Laboratoires Omega ltée v. Canada (Attorney General), (1985) 6 F.T.R. 22 (TD)

• Judge: Muldoon, J.
• Court: Federal Court (Canada)
• Case Date: November 05, 1984
• Jurisdiction: Canada (Federal)
• Citations: (1985), 6 F.T.R. 22 (TD)

Laboratoires Omega ltée v. Can. (A.G.) (1985), 6 F.T.R. 22 (TD)

MLB headnote and full text

Laboratoires Omega Limitée v. Attorney General of Canada

(T-1387-83)

Indexed As: Laboratoires Omega ltée v. Canada (Attorney General)

Federal Court of Canada

Trial Division

Muldoon, J.

October 21, 1985.

Summary:

A pharmaceutical laboratory applied for and received an incentive grant under the Department of Regional Economic Expansion Act. This action arose out of the cancellation by the Minister of the grant. The Federal Court of Canada, Trial Division, dismissed the laboratory's action.

Government Programs - Topic 2886

Grants - Incentive grants - Offer - Withdrawal of - Grounds - A pharmaceutical laboratory applied for a DREE grant to relocate and expand - The government made a subvention offer - The offer provided that the applicant had to obtain approval from the Minister for any significant change in the plan proposed when the application was made - The laboratory arranged to buy a failing subsidiary of a competitor, including assets and a suitable building - Part of the financing was by a share transfer - The Federal Court of Canada, Trial Division, held that the government was entitled to withdraw its incentive offer, because a share purchase was a significant change not approved by the Minister - See paragraph 23.

Cases Noticed:

M.N.R. v. Sheldon's Engineering Limited, [1955] S.C.R. 637; 55 D.T.C. 1110, refd to. [para. 19].

M.N.R. v. Estate of Thomas Rodman Merrit, 69 D.T.C. 5159, refd to. [para. 19].

Statutes Noticed:

Department of Regional Economic Expansion Act, R.S.C. 1970, c. R-4, generally.

Counsel:

Michel Lassonde, for the plaintiff;

S. Marcoux-Paquette, for the defendant.

Solicitors of Record:

Racicot, Lassonde & Associes, Longueuil, Quebec, for the plaintiff;

F. Iacobucci, Q.C., Deputy Attorney General of Canada, for the defendant.

This action was heard before Muldoon, J., of the Federal Court of Canada, Trial Division, at Montreal, Quebec and Ottawa, Ontario, on October 17-18, and November 5, 1984. The decision of Muldoon, J., was delivered on October 21, 1985.