A Revenu Québec auditor (who was under a quota for producing $1,000 per hour of recoveries) generated false and fictitious entires in the taxpayer`s records in order to make it appear that the taxpayer had claimed false expenses, with the result that the taxpayer was reasessed for additional tax, interest and penalties of over $450,000. Revenu Québec's collection department then made a seizure under the taxpayer's line of credit even though it was known that the excesssive reassessments would be reversed. The taxpayer ceased activities.
The court awarded $1.1 million in damages to the taxpayer's shareholder (including $1 million in punitive damages) and $2.75 million to the taxpayer (including $1 million in punitive damages and $350,000 in legal costs). The punitve damages awards were grounded on there being "unlawful and intentional interference" under the Quebec Charter of Human Rights and Freedoms.