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A-137-84
National Bank of Canada (Appellant)
v.
Rodney Granda (Respondent)
Court of Appeal, Pratte, Marceau and Hugessen JJ.—Montreal, March 22; Ottawa, April 19, 1984.
Labour relations — Appeal from Trial Division's dismissal of motion to stay execution of adjudicator's decision filed with Court under Code s. 61.5(12) — Decision ordering reinstate ment of unjustly dismissed employee — Employer appealing to Court of Appeal — Nauss and Purolator cases holding. (1) Code s. 123 filing and registration of Board decision does not give Court power to vary; (2) Trial Division has no power to stay execution of filed Board decision — Proposition (1) applicable to adjudicator's order — Cases overruled as to (2)
— Filing not giving decision of Board or adjudicator greater force than Court judgment — Decision not altered by stay — Appellant alleging inability to place confidence in respondent
— Proof of hardship to be suffered by appellant on execution insufficient to establish interests of justice served by staying presumptively valid decision — Appeal dismissed — Canada Labour Code, R.S.C. 1970, c. L-1, ss. 61.5(9),(10),(11),(12) and (13) (enacted by S.C. 1977-78, c. 27, s. 21), 119 (rep. and sub. S.C. 1972, c. 18, s. 1), 122 (rep. and sub. S.C. 1977-78, c. 27, s. 43), 123 (rep. and sub. ibid.) — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, ss. 28(1)(a), 50(1)(b).
Jurisdiction — Labour relations — Appeal from Trial Division's dismissal of motion to stay execution of adjudica tor's decision filed with Court under Codes. 61.5(12) — Nauss and Purolator cases holding (1) Code s. 123 filing and regis tration of Board decision does not give Court power to vary; (2) Trial Division has no power to stay execution of filed Board decision — Proposition (1) applicable to adjudicator's order
— Cases overruled as to (2) — Filing not giving decision of Board or adjudicator greater force than Court judgment — Appeal dismissed — Canada Labour Code, R.S.C. 1970, c. L-1, ss. 61.5(10),(11),(12) and (13) (enacted by S.C. 1977-78, c. 27, s. 21), 122 (rep. and sub. S.C. 1977-78, c. 27, s. 43), 123 (rep. and sub. ibid.) — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 50(1)(b).
Practice — Stay of execution — Appeal from Trial Divi sion's dismissal of motion to stay execution of adjudicator's decision filed with Court under Labour Code s. 61.5(12) — Court overruling conclusion in Nauss and Purolator cases that Trial Division has no power to stay execution of Board deci sion filed under Code s. 123 — Filing not giving decision of
Board or adjudicator greater force than Court judgment — Decision not altered by stay — Appeal dismissed — Canada Labour Code, R.S.C. 1970, c. L-1, ss. 61.5(12) and (13) (enacted by S.C. 1977-78, c. 27, s. 21), 123 (rep. and sub. S.C. 1977-78, c. 27, s. 43) — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 50(1) (b).
The respondent complained, under section 61.5 of the Canada Labour Code, that he had been unjustly dismissed by the appellant. Two years after the dismissal, the complaint was upheld by the adjudicator, who ordered that the respondent be reinstated, "in a position similar to that held by him at the time of his dismissal".
The respondent filed the adjudicator's decision with the Court, in accordance with subsection 61.5(12). The appellant, having applied to the Court of Appeal to have the decision set aside, brought a motion in the Trial Division, requesting a "stay of any proceeding arising out of' the registration. The motion was dismissed, on the ground that the judgment of the Court of Appeal in Nauss and Purolator had negatived the Trial Division's power to grant it. The decision of the Trial Division was appealed.
Held (Marceau J. dissenting), the appeal should be dismissed.
