Judgments

Decision Information

Decision Content

T-1085-85
Josephine E. Marshall (Plaintiff) v.
The Queen and Public Service Alliance of Canada, Union of Public Service Commission Employees, Component (Defendants)
Trial Division, Reed J.—Halifax, August 7; Ottawa, November 19, 1985.
Federal Court jurisdiction — Trial Division — Former public servant suing employer for illegal lay-off and union for collusion with employer — Union moving to strike pleadings as against it for want of jurisdiction — Arguing tort claim one for provincial superior courts — Causes of action against employer and union intertwined — "Laws of Canada" in Constitution Act, 1867, s. 101 meaning federal statutory, regulatory or common law — Sufficient for jurisdiction that case determined to some material extent by federal law — Contract and tort not solely provincial law matters — Inten tion of Parliament in enacting Federal Court Act, s. 17(1) — Cases holding no jurisdiction distinguished as ones where no underlying y g federal law — Motion denied —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 (UK.), Schedule to the Constitution Act, 1982, Item 1), s. 101 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, ss. 2, 17(1), 22(1),(2)(a).
Public service — Former public servant suing employer for illegal lay-off and union for collusion — Union moving to strike pleadings as against it for want of jurisdiction — Arguing tort claim one for provincial superior courts — Causes of action against employer and union intertwined — Under Act, union having implied obligation to represent employees for whom certified — Federal law to underpin jurisdiction of Federal Court — Public Service Staff Relations Act, R.S.C. 1970, c. P-35, ss. 40(1)(a)(ii), 90(1),(2), 91(1),(2) — Public Service Employment Act, R.S.C. 1970, c. P-32.
The plaintiff's claim is against the Queen, her former employer, and the Public Service union. The plaintiff says that she was illegally declared surplus and laid off. The union is said to have colluded with the employer's wrongful actions.
This is an application by the union to strike the pleadings as against it for want of jurisdiction. It is submitted that, since the cause of action lies in tort, jurisdiction is in the provincial
superior courts. The union's argument is that the cause of action does not fall within "the Laws of Canada" in section 101 of the Constitution Act, 1867. The plaintiff submits that her cause of action against the union is intimately bound up with her claim against the Public Service Commission and that if two trials were held there would be a duplication of costs and findings.
Held, the motion should be dismissed.
Section 101 of the Constitution Act, 1867 provides that Parliament may provide for the establishment of additional courts for the better administration of the laws of Canada. That wording has been held as encompassing only federal law, whether under statute, regulation or common law. It includes as well any body of law, such as admiralty law, which has been recognized by Parliament. Bensol Customs Brokers Ltd. v. Air Canada, [1979] 2 F.C. 575 (C.A.) is authority for the proposi tion that, for the Federal Court to have jurisdiction, the claim need not be based solely on federal law. In that case, Le Dain J. recognized the inevitability that sometimes the rights and obligations of parties will depend partly upon federal and partly on provincial law. It was sufficient that the result would be "determined to some material extent by federal law". It has been held by the Supreme Court that contract and tort are not to be deemed to be solely matters of provincial law.
For the purposes of this motion it is reasonable to hold that, under the Public Service Staff Relations Act, there is an implied obligation on the bargaining agent to properly and fairly represent the employees for whom it is certified. There was, accordingly, existing and applicable federal law to under pin the jurisdiction of the Federal Court.
It was to be noted that, by subsection 17(1) of the Federal Court Act, the Trial Division is given jurisdiction in all "cases" where relief is claimed against the Crown. Had Parliament intended to narrow the jurisdictional scope, the word "claims" would have been used. Furthermore, it was unlikely that Parlia ment would have intended to disadvantage persons in plaintiff's position by requiring them to split a unified cause of action and to bring part in Federal Court and part in a provincial superior court. Federal Court decisions which appear to have gone the other way are to be distinguished on their facts. If not distin guishable, the conclusion reached therein could not be agreed with. In none of those cases was subsection 17(1) subjected to a detailed consideration. For those reasons, this Court was not bound by the decision of the Court of Appeal in Lubicon. The reasoning of the Supreme Court in the Sparrows Point case, although related to the admiralty jurisdiction of the Exchequer Court, was applicable to the interpretation of subsection 17(1).
