Judgments

Decision Information

Decision Content

73-A-317
Ottawa Cablevision Limited, Terra Communica tions Limited, Cable TV Limited, Pineridge Cable TV Limited (formerly Oshawa Cable TV Ltd.), Grand River Cable TV Limited, Tele-Cable du Quebec Inc., National Cablevision Limited, Transvision (Magog) Inc., Barrie Cable TV Lim ited, Canadian Cable Television Association (Applicants)
v.
Bell Canada (Respondent)
Court of Appeal, Jackett C.J., Thurlow J. and MacKay D.J.—Toronto, January 29 and 30, 1974.
Practice—Application for leave to appeal—Decision of Canadian Transport Commission—Refusal to grant appli cants relief against respondent in transmission of televi- sion—Leave to appeal refused—An Act respecting the Bell Telephone Company of Canada, s. 5, repealed and substitut ed by 1967-68 S.C. c. 48, s. 6, in which the appeal provision under the Railway Act is referred to—Railway Act, R.S.C. 1952, c. 234, s. 53(2) as repealed and substituted by the National Transportation Act, R.S.C. 1970, c. N-17, s. 64(2), and as amended by the Federal Court Act, R.S.C. 1970, c. 10 (2nd Supp.), Sch. II, item 32.
The applicants applied to the Canadian Transport Com mission for relief against the respondent in terms of section 5 of the Bell Telephone Company of Canada Act, which confers on the respondent powers to transmit television programs by the applicants. The Commission denied the application, for lack of jurisdiction. The applicants sought leave to appeal.
Held, (Thurlow J. dissenting) leave to appeal should be refused.
Per Jackett C.J.: There is no possible basis for reading section 5 as conferring on the Canadian Transport Commis sion jurisdiction to compel the respondent to provide facili ties that it refuses to provide or jurisdiction to re-make contracts between the respondent and its customers under which the respondent is to provide facilities.
Per Thurlow J. (dissenting): Leave should be granted on the issues of law involved in the applicants' request for disallowance by the Commission, under section 5(5) of the Bell Telephone Company of Canada Act, of contractual arrangements referred to as the Partial System Agreement.
Per MacKay DJ.: The Commission's jurisdiction is lim ited by section 5(4) and (5) to complaints as to restrictions imposed in respect of equipment not provided by the respondent, that is equipment belonging to the applicants.
As the relief claimed is only in respect of the ownership and use of coaxial cable owned by the respondent, the Commis sion has no jurisdiction.
APPLICATION for leave to appeal. COUNSEL:
G. F. Henderson, Q.C., and W. G. Robinson for applicants.
E. E. Saunders, Q.C., for respondent.
W. G. St. John for the Canadian Transport Commission.
SOLICITORS:
Gowling and Henderson, Ottawa, for applicants.
O'Brien, Hall and Saunders, Montreal, for respondent.
W. G. St. John, Ottawa, for the Canadian Transport Commission.
JACKErr C.J.—This is an application for leave to appeal from a decision of the Canadian Transport Commission on a question of jurisdic tion, the answer to which turns on the meaning of a provision added to the legislation relating to the respondent (hereinafter referred to as "Bell") by chapter 48 of the Statutes of Canada of 1967-68, which provision reads as follows:
5. (1) It is hereby declared that subject to the provisions of the Radio Act and of the Broadcasting Act and of any other statutes of Canada relating to telecommunications or broadcasting, and to regulations or orders made thereunder, the Company has the power to transmit, emit or receive and to provide services and facilities for the transmission, emis sion or reception of signs, signals, writing, images or sounds or intelligence of any nature by wire, radio, visual or other electromagnetic systems and in connection therewith to build, establish, maintain and operate, in Canada or else where, alone or in conjunction with others, either on its own behalf or as agents for others, all services and facilities expedient or useful for such purposes, using and adapting any improvement or invention or any other means of communicating.
(2) Notwithstanding subsection (1), the Company and its subsidiaries do not, however, directly or indirectly or by any other means, have the power to apply for or to be the holder of a broadcasting licence as defined in the Broadcasting Act or of a licence to operate a commercial Community Antenna Television Service.
(3) The Company shall, in the exercise of its power under subsection (1), act solely as a common carrier, and shall neither control the contents nor influence the meaning or purpose of the message emitted, transmitted or received as aforesaid.
(4) For the protection of the subscribers of the Company and of the public, any equipment, apparatus, line, circuit or device not provided by the company shall only be attached to, connected or interconnected with, or used in connection with the facilities of the Company in conformity with such reasonable requirements as may be prescribed by the Company.
(5) The Canadian Transport Commission may determine, as questions of fact, whether or not any requirements pre scribed by the Company under subsection (4) are reasonable and may disallow any such requirements as it considers unreasonable or contrary to the public interest and may require the company to substitute requirements satisfactory to the Canadian Transport Commission in lieu thereof or prescribe other requirements in lieu of any requirements so disallowed.
(6) Any person who is affected by any requirements prescribed by the Company under subsection (4) of this section may apply to the Canadian Transport Commission to determine the reasonableness of such requirement having regard to the public interest and the effect such attachment, connection or interconnection is likely to have on the cost and value of the service to the subscribers.
The decision of the Commission is subject to review and appeal pursuant to the Railway Act.
Quite apart from its telephone business, which is subject to regulation under the Railway Act, pursuant to the powers referred to in sec tion 5(1), Bell has contractual arrangements with each of the applicant companies under which such company is provided with facilities that enable it to carry the necessary signals from its antenna and processing plant to the "taps" or "drops" whereby such signals are carried into the premises of the subscribers to its "cable" service.
The applicants find such contractual arrange ments unsatisfactory because
(a) the contracts provide for use by the appli cants of Bell's coaxial cable whereas the applicants would prefer to have an arrange ment under which they would have their own coaxial cable attached to Bell's facilities;
(b) they object to a provision in the contracts that limits them to carrying "messages" in one direction; and
(c) they regard the amounts that they have to pay to Bell under the contracts as excessive.
By the application giving rise to the decision of the Commission in respect of which leave to appeal is sought, the applicants, in effect, asked the Commission
