Only claims based on the type of law contemplated by this section can be brought before a court.
The Court, using what is called the "effective control test", examines the role of the government in the institution.
In practice this generally excluded organizations such as public universities and hospitals since the Board of Governors usually operated independently of government control.
In cases where the "effective control test" fails there is still the possibility of the Charter applying where it can be shown that the organization provided services that were in furtherance of a specific government policy or program (Eldridge v. British Columbia).
The reason for this expansion was to prevent the government from outsourcing services to private organizations[1] in order to get around the "control test".