The cases relied upon in argument by the union were to be distinguished as ones where there was no underlying federal law.
CASES JUDICIALLY CONSIDERED
APPLIED:
The King v. Hume and Consolidated Distilleries Ltd. (Consolidated Exporters Corp., Ltd., Third Party), [1930] S.C.R. 531; Quebec North Shore Paper Co. et al. v. Canadian Pacific Ltd. et al., [1977] 2 S.C.R. 1054; Rhine v. The Queen; Prytula v. The Queen, [1980] 2 S.C.R. 442; Bensol Customs Brokers Ltd. v. Air Canada, [1979] 2 F.C. 575 (C.A.); Canadian Merchant Service Guild v. Gagnon et al., [1984] 1 S.C.R. 509; Sparrows Point v. Greater Vancouver Water District, [1951] S.C.R. 396.
DISTINGUISHED:
Pacific Western Airlines Ltd. v. R., [1980] 1 F.C. 86 (C.A.); R. v. Thomas Fuller Construction Co. (1958) Ltd. et al., [1980] 1 S.C.R. 695; Anglophoto Ltd. v. The "Ikaros", [1973] F.C. 483 (T.D.); Desbiens v, The Queen, [1974] 2 F.C. 20 (T.D.); Sunday v. St. Lawrence Seaway Authority, [1977] 2 F.C. 3 (T.D.); Lubicon Lake Band (The) v. R. (1981), 13 D.L.R. (4th) 159 (F.C.A.); affg. [1981] 2 F.C. 317; (1980), 117 D.L.R. (3d) 247 (T.D.); Davie Shipbuilding Ltd. v. R., [1979] 2 F.C. 235; (1978), 90 D.L.R. (3d) 661 (T.D.); Nichols v. R., [1980] 1 F.C. 646 (T.D.); Union Oil Co. of Canada Ltd. v. The Queen, [1974] 2 F.C. 452 (T.D.).
CONSIDERED:
Tropwood A.G. et al. v. Sivaco Wire & Nail Co. et al., [1979] 2 S.C.R. 157; Antares Shipping Corporation v.
The Ship "Capricorn" et al., [1980] 1 S.C.R. 553.
REFERRED TO:
McNamara Construction (Western) Ltd. et al. v. The Queen, [1977] 2 S.C.R. 654.
COUNSEL:
L. Labelle for plaintiff.
M. Wright, Q.C. for defendants.
SOLICITORS:
Anderson, Huestis & Jones, Dartmouth, Nova Scotia, for plaintiff.
Soloway, Wright, Houston, Greenberg,
O'Grady, Morin, Ottawa, for defendants.
The following are the reasons for order ren dered in English by
REED J.: This is an application brought by one of the defendants, the Public Service Alliance of Canada, to have the pleadings struck out as
against it on the ground that this Court has no jurisdiction.
The action brought by the plaintiff is against the defendants, Her Majesty the Queen (the employ er) and the Public Service Alliance (the Union). It complains of a series of decisions, actions and errors which led to the plaintiff losing her position at the Department of National Defence in 1978 and to her being declared surplus and laid off from the Language Training Branch in 1979. Specifical ly, she complains that her surplus notice and lay off were illegal and void; that she was wrongfully denied administrative priority status in May 1979 and was thus prevented from continuing on a term basis at the Department of National Defence; that she was not referred to positions which became availabe and not allowed to appeal an appoint ment. It is alleged that the Union, the Public Service Alliance, colluded with the employer, Her Majesty the Queen as represented by the Public Service Commission, in committing these alleged wrongful actions.
The defendant, the Public Service Alliance, argues that as against it the plaintiff must proceed in the provincial superior courts because the plain tiff's action arises under provincial law (tort law). It is argued that the cause of action is not encom passed by the phrase "the Laws of Canada" in section 101 of 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)], as that phrase has been defined in the jurisprudence.
The plaintiff argues that her cause of action against the Public Service Alliance is intimately bound up with her claim against the Public Service Commission; that it is not a different cause of action; that two trials would create duplication and costs; they would necessitate not merely a duplica tion of proceedings but also a duplication of find ings; they wtiuld entail a complete rehearing of the
issues; that her claim against the defendant, the Public Service Alliance, is founded on, and inti mately connected with the claim against the defendant, the Public Service Commission.
