Judgments

Decision Information

Decision Content

A-797-81
Marc Beauregard, Puisne Judge of the Superior Court for the District of Montreal in the Province of Quebec (Plaintiff) (Respondent)
v.
The Queen in right of Canada (Defendant) (Appellant)
Court of Appeal, Thurlow C.J., Pratte and Heald JJ.—Ottawa, January 25, 26 and June 29, 1983.
Judges and courts — Amendment to Judges Act making previously non-contributory annuities and retirement benefits contributory — Whether Parliament bound by Constitution to provide such benefits on non-contributory basis — Whether Parliament having power to reduce fixed judicial salaries — No constitutional authority for imposition on judges of con tributory pension scheme — Amendment ultra vires — Parlia ment's power to fix judicial salaries including power to reduce — Trial Judge erred in holding Parliament without authority to reduce salary and benefits of respondent's office at time of appointment — Rights conferred by judge's commission under Great Seal of Canada and Parliamentary authority under s. 100, 1867 Act not to be confused — Former can be taken away only by due process of law — Due process including expro priation — Power given by s. 100 not restricted to fixing salaries of judges to be subsequently appointed — No law in Canada equivalent to those in U.K. and U.S.A. prohibiting reduction of judge's salary during continuance of commission
— Effect of impugned legislation not salary reduction but imposition of contributory pension scheme — Judges Act, R.S.C. 1970, c. J-1, s. 29.1 (as added by Statute Law (Super- annuation) Amendment Act, 1975, S.C. 1974-75-76, c. 81, s. 100) — Supplementary Retirement Benefits Act, R.S.C. 1970 (1st Supp.), c. 43 (as am. by R.S.C. 1970 (2nd Supp.), c. 30 and by S.C. 1973-74, c. 36) — Constitution Act, 1867, 30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5], as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Consti tution Act, 1982, Item 1, ss. 91(8),(27), 92(14), 96, 97, 98, 99 (rep. and sub. Constitution Act, 1960, 9 Eliz. II, c. 2 (U.K.) [R.S.C. 1970, Appendix II, No. 361), 100, 101 — Canadian Bill of Rights, R.S.C. 1970, Appendix III, s. 1(b) — The Act of Settlement (1700), 12 & 13 Will. 3, c. 2 — An Act for rendering more effectual the Provisions in [the Act of Settle ment] relating to the Commissions and Salaries of Judges, A.D. 1760, 1 Geo. III, c. 23, s. 3.
Constitutional law — Distribution of powers — Judicature
— Judicial salaries, allowances and pensions to be fixed and provided by Parliament — "Provided" not meaning "secured"
— Parliament not having full legislative power re salaries —
But power not limited to fixing once and for all — Salaries could be fixed at any amount — Parliament lacking power to dictate how salaries to be used — Amendment to Judges Act imposing compulsory contributory pension scheme ultra vires — Judges Act, R.S.C. 1970, c. J-1, s. 29.1 (as added by Statute Law (Superannuation) Amendment Act, 1975, S.C. 1974-75-76, c. 81, s. 100) — Supplementary Retirement Ben efits Act, R.S.C. 1970 (1st Supp.), c. 43 (as am. by R.S.C. 1970 (2nd Supp.), c. 30 and by S.C. 1973-74, c. 36) — Constitution Act, 1867, 30 & 31 Viet., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 51, as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 1, ss. 91(8),(27), 92(14), 96, 97, 98, 99 (rep. and sub. Constitution Act, 1960, 9 Eliz. II, c. 2 (U.K.) [R.S.C. 1970, Appendix II, No. 36]), 100, 101 — Canadian Bill of Rights, R.S.C. 1970, Appendix III, s. 1(b) — The Act of Settlement (1700), 12 & 13 Will. 3, c. 2 An Act for rendering more effectual the Provisions in [the Act of Settlement] relating to the Commissions and Salaries of Judges, A.D. 1760, 1 Geo. III, c. 23, s. 3.
Shortly after the respondent was appointed puisne judge of the Superior Court of Quebec, the Judges Act was amended by the addition of section 29.1. This provision forced the judges, by reservation on their salaries, to contribute towards the cost of annuities for judges' widows and children as well as towards the retirement annuities and supplementary benefits of the judges themselves, all of which had previously been non-con tributory. The effect of this amendment was to bring about a 7% reduction of salary for the respondent and other newly- appointed judges and a 1 1 / 2 % reduction for the judges appointed before the coming into effect of the amendment.
The first question is whether Parliament is bound by the Constitution to provide non-contributory retirement annuities to judges. The second is whether Parliament has the power to diminish, reduce or impair the fixed and established salary and other benefits of the respondent. The third is whether subsec tion 29.1(2) offends against paragraph 1(b) of the Canadian Bill of Rights. The Trial Judge found that subsection 29.1(2) was ultra vires in so far as the respondent was concerned.
Held (Pratte J. dissenting), the appeal should be dismissed.
Per Thurlow C.J.: The only authority section 100 of the Constitution Act, 1867 gives Parliament is to "fix and provide" the salaries, allowances and pensions of the judges referred to therein; it does not give Parliament the authority to dictate how they are to be used by the recipient or to require that they be used for any particular purpose. In pith and substance, section 29.1 of the Judges Act imposes on those judges a contributory pension scheme. This is not authorized by anything in section 100 and is accordingly ultra vires in so far as the judges referred to therein are concerned. Therefore both subsections (1) and (2) of section 29.1 are ultra vires and invalid.
It might be added that Parliament does have authority, under section 100, to reduce judges' salaries. It is evident that
there is a continuing power to fix such salaries, and that this includes the power to increase or decrease them.
Paragraph 1(b) of the Canadian Bill of Rights has not been offended against: the amendment was enacted in the pursuit of a valid federal objective and it was not unreasonable for Parliament to have defined the class required to make contribu tions by reference to the fact that they were appointed after the date of the introduction of the bill.
Per Heald J.: The obligation set out in section 100 to provide pensions imposes a duty on Parliament to provide the total amount of those pensions. Since subsection 29.1(2) requires judges to pay a portion of the cost of their own pensions, it is contrary to section 100 and therefore ultra vires. Subsection 29.1(1) is not ultra vires because it deals with a different, albeit related, matter.
In giving Parliament the power to "fix and provide" salaries and other benefits of the judges, section 100 also implicitly gives the power to adjust them upwards or downwards. The opposing view is based essentially on a principle of fundamental constitutional law itself derived from a political convention. However, in Re Resolution to amend the Constitution, the Supreme Court of Canada has expressly rejected the proposi tion that a political convention may crystallize into law. Judges' salaries are not constitutionally guaranteed along with tenure (section 99). Furthermore no constitutional amendment is required to change or alter matters which are clearly within the powers given to Parliament by section 100.
The argument based upon paragraph 1 (b) of the Canadian Bill of Rights is rejected for the reasons given by Thurlow C.J.
Per Pratte J. (dissenting): Section 29.1 does not affect the judges' right to a pension but rather their right to their salaries. The real question therefore is whether Parliament has the power to reduce the salaries of judges.
The words "fixed and provided" in section 100 do not mean that the salaries of judges cannot be reduced. All that section 100 does is to give Parliament the authority and to impose on it the duty to determine and pay those salaries, which includes the power to change them. And the guarantee of tenure in section 99 is not a guarantee that the salary of a judge will never change.
There is no legal constitutional principle denying Parliament the power to reduce the salaries of judges. Neither the British statutes nor British parliamentary practice purporting to negate that right could limit the power of the British Parliament in this regard. Nor could they, a fortiori, limit the power of the Canadian Parliament in this same regard.
The argument based on paragraph 1(b) of the Canadian Bill of Rights is without merit. "Equality before the law" simply means "equal subjection of all classes to the ordinary law of the land as administered by the ordinary courts". It is clear that subsection 29.1(2) does not offend against that kind of equality.
CASES JUDICIALLY CONSIDERED
APPLIED:
O. Martineau and Sons, Limited v. City of Montreal et al., [ 1932] A.C. 113 (P.C.); Toronto Corporation v. York Corporation, [1938] A.C. 415 (P.C.); Attorney General of Canada v. Lavell, [1974] S.C.R. 1349; Re Resolution to amend the Constitution, [1981] 1 S.C.R. 753.
