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.