Law in Quebec

News about Quebec legal developments


Quebec

  • Revenue Quebec ordered to pay $2 million in punitive damages

    A Montreal businessman who was forced to shut down his business after Quebec tax authorities mishandled his case was awarded nearly $4 million, including a staggering $2 million in punitive damages, following a precedent-setting ruling by Quebec Superior Court.

    In an extremely harsh judgment that sheds light on Revenue Quebec’s tax collection policies and questions its administrative practices, Justice Steve Reimnitz held that the provincial tax agency abused its powers, acted maliciously and in bad faith, and exhibited unjustified and blameworthy administrative doggedness in the way it handled the tax file of Groupe Enico Inc. and its founder Jean-Yves Archambault. The comprehensive 197-page ruling in Groupe Enico inc. c. Agence du revenu du Québec 2013 QCCS 5189 details a series of bizarre and improbable events, triggered by a dishonest auditor,  that has been likened by Quebec tax lawyers to an absurd “horror story” that “was bound to happen.”

    “There have not been many decisions that have been rendered by the courts where Revenue Quebec has been sued for damages,” pointed out Alexandre Dufresne, a Montreal tax lawyer and managing partner of Spiegel Sohmer. “Not only that, Revenue Quebec lost and the damages were very substantial so in that sense it is a very important decision. The judgment outlines what I would call a horror story – it really was an abusive audit.”

    (more…)

  • Quebec companies barred from bidding on public contracts have little chance of obtaining legal relief

    Companies that have been barred from bidding on public contracts stand little chance of obtaining injunctive relief that would temporarily suspend a new law aimed at curbing corruption in the construction industry, following a closely-watched ruling by Quebec Superior Court.

    In the wake of allegations of bribes, collusion, influence peddling, and widespread corruption in the construction industry, corroborated by testimony before the Charbonneau commission, the Quebec government passed legislation last December that compels companies to obtain a seal of integrity if they wish to bid on the billion dollars in contracts awarded annually in the Quebec public sector.

    (more…)

  • New trial ordered in the notorious case of Guy Turcotte

    When the Quebec Court of Appeal ordered a new trial in the notorious case of Guy Turcotte, the former cardiologist who was found not criminally responsible due to a mental disorder in the 2009 stabbing deaths of his two young children, it took the exceptional step of overturning a verdict largely based on a ruling that was not yet rendered by the nation’s highest court, note legal experts.

    The Quebec Court of Appeal, relying on guidance provided by the Supreme Court of Canada in R. v. Bouchard-Lebrun, 2011 SCC 58, [2011] 3 SCR 575 issued five months after Turcotte’s murder trial, held that Quebec Superior Court Justice Marc David’s  instructions to the jury were “deficient, which necessarily had a major impact on the verdict.”

    (more…)

  • Quebec legal developments to watch in 2014

    Law will play a role in shaping events in Quebec this year, and perhaps for years to come.

    The Charbonneau Commission’s inquiry into the construction industry has just resumed its public hearings, and more of the same is expected. Embarrassing and indecent revelations have come to light that politicians and professionals, and organized crime and major and the construction industry have subverted all things democratic. Two well-known mayors face criminal charges, one of whom stands accused of gangsterism, a law designed to thwart organized crime.

    The probe will continue to study organized crime in the construction industry this month before moving on to other topics of interest, which have yet to be revealed. The Charbonneau Commission must submit an interim report to the Quebec government by the end of January 2014, and a final report is expected by April 2015.

    The Supreme Court of Canada has begun to hear an unusual case that may reinvigorate the Quebec sovereignist movement. It will have to decide whether a judge who joined its ranks was lawfully appointed. Prime Minister Stephen Harper chose semi-retired Justice Marc Nadon, a Federal Court of Appeal judge, to fill one of the three places on the bench held for Quebec. According to Section 6 of the Supreme Court Act, judges “shall be appointed from among the judges of the Court of Appeal or of the Superior Court of the Province of Quebec or from among the advocates of that Province.” The nation’s highest court will have to determine whether a justice who served at the Federal Court is allowed to be a part of the country’s most senior bench. It will also have to determine whether federal government can unilaterally make changes to the appointment process as it did through the passage of the budget bill, C-4, or whether this requires a constitutional change needing provincial approval.