DISTINGUISHED:
Re The Constitutional Questions Act; Re The Income Tax Act, 1932, [1936] 4 D.L.R. 134 (Sask. C.A.), affirmed sub nom. Judges v. Attorney-General of Sas- katchewan, [1937] 2 D.L.R. 209 (P.C.); Abbott v. The City St. John (1908), 40 S.C.R. 597.
REFERRED TO:
MacKay v. The Queen, [1980] 2 S.C.R. 370; The Queen v. Burnshine, [1975] 1 S.C.R. 693; Curr v. The Queen, [1972] S.C.R. 889; Prata v. Minister of Manpower and Immigration, [1976] 1 S.C.R. 376; Bliss v. Attorney General (Can.), [1979] 1 S.C.R. 183.
COUNSEL:
David W. Scott, Q.C. for plaintiff (respond- ent).
W. I. C. Binnie, Q.C. and D. M. Low for defendant (appellant).
SOLICITORS:
Scott & Aylen, Ottawa, for plaintiff (respond- ent).
Deputy Attorney General of Canada for defendant (appellant).
The following are the reasons for judgment rendered in English by
THURLOW C.J.: This is an appeal from a judg ment of the Trial Division [[1981] 2 F.C. 543] which declared that subsection (2) of section 29.1 of the Judges Act [R.S.C. 1970, c. J-1] as amend ed by section 100 of the Statute Law (Superannu- ation) Amendment Act, 1975, S.C. 1974-75-76, c. 81, is, in so far as the respondent is concerned, ultra vires the Parliament of Canada. The relief claimed by the respondent had included a declara tion that the words "before the 17th day of Febru- ary, 1975" in subsection 29.1(1) of the Judges Act as enacted by chapter 81 were also ultra vires but the judgment did not deal with that subsection.
Section 29.1, which appears among the provi sions of the Judges Act dealing with Annuities, and for the first time required the payment by judges of contributions for retiring annuities for themselves, annuities for their widows and children and benefits under the Supplementary Retirement Benefits Act [R.S.C. 1970 (1st Supp.), c. 43], came into effect on December 20, 1975, upon Royal Assent to the Statute Law (Superannua- tion) Amendment Act, 1975. It provides:
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,
(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.
The bill which included these provisions had been introduced in the House of Commons on February 17, 1975. At that time there was before Parliament a measure, introduced on December 19, 1974, which provided for increases in the salaries of judges and for additional benefits for widows and children of deceased judges. That measure received Royal Assent on July 4, 1975 [SI/75-831.
The respondent was appointed a judge of the Superior Court for the District of Montreal on July 14, 1975, that is to say, after the Act increas ing judges' salaries and benefits for widows and children came into effect and before the Act requiring contributions towards such annuities and benefits was enacted. His commission constituted and appointed him a judge of the Court with all the powers, rights, authorities, prerogatives, ben efits, emoluments and advantages appertaining by right or by law to the said functions during his good behaviour. When he accepted the appoint ment, the respondent was not aware of the bill that
was before Parliament which would require contri butions. Judges who were in office when the bill to increase salaries was introduced had been advised by the Minister of Justice that:
However, these improvements were achieved in the context of a comprehensive review of federal policies in relation to pensions which has just recently been concluded. As a result, it may become necessary at some future time to ask judges now in office to make a modest contribution towards the cost of the improved pensions for widows, and to ask persons who are in the future appointed to judicial office to contribute in some measure to pension benefit costs.
The measure requiring these contributions was the Statute Law (Superannuation) Amendment Act, 1975, which as mentioned was introduced on February 17, 1975 and came into effect on Decem- ber 20, 1975. Under it the respondent, who, from the time of his appointment had received his salary without deductions for such contribution for annuities, was required to pay contributions which amounted in 1976 to $3,445, in 1977 to $3,815 and in 1978 to $3,955.
Both in the Trial Division and on the appeal the position taken by the respondent was that subsec tion 29.1(2) is ultra vires because Parliament does not have authority under the Constitution Act, 1867 [30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5], as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 1] or under the customary law of the constitution to render contributory the retire ment annuities and supplementary retirement ben efits (as opposed to the annuities for the widows and children) which superior court judges enjoyed on December 20, 1975.
Alternatively, the respondent's position was that the words "before the 17th day of February, 1975" in subsection 29.1(1) and all of subsection 29.1(2) are ultra vires so far as the respondent is con cerned because Parliament did not have authority to reduce or impair the fixed and established ben efits conferred on the respondent by his commis sion.
Alternatively, the respondent asserted that the words "before the 17th day of February, 1975" in subsection 29.1(1) and the whole of subsection
29.1(2) are inoperative and invalid in so far as they affect the respondent in that they are dis criminatory and offend paragraph 1(b) of the Canadian Bill of Rights [R.S.C. 1970, Appendix III] by depriving the respondent of his right to equality before the law.
The argument on the last-mentioned point, as I understood it, was that inequality before the law was created by the enactment because under it the respondent no longer enjoyed his right to salary without deductions for contributions to the same extent as other judges who held office before December 20, 1975. Reliance was placed on the reasoning of McIntyre J., in MacKay v. The Queen' and it was said that there was no valid federal objective to be attained by discriminating on December 20, 1975 between judges appointed on or before and those appointed after February 16, 1975, and that to do so was arbitrary, capri cious and unnecessary.
The respondent's submission on this point was rejected by the learned Trial Judge and it is the subject-matter of a cross-appeal for a declaration that the provisions, if not ultra vires, are inoperative.
The submission is thus based on the assumption that the legislation is within the legislative powers of Parliament. On that basis it seems to me that it cannot be said that Parliament, in requiring judges to participate in and contribute to a contributory pensions scheme, was not seeking to achieve a valid federal objective. Moreover, the distinction made in the statute between judges appointed before a fixed date, for whom non-contributory pension provisions were already in existence, and judges to be appointed after that date so as ulti mately, by the attrition of senior appointees through deaths and resignations, the whole body of the judiciary would be participants in and con tributors to the contributory pension scheme seems to me to be but a manner of achieving the other wise valid federal objective. Difficulty arises from the fact that the particular date chosen was earlier than the date of the coming into force of the Act but, harsh as the result may seem to be to one who did not know, as opposed to one who did know
' [1980] 2 S.C.R. 370, at page 406.
when appointed, that a contributory scheme to be applicable to all judges appointed after the date of the introduction of the bill was to be imposed, I do not think it can on that account be said that it has been established, in the sense referred to by Rit- chie J., in the same case, 2 that the provisions of the bill, including the choice of the date, were not enacted for the purpose of achieving the valid federal objective or that it was arbitrary or capri cious or unnecessary for Parliament to have defined the class required to make contributions by reference to their being appointed after the date of the introduction of the bill. Accordingly, I would reject the contention and dismiss the cross-appeal. In the circumstances, as the appellant has not asked for costs, I would not award any.
The learned Trial Judge did not express a con clusion on the respondent's first position but founded his judgment on the alternative submis sion, that is to say, that Parliament did not have authority to reduce the salary and benefits estab lished for judges of the Superior Court at the time of the respondent's appointment to the office. Both points, as it appears to me, turn on the provisions of the Constitution Act, 1867, as amended by the Constitution Act, 1960 [9 Eliz. II, c. 2 (U.K.) [R.S.C. 1970, Appendix II, No. 36]], the latter being the amendment which required judges to retire on reaching seventy-five years of age.
It appears to me that the scheme of the 1867 Act and the fact that it is a constitutional enact ment must be borne in mind in considering the points raised. The Act recited the expressed desire of the three provinces of Canada, Nova Scotia and New Brunswick to be "federally united into One Dominion ... with a Constitution similar in Prin ciple to that of the United Kingdom". It went on to provide, in separate parts of the Act, for the Union itself, for the executive power, for the con stitution of the Parliament of Canada, for the constitutions of the legislatures of the provinces and, in sections 91 and 92, for the division of legislative powers between the Parliament of Canada and the legislatures of the provinces. By section 92 the legislatures of the provinces were given exclusive authority to make laws in relation
2 MacKay v. The Queen, [1980] 2 S.C.R. 370, at page 393, citing The Queen v. Burnshine, [1975] 1 S.C.R. 693.
to matters coming within the class of subjects which include:
92....
