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T-5051-79
Attorney General of Canada (Applicant) v.
G. Gail Brent and Public Service Staff Relations Board and P. R. Andrews (Respondents)
Court of Appeal, Grant D.J. —Toronto, October 29 and November 5, 1979.
Prerogative writs — Prohibition — Public Service — Labour relations — Respondent Andrews was involved in single vehicle motor accident with departmental vehicle and assessed $250 as part of the damages, pursuant to statute — With refusal to pay voluntarily, procedures followed resulting in Treasury Board's ordering the amount to be set off from Andrews' salary — Disciplinary procedure not followed — Matter referred to adjudication on final dismissal of grievance — On preliminary objection as to jurisdiction, made on ground that the matter was not disciplinary, Adjudicator found juris diction — Application for prohibition brought to prohibit Adjudicator from hearing and deciding on the merits of the case — Public Service Staff Relations Act, R.S.C. 1970, c. P-35, s. 91(1)(b).
This is a motion for a writ of prohibition prohibiting an Adjudicator, a member of the Public Service Staff Relations Board, from considering a decision in respect of respondent Andrews' grievance. Andrews, a civilian employee of the Department of National Defence, was involved in a single vehicle motor accident with a departmental vehicle, and after two investigations, the Director of Law Claims characterized Andrews' conduct as negligence not of a minor character. As a result, a demand for reimbursement for $250 as part of the damages was served on Andrews. The Director of Law Claims reconfirmed his decision after Andrews was given an opportu nity to show cause in writing why the amount should not be deducted from his salary. When Andrews refused to make voluntary restitution, procedures were instituted resulting in the Treasury Board's directing that the amount be set off from Andrews' salary. The procedures established by the Depart ment of National Defence concerning the discipline of its civilian employees were not utilized against Andrews. Andrews filed a grievance, pursuant to section 90 of the Public Service Staff Relations Act, and after it was denied at the final level, referred it to adjudication on the ground that it related to discipline. Counsel for the employer objected to the Adjudica tor's jurisdiction, arguing that the employer had taken no disciplinary action against Andrews. When the Adjudicator found jurisdiction this application was made to prohibit her from proceeding with the hearing to consider the merits of the case.
Held, the application is allowed. The act of the Crown in seeking to recover from the servant compensation for damages caused by his negligence which is other than of a minor character can not be said to be the imposition of a penalty against him nor can it be said to be disciplinary. The steps taken to collect the $250 were necessitated by the statute and the Order made thereunder, were directed only to the recovery
of what was justly owing by the grievor, and can not be said to be either a penalty directed against him or disciplinary. The fact that the procedure for disciplining a civilian employee was not followed establishes the fact that the Crown treated it simply as a procedure for the recovery of the $250 and was not attempting to impose a penalty. Further, the Adjudicator's finding that the Crown's purpose in taking the action it did was to recover the loss it suffered was the proper and only one that could be made and is inconsistent with the suggestion that the Crown's attempt to recover was disciplinary or that it amount ed to a penalty. The grievance, therefore, is excluded from the ambit of section 91(1)(b). The defect in the Adjudicator's decision is patent and the order requested will issue.
Jacmain v. The Attorney General of Canada [1978] 1 S.C.R. 15, referred to. Attorney General of Canada v. Public Service Staff Relations Board [1977] 1 F.C. 91, considered.
APPLICATION. COUNSEL:
B. Evernden for applicant.
Rosemary Simpson for respondent P. R.
Andrews.
J. E. McCormick for respondent Public Ser
vice Staff Relations Board.
SOLICITORS:
Deputy Attorney General of Canada for applicant.
Rosemary Simpson, Ottawa, for respondent P. R. Andrews.
J. E. McCormick, Ottawa, for respondent Public Service Staff Relations Board.
The following are the reasons for order ren dered in English by
GRANT D.J.: This is a motion by counsel on behalf of Her Majesty the Queen for a writ of prohibition, prohibiting G. Gail Brent, Adjudica tor and Member of the Public Service Staff Rela tions Board from considering and rendering a deci sion thereafter in respect of the respondent Andrews' grievance.
The respondent P. R. Andrews is a civilian employee of the Department of National Defence at Camp Borden engaged as a stationary engineer. On February 23, 1978, he was involved in a motor vehicle accident while operating a motor vehicle
owned by Her Majesty the Queen necessitating repairs thereto at a cost of $1,357.29. An investi gation was conducted by the Base Transportation Officer at such camp and also a later formal investigation was held. As a result thereof the opinion of the Director of Law Claims in the office of the Judge Advocate General was sought pursu ant to section 11 of the National Defence Claims Order, 1970, SOR/70-427. After considering all facts and reports in respect thereof such Director characterized Mr. Andrews' conduct in operation of such vehicle at the time as "Negligence not of a minor character". As a result thereof a demand for reimbursement for $250 as part of the damages was served on Andrews on June 30, 1978. Such demand set out the particulars of the negligence alleged against Andrews. It was a one vehicle collision. Andrews drove the same into a hydro pole.
