Judgments

Decision Information

Decision Content

A-244-74
The War Amputations of Canada (Applicant) v.
The Pension Review Board and the Canadian Pension Commission (Respondents)
Court of Appeal, Jackett C.J. and Pratte and Urie JJ., Ottawa, February 26 and March 14, 1975.
Judicial review Whether Pension Review Board incorrectly interpreted s. 26(2) of the Pension Act—Whether an interpre tation under s. 81(3) of the Act a decision within the meaning of s. 28 of the Federal Court Act—Whether "a decision ... of an administrative nature not required by law to be made on a judicial or quasi-judicial basis"—Pension Act, R.S.C. 1970, c. P-7, ss. 26(1) and (2) and 81(3)—Federal Court Act, s. 28.
In response to an application under section 81(3) of the Pension Act, the Pension Review Board interpreted section 26(1) and (2) of the Act as not empowering the Canadian Pension Commission to enlarge the group of pensioners to whom special benefits were given in 1938.
Held, setting aside the decision and referring the matter back to the Board; the Board should be directed to interpret section 26(2) as authorizing the Commission to make the rule in question with general application, provided it do so bona fide only to instruct those to whom it is directed as to the extent of disability to be estimated. (1) The Board's "interpretation" is a decision within the meaning of section 28 of the Federal Court Act. (2) What the Commission issues under section 26(2) constitutes delegated substantive legislation regulating the amount of pension awards; the proposed rule is one that may be made under section 26(2) as long as it is based on views as to the quantum of disability arising from injury resulting from military service. Subsections 26(1) and (2) empower the Com mission to adopt a policy of the kind under review and the Board erred in expressing the opinion that it ought to have been authorized by Parliament, and that any extension thereof must be so authorized.
In re Danmor Shoe Company Ltd. [1974] 1 F.C. 22, followed.
JUDICIAL review. COUNSEL:
B. N. Forbes and J. D. Adam for applicant. D. F. Friesen for respondents.
SOLICITORS:
Adam, Forbes, Singer, Ottawa, for applicant.
Deputy Attorney General of Canada for respondents.
The following are the reasons for judgment rendered in English by
JACKETT C.J.: I agree with the disposition of this matter proposed by my brother Urie and with his reasons in so far as they deal with the power of the Commission to make the section 26(2) instruc tion proposed for the future. Having regard to the complex nature of the matter I have decided to set out, as briefly as possible, the reasoning whereby I reach that result.
This is a section 28 application to set aside an "interpretation" given on July 23, 1974, by the Pension Review Board under section 81(3) of the Pension Act,' by which it, in effect, interpreted section 26(2) of that Act 2 as not authorizing the Canadian Pension Commission to include in the "instructions and ... table of disabilities" made under that provision a clause reading as follows:
When a pensioner who is in receipt of a pension for a disability or disabilities which carry a fixed assessment at the rate of 50% or more in respect of an amputation, wound or injury reaches the age of 55 years an additional 10% should be added to his assessment, with a further 10% additional at each of ages 57 or 59, subject to the limitation of three increases of 10% only, and an overall ceiling of 100%.
1 Section 81(3) reads as follows:
(3) The Pension Review Board shall entertain any request for an interpretation of any provision of Parts III to VII of this Act made by the Commission, the Chief Pensions Advo cate or any veterans' organization incorporated by or under any Act of the Parliament of Canada.
2 Section 26 reads as follows (in part):
26. (1) Subject to the provisions of section 12, pensions for disabilities shall, except as provided in subsection (3), be awarded or continued in accordance with the extent of the disability resulting from injury or disease or aggravation thereof as the case may be, of the applicant or pensioner.
(2) The estimate of the extent of a disability shall be based on the instructions and a table of disabilities to be made by the Commission for the guidance of physicians and surgeons making medical examinations for pension purposes.
Before considering the application on its merits, consideration must be given to the question wheth er this Court has any jurisdiction in the matter. In other words, a conclusion must be reached con cerning the question whether an "interpretation" given by the Pension Review Board under section 81(3) of the Pension Act is a "decision" that this Court has jurisdiction to set aside under section 28 of the Federal Court Act. 3
An interpretation under section 81(3) is given pursuant to a statutory direction that "The Pen sion Review Board shall entertain any request for an interpretation of any provision of Parts III to VII ... made by the Commission, the Chief Pen sions Advocate or any veterans' organization ..." The jurisdiction of this Court depends, therefore, in the first instance, upon an "interpretation" given by the Board pursuant to such a request being a "decision" within the meaning of that word in section 28(1) of the Federal Court Act. Secondly, assuming that such an "interpretation" is such a decision, the jurisdiction of this Court depends upon its being a decision "other than a decision ... of an administrative nature not required by law to be made on a judicial or quasi-judicial basis". 4
3 Section 28(1) reads as follows:
28. (1) Notwithstanding section 18 or the provisions of any other Act, the Court of Appeal has jurisdiction to hear and determine an application to review and set aside a decision or order, other than a decision or order of an administrative nature not required by law to be made on a judicial or quasi-judicial basis, made by or in the course of proceedings before a federal board, commission or other tribunal, upon the ground that the board, commission- or tribunal
(a) failed to observe a principle of natural justice or otherwise acted beyond or refused to exercise its jurisdiction;
(b) erred in law in making its decision or order, whether or not the error appears on the face of the record; or
(c) based its decision or order on an erroneous finding of fact that it made in a perverse or capricious manner or without regard for the material before it.
