Judgments

Decision Information

Decision Content

T-4507-77
Marc Beauregard, Puisne Judge of the Superior Court for the District of Montreal in the Province of Quebec (Plaintiff)
v.
The Queen (Defendant)
Trial Division, Addy J. Ottawa, June 16 and
November 25, 1981.
Jurisdiction = Subsequent to plaintiff's appointment as a Judge of the Superior Court of Quebec, the Judges Act was amended so that previously non-contributory retirement ben efits were rendered contributory — Whether s. 29.1 of the Judges Act is ultra vires — Whether the words "before the 17th day of February, 1975" in s. 29.1(1) are inoperative in so far as they purport to affect the plaintiff because they offend against par. 1(b) of the Canadian Bill of Rights — Section 29.1(2) is ultra vires — Plaintiff cannot succeed under the Canadian Bill of Rights — Judges Act, R.S.C. 1970, c. J-1, as amended, ss. 9, 20, 23, 25, 29.1 — The British North America Act, 1867, 30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5], ss. 99, 100 — Canadian Bill of Rights, S.C. 1960, c. 44 [R.S.C. 1970, Appendix III], s. 1(b) — Interpretation Act, R.S.C. 1970, c. I-23, s. 28.
The plaintiff accepted an appointment as Puisne Judge of the Superior Court of the Province of Quebec on July 24, 1975. Approximately five months later, the Statute Law (Superannu- ation) Amendment Act, 1975 was enacted. It added section 29.1 to the Judges Act which rendered contributory the annui ties for judges' widows and children, as well as the retirement annuities and supplementary benefits of the judges themselves. These benefits were previously non-contributory. The plaintiff thus suffered a seven per cent reduction of the salary to which he was entitled as of the date of his appointment and for five months following the appointment. The first question is wheth er Parliament could diminish, reduce or impair the salary and other benefits of the plaintiff which became fixed as of the date of his appointment. The second question is whether the words "before the 17th day of February, 1975" are inoperative in so far as they purport to affect the plaintiff because they offend against paragraph 1(b) of the Canadian Bill of Rights. The plaintiff argues that the enactment is discriminatory because it denies the plaintiff equality before the law. The retroactivity of the enactment is not universally applicable and the enactment obliges a minority of judges to contribute for their pensions at a rate of seven per cent while the majority contributes at the rate of one and a half per cent.
Held, the plaintiff is entitled to a declaration that subsection (2) of section 29.1 of the Judges Act is in so far as the plaintiff is concerned ultra vires the Parliament of Canada. Unless superior court judges enjoy a special status by virtue of the principle of separation of powers between the judiciary and the
executive and legislative branches of government, or by virtue of some similar legal constitutional impediment to parliamen tary supremacy, Parliament possesses the unlimited power to lower effectually and legally all salaries and other emoluments granted to judges as for any other servant of the Crown. Section 99 of The British North America Act, 1867 provided that judges "shall be removable by the Governor General on Address of the Senate and House of Commons." Section 100 provides that salaries "shall be fixed and provided by the Parliament of Canada." The 1960 amendment of the B.N.A. Act provides for the first time for obligatory retirement at age 75. The federal government before obtaining this amendment to the B.N.A. Act obtained the consent of all of the Provinces because of their jurisdiction over the administration of justice. It was not until December 20, 1975 that any superior court judge was required to contribute toward the annuities which were payable for life. In England, as of the date of Confedera tion, the security of judicial salaries was constitutionally guar anteed as a matter of law since The Act of Séttlement (1700). On the passing of the B.N.A. Act the same status was acquired by justices of the supreme courts of the provinces as was enjoyed by English judges at the time. With that status of the judiciary came the same rights, powers and privileges, includ ing by express statute the right to have their salaries "fixed and established" by Parliament, which includes the right to receive these salaries for the duration of their commissions as justices. Under the Constitution, the appointment and payment of pro vincial superior court justices and the criminal law which they applied fell under federal jurisdiction, while the administration of justice, the constitution of the courts and the substantive law which those justices administered in matters of property and civil rights fell under provincial jurisdiction. It thus seems clear that there exists a legal constitutional requirement derived from the federal nature of our Constitution to the effect that the rights of federally appointed judiciary, as they existed at the time of Confederation, cannot be abrogated, curtailed or changed without an amendment to the Constitution. There is an absolute requirement in a free society of a completely independent judiciary each member of which, in the perform ance of his judicial functions is answerable to no one but the law, his own conscience, the courts and se male gesserit, to Parliament and the Throne by means of an impeachment process on joint address to the latter by both Houses. Parlia ment, without at least the consent of the judge affected, is at law constitutionally prevented from reducing, by means of any legislation specifically directed to reductions of or deductions from judicial salaries, the compensation to which that judge was entitled at the time of his appointment. This conclusion is based not only on the manner in which jurisdiction is shared between the provinces and Canada, but because it arises out of an intrinsic and fundamental principle of constitutional law which was inherited with the British parliamentary system. The plaintiff cannot succeed under paragraph 1(b) of the Canadian Bill of Rights because the term "equality before the law" does not refer and was never intended to refer to a question of equal pay for equal work. "Equality before the law" in the Canadian Bill of Rights has been interpreted as meaning that there are no exemptions from the ordinary law of the land for any privileged class. There is no legal foundation to the plaintiff's attack on the legislation on the grounds that, even apart from the Canadian Bill of Rights, it should be struck out because it is discriminatory. The numerous Canadian statutes affecting
judges' salaries establish various categories of compensation for judges of equal rank from time to time, without the slightest objection being raised that the legislation was discriminatory.
Curr v. The Queen [1972] S.C.R. 889, referred to. Attor ney General of Canada v. Lavell [1974] S.C.R. 1349, referred to. R. v. Burnshine [1975] 1 S.C.R. 693, referred to. MacKay v. The Queen [1980] 2 S.C.R. 370, referred to. Prata v. Minister of Manpower and Immigration [1976] 1 S.C.R. 376, referred to. Toronto Corporation v. York Corporation [1938] A.C. (P.C.) 415, referred to.
ACTION. COUNSEL:
David Scott, Q.C. for plaintiff.
Paul 011ivier, Q.C. and D. M. Low for
defendant.
SOLICITORS:
Scott & Aylen, Ottawa, for plaintiff.
Deputy Attorney General of Canada for
defendant.
The following are the reasons for judgment rendered in English by
ADDY J.: The facts in this case are undisputed: no witnesses were called and the case was tried on the basis of admissions in the pleadings, an agreed statement of facts and certain exhibits which were filed on consent.
The plaintiff, on the 24th of July, 1975, accept ed an appointment as Puisne Judge of the Superior Court of the Province of Quebec. As of the date of his appointment, the Judges Act' provided for all puisne judges of the Superior Court of that Prov ince the following salaries, remuneration and benefits:
' R.S.C. 1970, c. J-1 (as amended by R.S.C. 1970 (2nd Supp.), c. 16); S.C. 1970-71-72, c. 55; S.C. 1973-74, c. 17; S.C. 1974-75-76, c. 48; Supplementary Retirement Benefits Act, R.S.C. 1970 (1st Supp.), c. 43 as amended by c. 30 (2nd Supp.) and by S.C. 1973-74, c. 36 cited as Statute Law (Supplemen- tary Retirement Benefits) Amendment Act, 1973, S.C. 1973- 74, c. 36; An Act to revise references to the Court of Queen's Bench of the Province of Quebec, S.C. 1974-75-76, c. 19; Statute Law (Superannuation) Amendment Act, 1975, S.C. 1974-75-76, c. 81.
1. Global salaries of $53,000 (Judges Act, sec tions 9 and 20, as amended), basic salary $50,000, additional salary of $3,000 for extra- judicial services which judges may be called upon to perform and for incidental expenses.
2. Non-contributory retirement annuities (Judges Act, section 23 as amended).
3. Non-contributory annuities for the judges'
widows and children (Judges Act, section 25 as amended).
4. Non-contributory supplementary retirement benefits (Supplementary Retirement Benefits Act, as amended).
Approximately five months following the plain tiff's appointment, that is, on the 20th of Decem- ber, 1975, the Statute Law (Superannuation)
Amendment Act, 1975 2 was enacted. Section 100 of that Act amended the Judges Act by adding thereto section 29.1. This enactment rendered con tributory not only the annuities for judges' widows and children but also the retirement annuities and supplementary benefits of the judges themselves, in the case of judges appointed subsequently to the 16th of February, 1975. It, accordingly, impaired to that extent the remuneration and benefits of the plaintiff.
The relevant portions of section 100 above- referred to read as follows:
100. The said Act is further amended by adding thereto, immediately after section 29 thereof, the following sections:
29.1 (1) Every judge appointed before the 17th day of February, 1975 to hold office as a judge of a superior or county court shall, by reservation from his salary under this Act, contribute to the Consolidated Revenue Fund one and one-half per cent of his salary.
(2) Every judge appointed after the 16th day of February, 1975 to hold office as a judge of a superior or county court, to whom subsection (1) does not apply, shall, by reservation from his salary under this Act,
(a) contribute to the Consolidated Revenue Fund an amount equal to six per cent of his salary; and
(b) contribute to the Supplementary Retirement Benefits Account established in the accounts of Canada pursuant to the Supplementary Retirement Benefits Act,
2 S.C. 1974-75-76, c. 81.
(i) prior to 1977, an amount equal to one-half of one per cent of his salary, and
(ii) commencing with the month of January 1977, an amount equal to one per cent of his salary.
Until that enactment and from the time of his appointment, the plaintiff was fully entitled to receive without any deductions the salaries and benefits already outlined at the outset in para graphs numbered 1 to 4 above. Its effect was to oblige the plaintiff thenceforth to contribute six per cent of his salary toward the cost of his own retirement and the annuities for his widow and children as well as one-half of one per cent prior to the 1st of January, 1977 and thereafter one per cent, for the indexing of retirement annuities under the Supplementary Retirement Benefits Act. He thus suffered a reduction of seven per cent of the salary to which he was entitled as of the date of his appointment and for some five months following that appointment.
It is interesting to note here that, under subsec tion 29.1(1), the amount of one and one-half per cent required to be reserved from the salary of judges appointed previous to the 17th of February, 1975, is to be paid into the Consolidated Revenue Fund without reference to the Supplementary Retirement Benefits Account nor is reference made to the Supplementary Retirement Benefits Act as in the case of the one per cent mentioned in subparagraph (2)(b)(ii) of section 29.1 for judges appointed after that date. One might thus con clude that the contribution of one and a half per cent for judges under subsection 29.1(1) does not pertain to the supplementary retirement benefits to which they are entitled because, as originally enacted and as subsequently amended, the Sup plementary Retirement Benefits Act specifically provides that all such benefits payable to judges out of the Consolidated Revenue Fund are not to be charged to the Supplementary Retirement Ben efits Account 3 .
This one and a half per cent is levied as a contribution toward the cost of the improved annuities for surviving spouses and children and
3 Refer to R.S.C. 1970 (1st Supp.), c. 43, subs. 8(2) as amended by R.S.C. 1970 (2nd Supp.), c. 30, s. 1 and as further amended by S.C. 1973-74, c. 36, s. 4 cited as the Statute Law (Supplementary Retirement Benefits) Amendment Act, 1973.
not for the annuity of the judges themselves. Noth ing, however, appears to turn on this in so far as the determination of the present case is concerned.
The agreed statement of facts establishes that, at the time of his appointment on the 24th of July, 1975, although the Bill, which ultimately led to the enactment proclaimed on the 20th of December, 1975, was actually before Parliament, the plaintiff was completely unaware of its existence and had received no notice of same. Although one is deemed to know the law of the land, there is no such presumption in the case of Bills not yet enacted. No one is bound by their contents. Having regard to the substantive and progressive emasculation of certain Bills in their stormy pas sage through Parliament, such Bills as are finally passed into law frequently bear little resemblance either in substance or in form to the original proposal. It would be grossly unjust to impute to anyone, other than perhaps a Member of Parlia ment, constructive knowledge of the business of Parliament.