    “It’s very sad for the institution,” remarked Hugo Cyr, a law professor at the Université de Québec à Montréal. “It politicizes a process that shouldn’t be politicized. As soon as the process of appointment puts in question the legitimacy of one of the judges, it weakens the entire institution. That institution is the institution in our political system that is meant to be above political disputes.”

    Also in the agenda is the Parti Québécois’ government divisive secular charter bill. A National Assembly committee has begun hearings on the bill, which will prohibit public servants from wearing overt religious symbols such as the hijab, kippa or crucifix. The bill has deeply divided Quebecers, and will likely set off another round of heated debates over freedom of conscience and religion, and gender equality.

    Though largely unnoticed by the public, a new Code of Civil Procedure will likely have a dramatic impact on the Quebec justice system. A decade after reforming the Code of Civil Procedure based on the principle of proportionality, Quebec intends to overhaul it once again in order to establish a more rapid, more efficient and less costly civil justice that would improve access to justice and increase public confidence in the justice system. In an effort lauded by the legal community, the new Code aims to modernize and streamline the pre-trial process, trials and appeals, using collaboration along with proportionality as its guiding principle. The new Code imposes parties a positive obligation to cooperate and communicate in completing the court record, and grants courts broad and extensive case management power. It also obliges parties to “consider” recourse to private modes of dispute prevention and resolution before referring disputes to the courts. In this vein, the bill codifies the rules around mediation, reforms the rules applicable to arbitration, and provides specific measures for international arbitration. It is expected to be passed this year.

    Also in the making is the first foray into the digital age by Quebec courts. An online dispute resolution pilot project to resolve small claims court cases is scheduled to be launched this fall by the Quebec government.

  • Quebec Court of Appeal provides guidance over Anton Piller orders

    Litigants who obtain evidence seized through Anton Piller orders, an extraordinary legal measure granted in exceptional circumstances, do not have an “automatic” right to review the material, according to a recent ruling by the Quebec Court of Appeal.

    Anton Piller orders, described by the Supreme Court of Canada as a “draconian” measure, are civil search warrants that allow one party (accompanied by a bailiff and independent supervising lawyer) to launch a surprise raid on the business premises or homes of people when there is good reason to believe that one party to a lawsuit is in possession of documents or material that could be concealed or destroyed. It is considered by legal observers to be an intrusive and powerful legal remedy because no notice is given to the party against whom it is issued. Indeed, defendants only find out about the existence of the order when they are served and executed.

    (more…)

  • Code of Civil Procedure being overhauled

    A decade after reforming the Code of Civil Procedure based on the principle of proportionality, Quebec intends to overhaul it once again in order to establish a more rapid, more efficient and less costly civil justice that would improve access to justice and increase public confidence in the justice system.

    In an effort lauded by the legal community, Bill 28 aims to modernize and streamline the pre-trial process, trials and appeals, using collaboration along with proportionality as its guiding principle.

    (more…)

  • Quebec court authorizes privacy class action against Apple

    A privacy class action suit launched by a software engineer against Apple Inc. and Apple Canada Inc. was granted authorization by Quebec Superior Court.

    Gad Albilia alleges that Canadian residents who purchased an iPhone or iPad and who downloaded free software applications from the Apple’s virtual App store onto their devices have had their privacy rights infringed. He claims that personal identifiable information was collected through the apps and was transmitted, without the knowledge or permission of class members, to third-parties for purposes “wholly unrelated to the use and functionality of their iDevices or the apps.”

    Albilia alleges that the information collected would have included precise home and workplace locations and current whereabouts; unique device identifier (UDID); personal name assigned to the device; and the consumer’s gender, age, postal code and time zone. He also alleges that information was collected on search terms entered, selections of movies, songs and restaurants as well as app-specific activity.

    He also claims that resources such as storage, battery life and bandwidth of their iDevice were consumed and diminished without permission by Apple and downloaded free apps.Albilia, who launched the class action after learning that two similar class actions were filed in the U.S., is suing Apple because it has full control over the apps and the Apple ecosystem.

