Judgments

Decision Information

Decision Content

A-44-87
Her Majesty the Queen (Appellant)
v.
Charles Lawrence LeBar (Respondent)
INDEXED As: LEBAR v. CANADA
Court of Appeal, Urie, Mahoney and MacGuigan JJ.—Ottawa, October 12 and 27, 1988.
Constitutional law — Fundamental principles — Rule of law — Federal Court of Appeal, upon special case under R. 475, having interpreted statutory provision on sentence calcu lation — Another convict detained beyond release date as calculated in accordance with Court's interpretation — Crown arguing earlier decision merely declaratory and matter not res judicata for want of mutuality of parties — That government officials obey law is fundamental to principle of rule of law, enshrined in preamble to Charter — Unthinkable enforcement process needed to ensure Government discharging legal obliga tions — Officials could not have doubted generality of Court's pronouncement — Government's disobedience of declaratory judgment scandalous — Courses open to Government if judi cial authorities in conflict.
Practice — Judgments and orders — Effect of declaratory judgment upon special case under R. 475 — Court of appeal interpreting sentence calculation provision of Criminal Code — Crown arguing another convict's case not res judicata for want of mutuality of parties — Rationale for declaratory
awards Unthinkable enforcement process required to ensure government officials obey law — Consequence of rule of law principle for declaratory proceedings — Crown's argument ignores reality — Court having answered statutory interpreta
tion question in universal proposition Options open to officials if believing conflict of judicial authority.
Penitentiaries — Federal Court having, in universal propo sition, interpreted Code provision as to sentence calculation Sentence administrator at Collins Bay notified plaintiff en titled to immediate release based on Court's interpretation — Detained further 43 days — Whether Crown's servants bound to apply earlier decision in plaintiffs case — Argument that declaratory judgment not coercive against Crown — Court of Appeal sustaining Trial Division judgment awarding general exemplary damages.
Crown — Torts — Unlawful imprisonment — Penitentiary convict detained 43 days beyond release date as calculated in accordance with Court interpretation of Code sentence calcu lation provision — Trial Judge awarding general exemplary damages — Sustained on appeal — Government officials having no option to disobey law — Scandalous for Government to disobey declaratory judgment — Unnecessary respondent show malice or bad faith where oppressive, arbitrary or uncon stitutional action by government servants — Respondent's cross-appeal as to quantum of damages dismissed.
This was an appeal and cross-appeal against the Trial Divi sion's declaration that the respondent should have been released from penitentiary six weeks before the date he was in fact released. The respondent was awarded general damages of $430 and $10,000 as exemplary damages. The Crown is disput ing the award of exemplary damages arguing that the Mac/n- tyre judgment, relied upon at trial, was merely declaratory and had not rendered the matter res judicata as there was not an exact mutuality of parties. The respondent, in his cross-appeal, contested the quantum of general and exemplary damages awarded.
Held, the appeal and cross-appeal should be dismissed.
The Court's holding in the Mac/ntyre case affected not only the rights of the inmate in that case, but answered in a universal proposition a general question as to the meaning of section 24.2 of the Penitentiary Act. The generality of the Court's pronouncement could not have been doubted by govern ment officials. The Government must be seen to be obedient to the law.
In awarding exemplary damages, the Court was not required to find malice in the case of oppressive, arbitrary or unconstitu tional government actions.
The respondent failed to establish any error by the Trial Judge in his award of damages.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canada Elections Act, R.S.C. 1970 (1st Supp.), c. 14, s. I 4(4)(e).
Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. I l (U.K.).
Criminal Code, R.S.C. 1970, e. C-34, s. 137 (as am. by S.C. 1972, c. 13, s. 9; 1976-77, c. 53, s. 6).
Federal Court Rules, C.R.C., e. 663, R. 338(2).
Penitentiary Act, R.S.C. 1970, c. P-6, s. 24.2 (as added by S.C. 1976-77, c. 53, s. 41).
CASES JUDICIALLY CONSIDERED
APPLIED:
Mactntyre v. The Queen, [1983] 1 F.C. 603 (C.A.); Dyson v. Attorney-General, [1911] 1 K.B. 410 (C.A.); Reference re Manitoba Language Rights, [1985] 1 S.C.R. 721; B.C.G.E.U. v. British Columbia (Attorney General), [ 1988] 2 S.C.R. 214; Gould v. Attorney Gener al of Canada, [ 1984] 1 F.C. 1 1 19 (T.D.); [ 1984] 1 F.C. 1 133 (C.A.); affirmed by [1984] 2 S.C.R. 124; 13 D.L.R. (4th) 491; Rookes v. Barnard, [1964] 1 All E.R. 367 (H.L.); Lindal v. Linda!, [1981] 2 S.C.R. 629; 129 D.L.R. (3d) 263.
