Judgments

Decision Information

Decision Content

A-592-84
Jocelyn Brière, Suzanne Dorval -Brière, Stéphane Brière, Bruce Brière, Louise St-Hilaire, Germaine McKenzie (Appellants)
v.
Canada Mortgage and Housing Corporation (Respondent)
INDEXED AS: BRIÈRE V. CANADA MORTGAGE AND HOUSING CORPORATION (F.C.A.)
Court of Appeal, Marceau, Hugessen and Lacombe JJ.-Montreal, April 24 and May 1; Ottawa, July 3, 1986.
Federal Court jurisdiction - Trial Division - Action in tort against Canada Mortgage and Housing Corporation (CMHC) for damages due to use of urea formaldehyde foam insulation - Appeal against decision Court lacking jurisdic tion - CMHC Crown agent whose employees not Crown servants - Court having jurisdiction - Cause of action based on federal law - CMHC cannot rely on immunity which ceased to exist for Crown itself on adoption of Crown Liability Act - Ss. 7, 8 and 23 that Act giving Court concurrent trial level jurisdiction over action against public body Crown agent, when cause of action within s. 3 of said Act - Appeal allowed - Canada Mortgage and Housing Corporation Act, R.S.C. 1970, c. C-16 (as am. by S.C. 1978-79, c. 16, s. 12), ss. 3, 5(1),(3),(4),(5), 11(1), 14(1), 17, 29(1)(b) - Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, ss. 17(1),(2),(4)(6), 26(1) Crown Liability Act, R.S.C. 1970, c. C-38, ss. 7 (as am. by R.S.C. 1970 (2nd Supp.), c. 10, s. 64), 8 (as am. by S.C. 1980-81-82-83, c. 47, s. 11), 23 - An Act to amend the Statute Law, S.C. 1950, c. 51 - Exchequer Court Act, R.S.C. 1952, c. 98, s. 18.
Crown - Prerogatives - Canada Mortgage and Housing Corporation - Federal Court having jurisdiction to hear tort action for damages resulting from use of U.F.F.I. against Corporation - Crown corporation cannot rely on immunity which ceased to exist for Crown itself under Crown Liability Act - Canada Mortgage and Housing Corporation Act, R.S.C. 1970, c. C-16 (as am. by S.C. 1978-79, c. 16, s. 12), ss. 3, 5(1),(3),(4),(5), 11(1), 14(1), 17, 19(1)(b) - Crown Liability Act, R.S.C. 1970, c. C-38, ss. 7 (as am. by R.S.C. 1970 (2nd Supp.), c. 10, s. 64), 8 (as am. by S.C. 1980-81-82-83, c. 47, s. 11), 23.
Homeowners suffered significant damage as a résult of the installation of urea formaldehyde foam insulation. They instituted two actions in this Court, one against the Queen, the other against the Canada Mortgage and Housing Corporation
(CMHC). They now appeal against the Trial Division decision which allowed a motion to dismiss the action as against CMHC on the ground that this Court lacked jurisdiction to hear it.
CMHC is "an agent of Her Majesty in right of Canada". Under subsection 5(4) of the Canada Mortgage and Housing Corporation Act, legal proceedings may be taken by or brought against CMHC in its own name. Although the Corporation is an agent of the Crown, its officers and employees are not officers or servants of the Crown (subsection 14(1)).
The question is whether CMHC can be sued in tort in the Federal Court in its own name.
Held, the appeal should be allowed.
Two conditions must be met for a claim to fall within the limited jurisdiction of the Federal Court: (1) the cause of action must be based, at least in part, on federal law; (2) jurisdiction to hear the matter must have been expressly con ferred by legislation.