(a) to require Bell to enter into a contract with each of the applicant companies under which that company would have the right to attach its own coaxial cable to Bell's facilities, and, in any event,
(b) to review and revise the terms of the contractual arrangement between Bell and each applicant company from the point of view of
(i) the limitation imposed on the signals sent over the coaxial cable, and
(ii) the amounts that the applicant company has to pay to Bell thereunder.
The applicants based this application to the Commission on section 5 supra and the Com mission dismissed the application on the ground that it had no jurisdiction under section 5 to grant the relief sought.
In this Court, the application for leave was based on the submission that there is at least a tenable argument for supporting the proposition that the Commission has jurisdiction under sec tion 5 to grant the relief sought.
As I do not agree with the reasoning whereby the Commission reached the conclusion that section 5 does not apply but I am of the view, after the best consideration that I can give to the submissions made by counsel for the appli cant, that there is no tenable argument for con cluding that section 5 gives the Commission jurisdiction to grant any part of the relief sought, I feel bound to explain briefly the posi tion as I understand it.
It is common knowledge that Bell has a statu tory charter to operate a telephone system in
Canada and that the operation of such system is regulated by the Railway Act under which the Canadian Transport Commission is the regulato ry authority.
Section 5(1) supra is a declaratory provision that makes it clear that Bell has a very broad power to transmit, emit and receive signs and intelligence of all kinds by electromagnetic sys tems and to provide services and facilities for such operations by others. If section 5(1) stood by itself, it would authorize Bell to provide the facilities that it provides to the applicant compa nies but Bell would be under no obligation to provide any such facilities to anybody except on such terms as it might decide upon as being in its own best business interest. (In other words, Bell would, in respect of such facilities, be in the same position as any other person operating an unregulated business.) The question that has to be considered, therefore, is whether the other parts of section 5 change the situation in the manner contended for by the applicants.
The other parts of section 5 that must be considered are subsections (2), (3), (4) and (5). In the first place, subsections (2) and (3) limit the nature of the activities upon which Bell may embark under subsection (1), and, in the second place, subsection (4), read with subsection (5), imposes a restriction on the manner in which Bell's telephone system facilities (and possibly other facilities) may be used. It is the nature of this latter statutory restriction that must be examined because it is subsections (4) and (5) (which seem, superficially at any event, merely to impose a fetter on what Bell may permit others to do) upon which the applicants rely as giving the Commission
(a) jurisdiction to compel Bell to provide facilities that it refuses to provide, and
(b) jurisdiction to re-make a contract by which Bell and a customer have contracted that Bell will provide facilities.
As I understand the role of subsection (4) in the scheme of section 5, the first three subsec tions having conferred on Bell a power to carry on business in a certain field, subsection (4) imposes a limitation on what can be done in the operation of such a business. That limitation is that certain things "shall only be attached to .. . or used in connection with" Bell's facilities' "in conformity with such reasonable requirements as may be prescribed" by Bell. When 'subsection (4) is read with subsection (5), the limitation on what can be done in the operation by Bell of a business under section 5 becomes a rule that certain things "shall only be attached to ... or used" in connection with Bell's facilities "in conformity with ... reasonable requirements" to be prescribed by Bell subject to review by the Commission.
I have thus spelled out the scheme of section 5, and particularly subsections (4) and (5), not to express any concluded opinion as to what may be debatable features, but to show that, when it is read as a whole, there is no possible basis for reading section 5, or any part of it, as conferring on the Commission a jurisdiction to compel Bell to provide facilities that it refuses to provide or a jurisdiction to re-make contracts between Bell and its customers under which Bell is to provide facilities.
For the reasons given by MacKay D.J. and for the above reasons, I am of opinion that the application for leave should be rejected.
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THURLOW J. (dissenting)—I would grant leave to appeal on the issues of law involved in the applicant's request for disallowance by the Canadian Transport Commission under section 5(5) of the Bell Telephone Company of Canada Act of provisions in the present contractual
' The fact that such limitation is imposed for the benefit of Bell's subscribers and of the public shows that it is principally, if not exclusively, Bell's telephone system facili ties to which the limitation applies.
arrangements referred to as the Partial System Agreement, which restrict the manner in which equipment, apparatus etc., not provided by Bell, may be used in connection with facilities of Bell.
* * *
MACKAY D.J.—I agree with the conclusion of my Lord The Chief Justice that leave to appeal should be refused.
The respondent, Bell Canada, has exercised the power given to it by section 5(1) to transmit television programs by the applicant companies. That subsection authorizes Bell to effect the transmission either by means of its own facili ties and equipment or by joint use of its equip ment and that of the applicants. Bell elected to use coaxial cable that it owned to which is attached boosters and drops (connection between the cable and the television user) owned by the applicants.
One of the conditions imposed by Bell was that the applicants would use the cable only for one way transmission.
The complaints of the applicants are (1) that they should be entitled to own their own cables and have them attached to Bell telephone poles or conduits and (2) that they should be allowed two way transmission on the cable.
There is no complaint by the applicants in respect of their own equipment, that is the boosters and drops.
The jurisdiction of the Commission is limited by subsections (4) and (5) to complaints as to restrictions imposed in respect of equipment not provided by the Bell Company, that is equip ment belonging to the applicant companies.
As the relief claimed is only in respect of the ownership and use of coaxial cable owned by Bell I agree that the Commission had no jurisdiction.
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