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A-385-80
A. M. Smith & Company, Limited (Appellant) (Plaintiff)
v.
The Queen (Respondent) (Defendant)
Court of Appeal, Pratte, Ryan and Le Dain JJ.— Ottawa, October 27, 1980 and February 19, 1981.
Crown — Compensation — Loss of goodwill following establishment of Canadian Saltfish Corporation — Appeal from Trial Division's decision that plaintiff's action for com pensation is time-barred by virtue of s. 2 of The Statute of Limitations of Nova Scotia — Whether the action is an action on a specialty — Appeal dismissed — The Statute of Limita tions, R.S.N.S. 1967, c. 168, s. 2 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 38 — Federal Court Rule 474 Saltfish Act, R.S.C. 1970 (1st Supp.), c. 37, ss. 21, 22 — Limitations of Actions Act, R.S.N.S. 1873, c. 100, ss. 1, 25 Civil Procedure Act, 1833, 3 & 4 Will. 4, c. 42, s. 3.
Appeal from the decision of the Trial Division that the plaintiff's claim is time-barred by virtue of section 2 of The Statute of Limitations of Nova Scotia. The plaintiff brought an action for a declaration that it was entitled to compensation in respect of the goodwill of its business which was taken from it without compensation by operation of the Saltfish Act. The action was not commenced within six years of the time the cause of action arose. The issue is whether the action is an action on a specialty. The plaintiff's first submission is that the action is for compensation based on an implied term of the Saltfish Act and is thus an action on a specialty. It is submitted that it therefore falls within the words "actions upon a bond or other specialty" in paragraph 2(1)(c) of The Statute of Limi tations, so that the applicable limitation period is twenty years after the action arose. The Trial Judge held that there was, apart from statute, a cause of action for compensation based on the taking away and appropriation of the goodwill, a cause of action that was not removed by the Sailfish Act. Accordingly, the plaintiff's right of action was not on the statute, hence not on a specialty, but merely flowed from the statute. The plain tiff's second submission is that even if the action is not on a specialty, it is not caught by any other provision of The Statute of Limitations. The Trial Judge found that the action was for the taking away of property and thus fell within paragraph 2(1)(e).
Held, the appeal is dismissed. Whether the action is on a specialty depends on two questions. The first is whether the action is based on a cause of action created by the statute. The other is whether, even if it is based on a cause of action created by the Act, it is an action on a specialty since the claim is for an unliquidated amount, not for a debt or other liquidated sum.
The cause of action is based on a right to compensation implicit in the statute itself, and not on a distinct cause of action at common law or in equity. The taking away of the goodwill of the appellant was a consequence of the operation of the Salt- fish Act. No wrong was involved either in not granting a licence or in not providing an exemption. Yet the Crown was under a duty to compensate, based on an implied term of the statute. An intention to take away the property of a subject without giving to him a legal right to compensation for the loss of it is not to be imputed to the Legislature unless that intention is expressed in unequivocal terms. With respect to the second question pertinent to the plaintiff's first submission, the appro priate form of action for an unascertained sum, under common law procedure, would have been case. And an action on the case for an unascertained sum was not regarded historically as an action on a specialty, though brought on a claim based on a right created by a statute, because it was "on the case". This action being one which would have been sued in case is not on a specialty, though the claim to compensation is based on a right created by the Saltfish Act. The consequence is that the action does not fall within the twenty-year limitation period provided by paragraph 2(1)(c) of The Statute of Limitations. With respect to the plaintiff's second submission, even if the action was not caught by the words, "actions for the taking away ... of property ..." or "actions for direct injuries to real or personal property", it would fall within the words "and actions for all other causes which would formerly have been brought in the form of action called trespass on the case ...".
Manitoba Fisheries Limited v. The Queen [1979] 1 S.C.R. 101, followed. Central Control Board (Liquor Traffic) v. Cannon Brewery Company Limited [1919] A.C. (H.L.) 744, applied. The Cork and Bandon Railway Company v. Goode (1853) 13 C.B. 826, distinguished. Thomson v. Lord Clanmorris [1900] 1 Ch. 718, referred to. Miller v. The King [1927] Ex.C.R. 52, referred to. Eisener v. Maxwell [1951] 3 D.L.R. 345, referred to.
