Judgments

Decision Information

Decision Content

T-2068-86
Crestpark Realty (Applicant) v.
Director General, Aids and Waterways, on behalf of the Minister of Transport (Respondent)
INDEXED AS: CRESTPARK REALTY V. CANADA (DIRECTOR GEN ERAL, AIDS AND WATERWAYS)
Trial Division, Collier J.—Halifax, October 16 and 17, 1986.
Judicial review — Prerogative writs — Certiorari — Application to quash decision approving building of bridge and causeway — Legislation silent as to opposition procedures — Minister soliciting written objections — Applicant's objections rejected one day before formal approval — Applicant denied opportunity to respond in writing to respondent's reply reject ing objections — Duty of fairness breached — Application allowed — Navigable Waters Protection Act, R.S.C. 1970, c. N-19, ss. 5(1)(a), 8(1),(3) — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 18.
This is a motion for certiorari to quash the respondent's decision approving an application to build a bridge and cause way in Halifax County, Nova Scotia. The Navigable Waters Protection Act, under which approval was given, is silent as to any procedure for soliciting objections to a proposed work which might affect navigable waters. The Minister in this case initiated a procedure by directing that the notice of application required to be published in the Canada Gazette pursuant to section 8 of the Act, contain a statement as to where written objections might be sent.
The applicant wrote to the respondent outlining his objec tions and requesting a hearing. The respondent replied some two months later indicating that the objections would not be given effect to. That letter was dated one day before the decision granting formal approval was made. The applicant protested. The Director General offered to arrange for appli cant to meet with a departmental official for a discussion of the issues but there was no question of the decision being altered.
Held, the application should be allowed.
The respondent's submission, that all that was necessary was to consider and investigate the objections, could not be accepted.
An administrative tribunal, such as the Minister, through his Director General, can provide for its own procedure: Hoffman- La Roche Ltd. v. Delmar Chemical Ltd. That case must, however, be considered with care since it was rendered before the Supreme Court decision in Nicholson, now the cornerstone of modern Canadian administrative law. The Nicholson deci sion stands for the proposition that complaints made to an investigating body must be considered and the complainant
given the opportunity to meet the case against him. The requirement of fairness may, in some cases, be satisfied by correspondence.
The ultimate question to be answered was stated by Dickson J. (as he then was) in Martineau v. Matsqui Institution Disciplinary Board (No. 2): "Did the tribunal on the facts of the particular case act fairly toward the person claiming to be aggrieved?" That question in the present case must be answered in the negative. The respondent invited and received objections. Although an oral hearing may not have been neces sary, an opportunity to respond in writing to the Director General's reply rejecting the objections should have been given. Failure to give an opportunity to respond amounted to a breach of fairness.
CASES JUDICIALLY CONSIDERED
CONSIDERED:
Martineau v. Matsqui Institution Disciplinary Board (No. 2), [1980] 1 S.C.R. 602; 30 N.R. 119.
REFERRED TO:
Hoffman-La Roche Ltd. v. Delmar Chemical Ltd., [1965] S.C.R. 575; Nicholson v. Haldimand-Norfolk Regional Board of Commissioners of Police, [1979] 1 S.C.R. 311; Selvarajan y Race Relations Board (1976), 1 All ER 13 (C.A.).
COUNSEL:
Jean Beeler for applicant. M. Donovan for respondent.
SOLICITORS:
Weldon, Beeler & Mont, Dartmouth, Nova Scotia, for applicant.
Deputy Attorney General of Canada for respondent.
The following are the reasons for order deliv ered orally in English by
COLLIER J.: This is a motion for judicial review, by way of certiorari, to quash a decision of the respondent, made January 3, 1986. That decision approved the application of one Ronald Morash to build a bridge and causeway at a certain location in St. Margaret's Bay, Halifax County, Nova Scotia. The approval was given pursuant to para graph 5(1)(a) of the Navigable Waters Protection Act, R.S.C. 1970, c. N-19.
Morash commenced construction of his pro posed causeway in September 1985. Someone complained of his doing this without the required statutory approval. He then formally applied, on September 16, 1985, for the necessary approval. The appropriate departmental officers made some investigations. On September 18, 1985, they recommended to their superiors that the applica tion be approved.
