Inherent in judicial review is a tension between the rule of law and legislative intent. Although the text of statutory provisions may be less important in the current era of presumptions of deference, the statutory context often plays a significant role. It is not as often that a judicial review application alleges abuses of power, as in the seminal case of Roncarelli v Duplessis [1959] SCR 121. However, within his first few months in office, Ontario’s new Premier, Doug Ford, has prompted a carefully worded but vehement defence of the rule of law in Tesla Motors Canada ULC v Ontario (Ministry of Transportation), 2018 ONSC 5062 (SCJ) [Tesla].
1. Tesla Decision
Under the Public Transportation and Highway Improvement Act, the Ontario government created subsidies for buyers of environmentally approved cars. Subsidies could also be payable to dealerships who passed on the savings to consumers. These programs were funded through cap-and-trade tax revenues.
Prior to the Ontario election, Tesla’s Model 3 luxury electric cars, priced at $75,000, qualified for a subsidy of $14,000. The Model 3 was not the most expensive car eligible for a subsidy.
After the provincial election, on July 11, 2018, Doug Ford’s new government revoked the cap-and-trade regulation and the subsidies. The government instituted a two-month transitional period for consumers who had already received and registered cars. The transitional period also applied to dealerships who had already ordered or received cars.