14. The Administration of Justice in the Province, including the Constitution, Maintenance, and Organization of Provin cial Courts, both of Civil and of Criminal Jurisdiction, and including Procedure in Civil Matters in those Courts.
The seventh Part of the statute is entitled "JUDICATURE" and contained the following provisions:
96. The Governor General shall appoint the Judges of the Superior, District, and County Courts in each Province, except those of the Courts of Probate in Nova Scotia and New Brunswick.
97. Until the Laws relative to Property and Civil Rights in Ontario, Nova Scotia, and New Brunswick, and the Procedure of the Courts in those Provinces, are made uniform, the Judges of the Courts of those Provinces appointed by the Governor General shall be selected from the respective Bars of those Provinces.
98. The Judges of the Courts of Quebec shall be selected from the Bar of that Province.
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.
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.
101. The Parliament of Canada may, notwithstanding any thing in this Act, from Time to Time provide for the Constitu tion, Maintenance, and Organization of a General Court of Appeal for Canada, and for the Establishment of any addition al Courts for the better Administration of the Laws of Canada.
Section 99 was repealed by the 1960 Act and replaced by the following:
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.
I do not propose to discuss the historical back ground of these provisions either in relation to the constitutional situation in the United Kingdom or that in this country with respect to the judiciary when the Constitution Act, 1867 was passed. Their general purpose and effect sufficiently appear from the following excerpts from the judgments of the Privy Council in O. Martineau and Sons, Limited v. City of Montreal et al. 3 and Toronto Corporation v. York Corporation, 4 and from an article by Professor W. R. Lederman published in The Canadian Bar Review in 1956 [Vol. 34, pages 769 and 1139].
In the Martineau case Lord Blanesburgh said:
The case made by the appellant company is that in the statutes to which reference will be made in a moment, the legislature of Quebec has trespassed upon the power given to the Governor- General in the matter of the appointment of judges by s. 96 of the British North America Act, 1867. A very serious question is thereby raised, for it cannot be doubted that the exclusive power by that section conferred upon the Governor-General to appoint the judges of the superior, district and county courts in each Province is a cardinal provision of the statute. Supple mented by s. 100, which lays upon the Parliament of Canada the duty of fixing and providing the salaries, allowances and pensions of these judges, and also by s. 99, which provides that the judges of the Superior Courts shall hold office during good behaviour, being removable only by the Governor-General on address of the Senate and House of Commons, the section is shown to lie at the root of the means adopted by the framers of the statute to secure the impartiality and the independence of the Provincial judiciary. A Court of construction would accord ingly fail in its duty if it were to permit these provisions and the principle therein enshrined to be impinged upon in any way by Provincial legislation.
In the Toronto case, Lord Atkin said:
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
3 [1932] A.C. 113 (P.C.), at pages 120-121.
4 [1938] A.C. 415 (P.C.), at pages 425-426.
principal pillars in the temple of justice, and they are not to be undermined.
In the course of his article, Professor Lederman wrote [at pages 1158 and 1160]:
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". The existing courts in each province were continued by section 129, subject to certain other provi sions of the act that divided power and responsibility for the judicature between provincial and federal authorities. Section 92(14) gave the provinces "exclusive" legislative power over "The Administration of Justice in the Province, including the Constitution, Maintenance, and Organization of Provincial Courts, both of Civil and of Criminal Jurisdiction, and includ ing Procedure in Civil Matters in those Courts".
Even were there no other evidence, a mere reading of sections 96 to 100 of the B.N.A. Act discloses the intention to reproduce superior courts in the image of the English central royal courts. 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, removal and security of salaries to the position of the judges of the historic English superior courts after the Act of Settlement.
I am not persuaded that the words "fixed and provided" in section 100, whether or not is was so intended, have precisely the same meaning as the words "ascertained and established" as used in The Act of Settlement [(1700), 12 & 13 Will. 3, c. 2]. The meaning of "fixed" may not differ much from "ascertained" but I do 'not regard the word "provided" as having in its context the same con notation as "established" might have in the same context. "Established" as it seems to me, connotes "secured", a concept that I do not detect in "provided".
It appears to me that there are at least two facets to the meaning of section 100. The first is that the judges' salaries are to be "fixed and provided" in a sense similar to that of "ascertained and established" so as to give to a person appoint ed by the Governor General an assurance of a salary as fixed by the Parliament of Canada and to be provided by that body. The other is that, having provided in section 96 for the appointment of provincial superior, district and county court judges by the Governor General, and in section 99 for the tenure of superior court judges during good behaviour and that they are to be subject to re moval by the Governor General on address of the Senate and House of Commons, section 100 requires Parliament, rather than the executive branch of government, to both fix the amounts and provide the money to pay the salaries, pensions and allowances of the judges to be so appointed. The section thus also settles the question of where the responsibility is to lie by imposing it on the Parliament of Canada.
I do not agree with the submission made by counsel for the appellant that the effect of section 100 is to confer on the Parliament of Canada full and complete legislative power in relation to judges' salaries, pensions and allowances. In my opinion, and in particular having regard to the legislative authority of provincial legislatures under head 14 of section 92, Parliament has no general power or authority to legislate in respect to judges of provincial superior, district or county courts. These courts are established by provincial authority and any authority Parliament has in relation to the judges of these courts is limited to what is conferred by section 100. Even the power of removal, though exercisable only on address of the Senate and House of Commons, is vested in the Governor General. It was thus necessary in 1960 to obtain a constitutional amendment by the United Kingdom Parliament to alter the tenure provided by section 99 so as to require retirement of superior court judges at seventy-five years of age. Neither the legislature of the provinces nor the Parliament of Canada had authority to make the change in section 99. I should think it at least arguable as well that what is meant by "good behaviour" in that section is not subject to redefi nition by Parliament, though it is not inconceiv able that the Senate and House of Commons, in
some particular case, may one day have to decide what it meant in 1867. Nor is it open to Parlia ment to change the provisions of sections 96, 97 and 98.
As I read section 100, the only authority given to Parliament in relation to the salaries, etc., of provincial superior, district and county court judges, is to fix and provide them. This is not a full legislative power in relation to them. If it were, Parliament might leave the fixing of them to the Governor in Council, or some other authority, a course which seems to me to be inconsistent with the wording. Moreover, such authority as is given by section 100 is coupled with a responsibility to fix salaries, etc., and having done so to provide them.' But I do not think that what Parliament can do in relation to such salaries, pensions or allowances is limited to fixing them once and for all. As a matter of language, it appears to me that the authority or the responsibility to fix a salary would, so long as it was exercised bona fide and not for a colourable or ulterior purpose, permit Parliament to fix the salary at any amount, be it ever so large or small. No doubt it might become difficult to find qualified persons who would accept appointment if the salary were fixed at a nominal amount but that is not in point. It would not affect the extent of the power of Parliament to fix the salary at that amount. The same would apply to the power to fix pensions and allowances of judges. On the other hand, under section 100, to fix them and provide them is all that Parliament has authority to do. It has no authority to dictate how they are to be used by the recipient or to require that they be used for any particular pur pose. It may also be noted that, though these judges are appointed by the Governor General on
5 The form of the section may have been due to the fact that most Canadian judges were, at the time of its enactment, being remunerated by salaries, rather than by fees or other means. The judges of the Courts of Probate of Nova Scotia and New Brunswick were probably being remunerated solely by fees. It is not unlikely that it was contemplated that the judges referred to in section 100 would continue to be compensated by salaries, retirement pensions and allowances. That in fact was what was done in the first enactment by the Parliament of Canada on the subject. See Statutes of Canada, 1868, c. 33.
the advice of the federal cabinet, they are not federal public servants or officers and they are not appointees over whom the federal executive has any authority, whether to require them to partici pate in or to contribute to a contributory pension scheme or otherwise.