Although equitable considerations are irrelevant in determining the issues before me, in the plain tiff's case at least, it is surprising to note that, as he was appointed at the age of 38, he will appar ently have contributed much more than would be required to take care of his own retirement annui ties and supplementary benefits, assuming he con tinues in office and retires at the age of 65. The deductions from his salary for 1976 were $3,445 and for this year they will amount to some $5,175. Over 27 years his contributions would amount to a total well in excess of $125,000 based on the assumption that there would be no increase in salary. Annual contributions of $5,000, if com pounded annually at 15% interest, would create a fund at retirement of some $600,000 in terms of 1981 dollars. If invested at 15% interest this would produce an annual revenue of $90,000, well in excess of his present salary and approximately twice the amount required to pay him a two-thirds pension as presently provided for, without any encroachment upon the capital sum.
This, of course, does not take into account the income protection which he, his wife and children enjoy in the meantime against the possibility of his death or his own entitlement to full pension in the event of early retirement on grounds of ill health. Furthermore, 15% might possibly be considered an inordinately high rate of interest to use as a factor. In any event, in so far as the plaintiff is concerned, the action undoubtedly involves a very consider able sum of money.
Following trial of the action, counsel for the plaintiff applied for an order to amend the prayer for relief of the statement of claim. A consent order was subsequently issued on the 22nd of July, 1981, as a result of which the plaintiff now claims the following:
a) A declaration that the words "before February 17, 1975" of Section 29.1 and that the whole of Section 29.1(2) of the Judges Act, as enacted by Section 100 of 1974-75-76, c. 81 are
i) ultra vires of the Parliament of Canada, or, in the alternative:
ii) ultra vires of the Parliament of Canada insofar as the Plaintiff is concerned;
or, in the alternative,
b) A declaration that the words "before February 17, 1975" of Section 29.1 and the whole Section 29.1(2) of the Judges Act, as enacted by Section 100 of 1974-75-76, c. 81 are inoperative insofar as the Plaintiff is concerned;
Before proceeding with the determination of these issues, it is incumbent upon me to declare my interest in the outcome. Where, as in the case at bar, a judge having a personal interest in the determination of a legal issue is, nevertheless out of necessity, obliged to try it because there is no other disinterested judge available possessing the required jurisdiction, the task becomes doubly onerous. By reason of his personal interest in the outcome, the judge, ex abundanti cautela and out of a genuine concern that justice be rendered with absolute impartiality, is obliged to guard against the danger of unduly leaning toward the view opposed to such interest as well as that of being unconsciously influenced by it. It is a balancing act which calls upon acrobatic feats of judgment and moral navel gazing, which few people possess and even fewer are called upon to exercise. Finally, no matter how conscientiously the task is accom plished, there always remains the very real possi-
bility that it will appear to the ordinary citizen as nothing less than an act of judicial incest.
My appointment dates several years previous to the 17th of February 1975 and, under the legisla tion as it exists at present, I am not obliged to pay the 6% with which judges appointed subsequently thereto are saddled. It might thus appear that I presently possess no direct interest in the determi nation of the specific issues raised in the statement of claim. It became quite obvious at the outset of the hearing, however, that, because the plaintiff raised the issue of Parliament's constitutional power to exact deductions from a judge's salary for a specific purpose peculiar to judges, I do have at least a potential personal interest in the proceed ings arising out of the 1 1 / 2 % which I must contribute.
In 1931 in England, by reason of the economic crisis existing there at the time, which amounted to a national emergency, the National Economy Act, 1931, 21 & 22 Geo. 5, c. 48, was passed. It provided that the salaries of all "persons in His Majesty's service" including those of judges, be reduced by 20%. The judges of England dis patched a confidential memorandum to the Prime Minister at the time giving their view as to the right of Parliament to reduce the salaries of the judiciary. (The memorandum, a most interesting document, became a public document when it was tabled two years later in the House of Lords. I shall be referring to it in extenso later on in these reasons.) That method of pointing out the constitu tional problem was adopted largely because Sir William Holdsworth was, at that time, of the view that no normal judicial determination of the applicability of the statute to the judiciary was possible for, in his opinion, all judges were dis qualified by interest from deciding the issue.
The 1 1 / 2 % which I and all other superior court judges appointed previous to the 17th of February, 1975, must contribute is, as previously stated, apparently for the additional protection afforded to spouses and dependent children in the event of decease of the judge. Parliament, of course, was never at any time constitutionally obliged to pro vide protection for the dependants of judges and it, therefore, has a right to require a contribution
toward any such benefit at the time it is granted. This, at first sight, would appear to allow me to try the issues raised by the plaintiff without any possi bility of personal interest. There would in fact appear to be no problem as to self-interest if I and all other superior court judges in my position were entitled to elect either to accept or refuse this additional supplementary protection and thus either to allow the deduction or refuse to authorize it. However, the contribution is mandatory and the broader question as to the right of Parliament to declare any amount to be deductible from an incumbent judge's salary was raised and argued at trial and I, therefore, from a strictly legal point of view, do have an interest in the ultimate determi nation of the proceedings. From a practical and personal standpoint, however, I wish to state that, although my children are all ineligible because of age, had I been given a choice I would most certainly have elected to pay the 1 1 / 2 % in order to obtain the resulting additional protection for my wife. There is also the fact that judges in my position were for a period of five months entitled to those benefits without deduction and that the 1 1 / 2 % imposes a reduction in compensation.
Since Sir William Holdsworth made the pro nouncement to which I referred earlier, it now seems to be the accepted view that, where an important legal issue arises in which all judges have an interest, it may be determined by a judge on the basis of necessity, the reasoning being that justice in such cases, is presumed to be better served by having the matter decided by one who has a personal interest in the outcome than by allowing the matter to remain unresolved. (As to ex necessitate jurisdiction see Re The Constitu tional Questions Act. Re The Income Tax Act, 1932 4 affirmed sub nom Judges v. Attorney-Gen eral of Saskatchewan 5 . There was also the old decision of Dimes v. The Proprietors of the Grand Junction Cana1 6 .)
Having said this, I must now add that it is quite probable that I really have no legally recognizable interest in the outcome of this case because Jus-
[1936] 4 D.L.R. 134.
5 [1937] 2 D.L.R. 209 (P.C.).
6 (1852) 3 H.L.C. 759; 10 E.R. 301.
tices of the Federal Court of Canada as well as those of the Supreme Court of Canada derive their existence, role and jurisdiction entirely from feder al statute and do not enjoy the same constitutional status as Justices of the Superior Courts of the Provinces, who exercise a general jurisdiction throughout the provincial realms and who are constitutionally the true successors to the original King's Justices of the Central Courts of England.
It is nevertheless important to note that, in order to guarantee and preserve the respect due our system of justice and the resulting observance and efficient enforcement of our laws, legislators should scrupulously avoid at all costs the introduc tion of legislation regarding the judiciary which might even remotely affect its independence by raising even the possibility of a successful judicial challenge. Since The Act of Settlement (1700) legislators both in England and in the Common wealth have, generally speaking, until recently at least, carefully applied this principle. In the last few years, however, some otherwise responsible legislators and members of Government appear to look upon judges as a class of senior civil servants. Those persons are either ignorant or unaware of our roots or of our history which clearly shows that past legislators have carefully sought to guard and treat as sacrosanct the constitutional principle of separation of powers. Any lack of strict adherence to that principle imperils not only the status and role of our judiciary but, more importantly, the very essence of our parliamentary form of govern ment and the preservation of all our fundamental liberties.
Some years ago Canadian legislators appeared to have had a much greater awareness of the constitutional problem: where, for instance, it was decided in 1919 to render judges liable for pay ment pursuant to an Income Tax Act of general application the legislation provided that the gener al exemption for income tax, which previously applied to judges, would cease to apply to any judge who accepts or had accepted in 1919 an increase in salary. Those appointed prior to the
enactment were given an option to accept the increase and pay tax or refuse and remain tax exempt. It seems obvious therefore that even in the case of a general taxing statute great care was taken to preserve the remuneration of sitting judges which they were receiving not only as of the time of their original appointment but as of the time of the enactment of the taxing statute.
Today, however, there seems to exist not only a lack of understanding of the status of the judiciary in our system of government but of its fundamen tal role. Typical examples of this complete and constitutionally dangerous misconception of the judicial role lie in one existing piece of legislation and a proposed one of which I am aware where superior court judges are expected, in the exercise of their judicial functions, to make recommenda tions to a Minister of the Crown who can choose to follow or reject the recommendations.
Citizens can feel secure only when they can look for protection to a completely independent judici ary who are answerable to and subordinate to no one but the law and their own conscience.
As to the effect of subsection 29.1(1), which I have quoted earlier, the plaintiff claims that it is ultra vires of Parliament because the latter is not empowered under The British North America Act, 1867, 30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5] or under the customary law of the Constitution to require contributions for judges' annuities which they enjoyed on the 20th of December, 1975, when the Act complained of was proclaimed. He also argues, alternatively, that Parliament could not diminish, reduce or impair the salaries and other benefits of the plaintiff which became fixed as of the date of his appoint ment. Finally, he argues that the words "before February 17, 1975" are inoperative in so far as they purport to affect him because they offend against paragraph 1(b) of the Canadian Bill of Rights' on the grounds that the effect of the enactment is to oblige a minority of judges to
7 S.C. 1960, c. 44 [R.S.C. 1970, Appendix III].
contribute for their pensions and those of their dependants at a rate of seven per cent, while the majority contributes at a rate of one and a half per cent and also that the retroactivity of the enact ment is not universally applicable to superior court judges and is, therefore, discriminatory by reason of the fact that it denies the plaintiff equality before the law.
Dealing with the above arguments in their reverse order, I shall consider in the first place whether paragraph 1(b) of the Canadian Bill of Rights is of any assistance to the plaintiff. That enactment stipulates as one of the fundamental freedoms "the right of the individual to equality before the law and the protection of the law." In considering whether the plaintiff's claim can be maintained by that section of the Canadian Bill of Rights I am, of course, assuming (but for that purpose only) that Parliament otherwise has full power to vary from time to time as it deems fit, the remuneration of superior court judges as it would have for an employee of the federal Crown.
The plaintiff, in arguing that the words "before the 17th day of February, 1975" in subsection 29.1(1) and "after the 16th day of February, 1975" in subsection 29.1(2) offend the principle of equality before the law, relied on and referred to the following cases: The Queen v. Drybones 8 ; Curr v. The Queen 9 ; Attorney General of Canada v. Lavell 10 ; The Queen v. Burnshine"; Prata v. Min ister of Manpower and Immigration 12 ; Bliss v. The Attorney General of Canada"; and MacKay v. The Queen'''.
All of these cases with the exception of the Bliss case, which dealt with entitlement to unemploy ment insurance benefits and where in fact the Canadian Bill of Rights was held not to apply, dealt with loss or denial of very substantive funda mental rights of some kind or involved criminal or
8 [1970] S.C.R. 282.
9 [1972] S.C.R. 889.
10 [1974] S.C.R. 1349. " [1975] 1 S.C.R. 693.
12 [1976] 1 S.C.R. 376.
13 [1979] 1 S.C.R. 183.
14 [ 1980] 2 S.C.R. 370.
quasi-criminal responsibility and had nothing to do with the mere quantum of remuneration for ser vices rendered.
"Equality before the law" in the Canadian Bill of Rights has, since its enactment, been interpret ed as understood by Dicey, namely, that there are no exemptions from the ordinary law of the land for any privileged class. As Ritchie J. stated in Curr v. The Queen, supra, at page 916:
... I prefer to base this conclusion on my understanding that the meaning to be given to the language employed in the Bill of Rights is the meaning which it bore at the time when the Bill was enacted ....
Again in the Lavell case, supra, the same learned Judge referred to equality before the law in the following terms at pages 1365 and 1366 of the report:
In my view the meaning to be given to the language employed in the Bill of Rights is the meaning which it bore in Canada at the time when the Bill was enacted, and it follows that the phrase "equality before the law" is to be contrued [sic] in light of the law existing in Canada at that time.