Andrews was given an opportunity to show cause in writing why such amount claimed should not be deducted from his salary. He replied by letter of July 11, 1978. He therein made no denial of the negligence charged against him but com plained of the fact that he was denied the right to representation during the initial investigation and requested that a formal hearing be convened by the Judge Advocate General to investigate the whole situation surrounding the demand for reim bursement and to insure his right to representa tion. Such submissions were considered by the Director of Law Claims who still considered Andrews negligent in a manner that was other than of a minor character. Andrews refused to make voluntary restitution of such amount. The Deputy Attorney General thereupon, pursuant to section 95(1) of the Financial Administration Act, R.S.C. 1970, c. F-10, determined that Andrews was indebted to Her Majesty within the meaning of such section. Such section reads as follows:
95. (1) Where, in the opinion of the Minister of Justice, any person is indebted to Her Majesty in right of Canada in any specific sum of money, the Treasury Board may authorize the Receiver General to retain by way of deduction or set-off the amount of any such indebtedness out of any sum of money that may be due or payable by Her Majesty in right of Canada to such person.
On the 29th day of March 1979 the Treasury Board passed a minute pursuant to the above subsection and section 16 of the National Defence Claims Order, 1970 directing that the debt due the Crown by Andrews in the sum of $250 be set off against his salary. The procedures established by the Department of National Defence pursuant to section 7(1)(f) of the Financial Administration Act concerning discipline for misconduct engaged in by its civilian employees were not utilized against Andrews.
On the 16th day of September 1978, Andrews filed a grievance pursuant to section 90 of the Public Service Staff Relations Act, R.S.C. 1970, c. P-35. It reads as follows:
I grieve (a) the demand for reimbursement levied against me,
(b) the loss of my 404 driving privileges,
(c) the charge laid against me of being "negligent not of a minor nature"
(d) the denial of Union representation during the proceedings leading to the Demand for Reimbursement,
The corrective action requested was as follows:
1. The Demand for Reimbursement be revoked.
2. My 404 driving Privileges be restored.
3. No further action or claims be levied against me in this matter.
4. Any documentation in this matter be removed from my file and destroyed.
Andrews received representation from the Union of National Defence Employees at all three levels of the grievance procedure and on the 28th day of March 1978, at the final level of the grievance procedure, the Deputy Minister of the Department of National Defence denied the grievance.
On the 25th day of April 1979, Andrews with his bargaining agent's approval, referred his griev ance to adjudication claiming that the grievance related to discipline. G. Gail Brent, Adjudicator and Member of the Public Service Staff Relations Board was appointed to hear and determine the adjudication. All proper notices of the time and place of the hearing set for July 25, 1979 were duly given. Prior thereto counsel for the employer, the Treasury Board, gave notice to all parties that he would be objecting to the jurisdiction of the Adjudicator appointed to hear the matter upon the grounds that the employer had not taken any
disciplinary action against Andrews and by reason thereof the grievance was not adjudicable under section 91 of the Public Service Staff Relations Act which reads as follows:
91. (1) Where an employee has presented a grievance up to and including the final level in the grievance process with respect to
(a) the interpretation or application in respect of him of a provision of a collective agreement or an arbitral award, or
(b) disciplinary action resulting in discharge, suspension or a financial penalty,
and his grievance has not been dealt with to his satisfaction, he may refer the grievance to adjudication.
Such objection was raised at the commencement of the hearing and by agreement of the parties evidence and argument were heard on the prelim inary question as to whether the Adjudicator had jurisdiction to hear the matter and that a decision on such matter should be rendered before any evidence or submissions would be heard concern ing the merits of the case. This practice is approved in Richard v. Public Service Staff Rela tions Board [1978] 2 F.C. 344.
The Adjudicator delivered her decision on August 20, 1979 and thereby determined that she had jurisdiction under section 91(1)(b) to consider the matter of the claim for $250 made against the grievor and she remitted the matter to the Regis trar so that a date could be fixed for the hearing of the merits in the case. Her reasons set out clearly and correctly all factual matters involved. It is to prohibit the Adjudicator from proceeding with such hearing that this motion is brought.
The Adjudicator ruled that she had no jurisdic tion to consider the withdrawal of the grievor's driver's permit and it is my opinion that she was correct in this respect. I understand that such a permit is simply an authority from a senior officer permitting the employee to drive a departmental vehicle in the course of his duties. The grievor was advised by the Deputy Minister through letter dated March 28, 1979, that by virtue of C.F.P. 1585, the Transportation Manual Mobile Support Equipment, section 6.11, paragraph 3, the return of the "404" licence was at management's discre tion and that it was also dependent upon the type of duties an employee was required to perform in his position on a daily basis and that his supervisor
would determine when he required such a licence and would recommend to the Base Transportation Officer that it be returned to him.
Counsel for the grievor acknowledged that the grievor had suffered no financial loss by reason of the temporary suspension of the 404 licence and accordingly the grievor could not rely upon that loss to establish jurisdiction.
In this matter the Adjudicator has authority to adjudicate in respect of the Treasury Board's minute to the effect that the debt due the Crown by the grievor in the amount of $250 be set off against his salary only if the matter involved is disciplinary action resulting in discharge, suspen sion or a financial penalty. (Section 91(1)(b).) Jacmain v. The Attorney General of Canada [1978] 1 S.C.R. 15—de Grandpré J. at page 33.
