-making powers to the Ontario Milk Marketing Board
  2. 2 Whether specific Board regulations (O. Reg. 52/68 s.4; O. Reg. 68/68 s.3(4)) were ultra vires because they merely restated statutory discretion without standards
  3. 3 Whether O. Reg. 52/68 s.3 and O. Reg. 70/68 ss.3 and 5 conflicted with ss.11(2) and 12(2) of The Milk Act

Ratio Decidendi

Majority held that a delegated regulator (the Board) cannot meet a statutory requirement to 'provide' by regulation merely by restating the statutory grant of discretion; where the regulation contains no standards it is ultra vires. Applying that principle, s.4 of O.Reg.52/68 and s.3(4) of O.Reg.68/68 were declared ultra vires. The Commission's delegation in O.Reg.294/65 and most challenged Board regulations were otherwise valid, and the constitutional challenge failed because the regulations were construed as intra-provincial.

Court Disposition

Appeal allowed in part; convictions of ultra vires in specified regulatory provisions; constitutional challenge rejected.

Orders

  • Set aside orders of the Ontario Court of Appeal and trial judge insofar as they sustained validity of entire O. Reg. 52/68 and O. Reg. 68/68
  • Declare s.4 of O. Reg. 52/68 ultra vires