Supreme Court of Canada Judgment
The Court stated that the Act was ultra vires the province and should be struck down. In performing pith and substance analysis on the legislation by looking at the Act's purpose and effect, the Court found that the Act was Colourable. That is, the form of the Act appears to address a valid matter but in substance actually addresses a matter outside its authority. The "Pith and Substance" of the Act, (i.e. its dominant feature or purpose) was to interfere with the right of Hydro-Québec granted by the agreement with Churchill Falls Corp to receive power from across the provincial border.
Read more about this topic: Re Upper Churchill Water Rights Reversion Act
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