4 No question has been raised as to whether there is a legal duty imposed on the Board by section 81(3) to give an "inter- pretation". In my view, it is clear enough that there is a duty on the Board to give any "interpretation" requested as authorized by that provision.
In considering whether an "interpretation" given pursuant to section 81(3) is a "decision" within the meaning of that word in section 28(1), I think it must be recognized that the word "deci- sion" in section 28(1) does not embrace everything that falls within the meaning of the word "deci- sion" in the broadest possible sense of that word. For example, section 11.1(1) of the Pension Act imposes a duty upon the Bureau of Pensions Advo cates to give legal advice to applicants for pensions and a pension advocate is, in the broadest sense of the word, giving a decision (as to what, in his opinion, are the legal rights of the applicant) when he advises, as he is required by the statute to do; and yet, clearly, in my opinion, legal advice so given is not a "decision" within the meaning of that word in section 28(1). At the other end of the spectrum, section 23 of the Public Service Staff Relations Act, in effect, imposes upon the Public Service Staff Relations Board a duty to determine certain questions of law or jurisdiction and, as it seems to me, when that Board determines such a question, it is giving a "decision" within the mean ing of that word in section 28(1). I am not pre pared at this stage to attempt to enunciate a rule for determining where the line is to be drawn between the two classes of decisions. It will be time enough to attempt to enunciate such a rule when there has been more experience in applying section 28(1). All that is necessary, for present purposes, is to reach a conclusion as to the side of the line on which a section 81(3) "interpretation" falls.
There is no doubt in my mind that a section 81(3) "interpretation" is a "decision" as to what the particular provision interpreted means. The difficulty of classifying it, from the point of view of section 28(1), arises from the difficulty in reaching a conclusion as to the legal effect of such an "interpretation". If section 81(3) had no effect except to make the Board a bureau for giving legal advice to the bodies mentioned therein, clearly, in my view, section 81(3) interpretations would not be decisions within section 28(1). However, in my view, that is not the purpose or effect of section 81(3). Rather, section 81(3) creates a means whereby problems concerning the interpretation of the Pensions Act may be solved speedily and I am
satisfied that interpretations given pursuant there to have legally binding effect, the extent of which need not be determined for present purposes.' My conclusion is, therefore, that, as a section 81(3) "interpretation" has legally binding effect and is the very thing provided for by section 81(3), it is a "decision" within the meaning of that word in section 28(1) of the Federal Court Act.
I turn to the question whether an interpretation under section 81(3) is a decision other than "a decision ... of an administrative nature not required by law to be made on a judicial or quasi-judicial basis". A section 81(3) interpreta tion falls outside those words, in my view, if it is either
(a) of a legislative nature, or
(b) of an administrative nature and is required by law to be made on a judicial or quasi-judicial basis.
In my opinion, the better view is that a section 81(3) interpretation is a decision of a legislative nature (i.e., it is the equivalent of a regulation that is given force as though it were in the statute) and, for that reason, falls within section 28(1). How ever, no firm opinion need be expressed on that question because, if a section 81(3) interpretation is not of a legislative nature, it is of an administra tive nature, in which event, in my view, it falls within section 28(1) for the reason indicated in the next paragraph.
If an interpretation under section 81(3) is of an administrative nature, in my view, it is required by
5 At the very least, they are binding upon the Commission and the paying authorities and, it may be, they are also binding on the Board itself and upon the Courts, subject always to their being set aside under some such authority as section 28. If such an "interpretation" is binding on the Board unless and until it is set aside, it may be that the "interpretation" under attack in this case would have been found, upon consideration, to be valid by virtue of a prior "interpretation" given by the Board under section 81(3) on May 15, 1973. This point was not, however, taken before us and does not, therefore, have to be considered. Had it been taken, there are indications that, upon inquiry, it might have been found that the matter was kept open and no final "interpretation" was given on the point at that time. (See, e.g., Mr. Jutras' letter of May 15, 1974 (page 168): " ... this matter was not argued on April 3, 1973".)
law to be made on a judicial or quasi-judicial basis. Section 81(4) 6 of the Pension Act makes provision for regulations respecting the procedures to be followed by the Board "in hearing" and considering requests for such interpretations. This makes it clear that Parliament requires such inter pretations to be given only after affording interest ed parties an opportunity to be heard and thus requires that such interpretations be made on a quasi-judicial basis.