APPEAL. COUNSEL:
K. E. Eaton, Q.C. for appellant (plaintiff).
E. Mitchell Thomas, Q.C. and H. Gordon for respondent (defendant).
SOLICITORS:
Kitz, Matheson, Green & MacIsaac, Halifax, for appellant (plaintiff).
Deputy Attorney General of Canada for respondent (defendant).
The following are the reasons for judgment rendered in English by
RYAN J.: This is an appeal from a judgment of the Trial Division, dated May 23, 1980, [[1981] 1 F.C. 167] which answered in the affirmative a question of law set down for determination pursu ant to Rule 474 of the Federal Court Rules'.
The action is one brought by the appellant ("the plaintiff') for a declaration that the plaintiff is entitled to compensation in respect of the goodwill of the plaintiff's business which, it is alleged, was taken from the plaintiff without compensation by operation of the Sailfish Act 2 . It was submitted, and I take it not disputed, that this case is indistin guishable in its essentials from Manitoba Fisheries Limited v. The Queen', in which it was held that a corporation deprived of its goodwill by operation of the Freshwater Fish Marketing Act 4 was en titled to compensation. The question is not whether there is a right to compensation, but whether the action for compensation was brought in time. It is clear that the action was not commenced within six years of the time the cause of action arose. The Statute of Limitations of Nova Scotia is appli cable by virtue of section 38 of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10 6 . And the issue is whether, as the plaintiff claimed, the
' Paragraph (1), subparagraph (a) of Rule 474 of the Feder al Court Rules provides:
Rule 474. (1) The Court may, upon application, if it deems it expedient so to do,
(a) determine any question of law that may be relevant to the decision of a matter, .. .
and any such determination shall be final and conclusive for the purposes of the action subject to being varied upon appeal.
2 R.S.C. 1970 (1st Supp.), c. 37.
3 [1979] 1 S.C.R. 101. ° R.S.C. 1970, c. F-13.
5 R.S.N.S. 1967, c. 168.
6 Section 38 of the Federal Court Act provides:
38. (1) Except as expressly provided by any other Act, the laws relating to prescription and the limitation of actions in force in any province between subject and subject apply to any proceedings in the Court in respect of any cause of action arising in such province, and a proceeding in the Court in respect of a cause of action arising otherwise than in a province shall be taken within and not after six years after the cause of action arose.
(2) Except as expressly provided by any other Act, the laws relating to prescription and the limitation of actions referred to in subsection (1) apply to any proceedings brought by or against the Crown.
action is an action on a specialty, so that the twenty-year period applicable, under the Nova Scotia Act, to actions on specialties is the appro priate limitation period. If so, the action is not barred.
The question of law set down for determination was: "Is the claim of the Plaintiff time-barred by virtue of the provisions of Section 2 of The Statute of Limitations R.S.N.S. 1967, Chapter 168?" The judgment under appeal answered "yes".
It may be as well to set out at once the relevant paragraphs of section 2 of The Statute of Limita tions of Nova Scotia.
2 (1) The actions in this Section mentioned shall be com menced within and not after the times respectively in such Section mentioned, that is to say:
(b) actions for penalties, damages or sums of money given to the parties aggrieved by any statute, within two years after the cause of any such action arose;
(c) actions for rent upon an indenture of demise, actions upon a bond or other specialty, actions upon any judgment or recognizance, within twenty years after the cause of any such action arose, or the recovery of such judgment;
(e) all actions grounded upon any lending, or contract, expressed or implied, without specialty, or upon any award where the submission is not by specialty, or for money levied by execution; all actions for direct injuries to real or personal property; actions for the taking away or conversion of prop erty, goods and chattels; actions for libel, malicious prosecu tion and arrest, seduction, criminal conversation; and actions for all other causes which would formerly have been brought in the form of action called trespass on the case, except as herein excepted, within six years after the cause of any such action arose;
Before the Trial Judge, the submission of the plaintiff was that the action is an action for com pensation based on an implied term of the Sailfish Act and is thus an action on a specialty; it there fore, it was submitted, falls within the words "actions upon a bond or other specialty" appearing in paragraph 2(1)(c) of The Statute of Limita tions, so that the applicable limitation period is twenty years after the cause of action arose. The
Trial Judge rejected this submission. He held, as I understand his reasons, that there was, apart from statute, a cause of action for compensation based on the taking away and appropriation of the good will, a cause of action that was not removed by the Saitfish Act. He held that "... the plaintiff's right of action is not on the statute, hence not on a specialty, but merely flows from it as the Supreme Court has found".
