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31057

Kingstreet Investments Ltd., et al. v. Province of New Brunswick as represented by the Department of Finance, et al.

(New Brunswick) (Civil) (By Leave)

Docket

Judgments on applications for leave to appeal are rendered by the Court, but are not necessarily unanimous.

List of proceedings
Date Proceeding Filed By
(if applicable)
2007-11-19 Payment out cheque issued, ($534.22)
2007-11-01 Approved order for payment out, with consent (sent to Finance)
2007-03-26 Record returned to the Registrar of the Court of Appeal
2007-01-22 Appeal closed
2007-01-12 Formal judgment sent to the registrar of the court of appeal and all parties
2007-01-12 Judgment on appeal and notice of deposit of judgment sent to all parties
2007-01-11 Judgment on the appeal rendered, CJ Ba Bi LeB De F Abe Cha Ro, The appeal from the judgment of the Court of Appeal of New Brunswick, Number 38/04/CA, 2005 NBCA 56, dated May 26, 2005, heard on June 20, 2006, is allowed in part and the cross-appeal is dismissed. The appellants are entitled to recover all user charges paid on or after May 25, 1995, with interest. The appellants are also entitled to their costs in this Court and in the courts below.
Allowed in part, costs in this Court and courts below
2006-07-10 Transcript received, (90 pages)
2006-06-20 Judgment reserved OR rendered with reasons to follow
2006-06-20 Supplemental document, Condensed book submitted in Court (14 copies) Attorney General of British Columbia
2006-06-20 Appellant's condensed book, Submitted in Court (14 copies) Kingstreet Investments Ltd.
2006-06-20 Acknowledgement and consent for video taping of proceedings, From all parties
2006-06-20 Hearing of the appeal, 2006-06-20, CJ Ba Bi LeB De F Abe Cha Ro
Judgment reserved
2006-06-19 Correspondence received from, Shrore, Davis dated June 18/06 re: request that Mr. Arvay be permitted to leave after his submissions. Consumers' Association of Canada
2006-06-14 Correspondence received from, A. Neal dated June 14, 2006 (fax copy) re: errors in case law reference in the factum (new CD room requested) (sent to the judges June 16/06) Kingstreet Investments Ltd.
2006-06-14 Notice of appearance, Joseph J. Arvay and Brent B. Olthuis will be present at the hearing. Consumers' Association of Canada
2006-06-08 Notice of appearance, Eugene Szach and Stewart J. Pierce will be present at the hearing. Attorney General of Manitoba
2006-06-08 Notice of appearance, Barbara A. McIsaac, Q.C. and Howard Fohr will be present at the hearing. Canadian Constitution Foundation
2006-06-06 Notice of appearance, Eugene J. Mockler, Q.C. and Adam B. Neal will be present at the hearing. Kingstreet Investments Ltd.
2006-05-31 Book of authorities, (service on B&R missing - Rec'd on June 2, 2006), Completed on: 2006-06-02 Attorney General of Alberta
2006-05-31 Intervener's factum, (service on B&R missing - 23 copies rec'd - Rec'd on June 2, 2006), new CD rec'd June 8/06, Completed on: 2006-06-12 Attorney General of Alberta
2006-05-31 Book of authorities, (Service of B&R missing - Rec'd on June 2, 2006), Completed on: 2006-06-02 Attorney General of Manitoba
2006-05-31 Intervener's factum, (service on B&R missing - Rec'd on June 2, 2006), Completed on: 2006-06-02 Attorney General of Manitoba
2006-05-31 Book of authorities, (Vol. I and II), Completed on: 2006-05-31 Canadian Constitution Foundation
2006-05-31 Intervener's factum, Completed on: 2006-05-31 Canadian Constitution Foundation
2006-05-31 Book of authorities, (missing service rec'd June 1/06), Completed on: 2006-06-01 Attorney General of British Columbia
2006-05-31 Intervener's factum, (service on McCathy and Shore Davis rec'd June1/06 and motion for late service requested), Completed on: 2006-06-01 Attorney General of British Columbia
2006-05-31 Book of authorities, Completed on: 2006-05-31 Consumers' Association of Canada
2006-05-31 Intervener's factum, (new CD rec'd June 13/06), Completed on: 2006-06-13 Consumers' Association of Canada
2006-05-31 Order by, LeB, FURTHER TO THE ORDER of LeBel J. dated May 15, 2006, granting leave to intervene to
the Attorney General of Alberta, the Attorney General of Manitoba, the Attorney General of British Columbia, the Canadian Constitution Foundation and the Consumers' Association of Canada;
IT IS HEREBY FURTHER ORDERED THAT the said interveners are each granted permission to present oral argument not exceeding fifteen (15) minutes at the hearing of the appeal.
Granted
2006-05-23 Notice of appearance, Nancy E. Brown and Jonathan Penner will be present at the hearing. Attorney General of British Columbia
2006-05-15 Letter sent to Intervener(s)
2006-05-15 Order on motion for leave to intervene, (BY LEBEL J.)
2006-05-15 Decision on the motion for leave to intervene, LeB, The motion for leave to intervene of the applicant, the Attorney General of Alberta, is granted and the applicant shall be entitled to serve and file a factum not to exceed 20 pages in length on or before May 31, 2006.
The motion for leave to intervene of the applicant, the Attorney General of Manitoba, is granted and the applicant shall be entitled to serve and file a factum not to exceed 20 pages in length on or before May 31, 2006.
The motion for leave to intervene of the applicant, the Attorney General of British Columbia, is granted and the applicant shall be entitled to serve and file a factum not to exceed 20 pages in length on or before May 31, 2006.
The motion for leave to intervene of the applicant, the Canadian Constitution Foundation, is granted and the applicant shall be entitled to serve and file a factum not to exceed 20 pages in length on or before May 31, 2006.
The motion for leave to intervene of the applicant, the Consumers' Association of Canada, is granted and the applicant shall be entitled to serve and file a factum not to exceed 20 pages in length on or before May 31, 2006.