My conclusion on the first question is, therefore, that this Court has jurisdiction to dispose of this section 28 application.
I turn to the substantive question raised by this section 28 application.
As a preliminary to considering that question, it should be explained that, in 1938, a first version of the proposed rule set out in the second paragraph hereof was added to the "instructions and ... table of disabilities" that had, prior to that time, been made under the provision in the Pension Act now contained in section 26(2) thereof, but it was so worded as to be limited to disabilities in respect of amputations, wounds or injuries "due to, or arising out of direct action with the enemy" and that, when this matter came before the Board and this Court, it was discussed as though the question was whether the words "due to, or arising out of direct action with the enemy" can be deleted by the Commission from the rule as previously made by it.' The question that has to be decided, and that the Board should have decided, is more accurately framed, in my view, as I have indicated in the second paragraph hereof, viz:
6 Section 81(4) reads as follows:
(4) The Governor in Council may make regulations respecting the procedures to be followed by the Pension Review Board in hearing and considering requests for inter pretation made under subsection (3).
7 There are references throughout the record to "ministerial" approval obtained by the Commission before making various versions of the rule at different times. As, however, there does not appear to be any requirement or authority in the statute for the Commission obtaining such approval, I do not see any way in which such approval enters into a consideration of what the Commission has authority to do in the future. It is not neces sary to consider, for the purposes of this section 28 application, whether consultation with the Minister in any way affected the validity of what this independent Commission did in the past.
Can the Canadian Pension Commission, under section 26(2) of the Pension Act, include in the "instructions and ... table of disabilities" made under that provision a clause reading as follows:
When a pensioner who is in receipt of a pension for a disability or disabilities which carry a fixed assessment at the rate of 50% or more in respect of an amputation, wound or injury reaches the age of 55 years an additional 10% should be added to his assessment, with a further 10% additional at each of ages 57 or 59, subject to the limita tion of three increases of 10% only, and an overall ceiling of 100%. s
It would seem obvious that, if the Commission can, in the exercise of its powers under section 26, make the rule in the form in which it was made in 1938, it can make it with the restriction deleted so that it would apply not only where the pension was for a disability in respect of an injury due to "direct action with the enemy" but also where the same disability was, otherwise, "attributable to or was incurred during ... military service". What the Board has held, however, in effect, as I under stand it, is that the Commission did not have the power under section 26 to make the present rule and does not, therefore, have power to make it with the limitation removed. 9 -If the Board is right in this view, it would seem to follow that the effect of its decision is that the present rule is void and inoperative unless there is some law, to which we have not been referred, giving legal effect to such an ultra vires rule that has operated in fact for a long time.
B In fact, the relevant part of the request made under section 81(3) was that
The Pension Review Board entertain an interpretation of Subsection 26(1) and Subsection 26(2) of the Pension Act, to the effect that the Commission is empowered to provide Automatic Age Increases to former members of the Forces in receipt of pensions for amputation or gunshot wound arising from accident; ...
According to the Board, the present rule should, neverthe less, be accepted as having legal effect because it has been in operation in fact since 1938 but it cannot be broadened except by Parliament.
Before reaching a conclusion that the rule as it now stands is completely beyond the Commission's powers under section 26, which conclusion would, I gather, have very disturbing effects, consider ation should be given to just what the Commission does under section 26(2), and, for that purpose, it is necessary first to outline very briefly the rele vant part of the scheme of the Pension Act.
Section 12(1)(a) of the Pension Act requires that, in respect of certain military service, pensions shall be awarded "in accordance with the rates set out in Schedule A" when the injury resulting in the disability in respect of which the application for pension is made was attributable to or was incurred during such military service. Schedule A sets out a table of pension rates that vary with, among other things, "percentage of disability". Applications for pension must be made to the Commission 10 which must collect relevant material and make inquiries" and then, if satisfied that an applicant is entitled to an award, must "determine the amount of the award payable"; ' 2 and such award must be "in accordance with the extent of the disability resulting from the injury". 13
Nowhere in the Act, as far as I have been able to ascertain, do we find any express requirement that the Commission is to have before it, when it makes an award under section 63, a report of a physician or surgeon. (That it should have such reports was probably regarded as too obvious to require special mention in the statute.) Neverthe less, the only provision to be found in the Act concerning the methods to be followed in relating the amount of an award to the "extent of disabili ty" resulting from "the injury" is to be found in section 26(2), in the shape of authority that is given to the Commission to issue "instructions and