In considering the meaning to be attached to "equality before the law" as those words occur in section 1(b) of the Bill, I think it important to point out that in my opinion this phrase is not effective to invoke the egalitarian concept exemplified by the 14th Amendment of the U.S. Constitution as interpreted by the courts of that country. (See Smythe v. The Queen ([1971] S.C.R. 680) per Fauteux C.J. at pp. 683 and 686). I think rather that, having regard to the language employed in the second paragraph of the preamble to the Bill of Rights, the phrase "equality before the law" as used in s. 1 is to be read in its context as a part of "the rule of law" to which overriding authority is accorded by the terms of that paragraph.
In this connection I refer to Stephens Commentaries on the Laws of England, 21st Ed. 1950, where it is said in Vol. III at p. 337:
Now the great constitutional lawyer Dicey writing in 1885 was so deeply impressed by the absence of arbitrary govern ments present and past, that he coined the phrase 'the rule of law' to express the regime under which Englishmen lived; and he tried to give precision to it in the following words which have exercised a profound influence on all subsequent thought and conduct.
'That the "rule of law" which forms a fundamental princi ple of the constitution has three meanings or may be regarded from three different points of view....'
The second meaning proposed by Dicey is the one with which we are here concerned and it was stated in the following terms:
It means again equality before the law or the equal subjec tion of all classes to the ordinary law of the land adminis tered by the ordinary courts; the 'rule of law' in this sense
excludes the idea of any exemption of officials or others from the duty of obedience to the law which governs other citizens or from the jurisdiction of the ordinary courts.
"Equality before the law" in this sense is frequently invoked to demonstrate that the same law applies to the highest official of government as to any other ordinary citizen, and in this regard Professor F. R. Scott, in delivering the Plaunt Memorial Lectures on Civil Liberties and Canadian Federalism in 1959, speaking of the case of Roncarelli v. Duplessis ([1959] S.C.R. 121), had occasion to say:
It is always a triumph for the law to show that it is applied equally to all without fear or favour. This is what we mean when we say that all are equal before the law.
This passage was quoted with approval by Mart- land J. in delivering the judgment of the majority of the Supreme Court of Canada in the Burnshine case, supra (refer pages 704 and 705 of the above- mentioned report). Even section 3 of the Canadian Human Rights Act 15 which has been enacted since then (proclaimed in force on the 14th of July, 1977) and by means of which counsel for the plaintiff sought to draw an analogy with the Canadian Bill of Rights, does not prohibit dis crimination generally on grounds other than "race, national or ethnic origin, colour, religion, age, sex, marital status, conviction for which a pardon has been granted and, in matters related to employ ment, physical handicap ...." It seems obvious that, in the case at bar, there exists no discrimina tion on any of the above-mentioned grounds.
Counsel for the plaintiff emphasized particular ly the following statement of McIntyre J. in the MacKay case, supra, which is found at page 406 of the above-mentioned report:
The question which must be resolved in each case is whether such inequality as may be created by legislation affecting a special class—here the military—is arbitrary, capricious or unnecessary, or whether it is rationally based and acceptable as a necessary variation from the general principle of universal application of law to meet special conditions and to attain a necessary and desirable social objective.
This statement, in my view, does not support the proposition advanced on behalf of the plaintiff. As Martland J. stated in delivering the judgment for the Supreme Court of Canada in the Prata case, supra, at page 382 of the above-cited report of the case:
15 S.C. 1976-77, c. 33.
This Court has held that s. 1(b) of the Canadian Bill of Rights does not require that all federal statutes must apply to all individuals in the same manner. Legislation dealing with a particular class of people is valid if it is enacted for the purpose of achieving a valid federal objective (R. v. Burnshine ((1974), 44 D.L.R. (3d) 584)).
Since I find that the plaintiff cannot succeed under paragraph 1(b) of the Canadian Bill of Rights because the term "equality before the law" as used in that enactment does not refer and was never intended to refer to a question of equal pay for equal work, I shall refrain from dealing with the further answer advanced on behalf of the defendant to the effect that, even if "inequality" is found to exist, it in effect arises in the pursuit of a valid federal objective and that, in addition, the plaintiff has failed to discharge the onus of estab lishing that the requirement of making contribu tions is arbitrary, capricious or unnecessary.
I see no legal foundation to the plaintiff's attack on the legislation on the grounds that, even apart from the Canadian Bill of Rights, it should be struck out because it is discriminatory. Apart from the same reasons why the Canadian Bill of Rights does not apply, the numerous Canadian statutes affecting judges' salaries enacted since 1846 until 1932 quoted by the defendant (refer footnote no. 16 infra) clearly establish various categories of compensation for judges of equal rank from time to time, without the slightest objection being - raised even indirectly on the grounds that the legislation was discriminatory. It is important to note also, however, that in this legislation when ever required to protect the compensation being paid to incumbents, "grandfather" clauses were inserted in the legislation and that, in the one or two cases where that precaution was not taken at the time of the passing of the legislation, an amending statute was subsequently enacted to rec tify the situation 16 . ( V.g.: S.C. 1927, c. 33 which reduced the retirement annuity of certain judges to two-thirds of salary was amended by S.C. 1930, c.
16 (1) An Act for granting a Civil List to Her Majesty, S.C. 1846, 9 Vict., c. 114.
(2) An Act to amend the Act for granting a Civil List to Her Majesty, S.C. 1851, 14 & 15 Vict., c. 173.
(3) An Act to reduce the Salaries attached to certain Judicial Offices, etc., S.C. 1851, 14 & 15 Vict., c. 174.
(Continued on next page)
27 where retirement at full salary of those judges was restored.)
I now turn to the plaintiff's second argument to the effect that Parliament could not diminish, reduce or impair the salaries and other benefits of the plaintiff which became fixed as of the date of his appointment.
Having regard to the absolute supremacy of our Parliament when legislating within the jurisdic tional areas granted to it by our Constitution, unless superior court judges enjoy a special status by virtue of the principle of separation of powers between the judiciary and the executive and legis lative branches of government, or by virtue of some similar legal constitutional impediment to parliamentary supremacy, it seems obvious that Parliament possesses the unlimited power to lower effectually and legally all salaries and other emoluments granted to judges, as for any ordinary servant of the Crown. Any right to impose the deductions complained of would thus be constitu tionally unassailable at the present time subject, however, by reason of the division of jurisdiction
(Continued from previous page)
(4) An Act respecting the Governor, Civil List, and Sal aries of certain Public Officers, C.S.C. 1859, 22 Vict., c. 10.
(5) An Act respecting the Superior Court, C.S.L.C. 1860, c. 78.
(6) An Act to fix and provide for the payment of the salaries of the Judges etc. (of certain provinces), S.C. 1882, 45 Vict., c. 11.
(7) The Supreme and Exchequer Courts Act, R.S.C. 1886, 49 Vict., c. 135.
(8) An Act respecting the Judges of Provincial Courts, R.S.C. 1886, 49 Vict., c. 138.
(9) Judges Act, R.S.C. 1906, c. 138.
(10) An Act to amend the Judges Act, S.C. 1919, 9-10 Geo. V, c. 59.
(11) An Act to amend the Judges Act, S.C. 1920, 10-11 Geo. V, c. 56.
(12) An Act to amend the Judges Act, S.C. 1927, 17 Geo. V, c. 33.
(13) Judges Act, R.S.C. 1927, c. 105.
(14) An Act to amend the Judges Act, S.C. 1930, 20-21 Geo. V, c. 27.
(15) The Judges Act, 1946, S.C. 1946, 10 Geo. VI, c. 56.
(16) An Act to amend the Income War Tax Act, S.C. 1932, 22-23 Geo. V, c. 44.
between the federal and provincial governments, to the latter's rights to have judges appointed and paid by the federal government.
The determination of the issues before me might well turn in effect on whether there truly exists in our parliamentary system a legal separation of powers or whether, notwithstanding the separate and distinct role which the judiciary have tradi tionally been called upon to exercise the Canadian Parliament with the consent of the Governor Gen eral, on behalf of Her Majesty, nevertheless pos sesses at law and as of right an absolute power over the judiciary. Should the answer to the last question be negative and Parliament be unable to legally exercise absolute power over the judiciary, what then are its limits? Put another way, the question might be: To what extent does there truly exist at law a separation of powers between the judicial branch and legislative and executive branches of government? The answers can only be found after considering the historical background of the evolution of the judiciary in England and considering further the effects, if any, which our former status as a colony ultimately leading to our present status as an independent country, with distribution of powers between the provincial and federal jurisdictions, might have had on the status, rights and powers of the judiciary and to what extent Parliament may vary or control them.
To say that England has no formal written constitution is not to say that it is without a constitution except for the specific provisions of Magna Carta, The Act of Settlement (1700) 17 and the Act of 1760 entitled An Act for rendering more effectual the Provisions in [The Act of Set tlement] relating to the Commissions and Salaries of Judges'$ and other such statutes which, in effect, first determined a certain division of powers between the King and Parliament, that is, between the executive and legislative branches of govern ment. The judicial system was introduced and sanctified by The Act of Settlement (1700) and the Act of 1760 which were in essence really constitu tional treaties or imperative constitutional texts
17 12 & 13 Will. 3, c. 2.
18 A.D. 1760, 1 Geo. III., c. 23.
between the King and Parliament. As the very name of the Act indicates it is a settlement of powers between them. At that time, these two powers, to put it mildly, frequently did not agree on what should be done nor, more importantly, on who had the right to do it. These two constitution al statutes provided a very practical means of ensuring that neither King nor Parliament would be capable of attaining their particular political objectives or ambitions by exercising control over the decisions of the judiciary. The King could no longer hold over every judge's head the very real threat of immediate dismissal from an office held at his pleasure, nor could Parliament attain its own ends by an equally peremptory and almost as effective menace of withdrawal of livelihood. The situation created by those Acts constituted the major means of ensuring constitutionally a politi cal balance of power and was a great step in establishing something akin to what our American friends refer to as a system of checks and balances.
The Canadian Bar Review in 1956 19 published in two parts a very well researched and learned article by Professor W. R. Lederman, a respected authority on constitutional matters. This widely read article was referred to at some length by counsel for both parties. I, in turn, intend to quote extensively from it and wish to state at the outset that, notwithstanding certain recent remarks of the Supreme Court of Canada, to which I shall refer later, regarding Professor Lederman's views on whether constitutional law can arise from conven tion or custom, I accept those passages from the Professor's article which I will be quoting. On the question of the unwritten constitution of England and, more specifically, on the particular role of the judiciary in the English constitution Professor Lederman has this to say in his introduction to the above-mentioned article (refer pages 769 and 770):
It has been widely accepted legal doctrine that the English constitution begins and ends with the one principle that Parlia ment is supreme—that there is nothing a particular parliament cannot do by an appropriately worded statute. This is said by
19 "The Independence of the Judiciary" in The Canadian Bar Review, Volume 34, pages 769 to 809 and 1139 to 1179.
many authorities to be the result of the revolutionary settle ment worked out in 1688 and the years immediately following. Yet there are both historical and theoretical reasons to doubt whether the completely unlimited supremacy of Parliament in this sense was established at that time or at any time. Indeed history rather indicates that other principles also assumed very great importance constitutionally at the end of the seventeenth century, and these other principles—then reaffirmed or estab- lished—could operate only as limitations in some degree at least on the supremacy of a particular parliament.