The requests to present oral argument are deferred to a date following receipt and consideration of the written arguments of the parties and the interveners.
The interveners shall not be entitled to raise new issues or to adduce further evidence or otherwise to supplement the record of the parties.
Pursuant to Rule 59(1)(a) of the Rules of the Supreme Court of Canada the interveners shall pay to the appellants and respondents any additional disbursements occasioned to the appellants and respondents by their intervention.
Granted
2006-05-12 Submission of motion for leave to intervene, LeB
2006-05-11 Reply to the motion for leave to intervene, (Letter Form), from J. J. Arvay, Q.C. (by fax), Completed on: 2006-05-11 Consumers' Association of Canada
2006-05-10 Respondent's factum - cross appeal, Completed on: 2006-05-10 Kingstreet Investments Ltd.
2006-05-10 Response to the motion for leave to intervene, (by all interveners), Completed on: 2006-05-10 Kingstreet Investments Ltd.
2006-05-04 Response to the motion for leave to intervene, (Letter Form), from David Eidt dated May 3/06 re: consent to the 5 motions to intervene, Completed on: 2006-05-04 Province of New Brunswick as represented by the Department of Finance
2006-05-01 Motion for leave to intervene, Completed on: 2006-05-01 Attorney General of Alberta
2006-04-28 Motion for leave to intervene, (Book Form), Completed on: 2006-04-28 Canadian Constitution Foundation
2006-04-28 Motion for leave to intervene, Completed on: 2006-04-28 Attorney General of British Columbia
2006-04-28 Motion for leave to intervene, Completed on: 2006-05-01 Consumers' Association of Canada
2006-04-28 Appeal perfected for hearing
2006-04-26 Correspondence received from, Clarification of Appellant's Record (sent to the Court Apr. 28/06) Kingstreet Investments Ltd.
2006-04-25 Appellant's book of authorities - cross appeal, included in respondent's authorities, Completed on: 2006-04-25 Province of New Brunswick as represented by the Department of Finance
2006-04-25 Respondent's book of authorities, Authorities on cross-appeal included, Completed on: 2006-04-25 Province of New Brunswick as represented by the Department of Finance
2006-04-25 Appellant's record - cross appeal, included in respondent's recod Province of New Brunswick as represented by the Department of Finance
2006-04-25 Respondent's record, Record on cross-appeal included, Completed on: 2006-04-25 Province of New Brunswick as represented by the Department of Finance
2006-04-25 Appellant's factum - cross appeal, included in Respondent's factum (CD rec'd Apr. 27/06), Completed on: 2006-05-04 Province of New Brunswick as represented by the Department of Finance
2006-04-25 Respondent's factum, Cross-Appeal included (CD rec'd Apr. 27/06), Completed on: 2006-04-27 Province of New Brunswick as represented by the Department of Finance
2006-04-24 Motion for leave to intervene, Completed on: 2006-04-24 Attorney General of Manitoba
2006-03-31 Appellant's book of authorities, (2 volumes), Completed on: 2006-03-31 Kingstreet Investments Ltd.
2006-03-31 Appellant's record, (2 volumes), Completed on: 2006-03-31 Kingstreet Investments Ltd.
2006-03-31 Appellant's factum, Completed on: 2006-03-31 Kingstreet Investments Ltd.
2006-03-13 Notice of hearing sent to parties
2006-03-13 Appeal hearing scheduled, 2006-06-20
Judgment reserved
2006-02-21 Appeal court record, 1 box
2006-02-06 Letter advising the parties of tentative hearing date and filing deadlines (Leave granted)
2006-01-13 Notice of cross appeal, Completed on: 2006-01-13 Province of New Brunswick as represented by the Department of Finance
2006-01-12 Notice of deposit for security Kingstreet Investments Ltd.
2006-01-12 Notice of appeal, Completed on: 2006-01-12 Kingstreet Investments Ltd.
2005-12-16 Copy of formal judgment sent to Registrar of the Court of Appeal and all parties
2005-12-16 Judgment on leave sent to the parties
2005-12-15 Judgment of the Court on the application for leave to cross-appeal, see judgment on leave.
Granted, without costs
2005-12-15 Judgment of the Court on the application for leave to appeal, The application for leave to appeal and the application for leave to cross-appeal from the judgment of the Court of Appeal of New Brunswick, Number 38/04/CA, 2005 NBCA 56, dated May 26, 2005, are granted without costs.
Granted, without costs
2005-11-21 All materials on application for leave submitted to the Judges, Ba LeB De
2005-11-21 All material on the application for leave to cross-appeal submitted to the Judges, Ba LeB De
2005-10-31 Reply to the memorandum in response to the argument on cross-appeal, Completed on: 2005-10-31 Province of New Brunswick as represented by the Department of Finance
2005-10-20 Memorandum of argument in response to the cross-appeal, (joint with reply), Completed on: 2005-10-20 Kingstreet Investments Ltd.
2005-10-20 Applicant's reply to respondent's argument, (joint with response to cross appeal), Completed on: 2005-10-20 Kingstreet Investments Ltd.
2005-09-20 Book of authorities Province of New Brunswick as represented by the Department of Finance
2005-09-20 Application for leave to cross-appeal, (joint with response to leave application), Completed on: 2005-09-20 Province of New Brunswick as represented by the Department of Finance
2005-09-20 Respondent's response on the application for leave to appeal, (joint with cross-appeal), Completed on: 2005-09-20 Province of New Brunswick as represented by the Department of Finance
2005-08-26 Letter acknowledging receipt of a complete application for leave to appeal
2005-08-24 Book of authorities Kingstreet Investments Ltd.
2005-08-24 Application for leave to appeal, Completed on: 2005-08-24 Kingstreet Investments Ltd.