Per Pratte J. (Hugessen J. concurring): In the Nauss and Purolator cases, two conclusions were set forth. The first was that the filing and consequent registration of a decision of the Canada Labour Relations Board in the Federal Court pursuant to section 123 of the Code does not confer on the Court the power to vary the decision concerned. This conclusion is cor rect; moreover, there is no reasop why the same rule should not apply where what is at issue is an adjudicator's order filed under subsection 61.5(12).
Less acceptable is the second proposition, which was that the Trial Division has no power to order a stay of execution with respect to a duly filed decision of the Board. When a decision is filed in the Court, under either section 123 or subsection 61.5(12), it is invested with the same force and effect, for purposes of execution, that it would have possessed if it had been rendered by the Court; however, filing does not impart to a decision, either of the Board or of an adjudicator, greater force than a decison of the Court would have. Consequently, given that a court decision may be subjected to an order staying execution, the same should be true of an adjudicator's decision or a decision of the Board. This result does not conflict with the first conclusion discussed above, for the ordering of a stay does not alter the decision involved.
The Nauss and Purolator cases were therefore decided incor rectly, insofar as the second proposition is concerned. Applica tion of that rule would likely lead to serious hardship, and so it should not be followed.
Accordingly, the Trial Judge did have jurisdiction to grant the stay requested by the appellant.
Nevertheless, he was right not to do so. In a case of this kind, the Court may stay proceedings if it appears that to stay them
would be in the interests of justice. The only proof before the Court that execution of the order at issue might cause the appellant to suffer harm consisted of an affidavit in which it was stated that because the appellant can no longer place confidence in its former employee (i.e., the respondent), execu tion would cause it serious hardship. This evidence is insuffi cient to establish that it is in the interests of justice to stay execution of a decision which, until the contrary has been proven, must be considered valid.
Per Marceau J. (dissenting): The fundamental propositions advanced in Nauss and Purolator were: (1) that section 123 is intended to provide a means of executing decisions of the Board, neither the purpose nor the effect of the provision being to transform such decisions into decisions of the Court; and (2) that Board decisions must be regarded as final. These proposi tions do entail the conclusion that the Trial Division is without power to alter a decision of the Board, either directly or—by means of a stay order—indirectly. Furthermore, analogous rules apply where the decision in question is one made by an adjudicator. The basic propositions, though, do not necessarily imply the complete want of jurisdiction which the Trial Judge inferred. They need not be taken as completely denying the Trial Division the power temporarily to withhold the assistance of the Court's forced-execution proceedings, in respect of a decision of the Board or of an adjudicator.
Nor should this additional restriction on the Court's author ity be found to exist. The execution proceedings to which filing and registration (prima fade) give access remain proceedings of the Court. The Court must, and does, retain control of them. Language clearer than that of the present Code would be required in order to warrant the conclusion that Parliament intended the Court to perform the function of execution but to do so blindly and passively, without there being any possibility of recourse to the powers conferred by section 50 of the Federal Court Act, even for the purpose of safeguarding and maintain ing the Court's own jurisdiction.
The Trial Division should have the power to grant a tempo rary stay of execution where two conditions are met. First, the judge must be satisfied that immediate execution is likely to detract from the effectiveness of any finding of invalidity which the Court of Appeal might later make in regard to the particu lar decision. Secondly, there must be no likelihood that the stay will affect the possibility of future execution.
These two conditions are fulfilled in the case at bar. If the appellant were forced to re-employ the respondent and to place him in a senior position, while it is engaged in proceedings against him, in which it is attempting to establish its complete loss of confidence in him, there would likely be serious adverse effects upon the operation of the appellant—effects not suscept ible of adequate repair. However, delaying the respondent's return to his job for a few additional weeks, with more than two years having already elapsed, will not cause the respondent any non-compensable injury.
CASES JUDICIALLY CONSIDERED
APPLIED:
Talsky v. Talsky (No. 2) (1974), 39 D.L.R. (3d) 516 (Ont. C.A.); Battle Creek Toasted Corn Flake Co. Ltd. v. Kellogg Toasted Corn Flake Co. (1924), 55 O.L.R. 127 (131) (H.C.—Chambers).