We have the recent testimony of Dr. A. L. Goodhart that the English are not as much without a constitution as they profess to be. He gives four principles which he maintains are equally basic as first or original principles of the English constitution. They are briefly as follows: (1) "That no man is above the law" (among other things, this means that all official persons, the Queen, the judges and members of Parliament included, must look to the law for the definition of their respective positions and powers). (2) "That those who govern Great Britain do so in a representative capacity and are subject to change .... The free election of the members of the House of Commons is a basic principle of English constitutional law." (3) That there shall be freedom of speech, of thought and of assembly. (4) That there shall be an independent judiciary. "The fourth and final principle which is a basic part of the English constitution is the independence of the judiciary. It would be inconceivable that Parliament should to-day regard itself as free to abolish the principle which has been accepted as a corner-stone of freedom ever since the Act of Settlement in 1701. It has been recognised as axiomatic that if the judiciary were placed under the authority of either the legislative or the executive branches of the Government then the administration of the law might no longer have that impartiality which is essential if justice is to prevail." Sir William Holdsworth expressed a very similar view on the status of the judiciary. He said ( ... His Majesty's Judges (1932), 173 Law Times 336, at pp. 336-377):
The judges hold an office to which is annexed the function of guarding the supremacy of the law. It is because they are the holders of an office to which the guardianship of this funda mental constitutional principle is entrusted, that the judiciary forms one of the three great divisions into which the power of the State is divided. The Judiciary has separate and autono mous powers just as truly as the King or Parliament; and, in the exercise of those powers, its members are no more in the position of servants than the King or Parliament in the exercise of their powers .... it is quite beside the mark to say that modern legislation often bestows undivided executive, legislative and judicial powers on the same person or body of persons. The separation of powers in the British Constitution has never been complete. But some of the powers in the constitution were, and still are, so separated that their hold ers have autonomous powers, that is, powers which they can exercise independently, subject only to the law enacted or unenacted. The judges have powers of this nature because, being entrusted with the maintenance of the supremacy of the law, they are and always have been regarded as a separate and independent part of the constitution. It is true that this view of the law was contested by the Stuart kings;
but the result of the Great Rebellion and the Revolution was to affirm it. [The underlining is mine.]
This would be a convenient point at which to refer to the comments of the Supreme Court of Canada on Professor Lederman's article to which I have referred and will be referring again. Before delivering these present reasons I awaited the results of three appeals to that Court from refer ences by the Provinces of Manitoba, Quebec and Newfoundland on the proposed patriation of our Constitution [(1981) 39 N.R. 1] (hereinafter referred to as the "patriation appeals"), as it was obvious from the arguments originally advanced before the provincial appeal courts that the ques tion of whether a constitutional convention could crystallize into a law would be raised. In their historic reasons released on the 28th of September of this year, the majority of the Supreme Court of Canada held that no such possibility existed and commented on Professor Lederman's view to the contrary in the following terms [at pages 25 and 34]:
The attempted assimilation of the growth of a convention to the growth of the common law is misconceived.
A contrary view relied on by the provincial appellants is that expressed by Professor W.R. Lederman in two published articles, one entitled Process of Constitutional Amendment in Canada (1967), 12 McGill, L.J. 371, and the second entitled Constitutional Amendment and Canadian Unity, [1978] Law Soc. U.C. Lectures, 17. As a respected scholar, Professor Lederman's views deserve more than cursory consideration. He himself recognizes that there are contrary views, including those of an equally distinguished scholar, Professor F.R. Scott: see Scott, Essays on the Constitution (1977), pp. 144, 169, 204-205, 245, 370-371, 402. There is also the contrary view of Professor Hogg, already cited.
Professor Lederman relies in part on a line of cases that has already been considered, especially the reasons of Sir Lyman Duff in the Labour Conventions case. The leap from convention to law is explained almost as if there was a common law of constitutional law, but originating in political practice. That is simply not so. What is desirable as a political limitation does not translate into a legal limitation, without expression in imperative constitutional text or statute.
From a first reading of these passages one might be inclined to think that the Court was taking the rather surprising view that there existed no such thing as a common law of the Constitution or a constitutional legal principle, capable of enforce-
ment by the Courts, which is not found in an imperative text or statute.
However, in taking heed of that Court's admoni tion [at page 33] in those very reasons to the effect that "there is no independent force to be found in selective quotations from a portion of the reasons unless regard is had to issues raised and the con text in which the quotations are found," one readi ly concludes that the Court was not referring to the existence of a common law of the Constitution in a general sense, but rather to the infinitely narrower question of whether a convention or arrangement of a political nature and which is not expressed in any imperative text or statute, which had been followed by two governments each supreme in its own areas of jurisdiction, could eventually crystallize into a legal constitutional principle recognizable and enforceable by the Courts. This becomes abundantly clear on reading the reasons of the majority of that same Court (composed of two judges who had dissented from and four who had subscribed to the previously referred to findings) who, when dealing with a further question on the appeals, stated quite categorically that a common law or unwritten law of the Constitution did exist. In their reasons under the heading "The nature of constitutional conventions" we find the following [at pages 189-190]:
Another part of the Constitution of Canada consists of the rules of the common law. These are rules which the courts have developed over the centuries in the discharge of their judicial duties. An important portion of these rules concerns the pre rogative of the Crown. Sections 9 and 15 of the B.N.A. Act provide:
9. The Executive Government and authority of and over Canada is hereby declared to continue and be vested in the Queen.
15. The Commander-in-Chief of the land and Naval Militia, and of all Naval and Military Forces, of and in Canada, is hereby declared to continue and be vested in the Queen.
But the Act does not otherwise say very much with respect to the elements of "Executive Government and authority" and one must look at the common law to find out what they are, apart from authority delegated to the Executive by statute.
The common law provides that the authority of the Crown includes for instance the prerogative of mercy or clemency (Reference as to the effect of the exercise of the royal preroga tive of mercy upon deportation proceedings, [1933] S.C.R. 269.) and the power to incorporate by charter so as to confer a general capacity analogous to that of a natural person (Bonan- za Creek Gold Mining Company Limited v. Rex, [1916] 1 A.C.
566.). The royal prerogative puts the Crown in a preferred position as a creditor (Liquidators of the Maritime Bank of Canada v. Receiver General of New Brunswick, [1892] A.C. 437.) or with respect to the inheritance of lands for defect of heirs (Attorney General of Ontario v. Mercer (1882-83), 8 App. Cas. 767.) or in relation to the ownership of precious metals (Attorney General of British Columbia v. Attorney General of Canada (1889), 14 A.C. 295.) and bona vacantia (Rex v. Attorney General of British Columbia, [1924] A.C. 213.). It is also under the prerogative and the common law that the Crown appoints and receives ambassadors, declares war, concludes treaties and it is in the name of the Queen that passports are issued.
Those parts of the Constitution of Canada which are com posed of statutory rules and common law rules are generically referred to as the law of the Constitution.
NOTE: One might now add also the right of Parlia ment to proceed by way of resolution in order to obtain an amendment to the B.N.A. Act and also the legal validity of a unilateral application by Canada for amendment of that Act.
Other examples of unwritten laws of our Consti tution were also cited by the majority such as the right of the Governor General or of a lieutenant governor to refuse to assent to a Bill and also the
fact that the government is in office at the pleas ure of the Crown.
The three dissenting judges also agreed fully with the existence of a common law or unwritten law of the Constitution where they stated at page 7 of their dissenting reasons [see pages 262-263]:
The Constitution of Canada, as has been pointed out by the majority, is only in part written, i.e. contained in statutes which have the force of law and which include, in addition to the British North America Act (hereinafter called the B.N.A. Act), the various other enactments which are listed in the reasons of the majority. Another, and indeed highly important, part of the Constitution has taken the form of custom and usage, adopting in large part the practices of the Parliament of the United Kingdom and adapting them to the federal nature of this country. These have evolved with time to form with the statutes referred to above and certain rules of the common law a constitution for Canada. This Constitution depends then on statutes and common law rules which declare the law and have the force of law, and upon customs, usages and conventions developed in political science which, while not having the force of law in the sense that there is a legal enforcement process or sanction available for their breach, form a vital part of the Constitution without which it would be incomplete and unable to serve its purpose.
As has been pointed out by the majority, a fundamental difference between the legal, that is the statutory and common
law rules of the Constitution, and the conventional rules is that, while a breach of the legal rules, whether of statutory or common law nature, has a legal consequence in that it will be restrained by the courts, no such sanction exists for breach or non-observance of the conventional rules.
It thus appears evident that all members of the Supreme Court of Canada are of the view that, legally recognizable and enforceable, constitution al rights, powers and privileges as well as constitu tional principles can and do in fact exist although not enshrined in any statute or text of our Consti tution. However, as will be found later, my ratio decidendi is not founded mainly on any such prin ciple but rather on statutory texts which constitute a settlement between King and Parliament and on the nature of the powers and jurisdiction of Canada and the provinces under the B.N.A. Act.
A brief historical summary of the conditions and methods of appointment of superior court judges is revealing. Except for the Chief Baron and the other Barons of the Exchequer and except for a very short period immediately preceding the advent of the Stuart Kings, judges in England were invariably appointed during the King's pleas ure. It was following the Revolution, i.e., during the period of the Commonwealth (1649-1660) that the then existing Exchequer Court practice of having judges appointed during good behaviour (quamdiu se bene gesserint) was adopted. The former practice of making all appointments sub ject only to the King's pleasure was reintroduced, however, with the advent of Charles II and con tinued during the reign of James II. Most if not all of the former judges were dismissed and many of the new appointees were subsequently summarily dismissed for rendering decisions with which the Sovereign did not agree. William III, in turn, dismissed the judges in office at the time of his ascension and reappointed all judges from among lawyers at the bar as opposed to the common practice of the Stuart Kings of appointing court favourites. All the commissions of William III were life commissions subject only to good behaviour.
It was not, however, until he gave his royal assent to The Act of Settlement (1700) that the
King became legally obliged to appoint judges during good behaviour. Parliament, naturally, was insisting on this to prevent the King from control ling the judiciary and effectively nullifying the powers of Parliament. Section 3, paragraph 7 of The Act of Settlement (at page 782 of Professor Lederman's article) provided as follows:
... "judges commissions be made quamdiu se bene gesserint, and their salaries ascertained and established; but upon the address of both houses of parliament it may be lawful to remove them".
This provision actually took effect only on the ascension of George I in 1714.
As Professor Lederman points out, the judges referred to in The Act of Settlement meant the judges of the Central Courts of Common Law. Until the 19th century, the only chancery judges were the Lord Chancellor and the Master of the Rolls. The latter, as well as the Vice-Chancellors and the other judges in chancery as their positions were created, were also appointed quamdiu se bene gesserint. The Lord Chancellor, however, by reason of his dual role as a member of the execu tive as well as a member of the judiciary, has to this day always held his appointment during the King's pleasure. He remains the only member of the judiciary in England with that type of commission.
The Act of Settlement was truly the foundation of the independence of the judiciary and of the constitutional principle of separation of powers. The King could now appoint the judges, but had no control over them once they were appointed. Parliament, for its part, was obliged to provide salaries and was entitled to remove a judge only by reason of misconduct on an address to the King by both Houses of Parliament; this was the interpre tation put on the words "quamdiu se bene ges- serint." See Harcourt v. Fox 20 . Some authorities in England claim that a judge could and can still be removed from office without recourse to a joint address in both Houses of Parliament, upon con viction by a jury of a criminal offence. There exists some doubt as to this however. There is also the possibility of the office itself being abolished by Parliament. The constitutional validity of any such legislation, however, would probably depend on the
20 (1692-93) 89 E.R. 680, 720 and 750.
practical question as to whether there truly no longer exists any need for that particular judicial office.
Dealing with The Act of Settlement, Professor Lederman had this to say at page 790:
In any event, the seventh paragraph of the third section of the Act of Settlement dealt with payment as well as tenure of judges, providing that their salaries were to be "ascertained and established". It does not appear that financial pressure in the form of the withholding or reduction of salary had hitherto been used as a means of controlling judges, though, as we have seen, inadequate salaries contributed to the judicial scandals of the later thirteenth century. There were times also when the royal treasury was badly in arrears in paying judicial salaries, though not by design to put pressure on the judges. But apparently those who framed the constitutional settlement at the end of the seventeenth century foresaw the possibility of pressure and attempted to foreclose it. The possibility might have been in their minds because Parliament itself had been successfully using the power of the purse against the king for some time. It is worth recalling that the bill William III vetoed in 1692 attempted to "ascertain and establish" judicial salaries by making them a permanent charge against the royal heredi tary revenues.
