The Court found that sexual harassment was a form of discrimination based on sex and so was prohibited by the Manitoba Human Rights Act.

During the fall of 1982, Dianna Janzen and Tracy Govereau were both employed as waitresses at Pharos restaurant in Winnipeg, Manitoba.

The Manitoba Human Rights Tribunal held that the women had been subject to sexual harassment on the basis of sex and so the restaurant owners were in violation of section 6(1) of the Act.

The court found that sexual harassment was not considered discrimination on the basis of sex and that the employer could not be held vicariously liable of the conduct of the employee.

Chief Justice Dickson, writing for a unanimous Court, held that the restaurant's conduct did constitute discrimination on the basis of sex.