In order to determine whether the first condition has been met, it is necessary to consider the extent to which the statutory law has altered the public law rules pertaining to immunities and prerogatives of the Crown in right of Canada. With the adoption in 1953 of the Crown Liability Act, Parliament ended the rule of Crown immunity for the wrongful acts of its servants. However, the Act speaks only of the Crown. To determine how the statute affects the ordinary law regarding the tortious liability of corporations which are agents of the Crown, different possibilities must be distinguished. First, the Act has changed nothing where there has been fault by the corporation itself: the common law rules still apply making the body fully liable. Reference is often made to the reasons of Dickson J. (as he then was) in R. v. Eldorado Nuclear Ltd., [1983] 2 S.C.R. 551 as a basis for arguing that the corporation could enjoy some measure of immunity. However, the Eldorado case was not concerned with tortious liability but with criminal misconduct committed within the scope of the Corporation's mandate. The unambiguous position of Martland J. which is in keeping with the common law rules that an agent is liable in tort for his own wrongful act, cannot be disregarded.
Secondly, where there has been fault by an employee of the corporation who is a Crown servant, the rule that there is no indirect liability between Crown servants applies, with the result that the corporation will not be held liable. A corporation which is an agent of the Crown and whose employees are servants of the Crown is a hierarchical intermediary not vicari ously liable.
Thirdly, where the fault has been committed by an employee of the corporation who is not a Crown servant, the Act has an inevitable effect: the corporation can no longer rely, as an agent of the Crown, on an immunity which has ceased to exist for the Crown itself.
The wrongful acts of employees of corporations who are not Crown servants will not make the Crown liable. The victim will only have a remedy against the corporation itself. That remedy is directly associated with federal law, having been in existence
only since the Crown Liability Act altered the public law rules respecting Crown immunity. The first condition has thus been met.
With respect to the Court's jurisdiction, there is no express provision in the Federal Court Act covering an action in tort against a Crown corporation. However, the Act is not the only source of the Court's jurisdiction. Pursuant to subsection 26(1) thereof, jurisdiction may be conferred by "any Act of ... Parliament". Sections 7, 8 and 23 of the Crown Liability Act, despite their convoluted wording, show that Parliament intend ed to confer on the Federal Court a concurrent trial level jurisdiction over an action brought against a public body which is a Crown agent, when the cause of action falls within section 3 of the said Act.
CASES JUDICIALLY CONSIDERED
CONSIDERED:
Conseil des Ports Nationaux v. Langelier et al., [1969] S.C.R. 60; R. v. Eldorado Nuclear Ltd., [ 1983] 2 S.C.R. 551; Quebec North Shore Paper Co. et al. v. Canadian Pacific Ltd. et al., [1977] 2 S.C.R. 1054.
REFERRED TO:
Smith v. C.B.C., [1953] 1 D.L.R. 510 (Ont. H.C.); Administration de la voie maritime du Saint-Laurent c. Candiac Development Corp., [1978] C.A. 499 (Que.); McNamara Construction (Western) Ltd. et al. v. The Queen, [1977] 2 S.C.R. 654; Bensol Customs Brokers Ltd. v. Air Canada, [1979] 2 F.C. 575 (C.A.): R. v. Montreal Urban Community Transit Commission, [1980] 2 F.C. 151 (C.A.); Bainbridge v. Postmaster- General, [1906] 1 K.B. 178 (C.A.); Lees v. The Queen, [1974] 1 F.C. 605 (T.D.); Lubicon Lake Band (The) v. R., [1981] 2 F.C. 317 (T.D.); Rasmussen v. Breau, [1986] 2 F.C. 500 (C.A.).
COUNSEL:
Guy Morin for appellants.
Jacques Ouellet, Q.C., and Gaspard Côté,
Q.C. for respondent.
SOLICITORS:
Lemay, Dubé, Laflamme & Associés, Sher- brooke, Quebec, for appellants.
Deputy Attorney General of Canada for respondent.
