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T-754-83
Patrick Archibald, Bruce Bailey and Vince Ben- nett (Plaintiffs)
v.
Attorney General of Canada, Tom Dent, Sandy Thompson and Joyce Bleakney (Defendants)
Trial Division, Walsh J.—Vancouver, March 28 and April 7, 1983.
Public service — Investigation revealing irregularities in assessment of candidate improperly disqualified — Order of merit affected — Public Service Commission proposing to re-interview candidates including plaintiffs and to establish new selection board — Motion for permanent injunction and declaratory relief on quia timer basis to prevent further inter views and to declare purported revocation of appointments null and void — Interlocutory injunction to issue — No formal finding as to declaratory relief — Plaintiffs establishing prima facie case — S. 6(3) of Public Service Employment Act applicable to one plaintiff appointed from within Public Ser vice — Revocation of appointments not authorized either by Act or Regulations — Implied power of Commission to right mistakes insufficient to confer authority — Statute conferring power to be interpreted strictly — Presumption against creat ing or enlarging powers — Ss. 6, 21, 31 and 32 of Act not applicable — Commission required to act fairly — Irreparable harm established — Balance of convenience in favour of plaintiffs — Public Service Employment Act, R.S.C. 1970, c. P-32, ss. 5(d), 6, 21, 28, 29, 31, 32 — Public Service Employ ment Regulations, C.R.C., c. 1337 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 18.
Practice — Proceedings commenced by statement of claim — Immediately thereafter plaintiffs moving for permanent injunction and repeating claim for declaratory relief — R. 603 providing certain relief available upon action or motion — No authority for granting declaratory relief on interim basis upon motion for injunction merely incident in action for declaratory relief — Plaintiffs conceding merits of injunction depending on facts and law giving rise to declaratory relief claims — Interlocutory injunction granted — Federal Court Rules, C.R.C., c. 663, R. 603 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 18.
This is a motion for a permanent injunction on a quia timer basis to prevent the defendants from conducting further inter views and from revoking plaintiffs' appointments to the Public Service, and for a declaration, also on a quia time[ basis, that the purported revocation is null and void. Following a com plaint with respect to a competition, an investigation was held
and irregularities were found in the conduct of the competition as to the assessment of a candidate who was improperly dis qualified. This affected the relative order of merit of the candidates. As a result, the Public Service Commission pro posed to re-interview all the candidates, including the plaintiffs, other than those who were screened out, withdrew from the competition or failed to attend for an interview. A new selection board was to be set up, composed of the three individuals named as defendants herein.
Held, an interlocutory injunction is to issue and to remain in effect until the action seeking declaratory relief has been decided.
Plaintiffs have established a prima facie case. Subsection 6(3) of the Act applies with respect to one of the plaintiffs whose appointment was from within the Public Service, so that his appointment could only be revoked upon the recommenda tion of a board established to conduct an inquiry at which the employee and the deputy head concerned are given an opportu nity of being heard. Plaintiff Bailey has been given no such opportunity. Moreover, there is no specific section in the Act or the Regulations which gives the Commission the authority to revoke the appointments, and it is not sufficient to rely on an implied power of the Commission to right mistakes made in establishing the original eligibility list. A statute conferring power must be interpreted strictly and there is a presumption against creating new or enlarging existing powers. Sections 6, 21, 31 and 32 of the Act, all referred to in paragraph 5(d), which provides for the powers and duties of the Commission, do not apply. Whether the Commission has the authority to revoke the appointments or not, it is, nevertheless, required to act fairly within the principles set out in Nicholson v. Haldimand- Norfolk Regional Board of Commissioners of Police, [1979] 1 S.C.R. 311. As to the issue of irreparable harm, if the plaintiffs were to lose their present employment, that would cause them damages which would be difficult to calculate. The balance of convenience is in favour of the plaintiffs: it would be more inconvenient for the plaintiffs to be forced to undergo the risk of a new competition than for the defendants to be prevented from correcting an error.