DISTINGUISHED:
Re Sowa and the Queen (1979), 50 C.C.C. (2d) 513 (Sask. C.A.).
CONSIDERED:
Letter Carriers' Union of Canada v. Canada Post Corpo ration (1986), 8 F.T.R. 93 (T.D.); Emms v. The Queen et al., [1979] 2 S.C.R. 1148; R. v. Ouimet, [1979] I F.C. 55 (C.A.); Broome v. Cassell & Co. Ltd., [1972] A.C. 1027 (H.L.).
REFERRED TO:
Andrews et al. v. Grand & Toy Alberta Ltd. et al., [1978] 2 S.C.R. 229; 83 D.L.R. (3d) 452; Arnold et al. v. Teno et al., [1978] 2 S.C.R. 287; 83 D.L.R. (3d) 609; Thornton v. School District No. 57 (Prince George) et al., [1978] 2 S.C.R. 267; 83 D.L.R. (3d) 480.
AUTHORS CITED
Wade, H.W.R. Administrative Law, 5th ed., Oxford: Clarendon Press, 1982.
Evans, J.M. De Smith's Judicial Review of Administra tive Action, 4th ed., London: Stevens & Sons Ltd., 1980.
Dicey, A.V. Introduction to the Study of the Law of the Constitution, 10th ed., London: Macmillan & Co. Ltd., 1959.
COUNSEL:
Donald J. Rennie for appellant. Fergus J. O'Connor for respondent.
SOLICITORS:
Deputy Attorney General of Canada for appellant.
O'Connor, Ecclestone & Kaiser, Kingston, for respondent.
The following are the reasons for judgment rendered in English by
MACGUIGAN J.: This is an appeal and cross- appeal from the judgment of Muldoon J. rendered on January 12, 1987 [[1987] 1 F.C. 585], wherein he declared that the respondent was entitled to have been released from prison on August 10, 1982, and not September 22, 1982, when he was in fact released.
Muldoon J. awarded general damages in the amount of $430 and exemplary damages in the amount of $10,000. In this Court, the appellant contested neither the finding of liability nor the award of general damages, and appealed only with respect to the award of exemplary damages. In his cross-appeal, the respondent contested both the award of general damages and that of exemplary damages.
During the summer of 1982, the respondent was completing a term of imprisonment with an expected release date of October 22, 1982. The salient events were tabulated as follows by the Trial Judge [at pages 588-589]:
July 19 —Federal Court of Appeal released its unani
mous decision in Maclntyre v. The Queen, [ 1983] 1 F.C. 603;
August 10 Plaintiff's correct date for release according to the law's interpretation which was expressed and decided in Maclntyre;
August 13 —The Correctional Service of Canada, through notification of the sentence administrator at Collins Bay Penitentiary, (all servants of the defendant) were notified that the Maclntyre decision affected the plaintiff's duration of his term and that his solicitor opined that the plaintiff ought to be released forthwith;
September 14—Statement of claim and notice of motion for interim injunction filed, the latter returnable on September 23;
September 22 The plaintiff was released from incarceration: —Defendant's solicitor confirms consent to the plaintiff's withdrawal of the above-men tioned motion, without costs;
On these facts, the Trial Judge held as follows [at page 599]:
The Court's record reveals that the Maclntyre judgment was in fact signed on July 19, 1982. The defendant's servants were notified of its effect in regard to the plaintiff by his solicitor on August 13, 1982. He was not released until September 22,
1982. The defendant's solicitor knows the law. The clear infer ence of that unexplained prodigious delay is negligence and wilful or wanton disregard of the plaintiff's right to liberty. This Court so finds. Pondering the possibility of seeking leave to appeal further to the Supreme Court of Canada does not excuse the unlawful imprisonment. Accordingly, this Court finds that the plaintiff was, and remains, entitled to have the term of his imprisonment calculated in accordance with the judgment in Macintyre v. The Queen, signed and released by the Federal Court of Appeal on July 19, 1982, and now reported in [1983] I F.C. 603. The Crown's servants were obliged to apply it to the defendant. They refused or neglected to do so. Accordingly, the defendant is liable to the plaintiff in damages for having kept him involuntarily and unnecessarily imprisoned in Collins Bay penitentiary during the 43 days from and including August 11, 1982, through September 22, 1982.