The following is the English version of the reasons for judgment rendered by
MARCEAU J.: The question of jurisdiction raised by this appeal would at first sight seem to be a routine one of little or no practical interest. The issue is whether the Canada Mortgage and Hous-
ing Corporation can be sued in tort in this Court in its own name. One might be inclined to think that the possibility of an action against a Crown corpo ration in the Federal Court must undoubtedly have been dealt with by the courts and dismissed, since the reports give no cases in which it was allowed and in any event, as the victim is seeking to sue the Crown, the presence of the corporation itself as a party to the action is to say the least redundant. However, this initial reaction is wrong. First, a final and comprehensive response to the subject of the question never seems to have been given, and second, it is far from certain that an action against the corporation itself is not in certain circum stances worthwhile, and indeed necessary. I think that my analysis will adequately explain this.
The factual context in which the question arises is important, but it is relatively straightforward. The appellants are householders who said they were put to substantial and unnecessary expense and suffered significant damage because of the use as insulation in the walls of their houses of a product not recommended, urea formaldehyde foam. They ascribed their unfortunate situation to the wrongful action of the Canada Mortgage and Housing Corporation (hereinafter referred to as the "Corporation" or the "CMHC") and its employees, and brought two actions in tort in this Court, one against Her Majesty the Queen and the other against the Corporation. In the statements of claim which they filed in support of the two actions they set forth the same facts, made the same allegations of fault against the Corporation, both personally and through its servants, and claimed the same damages. It may have been useless if not improper to bring two separate actions instead of one joining the two defendants, but this is only a minor point of procedure which can easily be resolved, if necessary. The question presented is one of substance that would arise equally in a single action against the two defend ants. The respondent, the CMHC, alleged in the Trial Division that it cannot be sued in this Court in its own name and that in any case its presence as a defendant was unnecessary, and the Motions Judge ruled in its favour on the first point. This
appeal was filed against the judgment [T-6046-81, Rouleau J., April 6, 1984, not reported] allowing the motion to dismiss the action on the ground that this Court lacked jurisdiction to hear it.
Before embarking upon a study of the question at issue itself, there is a preliminary matter which must be dealt with. There can be no discussion of jurisdiction ratione personae without first being quite clear as to whom one is dealing with. It is necessary to establish at the outset the legal char acteristics of the CMHC as defined by its enabling legislation, the Canada Mortgage and Housing Corporation Act, R.S.C. 1970, c. C-16 [as am. by S.C. 1978-79, c. 16, s. 12] .
The CMHC is a corporation (section 3).' It is "for all purposes an agent of Her Majesty in right of Canada" (subsection 5(1)). Its affairs are managed by a Board (subsection 11(1)) 2 but the Board must comply with any directions which it receives from the government from time to time (subsection 5(5)). 3 It receives its capital from the Consolidated Revenue Fund (section 17). 4 It can do all types of legal acts, acquire all kinds of rights and undertake all kinds of obligations; it can there fore acquire, hold, sell or dispose of real property
' 3. There is hereby established a corporation called the "Canada Mortgage and Housing Corporation" consisting of the Minister and those persons who from time to time comprise the Board of Directors.
2 11. (1) The Board shall manage the affairs of the Corpora tion and conduct its business and may for such purposes exercise all powers of the Corporation.
'5....
(5) The Corporation shall comply with any directions from time to time given to it by the Governor in Council or the Minister respecting the exercise or performance of its powers, duties and functions.
^ 17. The Minister, at the request of the Corporation and with the approval of the Governor in Council, may, from time to time out of unappropriated moneys in the Consolidated Revenue Fund, pay to the Corporation an amount or amounts not exceeding a total amount of twenty-five million dollars, which shall constitute the capital of the Corporation.
(paragraph 29(1)(b)), 5 but the property it acquires vests in Her Majesty (subsection 5(3)); 6 and I conclude by two special features of particular importance for these purposes, mentioned in sub sections 5(4) and 14(1), which must be borne clearly in mind:
5....