The plaintiff had also argued that, even if the action is not on a specialty, it is, nonetheless, not caught by any other provision of The Statute of Limitations. The Trial Judge found, however, that the action was an action for the taking away of property and thus fell within the words "actions for the taking away or conversion of property, goods and chattels" appearing in paragraph 2(1)(e).
Counsel for the appellant repeated before us the submissions that had been made to the Trial Judge.
Whether the action is on a specialty depends, as I see it, on two questions. The first is whether the action is based on a cause of action created by the statute, the Sailfish Act. The other is whether, even if it is based on a cause of action created by the Act, it is an action on a specialty, having in mind that the claim is for an unliquidated amount, not for a debt or other liquidated sum; the respondent submitted that, even if the cause of action is created by the statute, the claim is not on a specialty because it is for an unliquidated amount.
The question of law was set down for determina tion on the basis of an agreement on issues and facts. These were the facts as set out in the agreement:
(1) The Plaintiff is a company incorporated in the province of Nova Scotia with its head office at Halifax in that province.
(2) Until the year 1971 the Plaintiff owned and operated a fish exporting business, in the course of conducting which the Plaintiff bought salt cured fish in Newfoundland, stored, pre pared and processed it in Nova Scotia, from where it was sold to purchasers located in other parts of Canada and to purchas ers located outside of Canada.
(3) On the 25th day of March, 1970, the Salt-fish [sic] Act (hereafter called "the Act") established the Canadian Salt-fish Corporation (hereafter called "the Corporation") and declared that the Corporation is for all purposes of that Act an agent of the Defendant.
(4) Part III of the Act prohibited the Plaintiff from carrying on its business of buying and conveying cured fish from New- foundland and delivering it to Nova Scotia unless it was issued a licence by the Corporation, and no such licence has been issued to the Plaintiff.
(5) The Act empowered the Governor in Council to exempt the Plaintiff from the application of Part III of the Act but the Governor in Council did not so exempt the Plaintiff.
(6) The Act empowered the Minister responsible thereunder, with the approval of the Governor in Council and on behalf of the Government of Canada, to enter into an Agreement with the Government of Nova Scotia providing for the undertaking by the Province of arrangements for the payment to the owner of any plant or equipment used in storing, processing or other wise preparing fish for market, of compensation for any such plant or equipment that would or might be rendered redundant by reason of any operations authorized to be carried out by the Corporation under the said Part III, but the Province of Nova Scotia declined to enter into any such agreement.
(7) By letter dated the 7th day of September, 1971, the Minister of Fisheries advised the Plaintiff that the Government of Canada had approved payment of the sum of $60,000 to the Plaintiff on an ex gratia basis for the loss of its operations resulting from the enactment of the Act, and that amount was subsequently received by the Plaintiff.
(8) By reason of the failure of the Corporation to grant any licence to the Plaintiff and the failure of the Governor in Council to exempt the Plaintiff from the application of Part III of the Act the Plaintiff, by the end of 1971, ceased to carry on its fish exporting business and lost the goodwill of that business.
(9) On October 3, 1978 the Supreme Court of Canada gave judgment in Manitoba Fisheries Limited v. The Queen (1978) 23 N.R. 159, and a copy of the reasons for judgment, delivered by the Honourable Mr. Justice Ritchie for the Court, is attached to this Agreement.
(10) On 21 December, 1978 the Plaintiff commenced this action by filing its Statement of Claim.
(11) On 28 February, 1979 the Deputy Attorney General of Canada, on behalf of the Defendant, filed a Statement of Defence, pleading section 2 of The Statute of Limitations R.S.N.S. 1967, Chapter 168.