OVERRULED:
Nauss et al. v. Local 269 of the International Longshore- men's Association, [1982] 1 F.C. 114 (C.A.); Union des employés de commerce, local 503 et al. v. Purolator Courrier Ltée, [1983] 2 F.C. 344 (C.A.).
COUNSEL:
J. A. Coleman and J.-A. Nadeau for
appellant.
G. Monette for respondent.
SOLICITORS:
Ogilvy, Renault, Montreal, for appellant. Monette, Clerk, Barakett, Levesque, Bourque & Pedneault, Montreal, for respondent.
The following is the English version of the reasons for judgment rendered by
PRATTE J.: The National Bank of Canada is appealing from a judgment of the Trial Division [dated January 9, 1984, T-2921-83, not yet report ed] which dismissed its motion for a stay in the execution of a decision by an adjudicator, which had been filed in the Court pursuant to subsection 61.5(12) of the Canada Labour Code [R.S.C. 1970, c. L-1 (s. 61.5 enacted by S.C. 1977-78, c. 27, s. 21)]. 1
This decision was made by an adjudicator after a complaint by respondent, pursuant to section 61.5 of the Code, that he had been unjustly dis missed by appellant. The adjudicator upheld respondent's complaint: he admitted that respond ent had acted in an irregular manner, but found that his actions were not serious enough to justify dismissal. The adjudicator accordingly ordered that respondent be reinstated [TRANSLATION] "in a position similar to that held by him at the time
' This subsection reads as follows
61.5...
(12) Any person affected by an order of an adjudicator under subsection (9), or the Minister on the request of any such person, may, after fourteen days from the date on which the order is made, or the date provided in it for compliance, whichever is the later date, file in the Federal Court of Canada a copy of the order, exclusive of the reasons therefor.
of his dismissal"; he further stated that respondent was entitled to compensation for the financial loss resulting from his dismissal up to August 9, 1982, but he made no order in this regard, reserving the right to do so later if the parties did not agree on the matter.
Respondent filed this decision in the Registry of the Court pursuant to subsection 61.5(12) of the Code. 2 . In accordance with section 28 of the Fed eral Court Act [R.S.C. 1970 (2nd Supp.), c. 10], applicant filed an originating notice asking that this order be set aside. Applicant then filed in the Trial Division a motion asking the Court to stay execution of the decision. Appellant did not wish to be required to re-employ respondent so long as the Court had not ruled on the validity of the decision. This stay motion was dismissed by the judgment a quo on the sole ground that the Trial Division, following the decisions of this Court in Nauss' and Purolator, ° did not have the power to grant it. In those two cases the Court held that the filing of a decision of the Canada Labour Rela tions Board with the Registry of the Court pursu ant to section 123 of the Canada Labour Code [rep. and sub. S.C. 1977-78, c. 27, s. 43], a provision similar to subsection 61.5(12), did not confer on the Trial Division the power to stay execution of that decision.
Counsel for the appellant invited the Court not to follow these precedents. He pointed out that Nauss and Purolator related to decisions of the Canada Labour Relations Board, whereas this is an order of an adjudicator. While a Board deci sion, he argued, is always open to review (section 119 [rep. and sub. S.C. 1972, c. 18, s.1]) and may not be filed in the Registry of the Court without
2 Subsection 61.5(12) authorizes the filing not of decisions of an adjudicator but of "orders" made by the adjudicator pursu ant to subsection 61.5(9): in other words, the only effect of filing the award in the case at bar was to give effect to the reinstatement order it contained.
' Nauss et al. v. Local 269 of the International Longshore- men's Association, [1982] 1 F.C. 114 (C.A.).