(4) Actions, suits or other legal proceedings in respect of any right or obligation acquired or incurred by the Corporation on behalf of Her Majesty, whether in its name or in the name of Her Majesty, may be brought or taken by or against the Corporation in the name of the Corporation in any court that would have jurisdiction if the Corporation were not an agent of Her Majesty.
14. (1) The Corporation may on its own behalf employ such officers and employees for such purposes and on such terms and conditions as may be determined by the Executive Committee and such officers and employees are not officers or servants of Her Majesty.
This provision of subsection 5(4), regarding the right to bring legal proceedings, is well known. It is to be found in most statutes establishing Crown corporations. It has been in the CMHC Act since 1950 when, by a special statute known as An Act to amend the Statute Law, S.C. 1950, c. 51, Parliament made it a formal provision of sixteen different Acts which had created corporations. As will have been noticed, its wording might suggest that it applies only to proceedings in contract. However, the courts have refused to thus limit its scope and no one today would limit the body's right to bring legal proceedings in its own name, before any tribunal and on any matter (cf. Smith v. C.B.C., [1953] 1 D.L.R. 510 (Ont. H.C.); Administration de la voie maritime du Saint- Laurent c. Candiac Development Corp., [ 1978] C.A. 499 (Que.)). However, while there is no problem with the scope of the provision in subsec tion 5(4), that is not true of subsection 14(1), the final phrase of which cannot but prompt surprise and is bound to be of considerable significance in
5 29. (1) The Corporation may,
(b) acquire and hold real or immovable property for its actual use in operation and management of its business, sell or dispose of such property and acquire other such property in its stead for the same purposes;
6 5....
(3) Property acquired by the Corporation is the property of Her Majesty and title thereto may be vested in the name of Her Majesty or in the name of the Corporation.
this analysis. For the moment, I would simply say that it is a provision which is only found in two other Acts creating corporations and the reason for which has to my knowledge never been clearly established.
Having thus completed a review of the legisla tion defining the legal status of the CMHC, we may turn to the question itself. The approach to be adopted is quite clear. Since the decisions of the Supreme Court in McNamara Construction (Western) Ltd. et al. v. The Queen, [1977] 2 S.C.R. 654, and Quebec North Shore Paper Co. et al. v. Canadian Pacific Ltd. et al., [1977] 2 S.C.R. 1054, and the complementary decisions which fol lowed on those, inter alia Bensol Customs Brokers Ltd. v. Air Canada, [1979] 2 F.C. 575 (C.A.), and R. v. Montreal Urban Community Transit Com mission, [1980] 2 F.C. 151 (C.A.), it is well established that two conditions are required for a particular claim to fall within the limited jurisdic tion of the Federal Court: first, the cause of action must be based, at least in part, on federal law, and second, legislation must have expressly conferred jurisdiction on it to hear the matter. The question raised can only be answered by determining whether the two conditions here exist.
I — It will clearly not be easy to determine whether the first condition has been met. Indeed, this raises the whole problem of the extra-contrac tual civil liability of corporations which are agents of the Crown, the complexity of which is indicated by the divergence of views among legal commenta tors as well as the obscurity of certain judgments. Discussion of it cannot be avoided, however, and I will endeavour to explain my understanding of it.
To begin with, purely in terms of the general principles of the common law, there is no doubt that the principle of immunity based on the old maxim "The King can do no wrong" will apply at least to some extent to a corporation which is an agent of the Crown. However, I think there is also another principle that must be taken into account, that of the absence of vicarious liability among servants of the Crown. While there has never been any doubt that a Crown servant had to be held directly liable for his personal wrongful act as anyone else, it has always been thought that he
was not to be held indirectly liable for the wrong ful act of another. A Crown servant who is the superior of other Crown servants will not be responsible for the acts of his subordinates, unless of course he has himself ordered or authorized the act as then he can be held personally liable through his participation. The principle has been conclusively established since at least the time of the decision of the British Court of Appeal in Bainbridge v. Postmaster-General, [1906] 1 K.B. 178, which rejected an attempt by the victim of an accident on an improperly maintained sidewalk to hold the Postmaster-General indirectly liable for the wrongful act of his employees. Emphasizing that Post Office employees were Crown servants, Collins M.R. wrote for the Court (at page 189):
Now, these passages which I have read shew that the Court adopted the reasoning of the authority in the earlier case and arrived at the conclusion that these subordinate officers are officers of the Crown, and not in the relation of servants to their superior officers.