The appellant submitted, as indicated above, that the action is based on the Sailfish Act and is,
therefore, an action on a specialty. I have found persuasive the submission that the cause of action is based on a right to compensation implicit in the statute itself, and not on a distinct cause of action at common law or in equity. The taking away of the goodwill of the appellant was a consequence of the operation of the Saltfish Act. The transfer of the goodwill to the Canadian Saltfish Corporation and thus to the Crown was not in itself wrongful. No tort or other legal wrong was involved. More over, the Canadian Saltfish Corporation was under no duty to the appellant to issue a licence to it under section 21 of the Saltfish Act', nor was the Governor in Council under any duty to enact any regulation under section 22 of the Act 8 which would have had the effect of exempting the appel lant from the application of the Act. Accordingly no wrong was involved either in not granting a licence or in not providing an exemption. Yet it is clear from the Manitoba Fisheries case that the Crown was under a duty to compensate. It was not necessary in that case to determine precisely the source of the obligation. It was enough that there was an obligation. Here it is necessary. And I am
' Section 21 of the Sailfish Act provides:
21. (1) Except in accordance with the terms and conditions set forth in any licence that may be issued by the Corpora tion in that behalf, no person, other than the Corporation or an agent of the Corporation, shall
(a) export from Canada any cured fish or the by-products of fish curing;
(b) send, convey or carry from a participating province to another participating province or to any other province, any cured fish or the by-products of fish curing;
(c) in a participating province receive for conveyance or carriage to a destination outside the province, any cured fish or the by-products of fish curing; or
(d) sell or buy, or agree to sell or buy cured fish or the by-products of fish curing situated in a participating prov ince, for delivery in another participating province or any other province, or outside Canada.
(2) The Board may, for the purposes of this section, make by-laws providing for the issue of licences by the Corporation and prescribing the form of and the terms and conditions to be set forth in such licences.
S Section 22 of the Saltfish Act provides:
22. The Governor in Council may, by regulations, exempt from the application of all or any of the provisions of this Part, either conditionally or unconditionally and either in general terms or for a specified period, any area or region in a participating province or any class of cured fish or any by-product of fish curing.
of opinion that the duty to compensate is implicit in the Act itself; in conventional terms, it is based on an implied term of the statute.
I find support for this view in a passage from the speech of Lord Atkinson in Central Control Board (Liquor Traffic) v. Cannon Brewery Company Limited 9 . The Central Control Board (Liquor Traffic) had acquired compulsorily certain li censed premises. In so doing, it acted under the Defence of the Realm (Amendment) (No. 3) Act, 1915 and the Defence of the Realm (Liquor Con trol) Regulations, 1915. It was held that the own er's claim to compensation was not limited to compensation granted to him as a matter of grace, but that he was entitled to claim compensation as of right under the Lands Clauses Consolidation Act, 1845. The passage which I find significant for present purposes appears at page 752:
It was not suggested that the above-mentioned Regulations were not intra vires; nor was it contended that the principle recognized as a canon of construction of statutes by many authorities, such as Attorney-General v. Horner ((1884) 14 Q. B. D. 245, 257), Commissioner of Public Works (Cape Colony) v. Logan ([1903] A. C. 355, 363), Western Counties Ry. Co. v. Windsor and Annapolis Ry. Co. (0882) 7 App. Cas. 178, 188), did not apply to the body of legislation under which the board purported to act. That canon is this: that an intention to take away the property of a subject without giving to him a legal right to compensation for the loss of it is not to be imputed to the Legislature unless that intention is expressed in unequivocal terms. I used the words "legal right to compensation" advised ly, as I think these authorities establish that, in the absence of unequivocal language confining the compensation payable to the subject to a sum given ex gratia, it cannot be so confined. I do not think that the Attorney-General really contested this, nor, as I understood him, did he contest the principle that where the statute authorizing the taking away of, or causing damage to, the subject's property, either does not provide a special tribunal to assess the amount of the compensation the subject is to receive, or only provides a tribunal which has become non-existent, the subject is entitled to have that amount assessed in the High Court of Justice: Bentley v. Manchester, Sheffield, and Lincolnshire Ry. Co. ([1891] 3 Ch. 222).
I find particularly significant the words "... without giving to him a legal right to compensa tion for it ...". It is also, of course, significant that the subject has the right to have the amount
9 [1919] A.C. (H:L.) 744.
assessed in the courts if no special tribunal is provided by the statute for that purpose.
The present action is, in my view, an action for statutory compensation").
The next question is, however, whether the action, based on a right to compensation provided by the statute, is an action on a specialty within the meaning of that term as it is used in paragraph 2(1)(c) of The Statute of Limitations of Nova Scotia, having in mind that the claim, though expressed in the statement of claim as a claim for $500,000, is nonetheless a claim for an unascer- tained amount, the value of the goodwill appro priated by the Crown.