10 Section 61. Section 62.
12 Section 63(1)(a).
13 Section 26(1).
a table of disabilities" for the guidance of physi cians and surgeons making medical examinations for pension purposes. Section 26(2) provides fur ther that "The estimate of the extent of a disabili ty should be based" on such instructions and table. While I find it somewhat odd that section 26(2) provides that such instructions and table are to be made by the Commission "for the guidance of physicians and surgeons making medical examina tions for pension purposes", nevertheless I think, when the provision is read as a whole, section 26(2) must be taken as authorizing the Commis sion to make instructions and a table of disabilities of which account must be taken, as long as they are outstanding, by the Commission itself when it makes an award under section 63(1) as well as by the medical officers who prepare the reports upon the basis of which the Commission reaches its decisions. 14 In other words, what the Commission issues under section 26(2) constitutes delegated substantive legislation regulating the amount of pension awards, even though it does not operate in the precise way in which we tend to think of ordinary legislation operating.
What has to be considered, therefore, is wheth er, having set up tables fixing percentages to oper ate as commencement points in assessing disabili ties in the cases of various classes of injuries, ' 5 the Commission may add an instruction that, when a pensioner reaches certain specified ages in the case of certain classes of injuries, such percentages shall be increased by certain specified amounts. 16
The Board, by its reasons, took the view, in effect, that the rule as made in 1938 was ultra
14 It would seem clear that such instructions and table are intended only as a commencement point for the normal case
and are not intended to put either the medical officers or the Commission in a "strait jacket". See Article 2.03 of chapter 2, which reads:
The Table of Disabilities exists only to assist the Canadian Pension Commission and Medical Officers in fulfilling their responsibilities. It does not offer final or absolute values.
15 The remainder of the document issued under section 26(2).
16 The proposed rule under consideration as the result of the request for an "interpretation".
vires the powers conferred by section 26(2) on the Commission because it was made to confer an extra benefit on those who had been injured in the face of the enemy.
Before this Court, counsel for the Government took the view, in effect, that the rule now proposed is ultra vires the section 26 powers of the Commis sion because it awards a benefit for the disability arising from advancing age and is not a rule for assessing the disability arising from the injury flowing from military service.
The applicant to this Court challenges the proposition that the rule is ultra vires the section 26(2) powers of the Commission.
In my view, the Board erred in approaching the matter by considering first whether the present rule is valid containing as it does a limitation restricting it to injuries sustained in the face of the enemy. The only question that had to be decided was whether the rule could be made with applica tion across the board. In any event, in my view, there is no evidence in the document issued by the Commission under section 26(2) to support the Board's conclusion that what the Commission intended to do in 1938, when the rule was first adopted, was to pay an extra benefit to persons injured in the face of the enemy." On the face of it, the rule adjusts the percentage of disability arising from injury by reason of advancing age and is, therefore, an assessing rule. There is some outside evidence that would indicate that the rule in question was based on medical advice that experience showed that the quantum of disability from serious injuries increased with advancing age. There is, on the other hand, some outside evidence that the rule was made to confer a benefit on persons injured in the face of the enemy. I am not sure that, even if the validity of the rule that was first made in 1938 had to be decided, any of this
" Paragraph 5 of chapter 2 of that document may be ignored because it is a mere recital of the decision that is being attacked by this section 28 application.
secondary evidence as to the Commission's inten tion should be looked at. 18
Whatever may be the status of the present rule, in my view, the proposed rule is one that may be made under section 26(2) as long as it is based on views as to the quantum of disability arising from injury flowing from military service.
In my view, therefore, the decision of the Board attacked should be set aside and the matter referred back to the Board with directions that it should interpret section 26(2) as authorizing the Commission to make the rule in question with general application assuming that they do so bona fide for the purpose of instructing how the extent of a disability "resulting from injury . .. or aggra vation thereof" should be estimated.
* * *
PRATTE J.: I agree.
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The following are the reasons for judgment rendered in English by
URIE J.: This is a section 28 application to review and set aside a decision of the Pension Review Board (hereinafter called the Board), a tribunal constituted under the provisions of the Pension Act, R.S.C. 1970, c. P-7, (hereinafter called the Act). In response to an application of the applicant herein, made pursuant to subsection 81(3) of the Act, the Board interpreted subsections 26(1) and (2) of the Act as not empowering the Canadian Pension Commission (hereinafter called the Commission) to enlarge the group of pension ers to whom special benefits were accorded in 1938.