On September 25, 1985, Morash was notified he was required to deposit the plans for the structure in the local registry office, and to publish a notice in the Canada Gazette, and in the legal section of two newspapers.
Those requirements are called for by subsections 8(1) and 8(3) of the statute. The legislation is silent as to any method of inviting objections from interested parties, or a method of handling any objections.
The Minister, in this case, through his officials, apparently directed that the notice of application, to be published, contain the following:
Written objections based on the effect of the work on marine navigation may be directed to: Director General, Aids and Waterways, Canadian Coast Guard, Department of Transport, Ottawa, Ontario.
The notice was published in local newspapers in the first week of October 1985.
The applicant is the owner of property in St. Margaret's Bay.
On October 25, 1985, through its solicitor, the applicant wrote the Director General outlining specific objections to the proposed bridge and causeway. Some of the objections related to mat ters of marine navigation. Others related to envi ronmental and ecological matters. Copies of the letter were sent to various government depart ments, including Environment and Fisheries. A copy was sent to Tom Bradley. He was a Navi gable Waters Protection Act Officer who did the site investigations of the proposed structure.
In the letter of October 25, the applicant requested an extension of time.
... to these proceedings, so that all concerned persons may be given the opportunity to submit a notice of Objection and for a fair hearing.
The letter concluded as follows:
1 also request notice cf the time, date, place and manner of proceeding of the hearing of this matter.
Four other letters were received, expressing opposition to the causeway.
The applicant's objections, and requests, were not even given the courtesy of an acknowledge ment receipt. There was utter, cold silence until the Director General wrote the applicant's solici tors on January 2, 1986. That letter referred to the solicitor's letter of October 25, 1985. The Director General indicated the objections would not be given effect to, for withholding approval under the statute.
The letter was dated one day before the decision granting formal approval was made. The letter was not received by the applicant's solicitors until January 9, 1986.
The solicitors wrote, in reply, on January 28, 1986. They protested the ruling, particularly because no hearing had been held.
This time there was a prompt reply from the Director General: February 6, 1986. I set out the letter in full:
Dear Sir: Causeway construction—Mosher's Back Cove, Burnt Island, N.S.
I refer to your correspondence of January 28, 1986 regarding the above noted matter. Although the Navigable Waters Pro tection Act does not provide for "hearings" to be held in respect to works proposed for construction in navigable waters, Coast Guard officials of our Dartmouth Regional office are available to discuss those issues which have a bearing on the public right of navigation. In this respect we have requested Mr. Tom Bradley of our Dartmouth office to contact you directly to arrange a date and time that would be acceptable to you both. Yours sincerely.
The evidence discloses that Mr. Bradley endeavoured to arrange a meeting with the appli cant's solicitor. It did not take place. According to the evidence submitted on behalf of the applicant, Mr. Bradley indicated he was prepared to discuss
the matter, but the decision which had been made would not be altered.
There was no evidence before me as to the fate of the other four opponents of the causeway, or how their protests were handled.
The material filed on behalf of the respondent discloses Mr. Bradley made his first official site inspection on September 17, 1985. He made another inspection on November 26, 1985. Mr. Bradley does not say why this second inspection was made. He does not say it was because of the applicant's objections, or because of the opposition which had been expressed by other objectors.
This is clear. The applicant knew nothing of these matters. After its letter of October 25, 1985, it knew nothing until the receipt of the Director General's letter of January 2, 1986, and the formal approval dated the next day.
The steps taken by the Director General's Department were outlined in Mr. Bradley's affida vit, of October 10, 1986, a week ago. That was the first knowledge by the applicant.
That concludes my summary of the essential facts.
The applicant contends the respondent was, in the circumstances here, in breach of a duty of fairness: that some kind of hearing, or opportunity, ought to have been given in respect of the objec tions made by the applicant.
The respondent replies that there is no statutory requirement for a so-called hearing. Even if a common law duty of procedural fairness arose, it is said, the requirements were met; the objections were considered, and investigated; in the circum stances that was all that was necessary.
I do not accept the respondent's contentions.
It is quite true the statute is silent as to any procedure for soliciting objections to a proposed work which might affect navigable waters. Here the Minister, set up the start of a procedure by
requiring Morash, in this case, to include a state ment in his published notice, that written objec tions could be sent. An administrative tribunal, such as the Minister, through the Director General here, can provide for its own procedure. See: Hoff- man-La Roche Ltd. v. Delmar Chemical Ltd., [1965] S.C.R. 575. In that case, it was held that the procedures set up by the Commissioner of Patents were sufficient compliance with "natural justice".