Parties

Please note that in the case of closed files, the “Status” column reflects the status of the parties at the time of the proceedings. For more information about the proceedings and about the dates when the file was open, please consult the docket of the case in question.

Main parties

Main parties - Appellants
Name Role Status
Kingstreet Investments Ltd. Appellant / Respondent on cross-appeal Active
501638 NB Ltd. Appellant / Respondent on cross-appeal Active

v.

Main parties - Respondents
Name Role Status
Province of New Brunswick as represented by the Department of Finance Respondent / Appellant on cross-appeal Active
New Brunswick Liquor Corporation Respondent / Appellant on cross-appeal Active

Other parties

Other parties
Name Role Status
Attorney General of Manitoba Intervener Active
Attorney General of British Columbia Intervener Active
Canadian Constitution Foundation Intervener Active
Consumers' Association of Canada Intervener Active
Attorney General of Alberta Intervener Active

Counsel

Party: Kingstreet Investments Ltd.

Counsel
Names
Eugene J. Mockler, Q.C.
Adam B. Neal
Contact information
Mockler Peters Oley Rouse
839 Aberdeen Street.
P.O. Box 547
Fredericton, New Brunswick
E3B 5A6
Telephone: (506) 444-6589
FAX: (506) 444-6550
Agent
Name
K. Scott McLean
Contact information
Fraser Milner Casgrain LLP
1420 - 99 Bank Street
Ottawa, Ontario
K1P 1H4
Telephone: (613) 783-9600
FAX: (613) 783-9690
Email: scott.mclean@fmc-law.com

Party: 501638 NB Ltd.