An argument was made, based on comments by Martin J.A. [as he then was], in Re The Constitu tional Questions Act, [ 1936] 4 D.L.R. 134 (Sask. C.A.) and in the judgment of the Privy Council in Judges v. Attorney-General of Saskatchewan, [1937] 2 D.L.R. 209, that the authority of Parlia ment under section 100 is similar to that under section 91, head 8 in which power is given to legislate in relation to
91. ...
8. The fixing of and providing for the Salaries and Allow ances of Civil and other Officers of the Government of Canada.
but the difference appears to me to be apparent both from the fact that head 91(8) is a legislative power over the subject-matter and from the pres ence in head 91(8) of the word "for" which makes the sense quite different. There is also no mention of pensions in head 91(8). The issue involved in the judgments mentioned did not turn on the extent of the authority of Parliament under section 100 and I do not think that there is in them anything that conflicts with the view I have expressed on that point.
I turn now to section 29.1 of the Judges Act and the question of its pith and substance. It was, as it seems to me, a part of the appellant's case and is, I think, beyond dispute that this legislation was part of an overall scheme to put all federally funded pension plans on a contributory basis. The method by which this was to be accomplished was to include and enact these provisions as part of an enactment relating to retirement pensions for public servants, public officials, members of Par liament and others and requiring contributions from all of them. In relation to such persons, the statute is enacted in the exercise of legislative
powers entirely separate and different from any to be found in section 100. In so far as judges are concerned, the legislation enacting section 29.1 is thus, in my opinion, in pith and substance, the imposition of a contributory pension scheme requiring judges to make contributions to a fund and giving them no option as to whether they will contribute or participate or not. Such an enact ment, in my opinion, is not authorized by anything in section 100 and is accordingly ultra vires in so far as the judges referred to in that section, of whom the respondent is one, are concerned.
In view of this conclusion it is not strictly neces sary that I should deal with the point which found favour with the learned Trial Judge, that is to say, that Parliament was without authority to reduce the salary and other benefits appertaining to the respondent's office at the time of his appointment. However, as the submission was the basis of the judgment under appeal, it seems desirable that I should at least indicate why I do not think it should be adopted.
There are two things that, in my view, should not be confused. One is the rights conferred by the judge's commission under the Great Seal of Canada. The other is the authority of Parliament under section 100.
The commission issues upon appointment of a judge by the Governor General under the author ity of section 96 and the provincial statute setting up the office. It constitutes a grant both of the office with its authority and of the salary and other benefits attached by law at that time to the office as fixed by Parliament under section 99. The grant entitles the appointee to the salary so fixed in much the same way as a grant of money or land vests title to the money or the land in the grantee. It is something that cannot be taken from him except by due process of law. Due process may include expropriation by the authority of the legis lature, but it is established principle that the legis lature is not, in the absence of a clear expression of intent to the contrary, to be taken as intending to expropriate without due compensation. And a taking without compensation is extraordinary. It is something that Parliament, ordinarily at least, avoids. It is, in my view, the reason why, in a
number of statutes relating to judges' salaries, provisions referred to as grandfather clauses to protect the position of incumbent judges have been included. But the fact they have been included is not in itself a basis for saying that Parliament does not have the legal power to expropriate without compensation or to take away rights that have been lawfully granted.
As Parliament has under section 100 the respon sibility to fix and provide the salaries of judges, it seems to me that as a matter of interpretation of the language of the section Parliament must have a continuing power to fix such salaries and that that power is not restricted to the fixing of salaries for judges to be subsequently appointed. Plainly Parliament can increase the salaries of judges who are in office and it seems to me that as a matter of naked power it can also decrease them even though such decrease may be regarded by the incumbent judges as confiscatory and unjust and may be in substance a derogation from the grant lawfully made by the Governor General in the judge's commission.
There is of course a very powerful reason, which has been expressed time and again by eminent writers, both judges and others, why judges' sal aries should not be reduced during the continuance of their commissions. It is that the security of both their tenure and their salaries are the foundations of and are essential to their independence. In the United Kingdom there has been for many years a statute against reducing a judge's salary during the continuance of his commission. In the United States there is a constitutional provision against it. But there seems to be nothing in section 100 to prevent it and the soundness of the reason for such a provision will not alone make it the law.
That said, however, I should add that while the deductions taken from the respondent's salary undoubtedly reduced the amount actually paid to him as his salary, in my opinion, the effect of the
enactment of section 29.1 was not to reduce his salary or the amount credited to him as salary but was to require him to contribute to and participate in a contributory pension scheme. For the reasons which I have expressed, that, in my opinion, is ultra vires.
It follows from the view I have expressed that both subsection (1) and subsection (2) of section 29.1 are ultra vires and invalid, and I do not understand by what reasoning only the words "before the 17th day of February, 1975" could on that account be declared invalid. For if subsection (2) is ultra vires because Parliament does not have authority to require judges to participate in a contributory pension scheme in respect of their own pensions it seems to me that it is also ultra vires to require judges to participate in and con tribute to such a scheme related to pensions for the widows and children of judges.
I would dismiss the appeal with costs, but, to take account of time spent in relation to the unsuc cessful cross-appeal, I would direct that the costs of the appeal be taxed on the basis of a hearing that lasted one and one-half days.
* * *
The following are the reasons for judgment rendered in English by
PRATTE J. (dissenting): This is an appeal from a judgment of the Trial Division (Addy J.) declaring that subsection 29.1(2) of the Judges Act 6 is ultra vires the Parliament of Canada in that it unlawful ly reduces the remuneration of judges appointed under section 96 of the Constitution Act, 1867. There is also a cross-appeal from the same judg ment which, according to the respondent, should also have declared that subsection 29.1(2) of the Judges Act was inoperative because it offended the Canadian Bill of Rights.
The respondent was appointed a judge of the Superior Court for the District of Montreal on July 24, 1975. At that time, the Judges Act pro vided, as it still does, for the payment of annuities
6 R.S.C. 1970, c. J-1 (as amended by section 100 of the Statute Law (Superannuation) Amendment Act, 1975, S.C. 1974-75-76, c. 81).
to retired judges and to the surviving spouses and children of deceased judges. However, judges were not then required to contribute or pay anything towards the costs of those annuities. True, a bill imposing that obligation had been given its first reading on February 16, 1975. But that bill was still before Parliament and the respondent did not know of it when he accepted to become a judge.
For a few months after his appointment, the respondent received the full salary that was attached to his function. That situation changed after December 20, 1975. On that date, the bill to which I just referred became law and amended the Judges Act by adding section 29.1. The new sec tion required the judges to contribute towards the costs of the annuities payable under the Judges Act and the Supplementary Retirement Benefits Act; 7 it read in part as follows:
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,
(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.
This new provision had the effect of dividing the judges into two classes according to the date of their appointment. Judges who had been appointed on or before February 16, 1975, (which was the date on which the bill amending the Judges Act had been given its first reading) were required to contribute 1 1 / 2 % of their salary while the contribu tion to be made by the other judges was fixed at 6 1 / 2 % of their salary for the year 1976 and 7%
R.S.C. 1970 (1st Supp.), c. 43 (as amended by R.S.C. 1970 (2nd Supp.), c. 30 and by S.C. 1973-74, c. 36).
thereafter. According to a letter dated February 17, 1975, sent by the Minister of Justice to "... ALL FEDERALLY APPOINTED JUDGES", the contribution of 1 1 / 2 % imposed on all judges was a contribution towards the costs of the annuities payable to the widowed spouses and other depend ents of deceased judges whereas the additional contribution required from the judges appointed after February 16, 1975, was imposed in respect of the retirement annuities payable to judges.
As the respondent had been appointed on July 24, 1975, the enactment of section 29.1 had the effect of reducing his salary by more than 6%.
The respondent did not object to the deduction of 1 1 / 2 % that was imposed on all judges in respect of the costs of the annuities payable to widowed spouses and other dependents of deceased judges. He objected, however, to the additional deduction imposed on judges appointed after February 16, 1975. In his view, Parliament, in imposing that additional deduction, had exceeded its legislative power under the Constitution and violated the respondent's right to "equality before the law" under paragraph 1(b) of the Canadian Bill of Rights. He sued Her Majesty for a declaration that subsection 29.1(2) was both ultra vires and inoperative. Mr. Justice Addy rejected the argu ment that subsection 29.1(2) offended the Canadi- an Bill of Rights; he did not deem it necessary to express any opinion on the respondent's contention that Parliament was not empowered, under the Constitution, to require the judges to contribute towards the costs of their retirement annuities; he held, however, that subsection 29.1(2) was ultra vires, in so far as the respondent was concerned, because Parliament was not empowered, under the Constitution, to reduce the salary or remuneration of a judge. This appeal is directed against that judgment. It raises three questions:
(1) Is Parliament bound, under the Constitution, to pay non-contributory retirement annuities to judges?