The twenty-year limitation period for actions on bonds and other specialties provided by paragraph 2(1)(c) goes back at least to section 25 of the Limitations of Actions Act appearing as chapter 100 of the Revised Statutes of Nova Scotia, 1873 11 . But its original inspiration appears to have been section 3 of the English Civil Procedure Act, 1833 12 , which provided a twenty-year limitation period for ".. . all Actions of Covenant or Debt upon any Bond or other Specialty ...".
1° See Glanville Williams and B. A. Hepple, Foundations of the Law of Tort (1976), at pages 20-22.
11 Section 25 provided:
25. All actions for rent upon an indenture of demise, all actions upon any bond or other specialty, and all actions of scire facias upon any recognizance, or actions for an escape, or for money levied on any execution, and all actions for penalties, damages, or sums of money given to the party grieved, by any statute now or hereafter to be in force, shall be commenced and sued within the time and limitation hereinafter expressed, and not after: that is to say, the said actions for rent upon an indenture of demise, or upon any bond or other specialty, actions of scire facias upon recogni zance before the seventh day of May, A. D. 1876, or within twenty years after the cause of such actions or suits, but not after; the said actions by the party grieved, within two years after the cause of such actions or suits, but not after; and the said other actions within six years after the cause of such actions or suits, but not after: provided that nothing herein contained shall extend to any action given by any statute where the time for bringing such action is or shall be by any statute specially limited.
12 3 & 4 Will. 4, c. 42.
It was held in England that this provision of the Civil Procedure Act, 1833 applied to an action of debt on a statute. The Cork and Bandon Railway Company v. Goode" was an action in debt brought by a railway company against one of its members for calls on his shares. The action was brought under the Companies Clauses Consolida tion Act" and the special Act incorporating the company. The defendant pleaded that the action was founded "upon contracts without specialty" and was thus caught by the limitation period of six years provided by the Limitation Act, 1623 15 . The plaintiff demurred to the plea and succeeded. It may be as well to set out in full the reasons for judgment of Mr. Justice Maule 16 :
I also am of opinion that this is a bad plea. It states that the action is upon contracts without specialty, and that the alleged causes of action did not, nor did any or either of them, accrue within six years before this suit. When we look at the declara tion, we find that the action is brought upon two statutes,—the companies clauses consolidation act, 8 & 9 Vict. c. 16, and the Cork and Bandon Railway Act, 8 & 9 Vict. c. cxxii. It is manifest, upon reading the declaration, that it is a declaration in debt upon these two statutes. Now, a declaration in debt upon a statute, is a declaration upon a specialty; and it is not the less so because the facts which bring the defendant within the liability, are facts dehors the statute: that must constantly arise in actions for liabilities arising out of statutes. That appearing to be so, the allegation in the plea, that the action is upon contracts without specialty, is a false allegation of a matter of law. There may, undoubtedly, be cases where a statute enables an action to be brought, which nevertheless is not an action on the act of parliament. But the question is, whether that state of things exists here. I think it manifestly appears that this is an action of debt, and upon the statute, and therefore an action upon a specialty. Whether assumpsit or case would lie, leaves altogether untouched the question whether this plea is an answer to this action. The case seems to me to be abundantly clear. The proper limitation is that prescribed by the 3 & 4 W. 4, c. 42, s. 3, viz. twenty years: an action upon statute is an action upon a specialty, and is clearly comprehend ed within the words of that section,—"debt upon any bond or other specialty," though a bond is the plainest and simplest kind of specialty, and a statute the highest. Upon the whole, I concur with the Lord Chief Justice in thinking that the plaintiff is entitled to the judgment of the court upon this demurrer.
13 (1853) 13 C.B. 826; 138 E.R. 1427.
14 8 & 9 Vict., c. 16 (Imp.).
15 21 Jac. I, c. 16.
16 (1853) 13 C.B. 826, at pp. 835 and 836; 138 E.R. 1427, at p. 1431.