Union des employés de commerce, local 503 et al. v. Purolator Courrier Ltée, [1983] 2 F.C. 344 (C.A.), case no. A-399-82, a decision of October 15, 1982.
the Board's approval (subsection 123(1)), an order of an adjudicator cannot be altered after it has been made and may be filed in the Registry by "any person affected" without any control. In the submission of counsel for the appellant, this means that if Nauss and Purolator are applied to orders of an adjudicator, there would be no authority which could stay their implementation. He argued that this unacceptable result means the Court should either refuse to apply Nauss and Purolator to orders of an adjudicator or rule that these cases should not be followed.
In Nauss and Purolator the Court held, first, that the registration of a Board decision in the Registry of the Court did not confer on the Court the power to vary that decision. This finding appears to be correct, and I do not see why it should not apply to orders of an adjudicator filed pursuant to subsection 61.5(12) as well as to deci sions of the Board. Nauss and Purolator also held that the Trial Division does not have the power to order a stay in execution of a Board decision filed under section 123. It is this latter ruling which was challenged by counsel for the appellant.
When a decision is filed in the Registry of the Court under subsection 61.5(12) or section 123, it acquires the same executory force as if it had been rendered by the Court. This means that it is subject to forced execution just as a Court judg ment would be. However, filing does not give decisions of an adjudicator or of the Board more force than a decision of the Court would have. A decision of the Court can be the subject of a stay order. Logically, the same should be true of deci sions which are placed by sections 61.5 and 123 of the Canada Labour Code on the same footing as decisions of the Court. The fact that the Court does not have the power to vary those decisions does not invalidate this conclusion, since in order ing a stay in the execution of a decision by the Board or by an adjudicator the Court changes nothing in that decision, but merely directs that the failure to comply with it so long as the stay is in effect shall not be a basis for forced-execution proceedings in the Court. In so doing the Court is
only exercising, in accordance with paragraph 50(1)(b) of the Federal Court Act its power to stay proceedings when it seems proper to do so.
I therefore see that Nauss and Purolator were wrongly decided. It is all the more embarrassing for me to have to say this as I myself rendered these two decisions for the Court; but as applica tion of the rule stated in those two cases seems likely to lead to serious hardship, I think it should now be said that those two cases ought not to be followed insofar as they held that the Trial Divi sion does not have the power to order a stay in the execution of a decision filed in the Registry of the Court under section 123 of the Canada Labour Code.
I am accordingly of the view that the Trial Judge had jurisdiction to grant the stay requested by appellant. The question remains as to whether he ought to have done so.
The principle that must guide the Court in a case of this kind is very tersely stated in section 50 of the Federal Court Act, under which the Court may stay the proceedings in any matter when it appears that doing so "is in the interest of justice". For a further clarification of this rule reference may be had to the decision of Arnup J.A. of the Ontario Court of Appeal in Talsky v. Talsky (No. 2) (1974), 39 D.L.R. (3d) 516. There the Court had before it an application for a stay of a decision of the Ontario Court of Appeal which was being appealed to the Supreme Court of Canada. It referred to what Middleton J. had said on the same point in Battle Creek Toasted Corn Flake Co. Ltd. v. Kellogg Toasted Corn Flake Co. (1924), 55 O.L.R. 127 (131) (H.C.—Chambers). Arnup J.A. first cited [at page 522 D.L.R.] the following passage from the decision of Middleton J. [at page 132 O.L.R.]:
In all cases in which the stay will impose little suffering upon the respondent, and this can be compensated by payment of actual damages which admit of easy and substantially accurate computation, and in which on the other hand grievous loss and irremediable harm will be done the appellant if the stay is refused, the operation of the judgment ought to be stayed. The principle then is the same as that applied in the case of an application for an interim injunction—the balance of conve nience, with an added factor of the greatest weight, the actual
adjudication that has taken place, and which must be regarded as prima facie right.