(2) Has Parliament the power, under the Con stitution, to reduce the salaries of judges?
(3) Does subsection 29.1(2) of the Judges Act offend paragraph 1(b) of the Canadian Bill of Rights?
1. The power of Parliament to require judges to contribute towards the costs of the retirement annuities to which they are entitled.
To support his contention that Parliament lacks the power to force judges to contribute towards the costs of their retirement annuities, counsel for the respondent first referred to the history of the judiciary both in England and Canada. That histo ry showed, said he, that immediately before the enactment of the Constitution Act, 1867, the in dependence of judges, both in Canada and Eng- land, was guaranteed by their appointment during good behaviour and their entitlement, on retire ment, to a non-contributory annuity. He argued, as I understood him, that sections 99 and 100 of the Constitution Act, 1867 had enshrined in the Constitution these two guarantees of the indepen dence of judges. Sections 99 and 100 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.
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.
Counsel also found support for his contention in the fact that, in 1960, before asking the Parlia ment of the United Kingdom to amend section 99 so as to force superior court judges to retire at the age of 75, 8 the Canadian Parliament amended the Judges Act so as to ensure that the judges would, upon reaching the age of mandatory retirement, be
a Section 99 was amended by the Constitution Act, 1960 and now reads as follows:
99. (1) Subject to subsection (2) of this section, the judges of the superior courts shall hold office during good behavi our, 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.
entitled to an annuity equal to 2 / 3 of their salary.
I do not understand this argument. Sections 99 and 100 of the Constitution Act, 1867 were obvi ously enacted for the purpose of guaranteeing the independence of the judiciary. But I do not see any relation between that independence and the fact that judges may be required or not to contribute towards the costs of their retirement annuities. The independence of the judges may require that they be paid a decent salary and that they be entitled, on retirement, to a sufficient pension; it certainly does not require that a non-contributory pension scheme be established in their favour. Moreover, I cannot find in sections 99 and 100 of the Constitution Act, 1867 an intention to impose on the Canadian Parliament the duty to continue to provide the judges with exactly the same type of pension and annuities as those which were payable to them before Confederation.
I do not, therefore, find the solution of our problem in the history of the Constitution. That solution, in my opinion, must be found in the text of the Constitution Act, 1867. Did that Act give Parliament the power to require that superior court judges contribute towards the costs of their retirement annuities? Before answering that ques tion, two observations are in order. The first one is that section 100, as I read it, does not create any rights in favour of the judges but merely deter mines that Parliament, rather than the Executive or the Provinces, shall have the responsibility of fixing and paying the salaries and pensions of the judges. The second observation is that Parliament, in enacting section 29.1 of the Judges Act, did not affect the judges' right to a pension. Their right to be paid a pension on retirement was exactly the same after the enactment of section 29.1 of the Judges Act as it was before. The only right of the judges that was affected by that new provision was their right to their salaries. This was so because section 29.1 did not oblige the judges to pay anything; it merely prescribed that a deduction be made from their salaries. It follows from these two observations that the real question raised by the enactment of section 29.1 of the Judges Act is whether Parliament had the power to reduce the salaries of the judges. However, once it is assumed, as it must be for the purposes of the argument now
under discussion, that Parliament had that power, it necessarily follows, in my view, that Parliament also had the power to prescribe a deduction from the salaries of the judges as a contribution towards the costs of their retirement annuities. I do not see how such a power could be denied to Parliament who, by virtue of section 100 of the Constitution Act, 1867, had the authority and the duty to determine and pay both the salaries and the pen sions of the judges.
2. The power of Parliament to reduce judicial salaries.
Mr. Justice Addy accepted the argument that, under the Constitution, Parliament could not reduce the respondent's salary. This is why he declared that subsection 29.1(2) of the Judges Act was, in so far as the respondent was concerned, ultra vires the Parliament of Canada.
As I understand the judgment and the respond ent's argument, they do not challenge the power of Parliament, under section 100 of the Constitution Act, 1867, to legislate so as to reduce the salaries of judges if that reduction applies only to judges appointed after the date of the enactment prescrib ing the reduction. What Parliament had no au thority to do, according to the argument that was accepted by the judgment of first instance, was to reduce the salaries of judges who had been appointed before the enactment of the statute pre scribing the reduction. According to that theory, a superior court judge, once appointed, is entitled under the Constitution, as long as he remains a judge, to receive at least the salary that was attached to his function at the time of his appointment.
Mr. Justice Addy summarized his reasons and conclusion in the following terms [at pages 588 and 590]:
As previously stated, 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 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 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, including 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 provincial superior court justices and the criminal law which they applied fell under federal jurisdiction, while the adminis tration of justice, the constitution of the courts and the substan tive law which those justices administered in matters of prop erty 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.
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 specifically 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 constitu tional law which we inherited with the British parliamentary system.
I must confess that, at first, I had difficulty understanding the learned judge's reference to the distribution of powers between Canada and the Provinces. I think I now understand what he meant. In his view, there is a legal constitutional principle that requires that the salaries of incum bent judges be not reduced. If Canada were a unitary state, that principle would not limit the supremacy of Parliament who could either repeal it or ignore it in its legislation. As, however, Canada is not a unitary state and as, under our Constitution, the Provinces have, in view of their jurisdiction in the field of the administration of justice, a clear interest in the application of a constitutional principle which guarantees the in dependence of the judiciary, the learned Judge concluded that Parliament could not repeal or ignore that principle in its legislation.
The crucial question, therefore, is whether there existed a constitutional legal rule preventing Par liament from reducing the salaries of incumbent judges. In order to answer that question, one must
first determine whether there was such a rule in the Constitution Act, 1867, as it stood in 1975.
Professor Lederman expressed the opinion, in an article published in The Canadian Bar Review, 9 that such a limitation on the power of Parliament was found in section 100 of the Constitution Act, 1867, pursuant to which
the salaries of superior-court judges "shall be fixed and pro vided by the Parliament of Canada".
In his view, which was shared by the learned Trial Judge, the words "fixed and provided" in that section were meant to convey the idea that the salaries of the judges could not be reduced. I do not agree. All that section 100 does, in my opinion, is to give Parliament the authority and to impose on it the duty to determine and pay the salaries of the judges. Whether or not I look at the historical background of that provision, I cannot read it as meaning more than that.
In my opinion, therefore, section 100 gives Par liament the power to determine and change the salaries of judges. The only other section of the Constitution Act, which might be interpreted as imposing a limit on that power is section 99 which prescribes that, subject to the requirement that they retire at the age of 75,
99. (1) ... 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.
As the entitlement to a judicial salary is a normal incident of the judicial function, can the guarantee of tenure contained in section 99 be interpreted as an implied guarantee against any reduction of the salaries of judges? I do not think so. If the entitlement to a judicial salary is a necessary corollary of the judicial function, it fol lows that a judge is, as long as he remained a judge, entitled to the salary attached to his func tion; it does not follow that he benefits from a guarantee that the salary attached to his function will never change.
The learned Trial Judge held, however, that there was a legal constitutional principle that denied Parliament the power to reduce the salaries
9 (1956), 34 Can. Bar Rev. 769 and 1139, at page 1160.
of judges. He derived that principle from two old statutes of the Parliament of the United King dom, 10 which he interpreted as prescribing that judicial salaries could not be reduced, and from a practice, allegedly followed by Parliament, both in England and in Canada, not to reduce the salaries of incumbent judges without their consent.
I do not see how The Act of Settlement and the Act of 1760 can support the decision of the learned Judge. These two statutes did not limit the power of the Parliament that had enacted them and, furthermore, never applied to Canada. How could such statutes limit the power of the Canadian Parliament?