Since the merits of the injunction are dependent upon the facts and law giving rise to the claims for declaratory relief, the injunction sought at this stage should not be permanent. Also, neither the Federal Court Act nor its Rules authorize the granting of declaratory relief on an interim basis by way of a motion for injunction which is merely an incident in the action seeking declaratory relief. It follows that there will be no formal finding as to the claim for declaratory relief.
CASES JUDICIALLY CONSIDERED
DISTINGUISHED:
Cutter Ltd. v. Baxter Travenol Laboratories of Canada, Ltd. et al. (1980), 47 C.P.R. (2d) 53 (F.C.A.).
CONSIDERED:
Nicholson v. Haldimand-Norfolk Regional Board of Commissioners of Police, [1979] 1 S.C.R. 311; 88 D.L.R. (3d) 671; Jarvis v. Associated Medical Services,
Incorporated, et al., [1964] S.C.R. 497; 44 D.L.R. (2d) 407.
COUNSEL:
R. Albert for plaintiffs.
L. Huculak for defendants.
SOLICITORS:
Stewart & McKay, Edmonton, for plaintiffs.
Deputy Attorney General of Canada for defendants.
The following are the reasons for order ren dered in English by
WALSH J.: UPON motion dated March 17, 1983 on behalf of the plaintiffs for:
a) A permanent injunction restraining the Defendants from interfering in any manner with the Plaintiffs' positions and status as LEAP Project Officers;
b) A permanent injunction restraining the Defendants from constituting a Selection Board and conducting further interviews in relation to Competition Number 82-E1C- OC-ARO-EDM-14;
c) A declaration that the Competition identified by number 82-E1C-OC-ARO-EDM-14, held in or about the months of April and May, 1982 and the resulting appointments of the Plaintiffs as LEAP Project Officers were and continue to be valid;
d) A declaration that any acts of the Defendant purporting to revoke the appointments of the Plaintiffs as LEAP Project Officers are ultra vires;
e) In the alternative, a declaration that any acts of the Defendant purporting to revoke the appointments of the Plaintiffs as LEAP Project Officers, were an illegal, unrea sonable or improper exercise of such authority;
f) A declaration that the purported revocation of the appoint ments of the Plaintiffs was null and void;
g) Such further and consequential relief as this Honourable Court may deem just in the circumstances.
h) Costs.
REASONS FOR ORDER
As can be seen the motion seeks not only a permanent injunction but also declaratory relief against the defendants on a quia timet basis, since none of the plaintiffs' appointments have yet been revoked nor have any recommendations been made to revoke such appointments according to the affidavit of Lorraine Bazinet, Regional Director,
Alberta and Northwest Territories Region of the Staffing Branch of the Public Service Commission of Canada.
Proceedings were instituted by means of a state ment of claim filed on March 16, 1983 which was immediately followed by the motion for injunction which repeats the prayer for declaratory relief. While this Court has jurisdiction over both injunc tions and declaratory relief by virtue of section 18 of the Federal Court Act [R.S.C. 1970 (2nd Supp.), c. 10] and Rule 603 of the Rules of this Court [C.R.C., c. 663] provides that a proceeding for declaratory relief may be brought either by way of a motion or by commencing an action by way of statement of claim or declaration, there would appear to be no authority for the granting of declaratory relief on an interim basis by way of a motion for injunction which is merely an incident in the action seeking declaratory relief in which the merits of this relief will be decided. Further more, since the plaintiffs concede that the merits of the injunction are dependent upon the facts and law giving rise to the claims for declaratory relief, the injunction sought at this stage of proceedings should not be a permanent injunction but an inter locutory injunction to remain in effect until the action seeking declaratory relief has been decided.
In order to decide at this stage of the proceed ings whether such an interlocutory injunction should be granted, however, it is necessary to go to a considerable extent into the facts and law on the basis of which the eventual declaratory relief is sought to determine whether the plaintiffs have a fairly arguable case and the other requirements for the issue of an interlocutory injunction.