These, I consider, are the two fundamental princi ples of public law which can have a direct bearing on the tortious liability at common law of public corporations which are agents of the Crown. To see how and to what extent this is so, it is neces sary to distinguish the case of the corporation's own wrongful act from that of a wrongful act by its servants.
In the case of a wrongful act by the corporation itself—damage being due, for example, to a formal decision of its board of directors or to a failure to act which is not attributable to a particular employee—it would appear that there is no reason to exclude the body's liability. Thus Martland J., speaking for the Supreme Court, said in Conseil des Ports Nationaux v. Langelier et al., [1969] S.C.R. 60, at page 70:
What is in issue here is the responsibility of a person, whether individual or corporate, who, though a Crown agent, and purporting to act as such, commits an act which is unlaw ful. My understanding of the law is that a personal liability will result. The liability arises, not because he is an agent of the Crown, but because, though he is an agent of the Crown, the plea of Crown authority will not avail in such event.
It is true that there is some doubt on this matter, and reference is often made to passages in the
reasons of Dickson C.J. [then puisne Judge] in R. v. Eldorado Nuclear Ltd., [1983] 2 S.C.R. 551, as a basis for arguing that the corporation could even then enjoy some measure of immunity, including the following passage at pages 565-566:
When a Crown agent acts within the scope of the public purposes it is statutorily empowered to pursue, it is entitled to Crown immunity from the operation of statutes, because it is acting on behalf of the Crown. When the agent steps outside the ambit of Crown purposes, however, it acts personally, and not on behalf of the state, and cannot claim to be immune as an agent of the Crown. This follows from the fact that s. 16 of the Interpretation Act works for the benefit of the state, not for the benefit of the agent personally.
However, Eldorado was not concerned with a simple case of tortious liability, but with criminal misconduct, and the wrongful act alleged had been committed by the organization within the scope of its mandate and without in any way infringing the provisions of its enabling Act. There might even be a question as to whether this was fault within the meaning of the law of civil liability. In any case, it would seem difficult to disregard the unambiguous position taken by Martland J., which is also in keeping with the general rule that an agent is liable in tort for his own wrongful act. I think one may usefully rely on what P. Hogg writes on the point in his book Liability of the Crown (at pages 109-110):
There is a question whether those public corporations which are servants of the Crown may be held liable in tort. The question is not of much practical importance because it is the Crown itself which is liable for the torts of the corporation's servants, the corporation being just a superior servant. If the ordinary rules apply, however, the corporation would be liable for torts which it had committed personally, for example, if its governing body passed a resolution ordering the commission of the tort. It is probable that this is indeed the legal position. On the other hand, Glanville Williams has argued that a public corporation differs from individual Crown servants in that the public corporation has no private property to satisfy a judg ment, and that State property is never available to satisfy a judgment against a servant personally; he concludes that "the general rule is that no action in tort can be brought against such a corporation—not even an action for an empty judg ment". It is unlikely that this view will gain acceptance for it would make those public corporations which are servants of the Crown immune from all actions, whether founded in tort or contract or any other branch of the law.
Thus, where the corporation itself has been at fault, it can be accepted that the common law rules of tortious liability will apply without any rule of public law being involved.