    He alleges that Apple allowed “for the making of clandestine and intrusive use of personally identifiable information while representing to its clients that they will protect their privacy,” noted Quebec Superior Court Justice Pierre Nollet.

    But because Albilia’s legal arguments are principally based on the application of privacy laws in Quebec, including the Quebec Charter of Human Rights and Freedoms and civil liability arising from the Civil Code, Justice Nollet found that the petitioner failed to establish a real and substantial connection for residents outside Quebec.“The Petitioner has not demonstrated that the legal systems in the twelve and more different jurisdictions that he wishes to apply to this case rely on similar laws and concepts,” noted Justice Nollet.

    The class action is seeking compensation and punitive damages, though it does not state how much. It is also seeking injunctive relief against Apple to stop allowing third parties to collect and disseminate personally identifiable information.

    While “respondents have raised very serious issues and difficulties arising from the motion for authorization as drafted,” Justice Nollet concluded that the “action is clearly not frivolous and manifestly destined to fail.”

  • Damage control: Law society seeks to restore public trust

    The professional corporations overseeing lawyers and engineers declared recently that they now intend to get even tougher on crooked professionals. Zero tolerance, declared Nicholas Plourde, who stepped down earlier this month as the head of the Quebec bar. The president of the Quebec engineering professional corporation stated that his organization is “determined to get to the heart of the matter and restore public trust.

    (more…)

  • Former lawyer ordered to pay $77,000 in damages

    A former lawyer and her companion who made the lives of their neighbours so miserable that they fled to Alberta before even selling their home have been ordered to pay more than $77,000 in damages by Quebec Superior Court recently.

    Sonia Desrosiers, a lawyer no longer enrolled in the Barreau du Québec, and Renée Jetté lodged or penned during a three-year stretch no less than 22 “malicious” complaints and demand letters against their neighbours before the provincial police, fire department, municipality, the Quebec Human Rights Tribunal, and the Society for the Prevention of Cruelty to Animals (SPCA).

    “The defendants have in a well-thought-out manner planned and repeatedly committed different acts with the intention of harming the applicants,” said Judge Charles Ouellet in a 15-page ruling.

    (more…)

  • Ruling limits powers of Quebec securities regulator to impose gag orders

    Days before the former head of Canada’s largest engineering firm was formally charged with fraud, SNC-Lavalin Group Inc. won a key legal battle against the provincial securities regulator who unsuccessfully tried to keep details of an investigation it was conducting into the scandal-ridden engineering powerhouse from the firm’s audit committee and external auditors.

    In a ruling that limits the powers of the Quebec securities regulator to impose gag orders, the Quebec Court of Appeal clarified the procedures the Autorité des marchés financiers must follow when issuing non-disclosure orders. The appeal court also upheld a decision by a specialized tribunal that oversees the securities watchdog, which allowed an SNC-Lavalin executive under investigation to provide details to the company’s audit committee and its external auditors Deloitte & Touche.

    “The Quebec Court of Appeal seems to have given the AMF a lot of latitude to use its discretionary powers but if it becomes excessive it will place limits,” observed Yves Robillard, a Montreal securities lawyer with Miller Thomson LLP. (more…)

  • Appeal court provides guidance on contempt of court

    The use of contempt of court in civil proceedings will likely diminish over time as judges begin to exercise discretionary powers to redress abuse of process under legislation originally designed to thwart SLAPPs, or strategic lawsuits against public participation, observed the Quebec Court of Appeal.

    Contempt of court, an exceptional remedy given its quasi-criminal character and potentially grave sanctions, should be used sparingly and as a “last resort,” particularly since more suitable civil sanctions exist such as running the risk of losing the case on the grounds of abuse of process, dismissal of claims, the striking of allegations to institute proceedings, or even the possible forfeiture of funds held in deposit, advised the appeal court in a 24-page ruling.

    “Viewing contempt as a last resort where there is an alternative remedy, better-tailored to the context, has the further advantage of reserving contempt for those cases of egregious behaviour that genuinely threaten the authority of the courts and merit the strong medicine of the quasi-criminal contempt sanction,” said Justice Nicholas Kasirer in a unanimous ruling.