Affidavits on behalf of all three plaintiffs were submitted, being substantially identical with only minor variations. The competition was an open one—that is to say, applicants need not apply from within the Public Service. Plaintiffs Archibald and Bennett were from outside the Civil Service but plaintiff Bailey applied from within the Civil Ser vice where he was already employed.
In the case of Archibald, he already had employment outside the Civil Service and had to
give a month's notice before taking up the Civil Service appointment given to him as a result of the competition. Bailey, as already stated, was already employed within the Civil Service but plaintiff Bennett was apparently free to take up his duties on May 10, 1982, immediately after accepting the position on May 7. There is no suggestion that the work of any of the applicants since their appoint ment has been unsatisfactory or that their appoint ments could be revoked for cause, nor is there any suggestion that any of their appointments would be terminated by application of section 28 of the Act [Public Service Employment Act, R.S.C. 1970, c. P-32] as all three plaintiffs are still within the probationary period, since this would involve rejection for cause. Section 21 of the Act does not apply since this only applies to appointments made from within the Public Service, either by closed competition or without competition so no appeal is available to an unsuccessful candidate with respect to this competition nor can an appointment be revoked as a result of any such appeal. Neither is section 29 applicable, providing for lay-offs for lack of work or discontinuance of a function, and as already stated, section 31 dealing with release of employees for incompetence or incapacity is not applicable in the present case nor is there any suggestion of political partisanship which might be invoked under section 32.
It is the defendants' position that as a result of a complaint regarding the competition, the Appeals and Investigations Branch undertook an investiga tion and found irregularities in the conduct of it with regard to the assessment of a candidate who was improperly disqualified which error in assess ment might have affected the relative order of merit of candidates on the eligibility list. As a result of this, it is proposed to re-interview and re-evaluate all the candidates in the competition including the three plaintiffs, other than candi dates who were screened out, withdrew from the competition, cancelled their interviews or failed to show for an interview, said re-interviews to be conducted by a new selection board composed of the three individuals named as defendants herein. In effect the Public Service Commission decided that since the position of the first selection board had been compromised these candidates should be re-interviewed and reassessed in order to insure a
fair and objective assessment of all interested can didates. It is conceded that only the Public Service Commission can revoke an appointment and only on the recommendation of the Executive Director of the Staffing Branch. No steps have been taken as yet save to set up appointments for re-interviews of the three plaintiffs which appointments were cancelled as a result of the present motion for injunction.
Plaintiffs Archibald and Bailey accepted their appointments on May 10, 1982, and plaintiff Ben- nett on May 7, 1982. On May 13, 1982 the complaint was received by the Investigations Directorate relating to the competition and on May 25, 1982 an investigation file was opened and assigned to one J. M. Millet, Investigations Offi cer. The investigation was allegedly pursued actively but the affidavit of Claude O. Morissette, Director of the Investigations Directorate of the Appeals and Investigations Branch of the Public Service Commission, states that Mr. Millet had a work-load of 30 to 40 cases to investigate in Alber- ta, British Columbia, Yukon and the Northwest Territories so that the investigation was not com pleted until December 20, 1982. This was then reviewed by his Division Chief and by Mr. Moris- sette, discussions took place with the Staffing Branch of the Public Service Commission and senior officials of the Canada Employment and Immigration Commission in Ottawa. On January 27, 1983, a letter was sent by C. A. Lafreniere, Mr. Millet's Division Chief, to H. D. Lindley, Executive Director of Personnel of the Canada Employment and Immigration Commission requesting the Department to re-interview and re-evaluate all candidates other than those who had been screened prior to the interview, with drawn from the competition or failed to show for an interview. These recommendations had the con currence of the Staffing Branch of the Public Service Commission. To the date the affidavit was taken, March 24, 1983, no other action had been recommended as the outcome of the reassessment cannot be foreseen.
Quite aside from the legal issue as to whether the Commission can legally do what it now pro-
poses to do, it is totally unacceptable that as a result of alleged pressure of work an investigation should take ten months to complete and then be used to the disadvantage of entirely innocent individuals such as the plaintiffs whose employ ment record since their employment has been entirely satisfactory and who, at least in the case of Archibald, gave up other employment outside the Civil Service in order to take up this employ ment, and in the case of Bailey, transferred from other employment within the Public Service.