In so far as parliamentary practice is concerned, it is important to note that, in England, that practice never denied Parliament the power to reduce judicial salaries. In spite of that practice, the supremacy of Parliament remained intact. It is difficult to understand how such a practice could give rise to a constitutional rule which, once trans planted into Canada, would have acquired a new vigour and denied to the Canadian Parliament a power that the Parliament of the United Kingdom still possessed.
True, the Provinces have an interest in the administration of justice and in the preservation of the independence of the judiciary. However, in spite of that direct interest, it is Parliament and Parliament alone that was given the power to fix the salaries and pensions of the judges. The inter est of the Provinces cannot be invoked to deprive Parliament of its jurisdiction.
I do not agree, therefore, that there ever existed, either in England or here, a constitutional princi ple preventing Parliament from reducing judicial salaries. Our Constitution protects the indepen dence of the judges by reserving to Parliament exclusively the power to remove them from office and to fix or change their salaries. It is clear that, at the basis of the provisions of the Constitution Act on this subject, there is the idea that the protection of the independence of judges requires
10 The Act of Settlement (1700), 12 & 13 Will. 3, c. 2, and An Act for rendering more effectual, etc., A.D. 1760, 1 Geo. III, c. 23.
that their removal be reserved to Parliament; it would be, in my view, inconsistent with that idea to say that the protection of the independence of the same judges requires that the same Parliament be denied the power to reduce their salaries.
I do not, therefore, share the opinion of Mr. Justice Addy that Parliament had no authority to reduce the salaries of the judges and that, for that reason, subsection 29.1(2) of the Judges Act is ultra vires.
3. Subsection 29.1(2) of the Judges Act and para graph 1(b) of the Canadian Bill of Rights.
The respondent's last argument, which was rejected by the Trial Judge, is that subsection 29.1(2) of the Judges Act, in prescribing that judges appointed after February 16, 1975, should receive a lower salary than other judges, offends against paragraph 1(b) of the Canadian Bill of Rights.
The relevant portion of paragraph 1(b) of the Canadian Bill of Rights reads as follows:
1. It is hereby recognized and declared that in Canada there have existed and shall continue to exist ... the following human rights and fundamental freedoms, namely,
(b) the right of the individual to equality before the law and the protection of the law;
Mr. Justice Addy was of opinion that the Supreme Court of Canada had interpreted the phrase "equality before the law" in that provision as meaning the "equal subjection of all classes to the ordinary law of the land as administered by the ordinary courts"." As it is clear that subsection 29.1(2) does not offend against that kind of equal ity, he rejected that argument of the respondent.
" Attorney General of Canada v. Lavell, [1974] S.C.R. 1349, at page 1366; see also Curr v. The Queen, [1972] S.C.R. 889; The Queen v. Burnshine, [1975] 1 S.C.R. 693; Prata v. Minister of Manpower and Immigration, [1976] 1 S.C.R. 376; Bliss v. Attorney General (Can.), [1979] 1 S.C.R. 183; MacKay v. The Queen, [1980] 2 S.C.R. 370.
I agree with that view. Furthermore, I am of opinion that the whole of section 29.1 was enacted by Parliament for the purpose of achieving a valid federal objective.
For all these reasons, I would allow the appeal, dismiss the cross-appeal, set aside the judgment of the Trial Division and dismiss the respondent's action. Following the appellant's suggestion, I would make no order as to costs.
* * *
The following are the reasons for judgment rendered in English by
HEALD J.: This is an appeal from a judgment of the Trial Division wherein it was ordered and declared that subsection (2) of section 29.1 of the Judges Act as amended by section 100 of the Statute Law (Superannuation) Amendment Act, 1975, S.C. 1974-75-76, c. 81, is, as applied to the respondent herein, ultra vires, the Parliament of Canada. The respondent's cross-appeal from that portion of the Trial Division judgment which held that paragraph (b) of section 1 of the Canadian Bill of Rights is inapplicable, and that the impugned legislation is not inoperative in so far as the respondent is concerned by reason of being discriminatory, was argued concurrently with the appeal.
Section 29.1 reads as follows:
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,
(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.
As observed by the Trial Judge, 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 filed on consent. On July 24, 1975, the respondent accepted an appointment as puisne judge of the Superior Court of Quebec. As of that date, the Judges Act provided for all puisne judges of that Court the following salaries and benefits:
1. Global salaries of $53,000 comprised of a basic salary of $50,000 and an 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.
3. Non-contributory annuities for the judges' widows and children.
4. Non-contributory supplementary retirement benefits pursuant to the provisions of the Supplementary Retirement Benefits Act, as amended.
On December 20, 1975, being approximately five months after the respondent's appointment, the Statute Law (Superannuation) Amendment Act, 1975, supra, was enacted. This legislation ren dered contributory not only the annuities for judges' widows and children but also the retire ment annuities and supplementary benefits of the judges themselves in the case of judges appointed subsequent to February 16, 1975. 12 Thus, the effect of this change in the law, in so far as the respondent is concerned, was to impair to the extent of those contributions the remuneration and benefits which he had been receiving since the date of his appointment. This is clear since the enact ment required him thenceforth to contribute 6% of his salary towards the cost of his own retirement and the annuities for his family as well as one-half of 1% prior to January 1, 1977, and 1% after January 1, 1977 for the indexing of retirement
2 The Statute Law (Superannuation) Amendment Act, 1975, supra, was given First Reading on February 17, 1975. This appears to be the rationale for the selection of the dates of February 17, 1975 and February 16, 1975 in section 29.1 supra.
annuities under the Supplementary Retirement Benefits Act. The Trial Judge accordingly con cluded that the respondent had, thereby, suffered a reduction in the salary to which he was entitled and had received as of the date of his appointment and for some five months thereafter. It was agreed by the parties that, at the date of his appointment to the bench on July 24, 1975, the respondent was completely unaware of the fact that the Statute Law (Superannuation) Amendment Bill was actu ally before Parliament. It was further agreed that he had not received any notice thereof.
As I understood counsel for both parties, it was agreed between them that the issue herein is a justiciable one which must be decided by federally appointed judges and while such judges may have the same or a similar potential interest in the outcome, the Court must act ex necessitate. 13
This appeal raises three issues:
1. Is Parliament bound by the Constitution to provide to the respondent and others in a similar position non-contributory retirement annuities? The learned Trial Judge refrained from dealing with this issue because, in his view, it was unneces sary since he had effectively disposed of this action on another basis.
2. Did Parliament have the power, under the Constitution as of December 20, 1975, to diminish, reduce or impair the fixed and established salary and other benefits of the respondent? The learned Trial Judge answered this question in the negative. He said (at page 590):
... 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 specifically directed to reductions of or deductions from judicial salaries, the compen sation 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 prov inces and Canada but, because it arises out of an intrinsic and fundamental principle of constitutional law which we inherited with the British parliamentary system.
" See Re Income Tax Act, 1932, [1936] 4 D.L.R. 134 (Sask. C.A.), at p. 135, affirmed sub nom. Judges v. Attorney-Gen eral of Saskatchewan, [ 1937] 2 D.L.R. 209 (P.C.).
3. Does subsection 29.1(2) of the Judges Act offend paragraph 1(b) of the Canadian Bill of Rights? The learned Trial Judge answered this question in the negative. It forms the subject- matter of the respondent's cross-appeal.
Issue No. 1—The Pensions (Retirement Annui ties) Issue.
In my view, the starting point for a discussion of this issue is sections 99 and 100 of the Constitu tion Act, 1867. Those sections 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.
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.
