Major projects in all sectors take years of careful planning. Obtaining permits and approvals are a key part of that multi-year process. But even if a project receives all necessary permits and approvals, those permits and approvals may still be challenged in the courts.
The process for challenging an approval depends on how the project is regulated. Projects subject to federal environmental regulation under the Impact Assessment Act or its predecessor, the Canadian Environmental Assessment Act, 2012, are good examples. These approvals require both technical evaluation and broad consultation about the potential environmental effects of a project. Based on that evaluation, the federal government engages in a decision-making process whereby it decides whether (or not) to approve the project.
Federal approval decisions are subject to judicial review by the Federal Courts. If challenged, the courts will review both the decision-making process and its outcome to determine whether the process was fair and the decision is reasonable. The court will also consider whether the decision was made with adequate consultation (and if necessary, accommodation) of Indigenous groups. If any of these criteria are not met, the courts may set the decision aside, and proponents may be required to redo some or all of the regulatory process.
Several recent decisions provide fresh guidance (and timely reminders) about how courts review decisions relating to project approvals. While they all relate to environmental decisions, the principles they articulate apply to all federal decision-making. Here are three key takeaways:
Understanding the Court’s role on judicial review can help inform key decisions in approval and permitting processes—and help proponents assess which types of risks may materialize into issues down the road. The best way for project proponents to protect themselves from these risks is to do whatever they can during the process to ensure an approval is robust and “litigation ready”. Keeping judicial review risks in mind, and preparing for them, will help the decision withstand a judicial reasonableness review.
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