City of Outremont v. Montreal Tramways Company

City of Outremont v. Montreal Tramways Company

Majority: The 1918 statute (8 Geo. V, c.84) continued the reciprocal rights and obligations between the tramway company and Outremont from 1936 until 1953, including the company's right to a franchise and its tax exemption; therefore the company was exempt for 1936–1949 and the City's action for those taxes fails.

Citation
[1958] SCR 82
Parties
Plaintiff Appellant: City of Outremont; Defendant Respondent: Montreal Tramways Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 December 1957
Procedural Posture
Contract (franchise/tax Exemption) / Appeal to Supreme Court of Canada From Quebec Court of Queen's Bench (appeal Side) — Final Judgment
Outcome
Appeal dismissed (majority), Rand and Cartwright JJ. dissenting
Legal Topics
Franchise, Tax Exemption, Statutory Validation, Severability, Legislative Intent, Abrogation of Municipal Rights
Source Language
English
Contract Law Municipal Law Tax Law Property/expropriation Law Franchise Tax Exemption Statutory Validation Severability +2 more

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Parties

City of Outremont

Plaintiff Appellant

Montreal Tramways Company

Defendant Respondent

Procedural Posture

Contract (franchise/tax Exemption) / Appeal to Supreme Court of Canada From Quebec Court of Queen's Bench (appeal Side) — Final Judgment

Legal Issues

  1. 1 Whether the municipal tax exemption in the 1906 franchise continued beyond the initial 30-year statutory period
  2. 2 Effect of 1918 statute (8 Geo. V c.84) on the Outremont franchise and its tax-exemption provisions
  3. 3 Whether the tax-exemption clause was severable from the franchise obligations

Ratio Decidendi

Majority: The 1918 statute (8 Geo. V, c.84) continued the reciprocal rights and obligations between the tramway company and Outremont from 1936 until 1953, including the company's right to a franchise and its tax exemption; therefore the company was exempt for 1936–1949 and the City's action for those taxes fails.

Court Disposition

Appeal dismissed (majority), Rand and Cartwright JJ. dissenting

Orders

  • Appeal dismissed with costs