In the course of the eighteenth century, Parliament did make definite statutory provision for judicial salaries. Moreover the modern position in England seems to be that, unless and until Parliament has provided or in effect has promised a salary, no judicial vacancy exists to which the sovereign may appoint anyone. [The underlining is mine.]
Regarding the Act of 1760, Professor Lederman states at pages 791 and 792:
The preamble is, in part, as follows:
Whereas your Majesty has been graciously pleased to declare from the throne to both houses of parliament, that you look upon the independence and uprightness of judges, as essential to the impartial administration of justice, as one of the best securities to the rights and liberties of your loving subjects, and as most conductive to the honour of your crown; and in consequence thereof, your Majesty has recommended it to the consideration of your parliament, to make further provi sion for continuing judges in the enjoyment of their offices during their good behaviour, notwithstanding the demise of your Majesty, or any of your heirs and successors; and your Majesty has also desired your faithful commons, that you may be enabled to secure the salaries of judges, during the continuance of their commissions; and whereas in return for this paternal goodness, and in the justest sense of your tender concern for the religion, laws, and liberties, of your people, we have taken this important work into our consideration, and have resolved to enable your Majesty to effectuate the wise, just, and generous purposes of your royal heart:
Section one of this act (on the continuance of judicial commis sions in spite of a demise of the sovereign) has already been
quoted. Section two merely reiterated the royal power to remove a judge on a joint address from Parliament requesting removal. Section three is as follows:
And be it enacted by the authority aforesaid, That such
salaries as are settled upon judges for the time being, or any
of them, by act of parliament, and also such salaries as have
been or shall be granted by his Majesty, his heirs, and
successors, to any judge or judges, shall, in all time coming,
be paid and payable to every such judge and judges for the
time being, so long as the patent or commissions of them, or
any of them respectively, shall continue and remain in force. Section four in effect reinforced section three by providing that, to the extent that judges were dependent upon salaries granted by George III, those salaries were to remain a charge upon the duties and revenues supporting the royal civil list of George III's successors after his death. The further story of the mode of paying judges out of public moneys is complex, but the trend was consistent and the result clear. In 1787 the consolidated fund was created by statute and some of the payments due to judges charged against it. The process of statutorily charging all salary moneys payable to the judges on the consolidated fund was substantially complete by about 1799, but not finally complete in every detail until 1875. It has already been men tioned that the result of this development is to prevent any routine or frivolous discussion of the conduct of judges by Parliament in financial debate. (See The Parliamentary Debates (fifth series) Vol. 90 (1933-34) The House of Lords, per Lord Rankeillour at p. 63 and Viscount Sankey L.C. at pp. 77-80.)
Speaking of the significance of the statute of 1760, Lord Herschell for the Privy Council had this to say ([1892] A.C. at p. 393):
Their Lordships think that the Act of 1 Geo. 3, c. 23, would render it difficult to contend that the Crown could after that date appoint additional judges for the payment of salary to whom Parliament had given no sanction. For the salaries of the judges were then, by the authority of Parliament, secured to them during the continuance of their commissions, and after the demise of the Sovereign were charged upon the revenues granted by Parliament for the civil government of the realm. The recital which precedes this legislation shews that, with a view to their independence, it must have been intended that all the judges should be in this position, and it certainly cannot have been the intention of Parliament to enable the Sovereign to increase without its sanction the charges which after the demise of the Sovereign were to be imposed on the revenues of the realm.
Two significant conclusions seem warranted, then, on the Eng- lish position: (i) parliamentary provision for a salary is neces sary for the creation of a judicial vacancy to which the sover eign may appoint, and (ii) once there has been an appointment, the judge is entitled to have his salary continue so long as his commission is in effect, that is, for life during good behaviour. In both the Act of Settlement and the later Act of 1760 for rendering the Act of Settlement more effective, tenure during good behaviour was coupled with what was in effect a prescrip tion that judicial salaries were to be assured for the same period. Sir William Blackstone was in no doubt that this was the intention, purport and effect of the two enactments, and, on the Act of 1760, he is a contemporary authority. In his
Commentaries, published in 1765, he says (Blackstone, ante, footnote 21, Book I, pp. 267-268):
And now, by the noble improvements of that law [the Act of Settlement], in the statute of 1 Geo. III c. 23, enacted at the earnest recommendation of the king himself from the throne, the judges are continued in their offices during their good behaviour, ... and their full salaries are absolutely secured to them during the continuance of their commissions ... . [The underlining is mine.]
In 1799, in order to increase the salaries of judges and mainly to provide for the granting of life annuities in the event of voluntary resignation from office or of their being afflicted with a permanent disability, Parliament enacted a further statute, 39 Geo. III, c. 110. Section 7 of that Act reads as follows:
VII. And be it further enacted, That it shall and may be lawful for his Majesty, his Heirs and Successors, by any Letters Patent, under the Great Seal of Great Britain, to give and grant unto any Person who may or shall have executed the Office of Chief Justice of the Court of King's Bench, and shall have resigned the same, an Annuity or yearly Sum of Money, not exceeding the Sum of three thousand Pounds; and to any Person who may or shall have executed the Office of Master of the Rolls, Chief Justice of the Common Pleas, or Chief Baron of the Exchequer, and who shall respectively have resigned the same, an Annuity or yearly Sum of Money, not exceeding the Sum of two thousand five hundred Pounds; and to any Person who may or shall have executed the Office of Puisne Judge of the Courts of King's Bench or Common Pleas, or of Baron of the Coif of the Court of Exchequer, and who shall have resigned the same, an Annuity or yearly Sum of Money, not exceeding the Sum of two thousand Pounds; the said several last mentioned Annuities to commence from and after the Period when the Person, to whom any such Annuity or yearly Sum of Money shall be granted as aforesaid, shall have resigned his said Office, and to continue from thenceforth for and during the natural Life of the Person to whom the same shall be granted as aforesaid; and every such Annuity or yearly Sum of Money shall be issued and payable out of, and charged and chargeable upon the Consolidated Fund, next in Order of Payment to, and after paying, or reserving sufficient to pay, the said several Annuities herein-before granted, and all such Sum or Sums of Money as have been directed by any former Act or Acts of Parliament to be paid out of the same, but with like Preference to all other Payments as aforesaid; and the same shall from Time to Time be paid and payable quarterly, free and clear of all Taxes and Deductions whatever, on the four usual Days of Payment in the Year before mentioned, in each and every Year, by even and equal Portions, the first Payment thereof to be made on such of the said Days as shall next happen after such Resignation as aforesaid of the Person to whom any such Annuity or yearly Sum of Money shall be granted: Provided always, That no such Annuity or yearly Sum of Money, granted to any Person having executed the Office of Chief Justice, Master of the Rolls, Chief Baron, Justice, or Baron of the Coif, of the said Courts respectively, shall be valid, unless such Chief Justice, Master of the Rolls, Chief
Baron, Justice, or Baron respectively, shall have continued in one or more of the said last mentioned Offices for the Period of fifteen Years, or shall be afflicted with some permanent Infirm ity, disabling him from the due Execution of his Office, which shall be distinctly recited in the said Grant.
A judge could therefore still continue in office for life, but, if he chose to resign his office he was entitled to a yearly fixed indemnity for life, provid ing he had served for fifteen years.
Until approximately 1843, judges in Canada were appointed during the pleasure of the King. There had been previous but fruitless attempts, representations and recommendations made to change the nature of the tenure. However, West- minster had been reluctant to relinquish its control over the judiciary in the colonies. In view of the poor communications in existence at the time and of the manner in which laws were administered in some of the colonies, such a policy was under standable. Up until that time in certain cases colonial judges held their appointments during good conduct in so far as the local legislatures or assemblies were concerned but only during the pleasure of the King in so far as the mother country was concerned. The colonial judges had no constitutional legal tenure or security of salary.
It must be noted here, however, that the judici ary in the Canadas and elsewhere in British North America, unlike the judges of the United Kingdom at the time, were not obliged to confine their activities to judicial functions. Most of them occupied important lucrative key positions in the government of the colonies, such as active mem bership in legislative assemblies and legislative or executive councils as well as other public adminis trative positions.
In 1831, Viscount Goodrich, the Colonial Secre tary, wrote to Aylmer, the Governor in Canada, advising him that the King would be agreeable that a Bill be enacted by the Legislative Council and Assembly of Lower Canada declaring that the commissions of all judges of the Supreme Courts be granted during good behaviour on condition that "an adequate permanent provision should be made for the judges." This was to be also subject to the condition that no judge would, in the future, be named to or vote at either of the Executive or
Legislative Councils of the Province, with the exception of the Chief Justice of Quebec who would remain a member of the Legislative Council in order to assist in framing the laws. The Bill was passed by the Legislature but the Legislative Council did not assent to it. It was not until 1843 that, following a recommendation made by Lord Durham in 1839, the Canadian Legislature adopt ed an Act which provided for the appointment of superior court judges during good behaviour. On this subject Professor Lederman quotes from the historian Edward Kylie at page 1151:
In 1843 an act of the Canadian legislature declared it 'expedi- ent to render the Judges of the Court of King's Bench in that part of this Province which heretofore constituted the Province of Lower Canada, independent of the Crown'. Such judges were hereafter to hold their offices during good behaviour, not during pleasure, and they could be removed only on a joint address of the legislative council and the legislative assembly. In 1849 the same principle was applied to the Court of Queen's Bench and the Superior Court newly constituted in Lower Canada, and to the Courts of Common Pleas and of Chancery in Upper Canada .... Meanwhile the removal of the judges from the executive and legislative bodies was being made complete. No justice in any of the courts established in Lower Canada was allowed to sit or vote in the executive council, or in the legislative council or assembly .... The judges in the ... Upper Canadian courts were likewise restricted to the dis charge of their peculiar duties.
In 1849, 12 Vict. (Province of Canada) c. 63, section VI, which undoubtedly drew its inspiration from the British Act of 1799 to which I have previously referred, granted judges the privilege of retiring if they wished to do so after fifteen years service or if afflicted with some permanent infirmi ty. They were then entitled to life annuities during their retirement equivalent to two-thirds of their annual salaries.
One year previously, in 1848, the judges in Nova Scotia were granted security of tenure which they, thenceforth, enjoyed together with security of income as provided for in the English Acts of Settlement and of 1760. They could thereafter only be removed from office on the grounds of misconduct or of incapacity upon a joint address of the Legislative Council and House of Assembly. They also enjoyed an additional right in that any decision regarding their removal from office would not take effect until approved by the Privy Coun cil. They had, previous to 1848, been prevented from participating any longer or playing any role
in the executive or legislative branches of government.
It is clear therefore that nearly twenty years before Confederation, Canadian judges held their commissions during good behaviour and were assured of a full salary for life or of an annuity should they fall ill or should they, after fifteen years of service, voluntarily wish to retire. This relaxing of authority by the United Kingdom over its remaining colonies in North America was undoubtedly attributable to a large extent to the experience gained from its previous policies, which had led to the American Revolution.
This brings us to The British North America Act, 1867. When considering the constitutional aspect and historical background, it is of some importance to consider the B.N.A. Act as it existed previous to 1960, as opposed to the state of the Constitution following that date. Section 99 of the B.N.A. Act was amended at that time by section 1 of 9 Eliz. II, c. 2 (U.K.) [R.S.C. 1970, Appendix II, No. 36] known as the B.N.A. Act, 1960. Until that time judges were appointed for life and could hold office for life. By that amendment, judges were required to retire upon attaining the age of 75 years. In all other respects, section 99 as it existed since Confederation was never modified. It originally read as follows:
99. The Judges of the Superior Courts shall hold Office during good Behaviour, but shall be removable by the Governor General on Address of the Senate and House of Commons.
It now reads:
99. (1) Subject to subsection (2) of this section, the judges of the superior courts shall hold office during good behaviour, but shall be removable by the Governor General on address of the Senate and House of Commons.
(2) A judge of a superior court, whether appointed before or after the coming into force of this section, shall cease to hold office upon attaining the age of seventy-five years, or upon the coming into force of this section if at that time he has already attained that age.
