Executive Summary: Key Legal and Evidentiary Issues

• The appellant sought declaratory relief asserting that its économusée project complied with the municipality’s zoning by-law.

• The trial judge found that the proposed use did not qualify as a permitted “exhibition hall” under the zoning category “commerce et service II.”

• Instead, the court found the project had a dominant industrial and commercial nature, aligning more with “artisan manufacturing.”

• The appeal court noted the trial judge correctly focused on the actual use rather than labels or terminology used by the appellant.

• The appellant failed to demonstrate a legal or factual error that would justify appellate intervention.

• The Court of Appeal granted the respondent’s motion to dismiss the appeal under Article 365 C.p.c., finding no reasonable chance of success.

Background and nature of the dispute

Quai des Bulles inc. initiated proceedings seeking a declaratory judgment to confirm that its proposed économusée project complied with the zoning by-laws of the Municipalité de Kamouraska. The company aimed to build a facility it claimed fell within the permitted use category of “exhibition hall” under the zoning regulation's “commerce et service II” classification. However, the municipal authorities disagreed, and the dispute proceeded to the Superior Court.

In the trial judgment delivered on December 19, 2024, the court rejected Quai des Bulles inc.'s interpretation. The judge found that the company’s intended use for the économusée was not primarily that of an exhibition space but included substantial elements of production, storage, and commercial activity. These findings were based on a detailed analysis of the nature of the operations and the business activities of the company, which manufactures and distributes artisanal soaps across Quebec.

Judicial reasoning and regulatory interpretation

The trial judge concluded that the proposed facility could not be reclassified merely based on the label “économusée.” Instead, the actual dominant use of the space had to be examined. The court applied the method of interpretation by similarity where the regulation was silent, focusing on the dominant characteristic of the activity and comparing it to the usage categories defined in the zoning by-law.

The judge found that the economic and entrepreneurial nature of the project—specifically its manufacturing and on-site retail functions—was inconsistent with the intended zoning designation for exhibition halls. The project was more accurately categorized under “entreprises manufacturières artisanales” (artisan manufacturing enterprises), which was subject to more restrictive conditions, including limits on surface area and concerns about odours, which were not met in this case.

Appeal and procedural outcome

Quai des Bulles inc. appealed the decision, but the Municipalité de Kamouraska responded with a motion to dismiss the appeal under Article 365 of the Code of Civil Procedure, arguing that it had no reasonable chance of success. The Court of Appeal agreed.

The appellate judges reviewed the decision and found that it rested on findings of fact and interpretation of evidence, areas where appellate courts owe significant deference. The appellant failed to show any error of law or overriding and determinative factual or mixed error. The court also rejected arguments that the trial judge misunderstood the concept of an exhibition hall or misapplied the zoning classification.

Final decision

The Court of Appeal granted the motion to dismiss and rejected the appeal. The decision of the Superior Court stood, and costs were awarded against the appellant. The ruling affirms the principle that zoning interpretations must be grounded in the actual intended use of property, not just its descriptive branding.