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Judicial Review: When and How to Challenge a Regulatory Decision in Court
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The letter arrived from the provincial food safety authority on a Tuesday afternoon, its 4-page determination concluding that the operator of a small artisanal food processing facility in a mid-sized city in British Columbia would have its processing licence suspended for 90 days effective immediately. The facility, which the operator had built over 7 years into a modest but profitable enterprise producing specialty preserved foods for regional grocery chains and farmers' markets, now sat idle. The regulatory decision cited 3 separate inspection reports from the preceding 18 months, each of which had identified what the authority characterized as recurring deficiencies in the facility's temperature monitoring protocols and record-keeping practices.

The operator had responded to each inspection with corrective measures, had invested approximately $45,000 in upgraded refrigeration equipment after the 2nd inspection, and had hired a part-time food safety consultant to review procedures. The 3rd inspection, conducted 6 weeks before the suspension decision, had noted that while the equipment upgrades were complete, certain documentation requirements remained inconsistent with the authority's expectations. The inspector's report acknowledged the improvements but concluded that the pattern of deficiencies demonstrated a systemic failure to maintain compliance. The authority's hearing panel, which reviewed the inspector's recommendation, held a 2-hour hearing at which the operator appeared without legal counsel and presented documentation of the corrective steps taken. The panel's written decision, issued 3 weeks after the hearing, adopted the inspector's recommendation and imposed the 90-day suspension.

The operator now faces a business crisis. The suspension has already resulted in the loss of 2 major wholesale contracts, and the 12 employees who worked at the facility have been temporarily laid off. The operator believes the hearing panel failed to properly consider the evidence of corrective action, that the inspector's characterization of the deficiencies was unreasonable given the documented improvements, and that the hearing itself was procedurally flawed because the operator was not provided with copies of certain internal communications between the inspector and the authority's compliance division that were referenced in the panel's reasons. The authority's enabling statute provides for an internal appeal to a review board, but the operator has learned that such appeals typically take 4 to 6 months to resolve. The operator has consulted with a lawyer who has advised that judicial review may be available but has raised questions about timing, the requirement to pursue internal remedies, the standard a court would apply to the panel's decision, and whether the procedural concerns could form the basis of a successful challenge.

The Standard of Review: How Courts Assess Regulatory Decisions After Vavilov

Whenever a regulatory body makes a decision that affects your business, your professional licence, or your organization's ability to operate, that decision carries the force of law. Yet regulators, like all decision-makers exercising public authority, must act within the boundaries of reason and legal principle. When you believe a regulatory decision has gone fundamentally wrong, the courts offer a mechanism called judicial review to examine whether that decision should stand. The question that immediately arises in any such challenge is not simply whether the court agrees with the regulator's conclusion, but rather what standard the court will apply when assessing whether the decision was acceptable. This is the doctrine of the standard of review, and it represents one of the most significant areas of Canadian administrative law for anyone operating a business or managing an organization that intersects with regulatory oversight.

The standard of review determines the intensity with which a court scrutinizes an administrative decision. It answers a fundamental question about the relationship between courts and regulatory bodies: should the reviewing court look at the decision fresh and substitute its own view, or should it give significant latitude to the expert body that Parliament or a provincial legislature has entrusted with decision-making authority? This question matters enormously in practical terms because the standard applied often determines whether a challenge succeeds or fails. A decision that might survive under one standard could be overturned under another, and understanding which standard applies to your situation is essential before you invest the considerable resources required to pursue judicial review.

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