It is common ground that the Public Service Alliance is neither the Crown, nor an agent, officer or servant of the Crown.
In order for this Court to have jurisdiction two requirements must be satisfied. The dispute must be within the constitutional parameters of section 101 of the Constitution Act, 1867,' and it must be one over which this Court has statutory jurisdic tion pursuant to a statute of the Parliament of Canada.
Constitutional Jurisdiction
Section 101 of the Constitution Act, 1867 provides:
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.
While there may at one time have been some debate as to whether "the Laws of Canada" in this section encompassed both federal and provincial
' Our courts have not, at least as yet, adopted concepts comparable to those of ancillary and pendent jurisdiction which were developed in the United States by the courts of that country to protect litigants from the inefficiencies and costs involved in having to split actions between a federal statutory court and state courts of general jurisdiction. See Hogg, Con stitutional Law of Canada (2nd ed., 1985) pp. 146-148. Dif ficulties arising in cases of mixed federal and provincial juris diction are thus likely to remain until Parliament either withdraws jurisdiction from the Federal Court as suggested by Mr. Justice Pigeon in the Fuller case (infra, at p. 713), or enacts legislation providing for incorporation of provincial law into federal law, as suggested by Professor J. M. Evans in Comments on Legislation and Judicial Decisions: Federal Jurisdiction—A Lamentable Situation (1981), 59 Can. Bar Rev. 124, at p. 151, and Professor Scott in Canadian Federal Courts and the Constitutional Limits of their Jurisdiction (1982), 27 McGill L.J. 137.
laws (i.e.: the wording being interpreted as describing "Laws in force in Canada"), it has been clear since at least The King v. Hume and Con solidated Distilleries Ltd. (Consolidated Export ers Corp., Ltd., Third Party), [1930] S.C.R. 531, that the wording encompasses only federal law. In 1977, the Supreme Court further elaborated the requirements initially set out in the Consolidated Distilleries case. In Quebec North Shore Paper Co. et al. v. Canadian Pacific Ltd. et al., [1977] 2 S.C.R. 1054, at pages 1065-1066, the Supreme Court held that section 101 required:
... that there be applicable and existing federal law, whether under statute or regulation or common law, as in the case of the Crown, upon which the jurisdiction of the Federal Court can be exercised. ... 2 [Underlining added.]
To a similar effect was the decision of the same year in McNamara Construction (Western) Ltd. et al. v. The Queen, [1977] 2 S.C.R. 654, followed by Pacific Western Airlines Ltd. v. R., [1980] 1 F.C. 86 (C.A.) and R. v. Thomas Fuller Construction Co. (1958) Ltd. et al., [1980] 1 S.C.R. 695. (These last two are discussed further at pages 450 and following, infra.)
I note that the requirement of applicable and existing federal law, as articulated by Chief Jus tice Laskin on behalf of the Court did not equate "laws of Canada" with federal statutory law. Such an interpretation was not made in the Quebec North Shore decision or in any of the several subsequent decisions in which the Chief Justice spoke for the Court on this matter. 3 Indeed he may have had in mind the argument that had it been intended to limit the jurisdiction of any court that might be established under section 101 in that way the section would have used a more restrictive wording such as the "statutes of the Parliament of
2 It has been noted that "the standard of `applicable and existing federal law' has proved far easier to state than to apply" see: Professors John B. Laskin and Robert J. Sharpe, Constricting Federal Court jurisdiction: A comment on Fuller Construction (1980), 30 U. of T.L.J. 283, at pp. 284-285.
3 McNamara Construction (Western) Ltd. et al. v. The Queen, [1977] 2 S.C.R. 654; Tropwood A.G. et al. v. Sivaco Wire & Nail Co. et al., [1979] 2 S.C.R. 157; Rhine v. The Queen, [1980] 2 S.C.R. 442.
Canada", or "legislation of ' or "pursuant to an Act of the Parliament of Canada".