I point out, however, the Hoffman-La Roche case must be treated with care. It was long before the seminal Canadian case of Nicholson v. Haldi- mand-Norfolk Regional Board of Commissioners of Police, [1979] 1 S.C.R. 311, now the corner stone of modern Canadian administrative law, and judicial review.
Quite apart from statute, a duty of fairness may arise, in the circumstances of a particular case, at common law. The duty of fairness may, again in a particular case, require a hearing, in the sense of an oral hearing.
Essentially, the complaints made to an investi gating or deciding body, must be considered. The complainant must be given an opportunity to meet the so-called case against him—the right to reply. The whole process may, in a particular case, meet the requirement of fairness by being done by cor respondence or writing. See the Nicholson case, and Selvarajan v Race Relations Board (1976), 1 All ER 13 (C.A.), referred to in the Nicholson decision.
The crux of the matter is, in my view, set out by Mr. Justice Dickson [as he then was] in Mar- tineau v. Matsqui Institution Disciplinary Board (No. 2), [1980] 1 S.C.R. 602, at pages 628-629; 30 N.R. 119, at page 149:
... A purely ministerial decision, on broad grounds of public policy, will typically afford the individual no procedural protec tion, and any attack upon such a decision will have to be founded upon abuse of discretion. Similarly, public bodies exercising legislative functions may not be amenable to judicial supervision. On the other hand, a function that approaches the judicial end of the spectrum will entail substantial procedural safeguards. Between the judicial decisions and those which are discretionary and policy-oriented will be found a myriad deci-
sion-making processes with a flexible gradation of procedural fairness through the administrative spectrum. That is what emerges from the decision of this Court in Nicholson. In these cases, an applicant may obtain certiorari to enforce a breach of the duty of procedural fairness.
And again at pages 630-631 S.C.R.; 150-151 N.R.:
... It is wrong, in my view, to regard natural justice and fairness as distinct and separate standards and to seek to define the procedural content of each. In Nicholson, the Chief Justice spoke of a "... notion of fairness involving something less than the procedural protection of the traditional natural justice". Fairness involves compliance with only some of the principles of natural justice. Professor de Smith (3rd ed. 1973, p. 208) expressed lucidly the concept of a duty to act fairly:
In general, it means a duty to observe the rudiments of natural justice for a limited purpose in the exercise of functions that are not analytically judicial but administra tive.
The content of the principles of natural justice and fairness in application to the individual cases will vary according to the circumstances of each case, as recognized by Tucker L. J., in Russell v. Duke of Norfolk ([1949] 1 All E.R. 109), at p. 118.
8. In the final analysis, the simple question to be answered is this: Did the tribunal on the facts of the particular case act fairly toward the person claiming to be aggrieved? It seems to me that this is the underlying question which the courts have sought to answer in all the cases dealing with natural justice and with fairness.
I put that simple question in this case: Did the Director General, on the facts of this particular case, act fairly towards the applicant-objector?
My answer is "No".
The Director General invited objections. He received one from the applicant. I assume that the objections were considered. But no replies were given, until far too late, rejecting the objections. No opportunity was given to the applicant to respond to the rejections of its objections, or even of the grounds of rejection.
Failure to give that opportunity was, to my mind, a breach of fairness, sufficiently tainting the approval decision, to warrant quashing it.
I do not say the applicant should have had an oral hearing. An oral hearing may not have been necessary in this case. But at the least, an opportu nity to respond in writing to the Director General's views on the objections, should have been given.
The Director General appeared quite willing, after the event, to have a departmental officer discuss the matter with the applicant. That was a method open to the Director General before his decision was made, as well as other methods of complying with the fairness rule.
The decision of January 2, 1986 is quashed.
The Trial Division of this Court has no power to refer the whole matter back to the Director Gener al to reconsider his decision, in the light of these reasons. The only power, under section 18 [of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10], in the circumstances of this case is to quash.
Finally, I wish to make this clear. I am not suggesting that what I have said in this particular case necessarily applies in respect of all applica tions for approvals made under section 8 of the Navigable Waters Protection Act.
The applicant is entitled to the costs of this motion.
 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.