Moreover, in the case of Bailey whose appoint ment was from within the Public Service, subsec tion (3) of section 6 of the Act applies and his appointment could only be revoked upon the recommendation of a board established to conduct an inquiry at which the employee and the deputy head concerned or their representatives were given an opportunity of being heard. Bailey has been given no opportunity to be heard.
While, as defendants' counsel points out, the appointments of the plaintiffs have not been revoked and they are continuing to perform their duties and be remunerated for same that does not obviate the conclusion that these appointments might be placed in jeopardy if they had to be re-interviewed and reclassified along with other candidates including, most probably, the candidate who complained and, as a result, possibly ranked in a different order of merit. Understandably they object to this and are justified in seeking an injunction to prevent it even if on a quia timet basis. This conclusion might not prevail, however, if the Commission in making an administrative decision of this nature has the authority to do so, although even in that event, it appears highly doubtful whether it could be said that in the event that the plaintiffs' appointments were revoked on the grounds of irregularity in the competition and they were obliged to enter a new competition in order to retain the positions which they have held for ten months, they would have been treated fairly as required by the Nicholson' case in which Chief Justice Laskin in rendering the decision of
' Nicholson v. Haldimand-Norfolk Regional Board of Com missioners of Police [[1979] 1 S.C.R. 311]; 88 D.L.R. (3d) 671.
the Court stated at page 324 [Supreme Court Reports] :
In short, I am of the opinion that although the appellant clearly cannot claim the procedural protections afforded to a constable with more than eighteen months' service, he cannot be denied any protection. He should be treated "fairly" not arbitrarily. I accept, therefore, for present purposes and as a common law principle what Megarry J. accepted in Bates v. Lord Hailsham ([1972] 1 W.L.R. 1373), at p. 1378, "that in the sphere of the so-called quasi-judicial the rules of natural justice run, and that in the administrative or executive field there is a general duty of fairness".
While this conclusion might well be sufficient to deal with the matter, it is desirable, without making any final finding in the nature of a declaratory judgment, to examine briefly the ques tion of whether the Commission has the legal authority and power to do what it is attempting to do. The principle involved is well set out in the Supreme Court case of Jarvis v. Associated Medi cal Services, Incorporated, et a1. 2 in which Cart- wright J. stated at page 502 [Supreme Court Reports] :
My entire agreement with the reasons of Aylesworth J.A. includes, of course, the adoption of his statement:
... it is trite to observe that the Board cannot by an erroneous interpretation of any section or sections of the Act confer upon itself a jurisdiction which it otherwise would not have.
Again at page 502 he states:
The extent of the Board's jurisdiction is fixed by the statute which creates it and cannot be enlarged by a mistaken view entertained by the Board as to the meaning of that statute. The governing principle was succinctly stated by my brother Fau- teux in In re Ontario Labour Relations Board, Toronto News paper Guild, Local 87 v. Globe Printing Co. ([1953] 2 S.C.R. 18) at p. 41:
The authorities are clear that jurisdiction cannot be obtained nor can it be declined as a result of a misinterpreta tion of the law, and that in both cases the controlling power of superior Courts obtains, notwithstanding the existence in the Act of a no certiorari clause.
This was the rule applied by the Court of Appeal in the case at bar. What is complained of by the respondent is not that the Board has been induced by errors of fact or law, or by both, to make an order in the exercise of its statutory jurisdiction, but rather that it has purported to make an order which the Act has not empowered it to make at all.
Counsel for the defendants was unable to refer to any specific section in the Act or Regulations
2 [[1964] S.C.R. 497]; 44 D.L.R. (2d) 407.
[Public Service Employment Regulations, C.R.C., c. 1337] which would give even the Commission itself authority to revoke the appointments of the plaintiffs in the circumstances of this case and was forced to rely on an implied power of the Commis sion to right mistakes which may have been made in establishing the original eligibility list from which the plaintiffs' appointments were made. This is not sufficient. A statute conferring power must be interpreted strictly and there is a pre sumption against creating new or enlarging exist ing powers (see Maxwell On The Interpretation of Statutes, 12th ed. [London: Sweet & Maxwell, 1969], pages 258 and 159 respectively).
