Toronto Star

Tesla scores win in suit against province

Company treated unfairly in cancellati­on of electric car subsidies, judge rules

- ROBERT BENZIE QUEEN’S PARK BUREAU CHIEF

An Ontario judge has zapped the Progressiv­e Conservati­ves’ plan to immediatel­y end rebates for buyers of Tesla electric vehicles.

In a legal setback Monday for Premier Doug Ford’s fledgling government, Justice Frederick Myers ruled that Tesla Motors Canada was not treated fairly when the Tories scrapped the subsidies last month.

“If the government wants to transition out of the electric car subsidy program, (Transporta­tion Minister John Yakabuski) must exercise his operationa­l discretion in a lawful manner,” Myers wrote in a scathing 17page ruling.

“He has yet to do so. I therefore quash and set aside the minister’s unlawful exercises of discretion to implement the transition program announced July 11,” he continued.

A spokespers­on for Attorney General Caroline Mulroney told the Star late Monday that the Ford government is “reviewing the ruling and will make a decision on how to proceed in the coming days.”

Some 600 Ontario Tesla customers were affected by the Tories’ policy change. It was not immediatel­y clear if they would now receive the rebates.

Myers ruled that the province must pay Tesla $125,000 for its legal costs.

Tesla, whose customers had been receiving government rebates of up to $14,000 for their cars and SUVs, expressed satisfacti­on with the ruling. “We’re pleased with the court’s decision to strike down the ministry’s transition plan as unfair and unlawful,” a Tesla spokespers­on said Monday night.

“Tesla only sought fair treat- ment for our customers and we hope the ministry now does the right thing by delivering on its promise to ensure all (electric vehicle) owners receive their incentives during the winddown period.”

Tesla was immediatel­y affected by the Tories’ winding down of electric vehicle subsidies because — unlike General Motors, Volkswagen, Toyota and other firms — it sells cars directly to customers.

Last month, the government said the rebate program was being scrapped but incentives would continue to be honoured for vehicles bought from a dealership as long as they are delivered and registered by Sept. 10.

Because Tesla does not sell via dealership­s, its cars and SUVs were ineligible for the incentives.

Monday’s decision is the first of many anticipate­d legal proceeding­s related to Ford’s cancellati­on of Ontario’s cap-andtrade agreement with Quebec and California.

That climate change plan brought in $1.9 billion to provincial coffers, all of which went toward environmen­tal initiative­s such as subsidizin­g electric cars, which pollute far less than gasoline-powered vehicles. But Ford, who derided capand-trade as a “carbon tax,” ended the program in favour of reducing gas prices by10 cents a litre.

 ??  ?? Transporta­tion Minister John Yakabuski “must exercise his operationa­l discretion in a lawful manner,” a judge ruled.
Transporta­tion Minister John Yakabuski “must exercise his operationa­l discretion in a lawful manner,” a judge ruled.

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