Under section 90 of the Act the grievor is entitled to present his grievance at each of the levels, up to and including the final level. Beyond that to seek adjudication his grievance must fall within the four corners of section 91(1) thereof. Jacmain v. The Attorney General of Canada (supra) at page 34 and in the Federal Court of Appeal Attorney General of Canada v. Public Service Staff Relations Board [1977] 1 F.C. 91 at 98.
As there was no discharge or suspension in this case the grievor's right to adjudication depends on the phrase "disciplinary action resulting in ... a financial penalty". The Shorter Oxford English Dictionary cites meanings of the word "discipline" as "to bring under control. ... To inflict peniten tial discipline upon; hence, to chastise, thrash, punish" and for the word "penalty": "A punish ment imposed for breach of law, rule, or contract;
f)
The words "financial penalty" in their ordinary meaning relate to financial loss due to punitive action against the payor such as a fine as com pared to an attempt by the employer to recoup
moneys he has lost due to the employee's negligence.
The act of the Crown in seeking to recover from the servant compensation for damages caused by his negligence which is other than of a minor character can not be said to be the imposition of a penalty against him nor can it be said to be disciplinary. Section 15 of the National Defence Claims Order, 1970 provides that where an opin ion is given by the Judge Advocate General's office to the effect that the Crown has a claim against its public servant by reason of his negligence which is not of a minor character that "a demand ... shall be made and enforced on the public servant". Therefore the steps taken to collect the $250 were necessitated by the statute and the Order made thereunder and were directed only to recovery of what was justly owing by the grievor and can not be said to be either a penalty directed against him nor was it disciplinary.
In Jacmain v. The Attorney General of Canada the question was whether or not the rejection of an employee on probation because of his superior's dissatisfaction with his conduct constituted disci pline action subject to adjudication. In the Federal Court of Appeal Heald J., speaking for the Court stated at page 99:
There could only be disciplinary action camouflaged as rejec tion in a case where no valid or bona fide grounds existed for rejection.
In an arbitration proceeding initiated by United Electrical, Radio & Machine Workers, Local 524, re Canadian General Electric Co., Ltd., in 1954, [Labour Arbitration Cases, 1955, p. 1939] Bora Laskin (now Chief Justice of Canada) was chair man of the board. In the award he wrote as follows [at p. 1942]:
It is important to recognize the difference between discipline involving a sanction which does not represent compensation or recoupment for loss suffered by the Company, and compensato ry measures that are designed to offset a loss caused by an employee.
The procedure followed when a civilian employee is disciplined is set out in exhibit 4. The Adjudicator states on page 4 of her determination that there is no dispute that those proceedings
were not followed in this case. This establishes the fact that the Crown treated it simply as a proce dure for recovery of the $250 and was not attempt ing to impose a penalty.
The Adjudicator in her reasons stated at page 11:
The employer's assessment of fault or responsibility for the loss it suffered led it to take action against the grievor for the recovery of the loss it suffered, up to the limits allowed by law. [Emphasis added.]
This is a finding that the purpose of the Crown in taking the action it did was to recover the loss it suffered. On the material filed on this motion such decision appears to be the proper and only one that could be made as to the purpose which prompted the Crown's procedure. Such finding is also entire ly inconsistent with the suggestion that the Crown's attempt to recover was disciplinary or that it amounted to a penalty and so excludes the grievance from the ambit of section 91(1) (b).
Further at pages 11 and 12 of such reasons it is stated:
Accordingly, I find that the claim for $250.00 to be deducted from the salary of the grievor is a "disciplinary action", (because it was taken in response to some alleged "voluntary malfeasance" on the part of the grievor) which resulted in a financial penalty (the assessment of $250.00) within the mean ing of paragraph 91 (1)(b) of the Public Service Staff Rela tions Act.
The error contained in such finding is that it labels the attempts by the Crown to recover as "disciplinary action" simply because the act of the grievor may have amounted to voluntary malfeas ance or negligence. In other words attempts by the Crown to recover a debt owing to it by its servant must be considered to be disciplinary action in all cases where the servant has been at fault. Such statement overlooks the fact that it is the action of the Crown which is to be considered in determin ing as to whether disciplinary action has been taken as opposed to a legitimate proceeding to recover a debt owing. Such reasoning leads to the erroneous proposition that whenever the grievor's
action amounts to negligence causing loss to the Crown any action taken by way of recovery is disciplinary within the meaning of such section.
For these reasons I find that the only reasonable conclusion that could be drawn by the Adjudicator herein is that there was no element of disciplinary action in the proceedings taken by the Crown against the grievor P. R. Andrews and that he suffered no financial penalty thereby. The defect in the decision appealed from is patent and there fore the order requested should issue.
A writ of prohibition should therefore issue pro hibiting G. Gail Brent, Adjudicator and Member of the Public Service Staff Relations Board from further considering and rendering a decision in respect of the grievance filed by the respondent P. R. Andrews herein.
The applicant may have its costs of the motion from the respondent Andrews.
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