In the Quebec North Shore case the plaintiff, (a subject and not an emanation of the Crown) sued the defendant (a subject and not an emanation of the Crown) for a breach of contract. The only connection with federal jurisdiction was the fact that the contract was for the construction of a marine terminal. The subject-matters "Navigation and Shipping" and "Works and Undertakings con necting the Province with any other..." are sub jects with respect to which Parliament is entitled to legislate, pursuant to subsection 91(10) and paragraph 92(10)(a) of the Constitution Act, 1867, respectively. Extraprovincial undertakings (of which the marine terminal would be one) are, however, in the absence of governing federal legis lation subject to provincial laws of general applica tion. And, such provincial laws apply, not because they have been incorporated by reference into federal law, nor because they are tolerated as part thereof, but because they apply in their own right, as provincial law, to the extraprovincial work or undertaking. 4 Thus Chief Justice Laskin wrote, at page 1065:
It must be remembered that when provincial law is applied to disputes involving persons or corporations engaged in enter prises which are within federal competence it applies on the basis of its independent validity ... [Underlining added.]
The issue was next raised in Tropwood A.G. et al. v. Sivaco Wire & Nail Co. et al., [1979] 2 S.C.R. 157 where the issue was whether there was operative federal law to enable the Federal Court to entertain an action framed in both contract and tort arising out of damage which occurred to cargo during a voyage to Montreal. The Chief Justice characterized the inquiry, at page 161 as:
... whether ... there was a body of federal law, be it statute, common law or other, competently enacted or recognized by
° This is not true with respect to provincial laws which might purport to regulate the vital or essential part of the
undertaking.
Parliament, upon which the jurisdiction [of the Federal Court] could be exercised .... [Underlining added.]
Subsection 22(1) of the Federal Court Act [R.S.C. 1970 (2nd Supp.), c. 10] provides:
22. (1) The Trial Divison has concurrent original jurisdiction as well between subject and subject as otherwise, in all cases in which a claim for relief is made or a remedy is sought under or by virtue of Canadian maritime law or any other law of Canada relating to any matter coming within the class of subject of navigation and shipping, except to the extent that jurisdiction has been otherwise specially assigned.
The Chief Justice concluded that section 2 of the Federal Court Act, which defines "Canadian maritime law" by reference to the Admiralty Act and the previous jurisdiction of the Exchequer Court, introduced a body of maritime law into Canada on which the Court's jurisdiction could operate.
Similarly in Antares Shipping Corporation v. The Ship "Capricorn" et al., [1980] 1 S.C.R. 553, it was held that paragraph 22(2)(a) of the Federal Court Act which provides that the Trial Division has jurisdiction with respect to "any claim as to title, possession or ownership of a ship" when read in the light of the Tropwood decision constituted existing federal statutory law coming within the class of subject of navigation and shipping and expressly designed to confer jurisdiction on the Federal Court for claims of the kind advanced by the appellant (see pages 559-560). The appellant's claim was for the enforcement of a contract for sale of the respondent ship.
In Bensol Customs Brokers Ltd. v. Air Canada, [1979] 2 F.C. 575 (C.A.), Mr. Justice Le Dain, at pages 581 and following, made certain observa tions with regard to "the relationship that must exist between the applicable federal law and the cause of action in order for the Court to have jurisdiction":
There is nothing in this language [ie: in the Quebec North Shore decision] to suggest that the claim must be based solely on federal law in order to meet the jurisdictional requirement of section 101 of the B.N.A. Act, and I do not think we should apply a stricter requirement to the words "made under" or "sought under" in section 23 of the Federal Court Act. There will inevitably be claims in which the rights and obligations of the parties will be determined partly by federal law and partly by provincial law. It should be sufficient in my opinion if the rights and obligations of the parties are to be determined to
some material extent by federal law. It should not be necessary that the cause of action be one that is created by federal law so long as it is one affected by it.
Lastly, the issue was again addressed by the Supreme Court in Rhine v. The Queen; Prytula v. The Queen, [1980] 2 S.C.R. 442. In the first-men tioned case the Crown sought to recover from the appellant monies advanced under the Prairie Grain Advance Payments Act [R.S.C. 1970, c. P-18]. In the second the Crown sought to recover an amount owed on a loan made pursuant to the Canada Student Loans Act [R.S.C. 1970, c. S - 17]. Chief Justice Laskin, at pages 446-447, stated:
... it is contended that there is simply the enforcement of an ordinary contractual obligation which owes nothing to federal law other than its origin in the statutory authorization to make the advance.