18 I must say I have difficulty in conceiving how any group of Commissioners could have been advised that the quantum of disability would increase with age if the injury were sustained from direct enemy action but not otherwise, but the question as to the validity of the present rule or of this limitation in the present rule was not raised by this section 28 application and I express no view with regard thereto.
In order to appreciate the nature of the problem posed it would be useful briefly to review the scheme of the Act.
The Act established the Canadian Pension Com mission as successor to the Board of Pension Com missioners for Canada. Subsection 5(1) for pur poses of this application sufficiently sets forth the jurisdiction and powers of the Commission:
5. (1) Subject to this Act and any regulations, the Commis sion has full and unrestricted power and authority and exclusive jurisdiction to deal with and adjudicate upon all matters and questions relating to the award, increase, decrease, suspension or cancellation of any pension under this Act and to the recovery of any overpayment that may have been made; and effect shall be given by the Department and the Receiver General to the decisions of the Commission.
Section 12, appearing in Part III of the Act, confers entitlement to pensions on various classes of persons, in accordance with scheduled rates, for death, injury or disease, incurred in respect of military service during World War I or World War II.
Subsections (1)(a),(b),(c) and (g) thereof read as follows:
12. (1) In respect of military service rendered during World War I or during World War II and subject to the exception contained in subsection (2)
(a) pensions shall be awarded in accordance with the rates set out in Schedule A to or in respect of members of the forces when the injury or disease or aggravation thereof resulting in the disability in respect of which the application for pension is made was attributable to or was incurred during such military service;
(b) pensions shall be awarded in accordance with the rates set out in Schedule B in respect of members of the forces who have died when the injury or disease or aggravation thereof resulting in death in respect of which the application for pension is made was attributable to or was incurred during such military service;
(c) no deduction shall be made from the degree of actual disability of any member of the forces, who has served in a theatre of actual war during World War I or during World War II, on account of any disability or disabling condition that existed in him prior to his period of service in either of the aforesaid wars; but service by a member of the forces in a theatre of actual war may only be counted for the purposes of this paragraph when it has been rendered in the particular war with reference to service in which pension has been awarded; and no pension shall be paid for a disability or disabling condition that, at the time he became a member of the forces, was obvious or was recorded on medical examina tion prior to enlistment;
(g) subject to the exception in paragraph (c) when a pension has been awarded to a member of the forces who has served in a theatre of actual war either during World War I or World War II, it shall be continued, increased, decreased or discontinued as if the entire disability had been incurred during service; but service in a theatre of actual war may only be counted for the purposes of this paragraph when it has been rendered in the particular war with reference to service in which such pension has been awarded.
Schedule A referred to in paragraph (a) of subsection (1), prescribes the various classes of pension numbering from 1 to 20. Each class includes in it a range of percentage of disability which appears to be found by reference to the Table of Disabilities made by the Commission pursuant to subsection 26(2) of the Act, although there is nothing in the Act to confirm this impres sion. For each class a percentage in round figures is prescribed as the annual rate of pension. For example, class 5 applies to a range of disability of 78% to 82%. The annual rate for this class is stipulated as 80%. The annual amount payable in each class for the pensioner, his spouse and dependent children is also shown.
Subsections 26(1) and (2), which also appear in Part III of the Act, were interpreted by the Pen sion Review Board, and that interpretation is the subject of this section 28 application. Those sub sections read as follows:
26. (1) Subject to the provisions of section 12, pensions for disabilities shall, except as provided in subsection (3), be awarded or continued in accordance with the extent of the disability resulting from injury or disease or aggravation there of as the case may be, of the applicant or pensioner.
(2) The estimate of the extent of a disability shall be based on the instructions and a table of disabilities to be made by the Commission for the guidance of physicians and surgeons making medical examinations for pension purposes.
The procedure for making an application for an award and the determining of entitlement to, and the amount of, an award is set out in Part VI of the Act. Every application, in the first instance, is made to the Commission as required by section 62.
After the application is disposed of by the Com mission initially the first procedure available to a
dissatisfied applicant is to make another applica tion, as of right to the Commission, and if after the second decision the applicant is still dissatisfied, the Commission may, in its discretion, consider a further application.
By section 67 an applicant who is dissatisfied with respect to the amount of any award granted to him may request a hearing by two members of the Commission and, if such request is granted, the two Commissioners designated to preside at the hearing may affirm or vary the decision of the Commission as to the amount of the award.
Sections 68 to 72 inclusive, deal with the case of an applicant who is dissatisfied with respect to his entitlement to an award or whose award has been cancelled or reduced by the Commission. Those sections provide for the designation by the Chair man of three members of the Commission as an Entitlement Board to hear the applicant's case and the procedure relating to the conduct of the appeal, and the decision of the Entitlement Board.