Counsel
Name
Eugene J. Mockler, Q.C.
Contact information
Mockler Peters Oley Rouse
839 Aberdeen Street.
P.O. Box 547
Fredericton, New Brunswick
E3B 5A6
Telephone: (506) 444-6589
FAX: (506) 444-6550
Agent
Name
K. Scott McLean
Contact information
Fraser Milner Casgrain LLP
1420 - 99 Bank Street
Ottawa, Ontario
K1P 1H4
Telephone: (613) 783-9600
FAX: (613) 783-9690
Email: scott.mclean@fmc-law.com

Party: Province of New Brunswick as represented by the Department of Finance

Counsel
Name
David D. Eidt
Contact information
Attorney General of New Brunswick
P.O Box 6000, Station A
Fredericton, New Brunswick
E3B 5H1
Telephone: (506) 453-2222
FAX: (506) 453-3275
Agent
Name
Brian A. Crane, Q.C.
Contact information
Gowling WLG (Canada) LLP
2600 - 160 Elgin St
Box 466 Station D
Ottawa, Ontario
K1P 1C3
Telephone: (613) 233-1781
FAX: (613) 563-9869
Email: brian.crane@gowlingwlg.com

Party: New Brunswick Liquor Corporation

Counsel
Name
David D. Eidt
Contact information
Attorney General of New Brunswick
P.O Box 6000, Station A
Fredericton, New Brunswick
E3B 5H1
Telephone: (506) 453-2222
FAX: (506) 453-3275
Agent
Name
Brian A. Crane, Q.C.
Contact information
Gowling WLG (Canada) LLP
2600 - 160 Elgin St
Box 466 Station D
Ottawa, Ontario
K1P 1C3
Telephone: (613) 233-1781
FAX: (613) 563-9869
Email: brian.crane@gowlingwlg.com

Party: Attorney General of Manitoba

Counsel
Names
Eugene B. Szach
Stewart J. Pierce
Contact information
Attorney General of Manitoba
Constitutional Law Branch
1205 - 405 Broadway
Winnipeg, Manitoba
R3C 3L6
Telephone: (204) 945-0679
FAX: (204) 945-0053
Email: eszach@gov.mb.ca
Agent
Name
Henry S. Brown, Q.C.
Contact information
Gowling WLG (Canada) LLP
2600 - 160 Elgin St
P.O. Box 466, Stn "D"
Ottawa, Ontario
K1P 1C3
Telephone: (613) 233-1781
FAX: (613) 788-3433
Email: henry.brown@gowlings.com

Party: Attorney General of British Columbia

Counsel
Names
Nancy E. Brown
Jonathan Penner
Contact information
Attorney General of British Columbia
1001 Douglas Street
P.O. Box 9280 Stn Prov Govt
Victoria, British Columbia
V8W 9J7
Telephone: (250) 356-5597
FAX: (250) 356-9154
Email: nancy.ag.brown@gov.bc.ca
Agent
Name
Robert E. Houston, Q.C.
Contact information
Burke-Robertson
70 Gloucester Street
Ottawa, Ontario
K2P 0A2
Telephone: (613) 566-2058
FAX: (613) 235-4430
Email: rhouston@burkerobertson.com

Party: Canadian Constitution Foundation

Counsel
Names
Barbara A. McIsaac, Q.C.
M. Philip Tunley
Howard R. Fohr
R. Benjamin Mills
Contact information
McCarthy Tétrault LLP
40 Elgin Street
Suite 1400
Ottawa, Ontario
K1P 5K6
Telephone: (613) 238-2000
FAX: (613) 563-9386

Party: Consumers' Association of Canada

Counsel
Names
Joseph J. Arvay, Q.C.
Brent B. Olthuis
Contact information
Arvay Finlay
1350 - 355 Burrard Street
Vancouver, British Columbia
V6C 2G8
Telephone: (604) 689-4421
FAX: (888) 575-3281
Email: jarvay@arvayfinlay.com
Agent
Name
Andrew P. Davis
Contact information
Shore, Davis
200 Elgin Street
Suite 800
Ottawa, Ontario
K2P 1L5
Telephone: (613) 233-7747
FAX: (613) 233-2374

Party: Attorney General of Alberta

Counsel
Names
Nick Parker
David Kamal
Contact information
Attorney General of Alberta
9833 - 109 Street
Edmonton, Alberta
T5K 2E8
Telephone: (780) 427-7885
FAX: (780) 425-0307
Agent
Name
Henry S. Brown, Q.C.
Contact information
Gowling WLG (Canada) LLP
2600 - 160 Elgin St
P.O. Box 466, Stn "D"
Ottawa, Ontario
K1P 1C3
Telephone: (613) 233-1781
FAX: (613) 788-3433
Email: henry.brown@gowlings.com

Summary

Keywords

None.