As a result of this unlawful imprisonment, the learned Trial Judge awarded exemplary damages of $10,000, which he justified as follows [at pages 608-6091:
To ignore the Court's decision rendered the previous July 19 until September 22, 1982, was to evade the duty which it lawfully imposed for a period of 65 days. To ignore the solicitor's notification of the effect of the Court's decision from August 13 to September 22 was to purport to repudiate both the decision and the duty it imposed for a period of 40 days. That is high-handed and arbitrary detention of the plaintiff. The Court's interpretation of the pertinent law, as already noted, became operative and authoritative upon its judgment having been rendered.
Exemplary damages are those which are also called "puni- tive", "aggravated", "retributory" and according to Linden [Canadian Tort Law, (3rd ed., 1982, Butterworths, Toronto) p. 5I ] even "vindictive" and "penal". Such a varied, but single- minded and strong nomenclature certainly conveys the judicial intention to denounce the defendant's misconduct. Although keeping the plaintiff unlawfully for 43 days after his 20 years of imprisonment, excepting periods of his being unlawfully at large, could hardly inflict any additional humiliation or loss of reputation upon him, it did constitute oppressive, arbitrary and fundamentally unconstitutional conduct by servants of the defendant. In this country where liberty is a constitutionally, albeit conditionally, protected individual right and societal value, it is not tolerable to treat even this plaintiff's self-cheap ened liberty, or anyone else's precious liberty, with insouciant disregard.
In all the circumstances here, however, there is one pejora tive quality of the defendant's servants' misconduct which was not proved on the part of anyone in particular and which cannot be inferred, and that is malice. Their negligence and their oppressive and wilful or wanton disregard of the plaintiff's right to be released were amply abusive to support the award of exemplary damages. Despite reasonably timely notification, they persisted in deliberately detaining him in prison until the day before his motion for a mandatory injunction was return able in this Court in September, 1982. Unjustified by any explanation, their misconduct is legally unjustifiable.
Here in the matter of exemplary damages, the taxpayers again will have to pay but now a more substantial assessment for the misconduct of the defendant's servants. This task of assessment is not an exact science. The assessment of exem plary damages must be an adequate disapproval of those serv ants' reprehensible misconduct in ignoring the law whose authoritative interpretation was clearly signalled to them, and in oppressively, abusively and deliberately disregarding the plaintiff's right to regain his conditional liberty and liberation from unlawful imprisonment. In light of the jurisprudence, which, unfortunately for the assessor of damages, does not present any exactly, or even nearly, similar situation, the Court awards the plaintiff the sum of $10,000 exemplary damages.
The effect of the Maclntyre decision, [Maclntyre v. The Queen, [1983] 1 F.C. 603 (C.A.)], was to vary the interpretation accorded section 137 of the Criminal Code [R.S.C. 1970, c. C-34 (as am. by S.C. 1972, c. 13, s. 9; 1976-77, c. 53, s. 6)] as to the calculation of sentences in situations where a prisoner has committed an offence while unlawful ly at large.
The appellant's fundamental contention, in oral argument, was that exemplary damages could not be awarded since the Maclntyre decision was merely declaratory and that a declaration does not render a matter res judicata where there is not an exact mutuality of parties. In support of this argu ment, the appellant cited H. W. R. Wade, Administrative Law, 5th ed., at page 523, to the following effect:
A declaratory judgment by itself merely states some existing legal situation. It requires no one to do anything and to disregard it will not be contempt of court. By enabling a party to discover what his legal position is, it opens the way to the use of other remedies for giving effect to it, if that should be necessary.
The appellant also relied on the words of Addy J. in Letter Carriers' Union of Canada v. Canada Post Corporation (1986), 8 F.T.R. 93 (T.D.), at page 94, who, in citing the above passage from Wade, commented that no declaratory judgment or order "is capable of sustaining, without more, any execution process nor a fortiori any contempt of court remedy".
The appellant also drew the Court's attention to Emms v. The Queen et al., [1979] 2 S.C.R. 1148. In Emms, this Court had held, at [1978] 2 F.C. 174, that the appellant government employee was
properly released from employment during an extension of the normal probation period, but subsequently in R. v. Ouimet, [1979] 1 F.C. 55 (C.A.), this Court had held that the regulation allowing management to extend the normal proba tionary period was ultra vires. Ouimet was not appealed but Emms was. Pigeon J., for the concur ring minority on the Supreme Court, raised the same issue as in the case at bar without deciding it, at pages 1160-1162:
1 know of no case in which the doctrine of res judicata has yet been applied to a judicial determination of the validity of an administrative regulation. But the principles governing res judicata are not statutory, they are "judge-made law" like the rule of evidence dealt with in Ares v. Venner ([1970] S.C.R. 608) and are to be developed by the courts in accordance with the needs of the time.