It is, in my view, clear that the present action would not be within section 3 of the English Civil Procedure Act, 1833. It is, unlike the action in Cork and Bandon Railway, an action for an unas- certained sum, and thus, under common law proce dure, could not have been brought by way of debt; the appropriate form of action would have been case. In Chitty's Practice of the Law (3d ed., 1837), this passage appears at pages 24 and 25a:
It will be observed that the antient common law rights and remedies were comparatively few and simple and readily divid ed and enumerated; but, in the progress of time, the occasions of society have led, especially of late, to an accumulation of new statutory regulations, which have either better defined, or modified or regulated, what were previously partially recog nised by the common law, or have actually created new rights or imposed new duties and penalties for their non-observance; we speak not merely of public regulations of police, but refer also to those of a private nature.
It follows that, from the introduction of these new rights and duties by numerous statutes, a great variety of new injuries and offences must arise from the infraction or non-observance of such new rights and duties; these require new remedies, to prevent, or remove, or compensate, or punish.
In some cases, where new rights or duties have been created, the statutes introducing them have been silent with regard to the remedies for their infraction. When this is the case, the law impliedly gives an appropriate remedy, for it is a maxim, that whenever a statute gives a right, it means a legal right, and not to put the party to the extraordinary remedy of a Court of Equity. Thus, if a new private right be created or recognised, the law implies a remedy, as by action on the case, where the damages for the infraction of the right are uncertain; as for removing goods under an execution without paying a year's rent; and by action of debt where the sum is in its nature certain or readily ascertained.
As I have indicated, section 25 of the Nova Scotia Limitations of Actions Act of 1873 appears to have been inspired by section 3 of the English Civil Procedure Act, 1833. Section 25 of the Nova Scotia Act established a limitation period of twenty years for "... all actions upon any bond or other specialty ...". There is an obvious difference
between this wording and the wording of the corre sponding provision in section 3 of the English Civil Procedure Act, 1833: the words "of Covenant or Debt" have been dropped. This raises the question whether the 1873 Nova Scotia provision broad ened the scope of the provision in the 1833 English Act so as to include causes of action provided by statute that, in the days of common law procedure, would have been brought in case, that is to say actions for unliquidated amounts.
It may be helpful to consider the reason for enacting section 3 of the Civil Procedure Act, 1833, and thus (possibly) for section 25 of the Nova Scotia Limitations of Actions Act of 1873.
In Thomson v. Lord Clanmorris 17 , the English Court of Appeal was called upon to construe that part of section 3 of the Civil Procedure Act, 1833, which established a two-year limitation period in respect of "... all Actions for Penalties, Damages, or Sums of Money given to the Party grieved, by any Statute now or hereafter to be in force ...", the provision which finds its counterpart in para graph 2(1)(b) of the Nova Scotia Statute of Limi tations, 1967. Lord Lindley M.R. said at page 725:
The point raised on this appeal is a new one to us all, and no doubt there is some difficulty about it.
In construing s. 3 of the Act of 1833, as indeed in construing any other statutory enactment, regard must be had not only to the words used, but to the history of the Act, and the reasons which led to its being passed. You must look at the mischief which had to be cured as well as at the cure provided. And when we look at the state of the law before the Act of 1833 we can see pretty plainly what was the mischief at which it was aimed. There were certain causes of action as to which there was no defined time of limitation. Some of them are enumerat ed in the earlier part of s. 3; for instance, "actions of debt upon any bond or other specialty," and others which are there mentioned. They were not provided for by the then existing Statutes of Limitations, and they are brought in. That was the first defect. There was another class of actions as to which there was no definite limitation of time, namely, "actions for penalties, damages or sums of money given to the party grieved" by various Acts of Parliament, by way of penalty or
17 [1900] 1 Ch. 718.
punishment; not by way of compensation to the person injured, but where, as was pointed out by Lord Esher M.R. when commenting in Saunders v. Wiel ([1892] 2 Q. B. 321) upon Adams v. Batley (18 Q. B. D. 625), punishment was the object; and where the money to be paid, whether it was called penalty, or damage or sum of money, was not assessed with the view of compensating the plaintiff, although he might put some of it in his pocket. That is the class of action which was contemplated by the latter part of s. 3. In other words, they were what are popularly called "penal actions." We arrive at this from the history of the Act, and from a knowledge of the then state of the law and the defect which was to be cured.
I cite this passage principally because of its observations on the background of the provision for actions in debt on bonds or other specialties. But I have quoted it in full because it, as does the judgment of the Court, disposes, in my view, of the submission made during argument in the present appeal by counsel for the respondent to the effect that the action in this case is caught by paragraph 2(1)(b) of the Nova Scotia Act.