An applicant who is dissatisfied with a decision of an Entitlement Board or a decision of two members of the Commission designated under Section 67, may appeal the decision to the Pension Review Board. This Board is independent of the Commission and is composed of a Chairman and four other members appointed by the Governor-in- Council for fixed terms.
The requirement that the Board entertain a request for the interpretation of any provision of Parts III to VII of the Act is provided in subsec tion 81(3). It was a request under this subsection that led to the impugned interpretation. That sub section reads as follows:
81. (3) The Pension Review Board shall entertain any request for an interpretation of any provision of Parts III to VII of this Act made by the Commission, the Chief Pensions Advocate or any veterans' organization incorporated by or under any Act of the Parliament of Canada.
As above noted an application was made by the applicant herein that the Board entertain a request for an interpretation of subsections 26(1) and (2) of the Act. Its decision, rendered on July 23, 1974,
following a hearing held as a result of that request is the subject matter of this application.
The request for interpretation was made on April 10, 1974, and arose out of a "policy" 19 instruction of the Commission relating to automat ic age increases in pension to certain classes of pensioners embodied in the Table of Disabilities and instructions of the Commission made under the authority of section 26(2) of the Act.
It appears from the record that the policy was first made a part of the Table with the approval of the then Minister of Pensions and National Health in 1938. Since then it has been amended from time to time, each time apparently with Ministerial approval. The present version of the policy was adopted, it is said, after it was approved by the Minister of Veteran's Affairs 20 on June 28, 1973, and reads as follows:
When a pensioner who is in receipt of a pension for a disability or disabilities which carry a fixed assessment at the rate of 50% or more in respect of an amputation, wound or injury due to or arising out of direct action with the enemy, reaches the age of 55 years, an additional 10% shall be added to his assessment, with a further 10% additional at each of ages 57 and 59, subject to the limitation of three increases of 10% each only, and an overall ceiling of 100%.
Before dealing with the merits of the application it is necessary to deal with the respondents' sub mission that the impugned interpretation is not a decision or an order within the meaning of section 28 of the Federal Court Act. In considering this submission it is clear, I think, that the Pension Appeal Board is a federal board, commission or other tribunal within the meaning of those words in the Federal Court Act. Jackett C.J. in In re
19 In its context, as will be seen, the policy instruction is more in the nature of a regulation, rule or direction, a fact that was conceded by counsel. It is for this reason that I have placed the word policy in quotation marks at this point in my reasons, but the word will be used hereafter without them, the true nature of the use of the word being understood.
20 While it was said that the original policy instruction and each subsequent change received ministerial approval before being adopted by the Commission and inserted in the Table of Disabilities and instructions, there is nothing in the statute which requires that such prior approval be obtained and noth ing turns on the fact that such approvals were obtained.
Danmor Shoe Company Ltd. [ 1974] 1 F.C. 22, at pages 28 and 29, in determining the distinction between a decision of a board, commission or other tribunal in respect of something upon which it has jurisdiction and a declaration by such a body in a preliminary or interlocutory matter which is not a final disposition of the issue before it, reasoned as follows:
A decision that may be set aside under section 28(1) must, therefore, be a decision made in the exercise or purported exercise of "jurisdiction or powers" conferred by an Act of Parliament. A decision of something that the statute expressly gives such a tribunal "jurisdiction or powers" to decide is clearly such a "decision". A decision in the purported exercise of the "jurisdiction or powers" expressly conferred by the statute is equally clearly within the ambit of section 28(1). Such a decision has the legal effect of settling the matter or it purports to have such legal effect. Once a tribunal has exer cised its "jurisdiction or powers" in a particular case by a "decision" the matter is decided even against the tribunal itself. (Unless, of course, it has express or implied powers to undo what it has done, which would be an additional jurisdiction.)
There is a clear difference between a "decision" by the Board of something that it has "jurisdiction or powers" to decide and a declaration by the Board as to the nature of the powers to be exercised by it when it comes to make the decision that it has, "jurisdiction or powers" to make. Once the Board decides' something in a particular case that it has "jurisdiction or powers" to decide, that decision has legal effect and the Board's powers in regard to that question are spent. When, however, the Board takes a position with regard to the nature of its powers upon which it intends to act, that "decision" has no legal effect. In such a case, as a matter of law, nothing has been decided.
