Frances and Derek Baars sued the Children's Aid Society (CAS), which provides child protection services on behalf of the province, after the agency took away their two foster children and banned them from fostering and adopting in the future.
In February 2016, the Baars said they told their case worker that they would buy the girls, aged three and five, Easter dresses and hide chocolate eggs around the house. However, the couple said their plan did not satisfy the agency.
The Baars added that both parties agreed to compromise and allow the children to spend Easter with another family, but the children were permanently taken away by CAS anyway.
According to court documents, CAS said it was the duty of the foster parents to teach the children about the Easter Bunny.
Justice Andrew Goodman wrote in a decision released on Tuesday: "There is ample evidence to support the fact that the children were removed because the Baars refused to either tell or imply that the Easter Bunny was delivering chocolate to the Baars' home.
"I am more than satisfied that the society actions interfered substantially with the Baars' religious beliefs."
According to CTV News, CAS support worker Tracey Lindsay admitted that the girls were well cared for and argued that she "never asked [the Baars] to lie or betray their faith".
Justice Goodman learned that the couple, who don't believe in celebrating Halloween or saying Santa Claus is real, celebrated Christmas with the children, purchased gifts for them and shared photos of the holiday with their mother.
The judge has cleared the Baars' record and has allowed them to foster and adopt in the future.
Mrs Baars told the National Post: "We are very thankful for it, that we've been vindicated. Our names have been cleared and we don't have that hanging over us anymore,."
Dominic Verticchio, executive director of the Hamilton CAS, apologised to the couple through the newspaper.
"We recognise what our mistakes were," he said. "We respect the decision of the court... and we have to ensure it doesn't happen again."
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