Section 5 of the Act dealing with general powers and duties of the Commission gives it the power inter alia to:
5....
(d) establish boards to make recommendations to the Com mission on matters referred to such boards under section 6, to render decisions on appeals made to such boards under sections 21 and 31 and to render decisions on matters referred to such boards under section 32;
but, as already pointed out neither sections 21, 31 nor 32 apply. Section 6 deals with delegation of authority and paragraph (a) of subsection (2) does not apply as there is no suggestion that any of the plaintiffs do not have the qualifications necessary to perform the duties of the positions they occupy. Neither would paragraph (b) of subsection (2) appear to apply, especially in view of the conclud ing clause of subsection (2) which reads as follows:
6. (2) ...
the Commission, notwithstanding anything in this Act but subject to subsection (3), shall revoke the appointment or direct that the appointment not be made, as the case may be, and may thereupon appoint that person at a level that in the opinion of the Commission is commensurate with his qualifications.
These sections seem to suggest that if a person has been appointed to a level that is not commensurate with his qualifications, it may be revoked and the Commission "may" appoint that person at a level that is commensurate with his qualifications.
Without making any decision, therefore, as to the declaratory relief sought by the plaintiffs in paragraphs c), d) and f) of the motion, which should not be decided at this stage of the proceed-
ings, I find that the plaintiffs have a very strongly arguable case and even a prima facie case for the issue of an interlocutory injunction until the deci sion of the action on the merits. The defendants argue, however, that having reached this conclu sion it is now necessary to deal with the question of whether they will suffer irreparable injury if such an injunction is not granted. Reference was made to the case of Cutter Ltd. v. Baxter Travenol Laboratories of Canada, Ltd. et a1. 3 In that case, as in many patent cases, however, it was found that any harm suffered by plaintiff could be com pensated by payment of damages so that a finding of irreparable harm was not warranted by the evidence. In rendering the judgment of the Court of Appeal, Chief Justice Thurlow also found that consideration should be given to corresponding irreparable harm which might have been caused to the appellant by being restrained from promoting its legitimate interests. The same situation hardly applies here where the possibility of losing their present employment if this resulted from being forced to enter another competition in which they might be ranked differently, would cause damage to the plaintiffs difficult to calculate, while on the other hand the only jeopardy of the defendant, the Attorney General of Canada, might be a possible claim by a party who had complained that his or her qualifications had not properly been con sidered by the parties conducting the original competition.
On the question of balance of convenience I would also find that it would be considerably more inconvenient for the plaintiffs to be forced to undergo the risk of a new competition than for the defendants to be prevented from correcting an error allegedly originally made in the assessment of candidates in the original competition by the holding of a new one.
While it is true as counsel for the defendants points out that the affidavits submitted on behalf of the plaintiffs do not specifically make reference to the prejudice which they would suffer if new competitions are held, this appears in paragraph 7 of the statement of claim which refers to the irreparable harm and damage which would result
3 (1980), 47 C.P.R. (2d) 53 [F.C.A.].
from their appointments being wrongfully revoked, and in any event it is evident that such would be the case. As has been stated they have not yet been revoked but there would appear to be no merit in waiting for such revocation before the institution of proceedings, and the granting of injunctions on a quia timet basis in other situations is well established.
As the defendants concede that no steps have been taken since the decision to hold the new competition, it would appear that little, if any, prejudice will be caused by requiring that matters be held in status quo until decision in the action claiming the declaratory relief which the plaintiffs seek.
ORDER
An interlocutory injunction is issued restraining the defendants from interfering in any manner with the plaintiffs' positions and status as LEAP Project Officers and restraining the defendants from constituting a selection board and conducting further interviews in relation to competition number 82-EIC-OC-ARO-EDM-14 until final judgment is rendered on the trial of the proceed ings herein, with costs.
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