Arnup J.A. went on to observe [at page 522]:
Middleton, J., then proceeded to discuss a number of the English cases in which the question of granting or refusing a stay had been considered and I think [...j that they hold, in general, that the Court exercises the power in order to prevent a situation arising where an appellant wins in the ultimate Court but finds following his victory that in the meantime either the subject-matter of the lawsuit has disappeared or he has been required to make a payment which he cannot recover back, or in some other way the litigation and its ultimate result has been rendered nugatory.
If I apply these considerations to the case at bar, I think it is clear that appellant was not entitled to the stay it was requesting. The only proof in the record of any harm that might be suffered by appellant if it had to execute the adjudicator's order consisted of an affidavit of its counsel stating that execution of the adjudicator's order would cause appellant serious hardship because it can no longer place confidence in its former employee. In my view, it cannot be said on the basis of this evidence that it is in the interests of justice to stay execution of a decision which, until there is proof to the contrary, must be considered valid.
I would dismiss the appeal with costs. HUGESSEN J.: I concur.
The following is the English version of the reasons for judgment rendered by
MARCEAU J. (dissenting): The circumstances surrounding this appeal from a judgment of the Trial Division are quite straightforward, and may be examined forthwith.
On November 10, 1983 an adjudicator, acting pursuant to Part III of the Canada Labour Code, made an order in which he found that appellant had wrongly dismissed respondent two years ear lier and directed it to reinstate the latter as a member of its full-time staff, and to compensate him for the loss of salary he had suffered. In accordance with section 28 of the Federal Court Act, appellant then challenged the validity of this decision by the adjudicator in the Federal Court of Appeal. However, when it learned shortly thereaf ter that the decision had been filed in the Registry
of the Trial Division, and so registered—which under subsection 61.5(13) of the Code gave it the executory force of a judgment of the Court—and at the same time was put on notice by respondent to comply with the directions of the adjudicator without delay, appellant applied to the Trial Divi sion to have the filing of the decision invalidated, or at least, for a "stay of any proceeding arising out of" the registration to be imposed and to have effect until the decision is finally affirmed, if that happens. The Judge hearing the motion summarily dismissed it on the ground that the two appellate judgments, Nauss et al. v. Local 269 of the Inter national Longshoremen's Association, [1982] 1 F.C. 114 (C.A.), and Union des employés de commerce, local 503 et al. v. Purolator Courrier Ltée, [1983] 2 F.C. 344 (C.A.) (case no. A-399-82, a decision of October 15, 1982), denied him any jurisdiction to respond to it. It is this decision which is before the Court: appellant main tains that the Judge erred on the motion for a stay, that he had jurisdiction to grant it and should have done so, and it asks the Court to intervene. 5
I consider that this appeal is valid and should succeed. In my view, first, Nauss and Purolator do not necessarily lead to the conclusion of a total lack of jurisdiction deduced from them by the Trial Judge, and this conclusion is one which, both in terms of principle and of practical convenience, should be rejected; and second, appellant's applica tion should have been given favourable considera tion in the circumstances of the case at bar.
1. There is no doubt that certain passages of the short reasons rendered in support of Nauss and Purolator do appear to give a very wide ambit to the findings of a lack of jurisdiction made there. Nevertheless, I consider that the fundamental pro
s Since its inscription in appeal appellant has entered in the record of the application to set aside under section 28 a motion to stay in the same terms as that made in the Trial Division. Accordingly, the question of whether this Court has jurisdiction to order a stay of execution of a decision made under the Canada Labour Code, whether in its Trial Division or in the Court of Appeal, is squarely presented. For the moment, how ever, only the Trial Division is in question.
