CN is constructing an intermodal hub in Milton on a 485-hectare parcel, involving a railway yard and cranes for shipping containers.
Local governments and residents oppose the project due to noise, traffic, and environmental impacts.
Halton sought declarations that CN must comply with over 65 provincial laws and municipal bylaws, claiming CN wrongly asserted federal immunity.
The application judge dismissed Halton’s claims except for three bylaws but ultimately denied relief for these as well, based on interjurisdictional immunity.
Key Legal Points:
Interjurisdictional Immunity: The Court confirmed that federal undertakings are not immune from all provincial laws but protected when provincial laws impair core federal functions.
Core Federal Power: The intermodal hub's construction and operation are within the federal railway jurisdiction.
Discretionary Permits: Municipal permitting that requires official plan amendments and broad discretionary powers impairs federal authority over railway projects.
Decision:
Appeal Dismissed: The Court upheld the application judge’s decision, finding no errors in the application of interjurisdictional immunity.
Costs Award: The appellants' request to appeal the significant costs award was also denied.
Appellants to pay partial indemnity costs to the respondents on this appeal of $60,000, inclusive of disbursements and applicable taxes, as agreed to by the parties.
Implications:
Federal railway projects must comply with some provincial and municipal regulations, provided these do not impair core federal functions.
Municipalities cannot use local laws to effectively veto federally approved railway projects.