However, most of the time the wrongful act will of course not be that of the corporation itself but of one of its employees. In this situation, there would not appear to be any doubt that the organi zation cannot be held liable simply on the basis of the common law rules. Why? The authorities do not really provide a clear answer, but I suggest that of the two public law rules mentioned above it is the second which is the more relevant. There is no indirect or vicarious liability among Crown servants. A corporation which is an agent of the Crown, the employees of which are servants of the Crown, is a hierarchical intermediary which is not vicariously liable. It is only when this second prin ciple cannot be applied that the immunity princi ple comes into play, and that will occur only when the employees of the corporation are not Crown servants: such cases are obviously rare but they include, as we have seen, the one now before the Court.
That is how I see the situation with respect to the tortious liability of corporations which are Crown agents, based solely on the general princi ples of public law and the rules of the common law. However, it remains to be seen to what extent statutory law has altered this initial position. I do not think there is any need to consider here the 1950 statute, mentioned above with reference to subsection 5(4) of the CMHC Act, by which Parliament confirmed the existence of a right of action in the ordinary courts of law against public bodies which are Crown agents. The courts have indeed refused to limit the scope of this provision to liability in contract, as we have seen, but there has never been any doubt that this was strictly a matter of procedural confirmation which did not affect substantive law. Until 1953 the ordinary law regarding the tortious liability of the Crown and its agents, so far as I know, was covered by a single piece of legislation, section 18 of the Exchequer Court Act, R.S.C. 1952, c. 98, which authorized that Court, on a petition of right, to hear and
determine claims against the Crown in a few spe cific situations.
It was not until 1953, with the adoption of the Crown Liability Act, R.S.C. 1970, c. C-38, that a major transformation of the ordinary law regard ing the tortious liability of the Crown was intro duced. Parliament ended the rule of Crown immunity for the wrongful acts of its servants, retaining only the purely procedural requirement of a petition of right which itself soon disappeared when the Federal Court was created. However, the Crown Liability Act speaks of the Crown: it is not immediately clear how and to what extent it may affect the ordinary law regarding the tortious lia bility of corporations which are Crown agents. For that purpose, the different possibilities again have to be distinguished. Where there has been fault by the corporation itself, the Act has certainly changed nothing and the common law rules still apply, making the organization fully liable. Where there has been fault by an employee of the corpo ration who is a Crown servant, here again it will appear that the Act has made no change, for the rule that there is no indirect liability between Crown servants still remains unchanged and is still a bar to liability by the corporation itself. Where the fault was by an employee of the corporation who is not a Crown servant, however, in my view the Act has had an inevitable effect: the corpora tion can clearly no longer rely, as an agent of the Crown, on an immunity which has ceased to exist for the Crown itself.
Three propositions emerge from the analysis which I have just made of the problem of the extra-contractual liability of corporations which are Crown agents, as I understand it. First, the lack of examples of corporations sued in the Feder al Court is mainly due not to questions of jurisdic tion or form, as is often said, but to substance, that is the absence of any personal liability by public bodies for the wrongful acts of their employees who are Crown servants. Second, in the few cases of corporations whose employees are not Crown
servants, the wrongful acts of the employees will not make the Crown liable and the victim will only have a remedy against the corporation itself. Third, the victim's remedy against the body itself for the wrongful acts of its employees is one which has existed only since the Crown Liability Act has altered the rules of public law pertaining to the immunities and prerogatives of the Crown in right of Canada, and is thus directly associated with federal law. Reference may be made here to what Laskin C.J. said in Quebec North Shore Paper, supra, at page 1063:
It should be recalled that the law respecting the Crown came into Canada as part of the public or constitutional law of Great Britain, and there can be no pretence that that law is provincial law. In so far as there is a common law associated with the Crown's position as a litigant it is federal law in relation to the Crown in right of Canada, just as it is provincial law in relation to the Crown in right of a Province, and is subject to modifica tion in each case by the competent Parliament or Legislature.