The reason for dropping the words "... of Cove nant or Debt ..." in section 25 of the Nova Scotia Limitations of Actions Act of 1873 may well be explained by an important change in the law of practice in Nova Scotia effected by the New Prac tice Act, 1853's. The Act contained these provisions:
2. All personal actions shall be commenced by writ of summons or replevin.....
3. It shall not be necessary to mention any form of action in the writ or other proceedings.
5. The writ shall contain the declaration according to the practice now adopted in summary causes, and to the forms in appendix B, except in very special cases, where the declaration may be annexed or served separately.....
54. Every declaration, whether in the body of the writ or annexed, and subsequent pleadings which shall clearly and distinctly state all such matters of fact as are necessary to sustain the action, defence, or reply, as the case may be, shall be sufficient, and it shall not be necessary that such matters should be stated in any technical or formal language or manner, or that any technical or formal statements should be used.
The effect appears to have been (and I put the matter very broadly) to substitute, for the tech nicalities of common law practice and pleadings, a
18 S.N.S. 1853, c. 4.
writ of summons as a means of beginning most actions and a declaration and later pleadings which were to state matters of fact necessary to sustain the action, defence or reply, while avoiding technical or formal language. By 1873, it may well have been considered expedient to drop the refer ence to covenant and debt. It may also be signifi cant that, going back to the Limitation of Actions Act, 1758, a six-year limitation period had been made applicable to actions on the case 19 including, as I understand it, actions for unliquidated sums based on causes of action provided by statute. It seems unlikely that, by the 1873 provision in respect of actions on deeds and other specialties, it was intended not only to capture (among other things) actions for debt on a statute, but also to extend the then existing limitation period from six years to twenty years in respect of actions for unliquidated sums on statutory causes of action 20 .
But there is another reason for construing the words "all actions upon any bond or other special ty" as being limited, in respect of actions on statutes, to actions for debts or other ascertained sums. This reason is suggested by a passage appearing in the judgment of Lord Justice Vaughan Williams in Thomson v. Lord Clanmor- ris cited above. The action in that case was brought by a shareholder against directors of a company claiming compensation under the English Directors Liability Act, 1890, and damages, "... [upon] the ground that untrue statements were
19 Section 1 of the 1873 Act provided:
1. No action of assumpsit, trespass quare clausum fregit, detinue, trover, replevin, debt grounded upon any lending or contract without specialty or for rent, account, or upon the case shall be brought but within six years next after the cause of action.
There is similar, though not identical, provision in section 4 of the Limitation of Actions Act, 1758 and in subsequent limita tions statutes. Section 1 of the 1873 statute is, for example, identical to section 1 of c. 153 of the Revised Statutes of Nova Scotia, 1851.
20 See Miller v. The King [1927] Ex.C.R. 52, at pp. 64 and 65, rejecting a submission that a claim for compensation given by the Dominion Expropriation Act was a claim for "debt on a statute".
contained in the prospectus of the company, on the faith of which the plaintiff had subscribed for shares". Lord Justice Vaughan Williams said at pages 727 and 728:
One must consider what is really the nature of the enactment contained in s. 3 of the Directors Liability Act, 1890. And it seems to me that, though that section does not in form give a new action, though it only says that directors and others "shall be liable to pay compensation to all persons who shall subscribe for any shares on the faith of the prospectus for the loss or damage they may have sustained by reason of any untrue statement in the prospectus," yet what the section really does is to give a new action on the case. It creates a new negative duty. The directors or promoters, or whatever other class is included in this section, have cast upon them a new duty in respect of prospectuses and similar documents. Speaking generally, one may say that the Act creates a new statutory duty of accura- cy—a new statutory duty to abstain from inaccurate and untrue statements, and then in effect gives a new action on the case to those persons who may have been injured by the neglect of that statutory duty. It seems to me, therefore, that this case is provided for by the statute 21 Jac. 1, c. 16. The action is an action on the case, and if so of course the six years' limitation would apply.
