• Judicial independence: One of the interesting features of the project has been the dispute that arose between the ETR and the government on the right to increase tolls. But the legal process, as outlined below, has been notably independent:
-The 407 ETR designated 2002 as the base year during that same year.
-In January 2004, Ontario alleged that the 407 ETR did not have right to increase tolls without first obtaining the government's approval.
-On February 2, 2004, Ontario alleged that the 407 ETR had not achieved conditions required to establish 2002 as the base year. Also during February, tolls on Highway 407 increased by a full cent to 13.95 cents per kilometer.
-On July 10, 2004, an arbitrator found in favor of the 407 ETR on all issues. Ontario appealed against the decision.
-On January 7, 2005, the Ontario Superior Court of Justice ruled in favor of the 407 ETR and dismissed the appeal by the provincial government.
-On August 16, 2005, the arbitrator of the Ontario Court of Appeal ruled that base year was achieved in 2002 and that the Province, by its conduct, had accepted 2002 as the base year. The Province announced intentions to appeal decision.
• Complexity of contract: Conditions included in contract for establishment of base year were open to varied interpretations.
• Long-term arrangements: The contract lacked terms to provide the government with adequate control of toll rate increases, allowing the 407 ETR full discretion in this area.