True, there is an undertaking or a contractual consequence of the application of the Act [Prairie Grain Advancement Act] but that does not mean that the Act is left behind once the undertaking or contract is made. At every turn, the Act has its impact on the undertaking so as to make it proper to say that there is here existing and valid federal law to govern the transaction which became the subject of litigation in the Feder al Court. It should hardly be necessary to add that "contract" or other legal institutions, such as "tort" cannot be invariably attributed to sole provincial legislative regulation or be deemed to be, as common law, solely matters of provincial law.
In the McNamara case, there was no such statutory shelter within which the transactions there were contained as there is in the present case.
These remarks, like those of Mr. Justice Le Dain in the Bensol case, indicate that where there is both an element of federal statutory regulation and matters of common law in a case, the whole does not necessarily become a matter for the courts of the province.
In the present case, the Public Service Alliance argues that the plaintiffs claim as against it is founded in tort and therefore it is a matter of provincial law. The action as against the Public Service Alliance is based on its alleged recommen dation to the employer that she be declared surplus and laid off (see paragraph 21 of the amended statement of claim); its failure to facilitate the plaintiffs reassignment despite knowledge of
vacant term positions (paragraph 29); its refusal to grieve her surplus and lay-off notices (allegedly preferring to protect other individuals engaged on a term basis) (paragraph 30) and its general breach of the obligation of fair representation. The illegalities of which she complains and thus her whole cause of action cannot be said to be other wise than intimately connected to the Public Ser vice Employment Act [R.S.C. 1970, c. P-32] and Regulations and the Public Service Staff Rela tions Act ("P.S.S.R.A.") [R.S.C. 1970, c. P-35].
Under subparagraph 40(1)(a)(ii) of the P.S.S.R.A. the bargaining agent (in this case P.S.A.C.) has the exclusive right to represent an employee in respect of a grievance relating to the interpretation and application of the collective agreement. It is true that under subsections 90(1) and 91(1) the employee has the right to present her own grievance and eventually refer it to adjudication, but under subsections 90(2) and 91(2) as soon as there is any question of the interpretation and application of the collective agreement no action can be taken without the cooperation of tlfe bargaining agent. For the pur poses of the present motion to strike it is reason able to hold that there is under the Public Service Staff Relations Act ("P.S.S.R.A.") an implied obligation on the certified bargaining agent to properly and fairly represent the interests of the employees it is certified to represent. 5 Even if it is accurate to characterize the duty of fair represen tation as one arising at common law, in my view it must be treated as being both provincial and feder al common law applicable to the respective fields of provincial and federal labour relations jurisdic tion.
5 I Canadian Merchant Service Guild v. Gagnon et al., [1984] 1 S.C.R. 509, Mr. Justice Chouinard, speaking for the Court, found the following principle as emerging from case law and academic opinion, at p. 527:
1. The exclusive power conferred on a union to act as spokesman for the employees in a bargaining unit entails a
(Continued on next page)
Thus, in the present case, to use a phrase found at page 449 of the Rhine/Prytula decision, "there is here existing and applicable federal law to underpin the jurisdiction of the Federal Court."
Statutory Jurisdiction
Subsection 17 (1) of the Federal Court Act provides:
17. (1) The Trial Division has original jurisdiction in all cases where relief is claimed against the Crown and, except where otherwise provided, the Trial Division has exclusive original jurisdiction in all such cases. [Underlining added.]
This subsection is a general or umbrella grant of jurisdiction. The following subsections of section 17 either describe qualifications or special aspects of the general grant given in subsection 17(1).
The question, then, is whether subsection 17(1) confers jurisdiction on the Federal Court so as to allow a plaintiff to sue both the Crown and a subject in that Court when the cause of action against both of them is one that is as intertwined as is the case here (eg: with respect to the alleged collusion). On a plain reading of the section, such jurisdiction would appear to have been intended since the grant given is over "cases where relief is claimed against the Crown". The jurisdiction is not merely over "claims against the Crown", as a narrower interpretation would seem to require.