Subsection 81(3) requires the Board to entertain any request for an interpretation of any provision of Part III to Part VII of the Act made, as here, by any veteran's organization. While there is noth ing specific in the Act, so far as I can see, to indicate that an interpretation so made is final and binding on all parties in all future cases, the Board's decision is not simply a declaration but is a decision in the exercise of powers expressly conferred on it and, therefore, as such is suscept ible to review on a section 28 application. To reach the conclusion that it is not such a decision would render an interpretation made under the subsec-
tion purposeless. 2 '
It was submitted by counsel for the respondent that the test for determining the nature of the decision in question is firstly, whether or not the decision is final, or whether the tribunal has the right to change its mind and secondly, whether or not the decision has any legal effect. In his view, the answer to both questions in respect of a deci sion by the Board on an interpretation under sub section 81(3) must be no.
After the interpretation has been given by the Board, it must have a continuing legal effect and be binding on the Commission and be applied by it in administering the Act. That legal effect will continue and, as it seems to me, will likely bind the Board as well as the Commission until a Court, on an application of this nature finds that the inter pretation given was wrong. The respondents' argu ments based on the two tests enunciated by counsel must, therefore, in my view, fail.
Assuming that the decision required to be made is "a decision or order ... of an administrative nature" within the meaning of the words in subsec tion 28(1) of the Federal Court Act, it next is necessary to determine whether it is one required to be made on a judicial or quasi-judicial basis. Subsection 81(4) empowers the Governor-in- Council to make regulations "respecting proceed ings to be followed by the Pension Review Board in hearing and considering requests for interpreta tions made under subsection (3)." (The emphasis is mine.) No such rules of procedure were made although the Court was informed that the Board had informal rules for the conduct of the proceed ings. Nothing turns on this because clearly the subsection contemplates that a hearing will be held in dealing with the request. This shows that the
21 The use of the word "interpretation" in subsection 81(1) is to be contrasted with its use in subsection 81(3). In the former the "decision" which the Commission has to reach is with respect to the disposition of an appeal from an award or an entitlement. The "interpretation" which the Board is called upon to make during the course of an appeal is not, it seems to me, a final "decision" or order within the meaning of the words in section 28, in the sense that the interpretation required by subsection (3) is. However, it is unnecessary in this application to decide whether or not such apparent distinction is well founded.
decision was one required to be made on a judicial or quasi-judicial basis.
Turning now to the substantive issue, the rele vant part of the request to the Pension Review Board for interpretation reads as follows:
TAKE NOTICE that the National Secretary of The War Amputa tions of Canada, pursuant to Subsection 81(3) of the Pension Act, requests:
(1) The Pension Review Board entertain an interpretation of Subsection 26(1) and Subsection 26(2) of the Pension Act, to the effect that the Commission is empowered to provide Automatic Age Increases to former members of the Forces in receipt of pensions for amputation or gunshot wound arising from accident; and
(2) That in stating in its decision of May 15th, 1973, that any extension of the Automatic Age Increase policy would require legislation, the Board erred; and ...
The Board in rendering its decision in effect held that the Commission under section 26 did not have the power to make the present policy instruc tion but, nevertheless, it should be accepted as having legal effect because it has been in opera tion, in fact, since 1938 but cannot be broadened except by an Act of Parliament.
The applicant's position in this Court was that the Pension Review Board erred in law in failing to conclude that the restriction contained in the auto matic age increase provision in the Table of Disabilities limiting its application only to those pensioners whose amputation, wound or injury was due to or arose out of direct action with the enemy was ultra vires in that the restriction contravened the powers granted the Commission by section 26(2) of the Act.
It should first be observed, I believe, that the purpose of the instructions and Table of Disabili ties authorized by subsection 26(2) is "for the guidance of physicians and surgeons making medi cal examinations for pension purposes" in estimat ing the extent of the applicant's disability. Thus, it is of some interest to note the scheme of the Table of Disabilities. Chapter 1 deals with an introduc tion and definitions; chapter 2 gives general instructions to the user; and in the following eight een chapters general instructions are given to physicians for dealing with particular kinds of amputations, injuries and diseases and in each case provides tables of assessments, expressed as per-
centages, for the disability of the particular appli cant. It is in chapter 2 that the present policy is found.
Counsel for the respondents argued, surprising ly, that the whole policy instruction was ultra vires, not merely the limitation of its application to those pensioners whose disabilities arose or were due to direct action with the enemy. His basis for this submission was that nowhere in the Act is it contemplated that entitlement may be found and an award of pension made automatically because of the attainment of a given age but the award must be made, as required by section 26, in accordance with the extent of the disability. In support of this proposition he referred to Part VI of the Act in which the procedure in applying for and being awarded a pension and appealing there from is set out. The sections in that Part when read with subsection 26(1), in his submission, clearly indicate that the Commission must make an original award, and any change therein, on an individual basis "in accordance with the extent of the disability" and not automatically on the basis of age without reference to whether or not the disability of the pensioner upon reaching a given age has actually changed.