The first of the two conditions that must be met if the Crown is to have jurisdiction, namely that the action should be based at least in part on federal law, is thus present: we may move on to the second.
II — The second condition for the Federal Court to be able to hear an action in tort against a Crown corporation is that Parliament must have formally conferred jurisdiction on it to hear such a matter. Is that the case?
One might seek in vain in the Federal Court Act [R.S.C. 1970 (2nd Supp.), c. 10] for any provision directly covering such an action. It is clear that a Crown corporation is not the Crown itself within the meaning of subsections 17(1) and 17(2),' and it has been held more than once that a Crown
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.
(2) Without restricting the generality of subsection (1), the Trial Division has exclusive original jurisdiction, except where otherwise provided, in all cases in which the land, goods or money of any person are in the possession of the Crown or in which the claim arises out of a contract entered into by or on behalf of the Crown, and in all cases in which there is a claim against the Crown for injurious affection.
corporation is not "an officer or servant of the Crown" within the meaning of paragraph 17(4)(6) 8 (cf. Lees v. The Queen, [1974] 1 F.C. 605 (T.D.); Lubicon Lake Band (The) v. R., [1981] 2 F.C. 317 (T.D.)). These are the only provisions that could be applicable; but the Feder al Court Act is careful to state that it is not the only source of the Court's jurisdiction. Subsection 26(1) reads as follows:
26. (1) The Trial Division has original jurisdiction in respect of any matter, not allocated specifically to the Court of Appeal, in respect of which jurisdiction has been conferred by any Act of the Parliament of Canada on the Federal Court, whether referred to by its new name or its former name. [My emphasis.]
The Crown Liability Act contains a section 7 which reads as follows:
7. (1) Except as provided in section 8, and subject to section 23, the Exchequer Court of Canada has exclusive original jurisdiction to hear and determine every claim for damages under this Act.
(2) The Exchequer Court of Canada has concurrent original jurisdiction with respect to the claims described in subsection 8(2), and any claim that may be the subject-matter of an action, suit or other legal proceeding referred to in section 23.
In order to understand these sections, of course, one must know what is provided in sections 8 [as am. by S.C. 1980-81-82-83, c. 47, s. 11] and 23. They read:
8. (1) In this section, "provincial court" with respect to a province in which a claim sought to be enforced under this Part arises, means, in the Province of Quebec, the Provincial Court, and in any other province, the county or district court that would have jurisdiction if the claim were against a private person of full age and capacity, or if there is no such county or district court in the province or the county or district court in the province does not have such jurisdiction, means the superior court of the province.
(2) Notwithstanding the Exchequer Court Act, a claim against the Crown for a sum not exceeding one thousand dollars arising out of any death or injury to the person or to property resulting from the negligence of a servant of the Crown while acting within the scope of his duties or employ
' 17. ...
(4) The Trial Division has concurrent original jurisdiction
(b) in proceedings in which relief is sought against any person for anything done or omitted to be done in the performance of his duties as an officer or servant of the Crown.
ment may be heard and determined by the provincial court, and an appeal lies from the judgment of a provincial court given in any proceedings taken under this section as from a judgment in similar proceedings between subject and subject.
(3) No provincial court has jurisdiction to entertain any proceedings taken by any person under this Part if proceedings taken by that person in the Exchequer Court of Canada in respect of the same cause of action, whether taken before or after the proceedings are taken in the provincial court, are pending.
23. Subsections 7(1) and 8(1) and (2) do not apply to or in respect of actions, suits or other legal proceedings in respect of a cause of action coming within section 3 brought or taken in a court other than the Exchequer Court of Canada against an agency of the Crown in accordance with any Act of Parliament that authorizes such actions, suits or other legal proceedings to be so brought or taken; but all the remaining provisions of this Act apply to and in respect of such actions, suits or other legal proceedings, subject to the following modifications:
(a) any such action, suit or other legal proceeding shall, for the purposes of this Act, be deemed to have been taken in a provincial court under Part II; and
(b) any money awarded to any person by a judgment in any such action, suit or other legal proceeding, or the interest thereon allowed by the Minister of Finance under section 18, may be paid out of any funds administered by that agency.