positions put forward by the appellate Judges in those cases do not lead to conclusions of indefinite extent. As I understand them, these propositions are as follows: (a) section 123 of Part V of the Canada Labour Code is intended to provide a means of making decisions of the Canada Labour Relations Board enforceable, and neither its pur pose nor effect is to transform these decisions into decisions of this Court; (b) section 119 and 122 [rep. and sub. S.C. 1977-78, c. 27, s-43] of this Part of the Code clearly indicate that Board deci sions should be regarded as final and may not be questioned or reviewed in any court, except within the specified limits (that is, in accordance with paragraph 28(1)(a) of the Federal Court Act). The appellate Judges applied these fundamental propositions so as to deny the Trial Division the power to alter a decision of the Board, either directly by ad hoc order or indirectly by a stay order. It must be recognized that the two proposi tions put forward lead to the conclusion stated, just as it must be admitted that corresponding propositions apply in the case of adjudicator's decisions pursuant to Part III of the Code, since subsections 61.5(10),(11),(12) and (13 ), which govern these decisions by an adjudicator, are essentially to the same effect as sections 119, 122 and 123 so far as Board decisions are concerned. However, these propositions do not necessarily lead to denying the Trial Division's power to tem porarily refuse to lend its forced-execution pro ceeding to a decision of the Board or an adjudica tor, provided the delay which is likely to result from such a temporary refusal does not have the effect of substantially altering the decision or of making its eventual execution doubtful.
Why is it necessary to go this far? In providing that filing and registration in the Registry give the decision of an adjudicator the same force and effect as a judgment of the Court, the statute clearly intends to make the forced-execution pro ceedings by which the Court exercises its powers of constraint applicable to orders made by the adjudicator, but these proceedings remain proceed ings of the Court over which it must and in fact
does retain control: it is not the Board or the adjudicator which compels execution of the deci sion, it is the Court. I think there would have to be clearer language than that of the present statute to indicate that Parliament intended to confer the function of execution on this Court while asking it to exercise that function blindly and passively, with no scope for appeal to the powers conferred (though in general terms) by section 50 of its enabling Act, even in order to safeguard and main tain its own jurisdiction.
The latter observation indicates, I believe, where the dividing line should be drawn, so as both to give effect to the intent of Parliament to make decisions of the Board and of adjudicators final, and not to strip the Court of all power of supervis ing its own special proceedings, which exist essen tially for its own purposes. I think it is only right that, in its Trial Division, the Court should have the power to temporarily refuse to lend its aid to compel the immediate execution of a decision, if it appears that such immediate forced execution would have the effect of making pointless, illusory or only partially effective the power of reviewing and supervising legality which is exercised by the Court of Appeal.
If the Trial Division is thus granted the power to temporarily refuse its aid to the forced execution of a decision of an adjudicator registered in its Registry, the validity of which has been challenged under section 28, I consider, with respect for those who do not share my view, that in the case at bar this power should have been exercised.
I have just indicated what I feel are the limits of this power of the trial judge and the reasons which may prompt its exercise. Two conditions seem essential: first, that the judge be satisfied that immediate execution is likely to impair the effec tiveness of the eventual finding of invalidity which the Court of Appeal might make; and second, that a stay of execution not be likely to affect the possibility of future execution of the decision. In my view, these two conditions are met here. Forc ing appellant to reinstate respondent in its employ immediately and to place him again in a senior
position of responsibility while it is at the same time engaged in proceedings against him, seeking to establish that it has completely lost confidence in him, would I think be likely to have serious repercussions for its operations which no judgment of a court could adequately repair. On the other hand, delaying respondent's return to his job for a few additional weeks, after over two years, will cause him no injury which payment of the salary which he has lost in the meantime cannot repair.
Accordingly, I would set aside the decision of the Trial Judge and, making the decision he ought to have made, I would direct that no forced-execu tion proceeding be issued in respect of the decision of the adjudicator registered on December 13, 1983, so long as the application to set aside made against that decision under section 28 has not been finally decided, or a trial judge has not terminated this stay order by giving effect to a motion in this regard based on the occurrence of new facts. How ever, I would make the implementation of this stay order subject to the filing by appellant in the record of the Court of a written undertaking that, if the decision is affirmed, it will pay respondent without delay what he would have been entitled to if he had been reinstated in his position immediately.
I would not award costs in the proceedings leading to this order to either of the two parties.
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