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Fasken Martineau wins another great victory for the Quebec government before the Federal Court of Appeal

June 17, 2008


On June 11, 2008, Fasken Martineau won another great victory for the Quebec government, this time before the Federal Court of Appeal, following the Federal Court judgment that the Firm obtained in its favour last summer.

In August 2007, Justice François Lemieux of the Federal Court ruled in Québec's favour in granting the action lodged against the Canadian government after it turned down Quebec's claim for a stabilization payment for the fiscal year 1991-1992, pursuant to the Federal Provincial Fiscal Arrangements Act.

The stabilization program compensates provinces whose revenues drop from one year to the next for reasons outside of their control. Québec filed suit, arguing that Canada's Finance Minister had misinterpreted and misapplied the Act and its regulation in assessing Québec's application for a stabilization payment, thereby depriving Québec of a payment evaluated at 127 million dollars. Justice Lemieux ruled in Québec's favour on 4 of the 6 issues raised, representing a payment of 103 million dollars according to Québec. Canada appealed from Justice Lemieux's judgment before the Federal Court of Appeal.

Less than 10 days after the hearing of the appeal, the Federal Court of Appeal dismissed all of Canada's grounds for appeal and confirmed Justice Lemieux's judgment. As a result, the Court has ordered Canada’s Finance Minister to reassess Québec's application for a stabilization payment taking into account the Court's findings as to the proper interpretation of the Act.

The Fasken Martineau team included Réal Forest, Dominique Gibbens and Stéphanie Lavallée.

You can access the judgment by clicking here (in French only).
 
© Fasken Martineau DuMoulin S.E.N.C.R.L., s.r.l.