Counsel for the appellant submitted that there was nothing in the language of section 100 of the Constitution Act, 1867 that would fetter the legis lative capacity of Parliament so as to prevent it from requiring federally appointed judges to con tribute towards the costs of their post-retirement security benefits. In support of this submission, counsel cited Re Income Tax Act, 1932, [ 1936] 4 D.L.R. 134 supra. That decision was a unanimous judgment of the Saskatchewan Court of Appeal and concerned itself, inter alia, with the question as to whether or not federally appointed judges resident in the Province of Saskatchewan, and being, otherwise, persons subject to the provisions of The Income Tax Act, 1932, of Saskatchewan [S.S. 1932, c. 9] were, notwithstanding their status as federally appointed judges, taxable pursuant to the provincial income tax statute. The Court answered the question affirmatively. However, in reaching this conclusion, Martin J.A. (as he then was) relied on the presence of the word "fixed" in section 100 and followed a decision of the Supreme Court of Canada in Abbott v. The City St. John (1908), 40 S.C.R. 597, dealing with the liability of federal civil servants to taxation in the province of their residence. As I read the reasons of Martin J.A., they were premised on the presence of the
word "fixing" in subsection 91(8) of the Constitu tion Act, 1867. 14
In my view, the Saskatchewan decision relied on supra by the appellant is not helpful in resolving the issue herein being discussed. The portion of section 100 which, in my opinion, has to be inter preted to decide the pensions issue is the require ment in the section that "... Pensions of the Judges ... shall be fixed and provided by the Parliament of Canada." (Emphasis added.)
In the appellant's submission, Parliament has the power to alter both the amount of a judges' pension and to change the pension scheme from a non-contributory to a contributory one. As support for this submission, he refers to subsection 91(8) of the Constitution Act, 1867, supra, dealing with civil servants.
In my view, subsection 91(8) is in no way analogous or comparable to section 100. Subsec tion 91(8) is an enabling section. It empowers Parliament to provide for the salaries of civil ser vants but does not require it to do so. There is no provision in the subsection at all for the pensions of civil servants. Section 100, on the other hand, imposes a responsibility, inter alia, to provide the pensions of judges. The word "for" in subsection 91(8) is absent from section 100. In my view, the obligation imposed by section 100 to provide pen sions imposes a duty on Parliament to provide the total amount of those pensions. If this is so, then the provisions in section 29.1 requiring judges to pay a portion of the cost of their own pensions are contrary to section 100. When the judges are required to pay a percentage of the cost of their own pension, whether it be 5% or 95%, it cannot be said that Parliament is "providing" their pensions. Parliament, in section 29.1 can be said to be making provisions for judges' pensions but that does not satisfy section 100. In these circum stances, Parliament is only partially providing those pensions. Counsel for the appellant submits, however, that the 1975 amendments must be con
14 Subsection 91(8) of the Constitution Act, 1867, empowers the Parliament of Canada to legislate with respect to "The fixing of and providing for the Salaries and Allowances of Civil and other Officers of the Government of Canada."
sidered as a package, that Parliament has the authority to diminish and impair salaries and pen sions, that the 1975 amendments when taken to gether resulted in an increase in salaries and ben efits, that while the judges appointed before February 17, 1975 receive the benefit of a grand father clause with respect to the contributory fea ture of the amendments, the practice of contribu tion will become uniform with the passage of time and that Parliament has the power to enact such a provision. Even assuming, without deciding at this stage, that the power of Parliament allows it to increase or decrease salaries and pensions, I do not think such a result could be accomplished by making the pension contributory because by so doing Parliament is no longer "providing" the entire pensions for judges as section 100 requires it to do. It may well be that Parliament could have reduced judges' pensions by enacting a law which simply, for example, reduced the pension or retire ment annuity from two-thirds to one-third of the salary received by a judge immediately prior to his retirement. On the basis that Parliament provided all of the funds for that reduced judge's pension, it is my view that the provisions of section 100 of the Constitution Act, 1867, would not be breached in so far as the requirement to provide judges' pen sions is concerned. What is contrary to that requirement in subsection 29.1(2), in my view, is the scheme for the sharing of the cost of those pensions.
The appellant says: "... that the introduction of a contributory requirement for judicial annuities was a measure of financial responsibility, intended to accomplish the general application of a policy to structure all federally funded pension plans on a contributory basis. It was not directed exclusively towards the judges, but was part of a comprehen sive pensions policy whereby all holders of public office were to be put on a contributory basis." (Appellant's Memorandum of Fact and Law, para. 22.) This position ignores completely the very dif ferent constitutional position of civil servants as
compared to federally appointed judges as dis cussed supra and as set out in sections 99 and 100 of the Constitution Act, 1867. It is simply not possible, in my view, to structure the judges' pen sion plan on the same basis as a pension plan for the civil service, having regard to sections 99 and 100 supra.
Counsel for the appellant submits, however, that the words "provided by the Parliament of Cana- da", mean only that Parliament, rather than the provincial legislatures, shall pay the federally appointed judges. In his view, such a provision is necessary because of the divided jurisdiction as specified in subsections 91(27) and 92(14) of the Constitution Act, 1867, between Canada and the Provinces.
I do not agree that "provided" as used in section 100 is capable of such a restricted interpretation. I think it requires a wider construction. Quite apart from any other consideration, if all that was intended was to cover the area of responsibility as between Canada and the Provinces, I would have thought that the word "for" would have been added as was the case in subsection 91(8) as noted supra. Furthermore, if the sole reason for inserting this provision in section 100 was to settle the question of payment as between Canada and the Provinces, the provision would more logically be included in Part VI of the Constitution Act, 1867, entitled "DISTRIBUTION OF LEGISLATIVE POW ERS" which includes sections 91 and 92. It is however included in Part VII, entitled "JUDICA- TURE". That Part speaks to the appointment, selection, tenure, salaries, allowances and pensions of federally appointed judges and concludes with section 101 authorizing the constitution, mainte nance and organization of a general court of appeal for Canada together with additional courts for the better administration of the laws of Canada. When taken in this context and giving to the words used their plain and unequivocal mean ing, I conclude that the words "provided by the Parliament" in section 100 mean that Parliament
is required to supply all of the funds for judges' pensions. 15
Accordingly, and for the above reasons, I would answer the first question in the affirmative, and thus decide the first issue in the respondent's favour.
Issue No. 2—The power of Parliament, under the Constitution, as of December 20, 1975, to diminish, reduce or impair the fixed and estab lished salary and other benefits of the respond ent.
As stated earlier herein, the Trial Judge concluded that Parliament, without the consent of the respondent, did not have this constitutional power because:
(a) Canada is a federal state with a division of jurisdiction between the Provinces and Canada; and
(b) of the existence in our constitutional law of a fundamental legal principle that the full salaries of judges are absolutely secured to them during the continuance of their commissions.
In his opinion, this fundamental legal principle which forms a part of the constitution has its genesis in [at page 565] "... statutory texts which constitute a settlement between King and Parlia ment". The "statutory texts" to which he refers are firstly The Act of Settlement (1700) and secondly the Act of 1760. The Act of Settlement provided that "... Judges Commissions be made Quarndiu se bene gesserint, and their Salaries ascertained and established ...". (Emphasis added.) The Act of 1760 provided [in section 3]: "... That such Salaries as are settled upon Judges ... shall, in all time coming, be paid and payable to every such Judge ... so long as the Patents or Commissions of them, or any of them respectively,
15 The Living Webster defines "provide" inter alia, as "to furnish or supply for a purpose".
Similarly The Shorter Oxford English Dictionary defines "provide" inter alia, as: "to supply or furnish for use".
shall continue and remain in force." After a review of the various statutory provisions in the different Provinces of Canada prior to Confederation; of sections 99 and 100 of the Constitution Act, 1867; of the various amendments to the Judges Act; and after quoting extensively from articles by Professor W. R. Lederman, the Trial Judge concluded that (at page 582):
The great majority of legal authors and constitutional experts, both past and present, are of the view that, once appointed, a judge's salary is inviolable for as long as his commission continues.
At page 587, he makes it very clear that in his view this principle is one of fundamental constitu tional law as distinguished from mere political convention. With deference, I am unable to agree with this conclusion of the learned Trial Judge. In my view, the decision of the Supreme Court of Canada in Re Resolution to amend the Constitu tion, [1981] 1 S.C.R. 753, is most persuasive against that conclusion. In part I of that judgment, seven of the nine judges expressly rejected the proposition that a political convention may crystal lize into law (pages 774-775) stating:
No instance of an explicit recognition of a convention as having matured into a rule of law was produced. The very nature of a convention, as political in inception and as depending on a consistent course of political recognition by those for whose benefit and to whose detriment (if any) the convention devel oped over a considerable period of time is inconsistent with its legal enforcement.