Summary

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

The Appellants operate several night clubs in the Province of New Brunswick and are licenced by the New Brunswick Liquor Corporation (“NBLC”) to sell alcoholic beverages which they purchase from NBLC’s retail stores. In addition to the retail price, they are required to pay a “user charge” which has varied over the years from 11% to the current 5% of the retail price.

The Appellants argued that this user charge is not a regulatory fee but an indirect tax, and as such, ultra vires the provinces or an illegal direct tax imposed by Regulation and not originating in the Legislature, and therefore ultra vires in the administrative sense. The Respondents maintained that it is a user charge intended to defray the costs of the regulatory scheme set out in the Liquor Control Act, R.S.N.B. 1973, c. L-10 (the “Act”).

The Appellants sought reimbursement of all amounts paid pursuant to this scheme together with compound interest. The Respondents raised the “passing on” defence as the Appellants had passed on the costs of the user charge to their patrons. Further, the Respondents stated that they should be immune from actions for the recovery of illegal taxes, and that any liability for same should be limited by the provincial prescription

The trial judge held that the impugned Regulations were ultra vires the Province, rendering the user charges invalid. He declined to grant the Appellants any recovery for payment of the illegal tax, citing the immunity rule. The Court of Appeal granted the Appellants partial recovery of the monies paid, calculated from the date the action was filed.The Appellants operate several night clubs in the Province of New Brunswick and are licenced by the New Brunswick Liquor Corporation (“NBLC”) to sell alcoholic beverages which they purchase from NBLC’s retail stores. In addition to the retail price, they are required to pay a “user charge” which has varied over the years from 11% to the current 5% of the retail price.

The Appellants argued that this user charge is not a regulatory fee but an indirect tax, and as such, ultra vires the provinces or an illegal direct tax imposed by Regulation and not originating in the Legislature, and therefore ultra vires in the administrative sense. The Respondents maintained that it is a user charge intended to defray the costs of the regulatory scheme set out in the Liquor Control Act, R.S.N.B. 1973, c. L-10 (the “Act”).

The Appellants sought reimbursement of all amounts paid pursuant to this scheme together with compound interest. The Respondents raised the “passing on” defence as the Appellants had passed on the costs of the user charge to their patrons. Further, the Respondents stated that they should be immune from actions for the recovery of illegal taxes, and that any liability for same should be limited by the provincial prescription

The trial judge held that the impugned Regulations were ultra vires the Province, rendering the user charges invalid. He declined to grant the Appellants any recovery for payment of the illegal tax, citing the immunity rule. The Court of Appeal granted the Appellants partial recovery of the monies paid, calculated from the date the action was filed.

Lower court rulings

February 27, 2004
Court of Queen’s Bench of New Brunswick

F/C/483/01, 2004 NBQB 084

Applicants' claim for a declaration that ss.5(1) and (2) of Regulation 89-167 under the Liquor Contral Act are ultra vires allowed; Applicant's claim for an order that all surcharges paid to the Respondents be repaid together with interest dismissed

May 26, 2005
Court of Appeal of New Brunswick

38/04/CA

Appeal allowed in part: Applicants' granted repayment of surcharges paid on and after may 25, 2001 together with interest; Assessment remitted to trial judge

Filed documents

The memorandums of argument on an application for leave to appeal will be posted here 30 days after leave to appeal has been granted unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of the memorandum by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613‑996‑7933 or at 1‑888‑551‑1185.

If you have questions about a memorandum of argument or want to use a memorandum of argument, please contact the author of the memorandum of argument directly. Their name appears at the end of the memorandum of argument. The contact information for counsel is found in the “Counsel” tab of this page.

Downloadable PDFs

Not available

The factums of the appellant, the respondent and the intervener will be posted here at least 2 weeks before the hearing unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of factums by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613‑996‑7933 or at 1‑888‑551‑1185.

If you have questions about a factum or want permission to use a factum, please contact the author of the factum directly. Their contact information appears on the first page of each factum.

Downloadable PDFs

Not available

The condensed books of the appellant, the respondent and the intervener will be posted here upon receipt of the electronic version, 2 days prior to the scheduled appeal hearing. You may also obtain copies of condensed books by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613‑996‑7933 or at 1‑888‑551‑1185.

If you have questions about a condensed book or want permission to use a condensed book, please contact the author of the condensed book directly. Their contact information appears on the first page of each condensed book.

Downloadable PDFs

Not available

Webcasts

Not available.

Date modified: 2025-05-13