Is it not indicated from a reading of these provisions, in particular subsection 7(2), that Par liament intended to confer on the Exchequer Court, now the Federal Court [as am. by R.S.C. 1970 (2nd Supp.), c. 10, s. 64], a concurrent (concomitante) trial level jurisdiction over an action brought against a public body which is a Crown agent, when the cause of action falls within section 3 of the Crown Liability Act? This is clearly the first meaning of the words used, despite the "convoluted" type of wording, and this is how all legal commentators who have discussed the point have understood them. (See inter alfa René Dussault, Traité de droit administratif canadien et québécois, Les Presses de l'université Laval, Québec, 1974, at page 1463; Henriette Immari- geon, La responsabilité extra -contractuelle de la Couronne au Canada, Wilson & Lafleur, at page 34; Gilles Pépin and Yves Ouellette, Principes de contentieux administratif, 2nd ed., 1982, Les Edi tions Yvon Blais inc., at page 508.)
Subsection 7(2) of the Crown Liability Act never seems to have been the subject of a court
decision, and counsel for the respondent sought to give it an interpretation other than that suggested by the appellants with the support of the writers. Essentially they argued, if I have understood them correctly, that section 7 was not concerned with questions of jurisdiction ratione personae, only of jurisdiction ratione materiae, and the use of the phrase "concurrent jurisdiction" in subsection (2) was simply intended to mean that the victim had a choice as to which of the two courts he could approach, as either could give him compensation. It is possible that what counsel for the respondent suggested as the meaning of subsection 7(2) cor responds to what the drafters of the legislation had in mind at the time it was prepared; however, I do not really think that the Court can derive from the provision as enacted an interpretation which not only refuses to give the key words "concurrent jurisdiction" their full sense, but more importantly makes the provision quite futile and pointless on its own by divesting it of any meaning independent of subsection (1). Most important of all, I do not see why the Court would adopt, without being requi red to do so, an interpretation which in theory would continue the aberration of a single action being brought and pursued simultaneously in two different courts, and in practice in the case at bar would definitely deprive the appellants of a right which they are now barred from exercising by a new action, as the period of prescription has expired.
I consider that subsection 7(2) of the Crown Liability Act can and must be construed literally as conferring trial jurisdiction on the Federal Court in cases of an action in tort like the one at bar. The second condition required for this Court to have jurisdiction is therefore also present.
This appeal must accordingly succeed. The Trial Judge was wrong in finding that the Court had no jurisdiction to hear the action as brought. His judgment allowing the motion to dismiss must be set aside and the motion dismissed.
I allow myself a very last remark. I am of course aware that in the case of Canadian Saltfish Cor poration and Joen Pauli Rasmussen and S/LF
Bordoyarvik and Herb Breau, Minister of Fisher ies and Oceans, Canada, and Her Majesty the Queen [to be reported in the Federal Court Reports sub nom. Rasmussen v. Breau, [1986] 2 F.C. 500 (C.A.)], another panel of the Court, in a decision handed down this very day, come to the conclusion that an action in tort taken against the Corporation cannot be entertained by this Court. This may give the appearance of a complete disa greement as to the approach to be adopted and the principles to be applied. I do not think it is the case. The power of the Court to entertain an action against a Crown corporation is dependant, as I have tried to show, on the cause of the action and the particular status of the public body. The legal characteristics of the Canadian Saltfish Corpora tion are not the same as those of the Canada Mortgage and Housing Corporation and the public body was there impleaded on the basis of allega tions which were of a completely different nature from that of the allegations made here against the Canada Mortgage and Housing Corporation.
HUGESSEN J.: I concur. LACOMBE J.: I concur.
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