A decision handed down Thursday may have cleared the way for the federal government’s lawsuit against U.S. Steel.

The Federal Court of Canada has decided to throw out the company’s consitutional challenge to the Investment Canada Act. The ruling is important, because Ottawa is suing the company, saying it broke promises made under the act. U.S. Steel was arguing that the act was unconstitutional.

The company bought the former Stelco in 2007, and during the recession it laid off workers and shut down its Canadian production.
While the Lake Erie Works in Nanticoke has resumed operations, 900 workers remain locked out of the Hamilton Works.