I do not believe that the policy statement when read with the guidelines immediately following the statement in chapter 2 of the Table of Disabilities supports the respondents' argument that the award is automatic in the sense suggested. Paragraph 4 of chapter 2 reads as follows:
4. The following guidelines for the application of the Auto matic Age Increase policy continue to apply:
(a) The sole fact that a disability is not likely to go below 50% is not by itself a sufficient requirement for the granting of an Automatic Age Increase.
(b) The Commission must be satisfied that the disability is not likely to increase.
(c) When the assessment for a disability has been main tained at the same level for 10 years or more, it may be considered that the disability is not likely to increase.
(d) A pensioner with a disability or disabilities with a fixed assessment within the range of 48% to 52% and whose pension is therefore payable at the rate of 50%, is eligible for consideration under the above policy. [The emphasis is mine.]
Moreover, counsel conceded that while the files of pensioners in receipt of pensions exceeding 50% automatically come up for review upon their attaining the ages of 55, 57 and 59, the increases in pension are not granted automatically. The pensioner either is medically examined or his docu mented case history is completely reviewed at that time and if the Commission is satisfied that the guidelines in section 4 of chapter 2 of the Table of Disabilities, as well as the criteria elsewhere in the Table, have been met, it will increase his pension award by 10%. The Court was informed that the award of a pension has always been made by expressing the degree of disability as a percentage. Similarly disabled pensioners should, under this system, receive, as nearly as possible, similar pen sions. Such percentages, of necessity, are arbitrari ly fixed by the Commission to give consistency in the administration of the Act. The use of an additional arbitrary percentage applicable to a disability which the Commission determines, on the advice of its medical advisers, has been wors ened by advancing years complies, in my opinion, with the only manner in which, logically, the Act can be administered and in fact has, from its inception, been administered.
To put it another way, the Table of Disabilities provides an instruction to the Commission's medi cal advisers to assist them in assessing the extent of a pensioner's disability both in respect of his original application for pension and subsequently in assessing the extent of additional disability on attaining specific ages. The final responsibility for making the award is the Commission's and it may or may not accept the physician's finding. There fore, in my view, subsections 26(1) and (2) empower the Commission to adopt a policy of the kind herein under review and the Board was in error, in my view, in expressing the opinion that it ought to have been authorized by Parliament and that any extension thereof must be so authorized.
However, I do not believe that a limitation in the application of such a policy to those whose disabilities are due to or arose out of direct action with the enemy is authorized by those subsections or by any other provisions in the Act. As will have been observed, paragraphs 12(1)(a) and (b) pro-
vide for the award of pensions for the persons referred to for death, injury or disease attributable to, or incurred during military service. Paragraphs (c) and (g) of that subsection apparently apply to those who served "in a theatre of actual war" and that phrase is defined in subsection 2(1) of the Act as follows:
"service in a theatre of actual war" means
(a) any service as a member of the army or air force of Canada in the period commencing August 14, 1914 and ending November 11, 1918 in the zone of the allied armies on the continents of Europe, Asia or Africa, or in any other place at which the member has sustained injury or contract ed disease directly by a hostile act of the enemy;
(b) any service as a member of the naval forces of Canada in the period described in paragraph (a) on the high seas or wherever contact has been made with hostile forces of the enemy, or in any other place at which the member has sustained injury or contracted disease directly by a hostile act of the enemy; and
(c) any service as a member of the forces in the period commencing September 1, 1939 and ending
(i) May 9, 1945, where the service was in any place outside Canada, and
(ii) August 15, 1945, where the service was in the Pacific Ocean or Asia,
or in any place in Canada at which the member has sustained injury or contracted disease directly by a hostile act of the enemy;
As can be seen, nowhere in that definition nor, for that matter, elsewhere in the Act is the phrase "due to, or arising out of direct action with the enemy" used, nor is any authority granted to the Commission, in determining entitlement to pension or the amount of an award, to distinguish between those persons whose disabilities were sustained as a result of direct enemy action and those sustained as a result of accident. The imposition of such a limitation is, therefore, beyond the powers of the Commission. However, since, as has already been found, it does have power under the Act to make a policy instruction without such a limitation, the interpretation of the Board was in error and should be set aside. The Board should be directed to revise its interpretation of subsection 26(2) as authorizing the Commission to make the rule in question one of general application to those per sons in receipt of pensions for disabilities carrying a fixed assessment of 50% or more in respect of amputation, wound or injury, provided its applica tion will be only for the purpose of instructing
those to whom it is directed as to how the extent of disability shall be estimated.
For the above reasons, I agree with the Order proposed by the Chief Justice.
* * *
PRATTE J.: I agree.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.