That Parliament intended the broader scope not only would seem to follow from the literal wording of the section but it is also a reasonable inference from the fact that certain claims against the feder al Crown are to be brought exclusively in the Federal Court. It seems unlikely that Parliament would have intended to disadvantage persons, in the position of the plaintiff, by requiring them to split a unified cause of action and bring part of it in the Federal Court and part in the superior courts of the provinces. The effect of such an intention would be to subject a plaintiff, in a position similar to the plaintiff in this case, to different and possibly contradictory findings in
(Continued from previous page)
corresponding obligation on the union to fairly represent all employees comprised in the unit.
different courts, and to place jurisdictional and cost impediments in the path of such persons if they sue the federal Crown. I do not think that such was the intention of Parliament. While there is no doubt that the jurisdiction of statutory courts are strictly interpreted in that they are not courts of inherent jurisdiction, it is well to remember that section 11 of the Interpretation Act, R.S.C. 1970, c. I-23 requires that all federal statutes be inter preted with such a construction as best to ensure the attainment of their purpose. This would seem to require that subsection 17(1) be interpreted as conferring on the Federal Court jurisdiction over the whole case, in a situation such as the present, where the plaintiff's claim is against both the employer (the Crown), and the Union (the P.S.A.).
Also, I would note that the scope which in my view subsection 17(1) bears would not accord the Federal Court any jurisdiction over cases between subject and subject, solely on the ground that a federal claim might potentially be present but is not being pursued. Without a claim being made directly against the Crown there would be no foundation for Federal Court jurisdiction, exclu sive or concurrent, pursuant to subsection 17(1). But when such a claim against the federal Crown is made, in my view, subsection 17 (1) is broadly enough drafted to allow a co-defendant, in a case such as the present, to be sued along with the Crown.
I am aware that there are other decisions of this Court which seem to have taken a contrary view: Anglophoto Ltd. v. The "Ikaros", [1973] F.C. 483 (T.D.), at page 498 (reversed on another point [1974] 1 F.C. 327 (C.A.)); Desbiens v. The Queen, [1974] 2 F.C. 20 (T.D.), at page 22; Sunday v. St. Lawrence Seaway Authority, [1977] 2 F.C. 3 (T.D.), at page 9; Lubicon Lake Band (The) v. R., [1981] 2 F.C. 317; (1980), 117 D.L.R. (3d) 247 (T.D.) (although a contrary view is found in Davie Shipbuilding Ltd. v. R., [1979] 2 F.C. 235;
(1978), 90 D.L.R. (3d) 661 (T.D.)). If the first- mentioned decisions are applicable to the case at bar then, with respect, I differ with the conclusion reached therein. My reason for thinking they may not be applicable is the nature of the cases to which they relate. In the present case the claim against the Crown (employer) and the Public Ser vice Alliance (Union) are so intertwined that find ings of fact with respect to one defendant are intimately bound up with those that would have to be made with respect to the other.
In my view this would seem to distinguish them from the present case. In addition, however, I do find in any of the cases noted above a detailed consideration of the wording of subsection 17(1), although there are some general references thereto in the Lubicon case. In general the decisions seem to have focussed on the more specific subsections following subsection 17(1), rather than as the gen eral grant of jurisdiction found in subsection 17(1).
A decision by the Court of Appeal would of course be binding. An appeal from the Lubicon decision noted above was dismissed by the Court of Appeal, without reasons being given: (1981), 13 D.L.R. (4th) 159. I have not considered this a binding precedent for the purposes of the present case because as noted above, I am not convinced that the nature of the cases as between the co-defendants in that case and in this are suf ficiently similar to warrant such a conclusion. Secondly, and less significantly perhaps there is no indication that a detailed argument on the basis of the wording of subsection 17(1) was put to the Court.