Section 100 has never been amended. It reads as follows:
100. The Salaries, Allowances, and Pensions of the Judges of the Superior, District, and County Courts (except the Courts of Probate in Nova Scotia and New Brunswick), and of the Admiralty Courts in Cases where the Judges thereof are for the
Time being paid by Salary, shall be fixed and provided by the Parliament of Canada.
I have on occasion, on grounds which I shall deal with later, heard senior superior court judges, who were appointed previous to the 29th of December, 1960, question the constitutional validi ty of the section 99 amendment as it applied to them. However, they contented themselves with grumbling and growling and never to my knowl edge actually challenged the enactment.
As to the importance of these two sections and of section 96, Lord Atkin had this to say in Toronto Corporation v. York Corporation 21 at pages 425 and 426:
The first question touches a matter of first importance to the people of Canada. While legislative power in relation to the constitution, maintenance and organization of Provincial Courts of Civil Jurisdiction, including procedure in civil mat ters, is confided to the Province, the independence of the judges is protected by provisions that the judges of the Superior, District, and County Courts shall be appointed by the Gover- nor-General (s. 96 of the British North America Act, 1867), that the judges of the Superior Courts shall hold office during good behaviour (s. 99), and that the salaries of the judges of the Superior, District, and County Courts shall be fixed and pro vided by the Parliament of Canada (s. 100). These are three principal pillars in the temple of justice, and they are not to be undermined. [The underlining is mine.]
On the same subject, Professor Lederman had this to say (ibid. page 1158):
The judicial provisions of the confederation act of 1867 (30-31 Vict., c. 3) make it clear that the federating provinces and the new nation were to continue to follow the model afforded by the English judicature. Here, as in other respects, there was to be "a Constitution similar in Principle to that of the United Kingdom".
Also at page 1160:
By section 96 appointment of provincial superior-court judges remains a royal prerogative, now to be exercised by the Gover nor General under control of the federal cabinet. Also, by sections 97 and 98 such judges must be lawyers drawn from the bars of their respective provinces. Section 99 is obviously a close reproduction of the famous provisions for tenure during good behaviour and removal by joint parliamentary address of the Act of Settlement. Finally, section 100 requires that the salaries of superior-court judges "shall be fixed and provided by the Parliament of Canada". The Act of Settlement said salaries were to be "ascertained and established", but it seems obvious that "fixed and provided" was intended to convey the same meaning. It is a fair conclusion, then, that provincial superior- court judges are assimilated respecting appointment, tenure,
21 [1938] A.C. (P.C.) 415.
removal and security of salaries to the position of the judges of the historic English superior courts after the Act of Settlement. [The underlining is mine.]
Following Confederation and until the constitu tional amendment in 1960, the Judges Act was amended as follows:
1. An Act to amend "The Supreme and Ex chequer Courts Act," etc., S.C. 1887, 50-51 Vict., c. 16, sections 4 and 6:
At that time the judges of the Supreme Court of Canada and of the Exchequer Court were also appointed during good behaviour: by this Act they could retire after 15 years in office or sooner on account of infirmity.
2. An Act to amend the law respecting the Superannuation of Judges of Provincial Courts, S.C. 1895, 58-59 Vict., c. 39, section 1:
Superannuation granted to judges who have served for fifteen years or more or become afflicted by permanent disability or infirmity may be granted upon resignation life pension of two-thirds of salary.
Note: No specific duty on Executive to decide whether in best interests of justice.
3. An Act to amend the Supreme and Excheq uer Courts Act, the Exchequer Court Act, and the Act respecting the Judges of Provincial Courts, S.C. 1903, 3 Ed. VII, c. 29, section 1:
This amendment provided for another case of possible retirement by judges: judges of the Supreme Court of Canada or of the Exchequer Court or of any superior courts could retire with full salary at 75, after 20 years in office or at 70, after 25 years in office, or, irrespective of their age, after 30 years in office.
4. The Judges Act, R.S.C. 1906, c. 138, section 20:
Increase in retirement annuity rights to full salary if age 75 and occupied post for 20 years or more, or if 70 years of age and occupied position for 25 years or if 65 for 30 years.
5. An Act to amend the Judges Act, S.C. 1919, 9-10 Geo. V, c. 59, section 11:
This amendment provided that no annuity would be paid to a judge retiring after 15 years in office unless the Governor in Council was of the opinion that the retirement was in the public interest. See section 11. It is to be noted that this new provision does not apply to the retire ment after 30 years in office nor to the retire ments after 20 or 25 years in office when the judge is 75 or 70. Section 11 does not apply to County Court judges who are obliged to retire on account of age. The enactment suggests that before 1919 the Governor in Council had no discretion to refuse annuities to a judge who retired after 15 years in office. It might well be that section 11 of chapter 59 was unconstitu tional because it offended section 100 of the B.N.A. Act and the right which judges enjoyed, in Canada since 1849, and in England since 1799. In any event, commencing in 1919 the Governor in Council still had no discretion to refuse retirement annuities to a judge who retires after 20 years in office and who is 75 or after 25 years in office and who is 70 nor to a judge who retires after 30 years in office.
6. An Act to amend the Judges Act, S.C. 1927, 17 Geo. V, c. 33, section 2:
In that year the judges of the Supreme Court of Canada and of the Exchequer Court were forced to retire at the age of 75. Section 2 of this Act provided for annuities to judges who had to retire and obviously no section of the Judges Act allowed discretion to the Governor in Council to grant or not to grant annuities to these judges.
7. The Judges Act, R.S.C. 1927, c. 105, sections 23 and 24:
Sections 23 and 24 of the Act confirmed the prevailing situation at that time regarding retirement annuities:
(i) section 23 dealt with the case of voluntary retirement after 15 years in office, irrespec tive of the age of the judge. This voluntary
retirement was subject to the opinion of the Governor in Council that the retirement was in the public interest: see subsection 3 of section 23. The annuity was equal to 2 / 3 of the judge's salary;
(ii) section 24 provided for the case of retire ment after 30 years in office irrespective of the age and after 25 and 20 years in office if the judge was 70 or 75: no discretion was given to the Governor in Council;
(iii) subsection 2 of section 24 dealt with the case of the judges of the Supreme Court of Canada and of the Exchequer Court who were forced to retire at 75: no discretion was granted to the Governor in Council.
8. An Act to amend the Judges Act, S.C. 1930, 20-21 Geo. V, c. 27, section 1:
This amendment specified that the provisions of chapter 33 of 17 Geo. V enacted in 1927 did not apply retroactively and that judges of the Supreme Court of Canada or of the Exchequer Court appointed before March 31, 1927 and who were forced to retire at 75 were to receive annuities equal to their full salary even if they had not been ten years in office. Obviously the payment of the full salary to these judges was not dependent on the will of the Governor in Council.
9. An Act to amend the Judges Act (Annuities), S.C. 1944, 8 Geo. VI, c. 45, section 1:
Provides for the right of a judge to elect to either retain the personal retirement annuity benefits previously provided for or to accept the new plan of a reduced annuity for the judge coupled with a life annuity for his wife payable to her both before and after his decease.
10. The Judges Act, 1946, S.C. 1946, 10 Geo. VI, c. 56, section 23:
This Act abrogated the right of the superior court judges to be paid their full salary on retiring after 30 years in office irrespective of their age or after 25 or 20 years in office if they were 70 or 75. Still the Act maintains the right of the judge to retire at any age after 15 years in
office provided the Governor in Council was of the opinion that the retirement was in the public interest. See section 28. But section 23 which provided for the retirement of the judges of the Supreme Court of Canada or of the Exchequer Court at the age of 75 and for the payment of annuities to the judges was not made dependent on the opinion of the Governor in Council. The provisions of section 28 did not apply to section 23.
There were one or two other amendments which are not relevant to the present issue.
Therefore, previous to 1960, when the B.N.A. Act was amended, judges were to be paid their full salaries for life. They had, however, since 1849, as the English judges had since 1799, enjoyed the privilege of retiring after fifteen years in office and of receiving a non-contributory annuity for life of two-thirds of their annual salaries, providing the Governor General in Council was of the opinion that the retirement was in the public interest. They also had the right of retiring and of receiving the annuity should they become incapable of perform ing their duties by reason of mental or physical incapacity. As previously stated, I entertain some doubt as to the constitutional validity of this dis cretion presumably granted to the Governor Gen eral in Council mainly on the grounds that the judicial office of provincial superior court judge straddles both jurisdictions and cannot be materi ally altered without a constitutional amendment. In any event, the discretion of the Governor Gen eral only extended to the question of whether the proposed retirement is in the public interest. Once that question has been answered in the affirmative the judge is still, as he always has been, absolutely entitled to receive his annuity for life. In other words, there is no discretion as to whether the annual compensation should be paid once it has been determined that the retirement is in the public interest.
The 1960 amendment of the B.N.A. Act pro vides for the first time for obligatory retirement at age 75 and sections 23 to 25 of the Judges Act were accordingly amended by S.C. 1960, c. 46 which provides for:
(i) Voluntary retirement after 15 years in office irrespective of age if the Governor in
Council is of the opinion that the retirement is in the best interest of justice or of the national interest;
(ii) Retirement at the age of 75 after 10 years in office with no discretion granted to the Governor in Council;
(iii) Voluntary retirement at the age of 70 after 15 years in office with no discretion granted to the Governor in Council;
(iv) Retirement on account of permanent infirmity with no discretion granted to the Governor in Council.
The federal government before obtaining this amendment to the B.N.A. Act took the precaution of obtaining the consent of all of the provinces because of their jurisdiction over the administra tion of justice. It was, according to the Favreau White Paper, felt that this question (of compulsory retirement) was of direct concern to the provinces. A further amendment by S.C. 1970-71-72, c. 55, authorized judges to retire as of right after fifteen years in office if of the age of 65 or over.
It was not until the 20th of December, 1975, that any superior court judge was required to contribute toward the annuities which were pay able for life. Because of the legal constitutional obligation of Parliament to pay a judge for life pursuant to The Act of Settlement and the Act of 1760, but, more importantly, because the powers of the Parliament of Canada, unlike that of the United Kingdom, are subject to the jurisdiction of the provinces over the administration of justice as provided for in the sections of the B.N.A. Act to which I have already referred, there arises a ques tion as to its right to require judges to contribute to their own annuities without a constitutional amendment or the consent of the provinces. This specific issue, however, is not required to be decid ed in order to dispose of the present case.
The defendant claims that the plaintiff was never legally entitled to the annuities provided for in sections 23 and 25 of the Judges Act nor to the supplementary retirement benefits provided for in the Supplementary Retirement Benefits Act because sections 23 and 25 of the Judges Act provided that "the Governor in Council may
grant ...", and that, since "may" is only permis sive, no federally appointed judge has a legal right to the annuities provided for in that Act and in the Supplementary Retirement Benefits Act. The argument is founded, of course, on section 28 of the Interpretation Act 22 which stipulates that "may", in a statutory enactment, is to be con strued as permissive.
The plaintiff's counter-argument was based on the now well-recognized rule that, notwithstanding that the words of a statute might merely be en abling or permissive and, therefore, merely confer a power, there may nevertheless exist concurrently with that power, a legal duty on the person in whom it is vested, to exercise it. (See Julius v. Lord Bishop of Oxford 23 ; R. v. Adamson 24 ; R. v. Cambridge 25 ; R. v. Finnis 26 ; R. v. Boteler 27 ; R. v. Evans 28 ; and Thyssen Mining Construction of Canada Ltd. v. The Queen 29 .) Considerable legal argument was addressed to the Court and an abundance of jurisprudence as well as a large number of legal authors were cited and quoted on the question as to what principle would prevail in the case of each of the various provisions of these sections. Having regard, however, to the disposal which I will be making of this case as a result of a more general argument of the plaintiff and which is particularly applicable to this case, with which I now intend to deal, I do not think it advisable to decide which, if any, of these provisions establishes a firm legal entitlement.
The general argument which is particularly ap plicable to the plaintiff's case is to the effect that, under the Constitution, Parliament could not on the 20th of December, 1975, diminish, reduce or impair the fixed and established salary and other benefits of the plaintiff to which he had become entitled from the time of his appointment on the 24th of July, 1975.
