The P.E.I. Supreme Court has rejected the findings of a human rights panel that ruled the provincial government discriminated against a woman with mental illness.

The court says the panel ignored evidence, and has ordered the P.E.I. Human Rights Commission to hold a new hearing.

The case revolves around a claim by Millie King, whose adult daughter Laura has schizophrenia.

The Kings claimed that Laura was unfairly excluded from help under the province's disability support program, because the program does not serve people who have mental illness.

The Kings won their case in 2016 in a panel hearing ordered by the P.E.I. Human Rights Commission, but following a judicial review in P.E.I. Supreme Court, that victory has now been nullified.

In a written decision issued May 3, Supreme Court Justice Nancy Key ruled the services the Kings needed were available under other government programs, including social assistance and from other organizations, such as the Canadian Mental Health Association. 

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Millie King is fighting on behalf of her adult daughter, Laura. (CBC)

"The Panel chose to ignore the evidence before them which provided for other services and organizations which could specifically deal with Laura's mental illness," the judge wrote. "Where the Panel erred and made an unreasonable finding was Laura somehow suffered an adverse impact."

"It is not the role of the Commission or its Panel, nor is it the role of the court to tell government how to run their programs," the judge continued.

The Supreme Court ordered the P.E.I. Human Rights Commission to hold a new panel hearing.

Millie King sent an email to CBC News to respond to the ruling.

"We are disappointed by Justice Key's decision, however, we are not discouraged and we will continue to fight for the full inclusion of those with mental disability as is the intent of and guaranteed under the Charter of Rights and Freedoms," reads part of her written statement.

The lawyer for Millie and Laura King told CBC News they will file an appeal.

"This is a disappointing setback," said lawyer Mike Dull of Halifax, "But we are not discouraged."

Earlier this year, the province announced changes are coming to the disability support program to include people with mental illness.