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FEDERAL COURT JURISDICTION

Trial Division

Chavali v. Canada

T-824-00

2001 FCT 268, Blanchard J.

30/3/01

9 pp.

Motion by Canadian Judicial Council (CJC) to strike statement of claim against it--Statement of claim naming 42 defendants in action alleging breach of trust agreement, conflict of interest, professional misconduct of legal counsel; biassed judiciary; conspiracies between defendants to undermine plaintiffs' ability to finance, refinance properties; damages for illegal, unnecessary foreclosures--Court lacking jurisdiction to consider motion--Federal Court statutory court without inherent jurisdiction--General, inherent jurisdiction resting with superior courts of provinces--ITO--International Terminal Operators Ltd. v. Miida Electronics et al., [1986] 1 S.C.R. 752 setting out three-prong test to establish jurisdiction of Federal Court, including existing body of federal law essential to disposition of case--That federal Court may need to apply provincial law in resolution of claim not bar to jurisdiction where claim validly founded on federal law: Rhine v. The Queen, [1980] 2 S.C.R. 442--But dispute over which jurisdiction is sought must rely principally and essentially on federal law: Canada (Human Rights Commission) v. Canadian Liberty Net, [1998] 1 S.C.R. 626--Case at bar essentially based upon common law of tort; appropriately case for superior court of inherent jurisdiction--No relationship between claim against CJC, any existing, applicable federal law--Court lacking jurisdiction to hear claim against CJC--In case jurisdiction conclusion wrong, motion to strike considered--Federal Court Rules, 1998, r. 221 permitting Court to strike pleading on ground discloses no reasonable cause of action--Statement of claim not setting out any allegations against CJC--No factual basis upon which plaintiffs can rely in claim against CJC--Statement of claim not linking CJC to any of plaintifs' assertions, damages claimed--Cause of action must lie on material facts, not assumptions--As no cause of action against CJC, statement of claim against it struck--Federal Court Rules, 1998, SOR/98-106, r. 221.

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