The attempted assimilation of the growth of a convention to the growth of the common law is misconceived. The latter is the product of judicial effort, based on justiciable issues which have attained legal formulation and are subject to modification and even reversal by the courts which gave them birth when acting within their role in the state in obedience to statutes or consti tutional directives. No such parental role is played by the courts with respect to conventions.
And then, again at page 784, in commenting on one of Professor Lederman's articles, the same seven judges stated:
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.
To the same effect, in my view are the views of the six of the nine judges who wrote the majority
judgment in respect of part II of the Court's decision. In discussing the nature of constitutional conventions the Court majority said at pages 880 and 881:
The conventional rules of the constitution present one strik ing peculiarity. In contradistinction to the laws of the constitu tion, they are not enforced by the courts. One reason for this situation is that, unlike common law rules, conventions are not judge-made rules. They are not based on judicial precedents but on precedents established by the institutions of government themselves. Nor are they in the nature of statutory commands which it is the function and duty of the courts to obey and enforce. Furthermore, to enforce them would mean to adminis ter some formal sanction when they are breached. But the legal system from which -they are distinct does not contemplate formal sanctions for their breach.
Perhaps the main reason why conventional rules cannot be enforced by the courts is that they are generally in conflict with the legal rules which they postulate and the courts are bound to enforce the legal rules. The conflict is not of a type which would entail the commission of any illegality. It results from the fact that legal rules create wide powers, discretions and rights which conventions prescribe should be exercised only in a certain limited manner, if at all.
The difficulty I have with the proposition of the learned Trial Judge is that the so-called "settle- ment between King and Parliament" in England which, in his view, became a part of the Canadian Constitution in 1867 has not been "translated into a legal limitation" because it has not found "expression in imperative constitutional text or statute". Had it been intended that this so-called "statutory bargain" was to be incorporated into the Constitution of Canada, I would have thought that it would have found its way into the provisions of section 100 of the Constitution Act, 1867. As observed by the Trial Judge, such is the case with the South African and the American Constitutions which both contain express provisions that com pensation payable to judges cannot be diminished during their terms of office. As stated by the Supreme Court majority (in part II) supra, the conventional rules of the Constitution are not in the nature of statutory commands which courts must obey and enforce. Furthermore, as stated supra, conventional rules are generally in conflict with the legal rules which they postulate and the courts must enforce the legal rules. In the context of this issue in the instant case, the legal rules are set out in section 100. The duty imposed therein on Parliament is to fix and provide judges' salaries.
The Shorter Oxford English Dictionary defines "fix", inter alia, as "to determine". The Living Webster defines it, inter alia, as "to settle definite ly; to determine; to adjust or arrange; to provide or supply". I think that the duty imposed on Parlia ment by those words is to determine the quantum of the judge's salary and to supply the entire amount thereof. I think that implicit in that power to determine is the power to adjust that salary upwards or downwards as Parliament in its wisdom decides from time to time.
Counsel for the respondent made a further sub mission that section 100 of the Constitution Act, 1867, supra, cannot be considered in isolation but must be considered along with section 99 which extends security of tenure to federally appointed judges during good behaviour and provides for their removal from office only by the Governor General on address of the Senate and House of Commons. He submits that when these two sec tions are read together, they clearly provide that judges have constitutionally guaranteed tenure including constitutionally guaranteed salaries. I agree that section 99 guarantees tenure. I think however that section 100 requires Parliament to set and provide all of the funds for judges' salaries which, as stated supra, includes the power to vary those salaries upwards or downwards. Even read ing the two sections together, I find consistency rather than inconsistency in the constitutional provision contained in section 99 that the indepen dence of the judiciary be entrusted to Parliament while at the same time, by section 100, also entrusting to Parliament the duty to fix and pay for their salaries.
Turning now to the initial basis for his conclu sion on Issue No. 2, namely the fact that Canada is a federal state with a sharing of jurisdiction between the Provinces and Canada, the Trial Judge seems to have reached this conclusion on the following reasoning (at pages 588-589):
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. Failing a constitutional amendment, even the express consent of the Provinces would not suffice because a constitutional power or obligation cannot be legally changed or abandoned in a federal state by mere consent.
With respect I am unable to agree that the "feder- al nature of our Constitution" requires a constitu tional amendment to change or alter matters which are clearly within the powers given to Par liament by section 100 of the Constitution Act, 1867. As pointed out by the seven judges of the Supreme Court of Canada who wrote the majority judgment in respect of part I of the Court's deci sion (p. 806), there is an internal contradiction in speaking of federalism in the light of the invariable principle of British parliamentary supremacy which contradiction is resolved by the scheme of distribution of legislative power in the Constitution Act, 1867. Thus, it is my conclusion that since, pursuant to section 100, Parliament is entrusted with the power and obligation to provide, inter alia, the salaries of federally appointed judges, and since there is no qualification or restriction else where in the Constitution which would fetter that power and obligation, it remains unimpaired and is fully operative.
For these reasons I disagree with the conclusion of the Trial Judge that there exists in our constitu tional law, the fundamental legal principle dis cussed supra.
Issue No. 3—The respondent's cross-appeal on the question as to whether subsection 29.1(2) offends paragraph 1(b) of the Canadian Bill of Rights.
Counsel for the respondent said that this submis sion was not really a cross-appeal but was more in the nature of an alternative argument. It was the
respondent's position that if the Court failed to find that section 29.1 was ultra vires for the reasons advanced in support of either Issue No. 1 or Issue No. 2 supra, then the scheme envisaged by the section failed because it is contrary to paragraph 1(b) of the Canadian Bill of Rights in so far as the respondent is concerned because of its discriminatory effect on him. Since, in my view, the respondent is entitled to succeed on the first issue discussed supra, I do not propose to enter into a detailed examination of the merits of this issue. Suffice it to say that I agree with the disposition of this issue as proposed by the Chief Justice and with his reasons therefor.
Nature of the relief to which the respondent is entitled.
On page 22 of his Memorandum of Fact and Law, the respondent has suggested that if the Court should find that Parliament is not empowered under the Constitution to render contributory the retirement annuities of judges, the Court order should read:
The appeal is dismissed with costs but the relief of the judg ment a quo should read "the words `before February 17, 1975' of section 29.1(1) and the whole of section 29.1(2) of the Judges Act, as enacted by section 100 of 1974-75-76, c.81 are ultra vires of the Parliament of Canada."
I do not think that an order in such a form would be consistent with or reflect the conclusions I have reached. In my view, subsection 29.1(1) is not ultra vires the Parliament of Canada because the 1 1 / 2 % deduction from salaries provided for therein is dedicated exclusively to the cost of the improved annuities for widowed spouses and other depend ants of judges (see A.B. p. 18—letter from Otto Lang to all federally appointed judges, February 17, 1975). Such a provision does not offend the provisions of section 100 of the Constitution Act, 1867, supra since it does not require a contribution to the pensions of judges by the judges themselves. However, subsection 29.1(2) does offend section 100 because the judge's contribution thereunder is in respect of both his own annuity and those which may be paid to his dependants (see A.B. p. 19— the letter of February 17, 1975 from Otto Lang to all federally appointed judges referred to supra).
It is accordingly my opinion that the judgment given by the Trial Judge is the proper one, not withstanding that he reached his conclusion on a different basis than I have in these reasons. I would, therefore, dismiss the appeal with costs payable by the appellant to the respondent both here and in the Trial Division. I would dismiss the cross-appeal. Since the appellant has not asked for costs, I would not award any costs in respect of the cross-appeal. However, I agree with the direction proposed by the Chief Justice that the costs of the appeal be taxed on the basis of a hearing that lasted one and one-half days to compensate for the time spent in relation to the unsuccessful cross-appeal.
I realize that my proposed disposition would be to place judges appointed before February 17, 1975 in a less advantageous position than those appointed after February 16, 1975 because of my opinion that subsection 29.1(1) is not ultra vires the Parliament of Canada. However, if I am right in my view of the matter, Parliament, if it so decides, has the constitutional capacity to amend subsection 29.1(1) to require a like contribution of 1 1 / 2 % by the judges appointed after February 16, 1975 thus removing any inequity between federally appointed judges based solely on the date of their appointment.
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