There cannot, in my mind, be any question but that the additional emoluments or benefits such as
22 R.S.C. 1970, c. 1-23.
23 [1874-80] All E.R. (Rep.) 43; (1880) 5 App. Cas. 214, at 225 and 241.
24 [1875] 1 Q.B.D. 201.
25 (1839) 8 Dowl. 89.
26 (1859) 28 L.J. 263; M.C. 201.
27 (1864) 33 L.J. 129; M.C. 101.
28 (1890) 54 J.P. 471.
29 [1975] F.C. 81 at 88.
the annuity rights for the judge himself, the pro tection afforded him against inflation or that afforded his dependants in the event of his decease truly formed part of the remuneration or compen sation to which the plaintiff was entitled from the moment of his appointment, to the same extent as if actual salary had been paid in lieu of those benefits. It is abundantly clear also that he was at that time fully entitled to his salary without any deductions except those applicable to all citizens
pursuant to general legislation such as income tax and old age pension laws.
I have already quoted section 3 of the Act of
1760, which complemented and completed The Act of Settlement but I shall repeat it here for ease of reference:
III. And be it enacted by the Authority aforesaid, That such Salaries as are settled upon Judges for the time being, or any of them, by Act of Parliament, and also such Salaries as have been or shall be granted by his Majesty, his Heirs, and Succes sors, to any Judge or Judges, shall, in all time coming, be paid and payable to every such Judge and Judges for the time being, so long as the Patents or Commissions of them, or any of them respectively, shall continue and remain in force. [Emphasis added.]
By reason of the natural reluctance of judges to engage in litigation whenever their salaries or other rights are affected, there exists a paucity of jurisprudence on the matter. Since The Act of Settlement, many learned authors, constitutional experts and famous statesmen have, however, dealt with that specific subject. An example of the reluctance of the judiciary to bring before the courts issues in which they were interested arose in England at the time of the passing of the National Economy Act in 1931. I referred earlier to this matter and to the fact that the judges dealt with the situation by forwarding a memorandum on the matter to the Prime Minister. The relevant por tions of the text are reproduced in Professor Led- erman's article (ibid. at pages 793 and 794):
The Government ordered reduction of judicial salaries by one fifth, along with a great many others, but the constitutional propriety of this action was widely doubted. Sir William Holds- worth argued that judges were not "in the service of His Majesty" within the meaning of the National Economy Act. Only public officers who could be instructed in the name of the Crown how to perform their functions (he said) could be described as "servants of' or "in the service of' His Majesty. (Holdsworth, The Constitutional Position of Judges (1932), 48 L.Q. Rev. 25.) As we have seen, royal power to instruct the judges in this sense was on its way out by 1328.
Professor E. C. S. Wade took issue with Holdsworth, (E. C. S. Wade, His Majesty's Judges (1932), 173 Law Times at pp. 246 and 267. A reply by Holdsworth is printed in the same volume at page 336) arguing that judges were properly described as "in the service of His Majesty", and that, as a matter of statutory construction, the words in issue were intended to include the judges. Government spokesmen took the same line, and the cuts were put in effect. But the most significant development was that the judges themselves sent a confidential memorandum on the subject to the Prime Minister on December 4th, 1931, which became public when it was read into the record of the House of Lords on July 24th, 1933, by the Lord Chancellor at the request of the Lord Chief Justice and the Master of the Rolls. (Reproduced starting at p. 103 of (1933), 176 Law Times. The quotation is not quite the whole of this memorandum.) It is clear from this unique document that the judges themselves fully agreed with Sir William
Holdsworth: •
The judges of His Majesty's Supreme Court of Judicature think it their duty to submit certain considerations in regard to the recent reductions of the salary payable to judges which seem to have escaped notice.
It is, we think, beyond question that the judges are not in the position occupied by civil servants. They are appointed to hold particular offices of dignity and exceptional importance. They occupy a vital place in the constitution of this country. They stand equally between the Crown and the Executive, and between the Executive and the subject. They have to discharge the gravest and most responsible duties. It has for over two centuries been considered essential that their secu rity and independence should be maintained inviolate.
The Act of Settlement made clear provision for this in the following terms: 'That after the said limitation shall take effect as aforesaid, judges' commissions be made quamdiu se bene gesserint, and their salaries ascertained and established; but upon the Address of both Houses of Parliament, it may be lawful to remove them' . ... Further by sect. 12 of the Act of 2 and 3 Will. 4, c. 116, judges were exempted from taxes.
'It was long ago said that there can be no true liberty in a country where the judges are not entirely independent of the Government; and the soundness of the remark has never been questioned. Art. III of the Constitution of the United States runs as follows: 'The judicial power of the United States shall be vested in one Supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish. The judges, both of the supreme and inferior courts, shall hold their offices during good behaviour, and shall, at stated times, receive for their services, a compensation, which shall not be diminished during their continuance in office'.
In this matter our country has set an example to the world, and we believe that the respect felt by the people for an English judge has been partly due to his unique position, a feeling which will survive with difficulty if his salary can be reduced as if he were an ordinary salaried servant of the Crown.
It was owing to the general acceptance of these views that on the one hand the salaries of High Court judges have never been the subject of a House of Commons vote, but have been charged on the Consolidated Fund, and that on the other hand the judges hold their office as expressed above during good behaviour and are removable only on an Address to the Crown by both Houses of Parliament.
If the salaries of the judges can be reduced almost sub silentio by the methods recently employed, the independence of the Judicature is seriously impaired. It cannot be wise to expose judges of the High Court to the suggestion, however malevolent and ill-founded, that if their decisions are favour able to the Crown in revenue and other cases, their salaries may be raised and if unfavourable may be diminished.
We must express our deep regret that no opportunity was given to the judges of offering a voluntary reduction of salaries for an appropriate period; but we recognize that the Government was in a grave difficulty and that the time for consideration was very short .... [The underlining is mine.]
The legislation was withdrawn in so far as it affected the judges. It is interesting to note here that this opinion and protest addressed to the Prime Minister by the judiciary of the United Kingdom was given at the very depth of the great depression when unemployment had reached unheard of levels, prices had tumbled and the salaries of those who were still fortunate enough to remain employed in either the private or public sectors of society had all been decreased to a very substantial degree. There seemed to be no doubt as to the political desirability of the legislation. The objections raised by the judges were on purely legal constitutional grounds.
The great majority of legal authors and consti tutional experts, both past and present, are of the view that, once appointed, a judge's salary is invi olable for as long as his commission continues.
We find in Blackstone's Commentaries on the Laws of England 3° "Of the Rights of Persons" at pages 267-268:
And, in order to maintain both the dignity and independence of the judges in the superior courts, it is enacted by the statute 13 W. III, c. 2, that their commissions shall be made (not as formerly, durante bene placito, but) quamdiu bene se gesserint, and their salaries ascertained and established; but that it may be lawful to remove them on the address of both houses of parliament. And now, by the noble improvements of that law, in the statute of I Geo. III. c. 23, enacted at the earnest
30 (15th Edition) Book I, Chapter 7.
recommendation of the king himself from the throne, the judges are continued in their offices during their good behavior, notwithstanding any demise of the crown, (which was formerly held immediately to vacate their seats,) and their full salaries are absolutely secured to them during the continuance of their commissions; his majesty having been pleased to declare, that "he looked upon the independence and uprightness of the judges as essential to the impartial administration of justice; as one of the best securities of the rights and liberties of his subjects; and as most conducive to the honor of the crown."
Shimon Shetreet in the publication Judges on Trial, A Study of the Appointment and Accounta bility of the English Judiciary" states at pages 35-36 that it appears that judges' salaries were reduced several times in the 19th century but adds in a footnote that apparently the government of the day obtained the consent of the judges con cerned. Then in commenting on the move during the depression to reduce administratively the judges' salaries in England pursuant to the Na tional Economy Act, 1931, he adds at the same page of that text:
The judges strongly protested against the reduction. In meeting the Prime Minister and in a collective memorandum to the Lord Chancellor, which was subsequently read in the House of Lords, they argued that the independence of the judiciary would be impaired if their salaries were reduced in this manner. The government finally retreated and the reduction of judicial salaries was cancelled.
Final judgement on the reduction of judicial salaries is disputed. Professor Heuston thought that `there can be little doubt that in the controversy of the 1930s the judges had the stronger position in point of law'. This view finds support in the Parliamentary practice of avoiding any reduction of salaries or the alteration of conditions of office of existing judges without obtaining their consent. But the opposite view that neither the security of judicial tenure nor judicial independence was affect ed at all by a universally applied deflationary measure, also has merit.
On the subject of whether the salaries of judges were ever reduced in England, Professor Lederman doubts that the total annual compensation ever was reduced. He states (ibid. page 795):
The changes to which Holdsworth refers in his History all seem to be increases, (see Holdsworth, Vol. I, pp. 252-254 and 262) though it is difficult to be sure what the net effect was when the mode of payment was being slowly changed from charges on special taxes and royal revenues to charges on the consolidated fund, and when judicial income from patronage and fees was being progressively eliminated.
31 (1976) edited by Gordon J. Borrie, University of Birmingham.
The Canadian Government, in order to reduce the judges' salaries by 10% during the depression as was done for all those in the public service by direct legislation, and to avoid the constitutional difficulty involved by reason of the judiciary's special status, caused Parliament to enact the Income War Tax Act 32 which authorized the levy ing of a special 10% applicable only against the judiciary. This fact was advanced by the defendant in an attempt to show that there existed a right of Parliament to reduce the salaries of judges. The legislation was never challenged by the judiciary for the obvious reason that all public employees were suffering a 10% reduction of income and employees in the private sector were suffering to a much greater extent. It seems clear to me that altogether apart from the constitutional position of judges, the legislation, if challenged, would have been declared void and of no effect as a taxing statute as being clearly discriminatory against the judges as a class of individuals with regard to the remainder of the population.
Professor Lederman had this to say regarding that particular piece of legislation (ibid. pages 1163 bottom, 1164 and 1165):
In the matter of salary security, it is interesting that a federal government recently acted on the Blackstonian version of the meaning of security-of-salary provisions like section 100 of the B.N.A. Act, though not in connection with alleged judicial disability. In 1932 the problem of including judges in a general salary-cutting statute for the civil service was before the Canadian House of Commons. As shown in part II of this essay, the same issue was a matter of controversy in England in 1931 and 1932. The Canadian government proposed a ten per cent statutory salary deduction for the civil service, but the judiciary were specifically exempted. Prime Minister Bennett said of this (Debates, House of Commons, Dominion of Canada, Session 1932, Vol. I, p. 562):
The judges are not included in this measure. It has been contended by legal authority, and an article in the last issue of the Law Quarterly Review goes into the matter rather fully, that it would be a breach of the statutory rights of judges to undertake to make a curtailment of their salaries in this way. There are, however, other methods by which the matter may be dealt with, and the government has not finally determined what action it may take in that regard.
32 S.C. 1932, c. 44.
Undoubtedly the article referred to was Sir William Holds- worth's, which has been explained and approved in part II of this essay. When in his turn the Minister of Justice, Mr. Hugh Guthrie, was pressed to explain the exemption of judges, he made it clear that he held the same view of the importance of the judiciary and of the security of their salaries as Holdsworth. But there was much pressure to extend the deduction to judges, and eventually the cabinet gave in. The result was a special Income Tax Act to levy an additional tax of ten per cent for one year on judicial salaries. The Minister of Justice asserted that this action was justified by a Privy Council decision on the taxing power of the federal parliament. He must have been referring to Caron v. The King in 1924, ([1924] A.C. 999) but on examination this case does not support the validity of a discriminatory tax of this character, only of a non-discriminato ry tax. Also, as shown in part II of this essay, the Judicial Committee in 1937 reiterated this principle of non-discrimina tion respecting judges in upholding the validity of applying a general provincial income tax to them. It looks as if the special taxing statute of 1932, as a taxing statute, was ultra vires the federal parliament. A general income tax of ten per cent on all public salaries might have been valid to effect the total object, including the judicial salaries.