    (more…)

  • Financial institutions ordered to pay $200 million

    Quebec’s business and legal community and consumer protection advocates are concerned over the impact of three related class action rulings by the Quebec Court of Appeal, with some fearing that motions seeking class action authorization will now be more easily granted while others are worried that consumers will pay the price following the court’s interpretation of what is included in the cost of credit.

    In a series of complex and controversial rulings the Quebec Court of Appeal in part overturned a lower court’s ruling that ordered nine different financial institutions to pay damages amounting to almost $200 million for improperly disclosing (or not at all) and charging fees for currency conversions in credit card transactions under the Quebec Consumers Protection Act (Act).

    (more…)

  • Investors delighted but insurers concerned

    A ruling that ordered an insurance company to pay $460,000 to a Quebec couple after their financial advisor invested their retirement nest egg in promissory notes in scandal-plagued Montreal financial group Mount Real Corp. has raised questions over the scope of professional liability insurance coverage in the province and ostensibly broadened investor’s protection.

    Quebec’s financial and insurance sectors are now worried over the impact of a Quebec Court of Appeal unanimous decision that declared inoperative clauses excluding gross negligence in professional liability insurance policies under the Act respecting the distribution of financial products and services (ADFPS). Law insurance experts are speculating that the finding may have a reach beyond the ADFPS, and affect professional liability insurance policies held by the indemnity funds of Quebec’s 44 professional corporations, including the Barreau du Québec. The Quebec legal society declined to comment.

    (more…)

  • A sad reminder that friendship and business do not always mix

    “This case is a sad reminder that friendship and business do not always mix.” So begins a lengthy ruling by Quebec Superior Court Justice Geneviéve Marcotte recounting the sombre saga of a successful Montreal businessman, a former corporate lawyer and his wife.

    It is a story about a friendship that turned so sour that Justice Marcotte ordered Earl Takefman, formerly chief executive officer of a number of public companies, to pay Montreal lawyer Elliot Bier and his wife $20,000 each in moral damages, $25,000 each in punitive damages and nearly $42,000 in extra-judicial fees incurred by the couple in the proceedings, together with legal interest.

    What’s more, Takefman has been ordered to cease and desist from communicating to the Biers or to third parties directly or indirectly in writing, including electronic commu­nications such as emails and text messages, any details on the private life, the assets and property of Elliot and Dawna Bier and their financial situation, save and except to his legal counsel and staff.

    (more…)

  • Judge convicted of first degree murder remains in jail

    Retired judge Jacques Delisle, hoping to become the second person in Quebec in thirty years to be released pending an appeal, will have to remain in jail after Quebec Court of Appeal Justice Richard Wagner ruled that releasing him could undermine the public’s faith in the justice system.

    Delisle, believed to be the first Canadian judge to ever stand trial for murder, was found guilty last month of first-degree murder in the death of his invalid wife by an eight-man, four-woman jury after three days of deliberations. The 77-year-old retired judge, who automatically received a sentence of life in prison, with no possibility of parole for 25 years, plead before the Quebec Court of Appeal that he should be released pending an appeal because he was having a tough time in prison due to his advanced age and the position he held in society.

    Under s.679 (3) of the Criminal Code an appellant may be released pending the determination of his appeal if the appellant establishes that the appeal or application for leave to appeal is not frivolous, if he would surrender himself into custody in accordance with the terms of the order, and if his detention was not necessary in the public interest.

    In a 13-page ruling, Justice Wagner found that Delisle’s application for leave to appeal was not frivolous nor did he pose a flight danger. But Judge Wagner found that a public, knowledgeable about the justice system and the circumstances surrounding the case, would risk losing confidence in the criminal and penal system if “I acquiesced to the demand made by the appellant.”

    “The appellant was found guilty by 12 persons, impartial and independent, of committing one of the most serious crimes sanctioned by the Criminal Code,” wrote Justice Wagner, who was appointed to the Quebec Court of Appeal bench two years after Delisle retired. ”It consisted of a premeditated murder with obvious violence on a vulnerable person. The appellant must establish very serious grounds for appeal to justify, in light of the circumstances surrounding this case, his release. This demonstration was not made.”

Law in Quebec
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.