I note that the Supreme Court dealt with a somewhat similar issue in Sparrows Point v. Greater Vancouver Water District, [1951] S.C.R. 396. The issue was whether the Exchequer Court's jurisdiction over maritime law extended to allow resolution of a claim against a Harbour Commis sion for the negligent operation of a bridge. Mr. Justice Rand at page 411 wrote:
Every consideration of convenience and justice would seem to require that such a single cause of action be dealt with under a single field of law and in a single proceeding in which the claimant may prosecute all remedies to which he is entitled; any other course would defeat, so far, the purpose of the statute. The claim is for damage done "by a ship"; the remedies in personam are against persons responsible for the act of the ship; and I interpret the language of the statute to permit a joinder in an action properly brought against one party of other participants in the joint wrong.
And Mr. Justice Kellock, at page 402:
If the claim against the Harbours Board cannot be entertained in the Admiralty Court, the result is that the Water District ought to have brought two actions, the one on the Admiralty side of the Exchequer Court against the ship, and the other elsewhere.
In my opinion, the statute, which prima facie confers juris diction upon the Admiralty Court in a case of this kind, should be construed so as to affirm the jurisdiction, at least in a case where the ship is a party. There is no authority to the contrary to which we have been referred or which I have been able to find, and every consideration of convenience requires a con struction in favour of the existence of such a jurisdiction.
While this case involved the admiralty jurisdic tion of the Court, and different statutory provi sions from those that are relevant here, I find the approach adopted by the Supreme Court in that case instructive and pertinent to the approach to be taken in interpreting subsection 17(1).
Defendant's Argument
Last of all I must deal with the cases (besides Quebec North Shore and McNamara referred to above) cited to me by counsel for the Public Service Alliance: Nichols v. R., [1980] 1 F.C. 646 (T.D.); Pacific Western Airlines Ltd. v. R., [ 1980] 1 F.C. 86 (C.A.); Union Oil Co. of Canada Ltd. v. The Queen, [1974] 2 F.C. 452 (T.D.); R. v. Thomas Fuller Construction Co. (1958) Ltd. et al., [1980] 1 S.C.R. 695.
The Nichols case dealt with a penitentiary inmate suing a dentist in tort for negligence in the performance of dental surgery. Mr. Justice Mahoney found that there was no existing and applicable federal law upon which a claim against the defendant could be founded. The Pacific Western Airlines case dealt with a claim against the federal Crown and forty-two other defendants arising out of an airplane accident at Cranbrook
B.C. The Federal Court of Appeal held that the action was founded in tort and contract and there did "not exist any federal law governing the liabili ty of the respondents" [page 89]. The Union Oil case dealt with a claim by the plaintiff in contract for reimbursement for excise taxes owed to the federal Crown which the plaintiff had not initially included in the selling price to the defendant pur chaser. The plaintiff's claim was also against the federal Crown, as defendant, for improper assess ment of the excise taxes. Mr. Justice Collier held (at page 457) that the claim against the first defendant was essentially based in contract and concluded that the Federal Court Act did not confer jurisdiction over such a claim. In the Fuller case the action was one by the Crown as defendant seeking to add as a third party a construction company from whom it sought indemnity as a result of the main claim in negligence against it. Mr. Justice Pigeon in speaking for the Court found (at page 711):
... the objection to the jurisdiction is not founded on the construction of the statute, but arises out of the constitutional restriction of Parliament's power which, as concerns the canadi- an judicature, restricts it to the establishmnet of "Courts for the better Administration of the Laws of Canada". In the present case the laws on which the third party notice is founded are not those of Canada but those of the Province of Ontario.
All the cases cited by the Public Service Alliance deal with situations where there was no underlying federal law as required by section 101 of the Constitution Act, 1867. Since this is not the situation in the present case those decisions do not apply.
Conclusion
There being sufficient constitutional jurisdiction as required by section 101 of the Constitution Act, 1867 to found an action against the defendant the Public Service Alliance and there being statutory jurisdiction pursuant to subsection 17(1) of the Federal Court Act the motion of the Public Ser vice Alliance seeking to be struck out as a defend ant in this action is dismissed.
ORDER
THIS COURT ORDERS that the motion brought by the defendant, the Public Service Alliance of Canada, seeking to be struck out as a defendant in this action is dismissed.
AND IT IS FURTHER ORDERED that the costs of this application shall be the costs in the cause.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.