Finally, in this regard, while Holdsworth argued for security of judicial salaries in England partly as a matter of statutory construction, the argument is stronger in Canada. The words "fixed and provided" are specially entrenched in the constitu tional sense as part of section 100 of the B.N.A. Act and hence confer a guarantee of salary to superior-court judges that cannot be impaired by an ordinary federal statute. [The under lining is mine.]
The same author more recently stated in The Canadian Judiciary 33 at page 5:
In other words, I am saying that security of tenure and salary for judges in Canada, as a matter of basic constitutional law and tradition, is not limited to the strictly literal reach of sections 99 and 100 of the B.N.A. Act, I remind you of the words of Goodhart and Holdsworth. They make it clear that essential provision for the independence of the judiciary gener ally has long been deeply rooted as an original principle in the basic customary law of the constitution. In Britain herself, the explicit provisions about judicial security are in the ordinary statutes—but these ordinary statutes, including the Act of Settlement itself, manifest the more fundamental unwritten constitutional principle I have described, as Goodhart and Holdsworth insist. The same point can and should be made about the status of Canadian judges.
J. R. Mallory in his text The Structure of Canadian Government 34 after tracing the develop
33 (Edited by Allen M. Linden) Osgoode Hall Law School, York University, Toronto 1976.
34 Macmillan of Canada, Toronto.
ment of the judiciary as a third power in our system of government, in chapter 8 of his book approves of the views of Blackstone and of Profes sor Lederman regarding judges' salaries in the following terms (refer pages 291 and 292):
Part of the security of a judge's tenure has always been related to his right to enjoy his full salary. Professor Lederman notes Blackstone's view that the judges' "full salaries are absolutely secured to them during the continuance of their commissions," and feels that the provision of section 100 of the B.N.A. Act which requires Parliament to fix and provide the salaries means the same as the corresponding English provision, the effect of which is to protect judges against diminution of their salaries during the force of their commissions. This does not mean that judges are not liable for income tax or any other tax which applies equally to all others. However, the govern ment of Canada, when it imposed a 10 per cent cut in civil service salaries in 1932, did not feel that it had the legal right to impose a similar cut on judicial salaries. Instead, it imposed a special income tax with a special impost for one year on judicial salaries. While this was not challenged at the time, it would appear doubtful if such a discriminatory tax was any more justified than the proposed salary cut.
R. MacGregor Dawson in The Government of Canada 35 states at page 396:
The judiciary, in short, must be given a special sphere, clearly separated from that of the legislature and executive. They must, to accomplish this separation, be given privileges which are not vouchsafed to other branches of the government; and they must be protected against political, economic, or other influences which would disturb that detachment and impartial ity which are indispensable prerequisites for the proper performance of their function. It is these unusual factors which create the condition known as the "independence" of the judiciary. [The underlining is mine.]
He adds at page 402 of the same publication:
Salary is another factor determining the independence of the judge. The first condition is that it should be certain and not subject to the changing opinions of Parliament. Judicial salaries in Canada are therefore fixed by statute and do not appear in the annual parliamentary vote, and they are given special security by being made a charge on the Consolidated Revenue Fund. When the salaries of public officials were cut down during the depression those of the judiciary were not reduced, although a special income tax of 10 per cent was levied on judicial salaries, in order to maintain the principle—if not the income—intact. [The underlining is mine.]
Although the South African and the American Constitutions contain express provisions whereby
35 Fifth Edition, University of Toronto Press.
the compensation payable to judges cannot be diminished during their term of office and ours does not, this does not mean that our Constitution is not subject to that provision. On the contrary, those express provisions are but codifications of that well recognized principle which has existed since The Act of Settlement and, if not, then at the very least since the Act of 1760. The security of judges' salaries as a question of fundamental con stitutional law is to be distinguished from mere convention between governments as considered and found by the Judicial Committee of the Privy Council in Madzimbamuto v. Lardner- Burke 36
I do not accept the argument of counsel for the defendant that the salary and benefits of incum bent judges were generally maintained merely as a matter of policy. On the contrary, I find that it was a matter of constitutional law which frequent ly caused some difficulty and embarrassment to legislators and which they, by devious means on one or two occasions such as the enactments re the Income War Tax Act of 1932, attempted to avoid. Finally, the preservation of the salaries of incum bents was not only a principle applied generally but one applied constantly with the exception of one or, at the most, two occasions where, because of the social or economic situation existing at the time and the embarrassment of trying its own case, the judiciary chose not to challenge the legislation before their own courts. It appears in those cases that had they chosen to act, compensation would undoubtedly have been re-established.
A further argument was advanced to the effect that the maintenance of the judges' salaries grant ed as of the date of their appointment depended at the very most on a constitutional convention and not on any legally recognizable or enforceable principle of constitutional law. In the recent patriation appeals to which I have referred, when considering whether a constitutional convention existed regarding the requirement of provincial consent to the amendments to the B.N.A. Act, both the majority and the dissenting minority of the Supreme Court of Canada approved of the
36 [1969] 1 A.C. 645.
definition given by the learned Chief Justice of Manitoba, Freedman C.J., in the Manitoba Refer ence on that question, namely [at page 195]:
Thus there is general agreement that a convention occupies a position somewhere in between a usage or custom on the one hand and a constitutional law on the other. There is general agreement that if one sought to fix that position with greater precision he would place convention nearer to law than to usage or custom. There is also general agreement that 'a convention is a rule which is regarded as obligatory by the officials to whom it applies'. Hogg, `Constitutional Law of Canada' (1977), p. 9. There is, if not general agreement, at least weighty authority, that the sanction for breach of a convention will be political rather than legal.
I cannot consider that, in Canada, either the question of security of tenure or of salaries of judges is merely a "rule which is regarded as obligatory by the officials to whom it applies": it is much more fundamental and essential than that. As previously stated, in England, as of the date of Confederation, the security of judicial salaries was constitutionally guaranteed as a matter of law since The Act of Settlement. (This is not to say that, since it was a unitary state, the Constitution could not have been changed by Parliament with the consent of the King.) On the passing of the B.N.A. Act the same status was acquired by jus tices of the supreme courts of the provinces as was enjoyed by English judges at the time. With that status of the judiciary came the same rights, powers and privileges, including by express statute the right to have their salaries "fixed and estab lished" by Parliament, which includes the right to receive these salaries for the duration of their commissions as justices. Under the Constitution, the appointment and payment of provincial supe rior court justices and the criminal law which they applied fell under federal jurisdiction, while the administration of justice, the constitution of the courts and the substantive law which those justices administered in matters of property and civil rights fell under provincial jurisdiction. It thus seems clear that there exists a legal constitutional requirement derived from the federal nature of our Constitution to the effect that the rights of federal ly appointed judiciary, as they existed at the time of Confederation, cannot be abrogated, curtailed or changed without an amendment to the Consti tution. Failing a constitutional amendment, even the express consent of the Provinces would not suffice because a constitutional power or obliga-
tion cannot be legally changed or abandoned in a federal state by mere consent.
It might also be of some benefit to reiterate that, in the case at bar, we are not concerned merely with a reduction of the compensation of an incum bent judge below the amount which he was receiv ing immediately before the legislation was passed, but, a reduction below the amount to which he was entitled and was in fact receiving from the moment of his appointment. Furthermore, the case at bar does not fall within the ambit of those decisions such as Judges v. Attorney-General of Saskatche- wan, supra, or in the Re The Constitutional Ques tions Act. Re The Income Tax Act, 1932, supra, which establish that the members of the judiciary are not, by reason of their constitutional position, exempt at law from the provisions of general taxing statutes applicable to all citizens of the country.
Although it obviously has no validity from a constitutional law standpoint, it is interesting to note the contents and spirit of the fourth article of the "Declaration of San Juan de Puerto Rico" 37 on the integrity and independence of the judiciary, which was issued as a result of the first judicial conference of the Americas in Puerto Rico in 1965:
Fourth:
The economic autonomy of the Judicial Power, based on resources that permit the fulfillment of its high mission, should be constitutionally recognized. Judges should receive adequate compensation in order to free them from the pressures of economic insecurity. This compensation should not be altered to their detriment.
Although political or social necessity are not factors which are to be taken into account in determining the legal issue before me, I have, in order to underline the importance of that issue, quoted several passages from learned jurists and authors which affirm over the last two hundred years the absolute requirement in a free society of a completely independent judiciary each member of which, in the performance of his judicial func tions, is answerable to no one but the law, his own conscience, the courts and se male gesserit, to
37 Handbook for Judges, edited by Glen R. Winters, The American Judicature Society, 1975.
Parliament and the Throne by means of an impeachment process on joint address to the latter by both Houses. For the importance of that requirement in the context of Canada today, one can find no better reference than the report on the very comprehensive and scholarly study made by the Honourable Jules Deschênes, Chief Justice of the Superior Court of Quebec, on the subject of The Independent Judicial Administration of the Courts. The study was sponsored by the Canadian Judicial Council in cooperation with the Canadian Judges Conference and the Canadian Institute for the Administration of Justice. The report was released by the Judicial Council a few days ago. It contains some 198 recommendations for the better administration of justice in Canada. The Chief Justice founds all of his recommendations on the absolute need for ensuring and preserving a com pletely independent judicial power. On this subject the Chief Justice states at page 12:
Yet the independence of the judicial power from the legisla tive and executive powers constitutes one of the pillars of our political system; on an equal footing with the principle of the primacy of the rule of law, its importance cannot be exaggerat ed. Indeed it has just been reaffirmed last May. (Draft Princi ples on The Independence of the Judiciary, prepared by a Committee of Experts meeting at Siracusa, Sicily, on 25-29 May 1981.)
For reasons previously stated, I conclude that Parliament, without at least the consent of the judge affected, is at law constitutionally prevented from reducing, by means of any legislation specifi cally directed to reductions of or deductions from judicial salaries, the compensation to which that judge was entitled at the time of his appointment and I come to this conclusion not only because of the manner in which jurisdiction is shared between the provinces and Canada but, because it arises out of an intrinsic and fundamental principle of constitutional law which we inherited with the British parliamentary system.
Although such compensation can undoubtedly be reduced de facto, it cannot be done de jure without changing our Constitution and fundamen tally affecting the parliamentary system under which we operate.
I therefore find that the plaintiff is entitled to a declaration that subsection (2) of section 29.1 of the Judges Act as amended by section 100 of the Statute Law (Superannuation) Amendment Act, 1975, supra, is, in so far as the plaintiff is con cerned, ultra vires the Parliament of Canada. He is also entitled to his costs of this action.
Since I have effectively disposed of this case on the basis of the fact that the plaintiff was appoint ed (the 24th of July, 1975) before the impugned legislation was proclaimed (the 20th of December, 1975) but subsequent to the retroactive date when it purported to become effective (the 16th of Feb- ruary, 1975), I will refrain from dealing with the first argument advanced on behalf of the plaintiff to the effect that subsection 29.1(1) is ultra vires because by reason of the B.N.A. Act as well as the customary law of the Constitution, Parliament is not entitled to require contribution for the annui ties of judges which the latter enjoyed on the 20th of December, 1975, when the Act complained of was proclaimed. Regarding the other argument that all the provisions complained of are inopera tive, in so far as the plaintiff is concerned, I fail to see how, if Parliament possesses the jurisdiction and power to reduce the plaintiffs salary, the law could possibly be considered as inoperative in its application to that salary.
Finally, I wish to state that, in rendering this decision, I am not unaware of the fact that, should none among the other justices whose commissions date previous to the 16th of February, 1975, chal lenge the obligation to contribute 11% from their salaries or should the challenge fail at law, then, the more senior judges obviously will be receiving 1 1 / 2 % less than the plaintiff. Having regard to my findings as to discrimination generally and the Canadian Bill of Rights in particular, it would appear that, on the grounds of discrimination they would have no redress. They might, however, find some solace in the Gospel by St. Matthew pertain ing to the workers in the vineyard (Matt. 20, 1-16).
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