Federal Court Quashes Minister of Health’s Import Ban Against Apotex

On October 14, 2015, in Apotex Inc v Canada (Health), 2015 FC 1161, the Federal Court quashed the Minister of Health’s import ban against Apotex, which had prevented Apotex from importing drug products into Canada from its manufacturing facilities located in India. The Court held that the Minister did not afford Apotex adequate procedural fairness and that the Minister’s decision was unreasonable and incorrect.

As a background to this decision, on September 30, 2014, Health Canada stopped the entry of Apotex drug products from India. As a result, Apotex commenced a judicial review application to challenge the Minister’s decision to implement the import ban. In its judicial review application Apotex alleged that the Minister failed to act in accordance with the principles of natural justice, failed to provide Apotex with notice or an opportunity to be heard and acted in a manner which gave rise to a reasonable apprehension of bias.

The Court rejected Apotex’s reasonable apprehension of bias argument but found that the Minister did not provide Apotex with any notice and imposed a unilateral import ban without giving Apotex any opportunity to be heard. In addition, the Court also found that the Minister acted for an improper purpose by imposing the import ban. Specifically the Court said:

…the Import Ban imposed on Apotex was motivated by the Minister’s desire to ease pressure triggered from the media and in the House of Commons – a purpose falling outside her delegated authority …. The Minister’s actions were therefore ultra vires and she erred in her exercise of jurisdiction by implementing an Import Ban …

Subsequent to this decision, Health Canada issued a statement in which it retracted its Information Update and the Minister’s Statement, both dated September 30, 2014.

Summary By: Meenakshi Lakhanpal