But it is said that this is not an action on the case, but an action on the statute, and Cork and Bandon Ry. Co. v. Goode (13 C. B. 826) is relied on. But it must be remembered that there the action was for a statutory debt, and the sole question was whether that debt was, within the terms of s. 3 of the statute of James, "grounded on a contract without specialty." It does not seem to me that that decision is really material to the case now before us. Maule J. pointed out that there is a difference between an action which is given by a statute and an action on the statute. Cork and Bandon Ry. Co. v. Goode was an action of debt on the statute. And, as I have already said, the only question there really was whether the action came within the words of s. 3 of the statute of James. In the present case it seems to me that a new duty of accuracy in respect of the preparation and issue of prospectuses is created, and an action on the case is given to those persons who are injured by the breach of that duty.
The distinction between an action which is given by a statute and an action on a statute seems technical, but unfortunately we do find ourselves in the realm of technicality. And I take it that an action on the case for an unascertained sum was not regarded as an action on a specialty, though brought on a claim based on a right created by a statute, because it was "on the case". And, for this reason, I would conclude that, in the present case,
the action, being one which would have been sued in case, is not on a specialty, though the claim to compensation is based on a right created by the Saltfïsh Act. The consequence is that the action does not fall within the twenty-year limitation period provided by paragraph 2(1)(c) of The Stat ute of Limitations in respect of actions on specialties.
An alternative submission was that the action is not caught by any provision of The Statute of Limitations of Nova Scotia, and is thus not stat- ute-barred. It was submitted in particular that the action is not an action for the taking away of property within the meaning of the words "... actions for the taking away or conversion of prop erty, goods and chattels ...", the provision relied on by the Trial Judge. The submission was that the legislative history of the provision shows that the words used were not intended to apply to an action for the loss of goodwill caused by statutory inter ference with marketing arrangements. It was sub mitted that the first limitations statute of Nova Scotia, the Limitation of Actions Act, 1758, pro vided a limitation period for "... all actions of trespass, detinue, action of trover, and replevin for taking away of goods and cattle", a provision which was based on a similar provision in the English Limitation Act, 1623. Similar wording appeared in revisions of the Nova Scotia limitation legislation down to and including chapter 112 of the Revised Statutes of Nova Scotia, 1884. In chapter 167 of the 1900 revision, however, refer ence to "detinue, trover and replevin" was replaced by the reference to "actions for the taking away or conversion of property". It was argued that the change was made to reflect the changes brought about by The Nova Scotia Judicature Act, 1884 in respect of the forms of action, the intention being (it was submitted) to cover the subject-matter of detinue and replevin by the words "actions for the taking away ... of proper ty" and to substitute the more modern term "con- version" for "trover". The present provision should thus, it was argued, be limited to actions based on a physical taking away or removal.
It was also submitted that the words in para graph 2(1) (e), "all actions for direct injuries to real or personal property" are limited to physical damage and do not extend to injuries done to intangibles. Here, again, reliance was placed, at least in part, on the legislative history of the provision, going back to the provision in the Nova Scotia Limitation of Actions Act, 1758, which established a six-year limitation period for actions of trespass and trespass quare clausum fregit. I would add that, in the perspective of trespass, the use of the term "direct injuries" may have special significance 21 .
The submissions in respect of these particular provisions in paragraph 2(1)(e) seem to me to have considerable merit, but I do not find it neces sary to decide whether this action is caught by either of them. Even if it were not, it would, in my view, nevertheless fall within the closing words of the paragraph: "and actions for all other causes which would formerly have been brought in the form of action called trespass on the case ..." 22.
In Eisener v. Maxwell 23 , Mr. Justice Mac- Donald held that the relevant time for determining whether an action "would formerly have been brought in the form of action called trespass on the case" would, in Nova Scotia, be immediately before The Nova Scotia Judicature Act, 1884 24 . At that time an action of this kind would have been brought in case, or, more accurately, by way of trespass on the case, though by then it would appear not to have been necessary to mention specifically the form of action in the writ or other proceedings. I have already given my reasons for so concluding.
The appellant also submitted that its cause of action did not arise until the day of the judgment of the Supreme Court of Canada in the Manitoba
21 But see Miller v. The King [1927] Ex.C.R. 52, at pp. 67 and 68.
22 Ibid., at p. 68.
23 [1951] 3 D.L.R. 345 (N.S. Sup. Ct.), at p. 354.
24 S.N.S. 1884, c. 25; R.S.N.S. 1884, c. 104.
Fisheries case. This submission is clearly unsus- tainable.
I would dismiss the appeal with costs.
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PRATTE J.: I agree.
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LE DAIN J.: I agree.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.