The judgment at trial in Ouimet indicates how serious it would be to treat a declaration of invalidity as binding only towards the plaintiff in the case in which it was issued.
Thus it will be seen that if a formal declaration of invalidity of an administrative regulation is not considered effective towards all those who are subject thereto, it may mean that all other persons concerned with the application of the regulation, including subordinate administrative agencies, have to keep on giving effect to what has been declared a nullity. It is obviously for the purpose of avoiding this undesirable consequence that, in municipal law, the quashing of a by-law is held to be effective "in rem".
Should it be possible for an administrative agency to allow a declaration of invalidity to stand in a given case while ignoring it towards other parties, on the chance that in another case it might succeed in having it overruled by a higher court, if not by a different judge? Should the situation be viewed in the same way as in the case of declarations of invalidity of statutes which seem to have always been considered only as precedents?
After anxious consideration, I find it unnecessary to express an opinion on this difficult question because, assuming the respondent is entitled to ask that the judgment in Ouimet be overruled, I find no reason to do so. No argument was submit ted to support the validity of s. 30(2) of the Public Service Employment Regulations which had not been considered and dealt with by the trial judge and the Federal Court of Appeal and no error was shown in the decisions rendered thereupon.
Martland J. for the majority decided the case without reference to the issue. In the result, this case is not an authority either way.
Declaratory relief, as we now know it, first appeared in the case law only in Dyson v. Attor- ney-General, [1911] 1 K.B. 410 (C.A.). A decla ration differs from other judicial orders in that it declares what the law is without pronouncing any sanction against the defendant, but the issue which is determined by a declaration clearly becomes res judicata between the parties and the judgment a binding precedent. The rationale for declaratory awards is expressed as follows by De Smith's Judicial Review of Administrative Action, 4th ed., by J. M. Evans, London: Stevens & Sons Ltd., 1980, at page 475:
[lit is sometimes neither necessary nor desirable for a legal dispute to be settled by the threat of coercion. If one has a dispute with a friend and a ruling by a court of law on the relevant legal issues is required, it is incongruous for one to be obliged to ask the court to award sanctions against him. And no matter what may be the personal relationship of the parties, litigation in which sanctions are sought is apt to generate an acerbity which is contrary to the interests of the parties and of the community. Again, it is often unseemly to proceed on the implied assumption that the defendant will fail to observe the law as declared by the court unless contingent sanctions exist. Especially is this true where the defendant is a body invested with public responsibilities. Moreover, there may be serious practical difficulties in the way of securing judicial enforcement of a coercive order against the organs of the State. (Orders made by the European Court (the Court of the Communities) against member-States are almost exclusively declaratory.) There are also cases where the award of coercive relief would be unfair to the defendant but where the validity of the plaintiff's claim against him warrants formal judicial recogni tion. In all these classes of cases it is highly advantageous for the courts to have power to make binding declarations of the rights and duties of the parties, without the necessity of decree ing any consequential relief.
The force of this analysis, it seems to me, is that a declaration is a peculiarly apt instrument in dealing with bodies "invested with public respon sibilities" because it can be assumed that they will, without coercion, comply with the law as stated by the courts. Hence the inability of a declaration to sustain, without more, an execution process should not be seen as an inadequacy of declaratory pro ceedings vis-à-vis the Government. Any power to enforce such a judgment against the Government would be a superfluity.
In my opinion, the necessity for the Government and its officials to obey the law is the fundamental aspect of the principle of the rule of law, which is now enshrined in our Constitution by the preamble to the Canadian Charter of Rights and Freedoms [being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.)]. This aspect was noted by A. V. Dicey, Introduction to the Study of the Law of the Constitution, 10th ed., E. C. S. Wade, 1959, pages 193, 202-203, and was authoritatively established by the Supreme Court in its per curiam decision in Reference re Manitoba Language Rights, [1985] 1 S.C.R. 721, at page 748:'
The rule of law, a fundamental principle of our Constitution, must mean at least two things. First, that the law is supreme over officials of the government as well as private individuals, and thereby preclusive of the influence of arbitrary power.
Elusive as it is as a concept, the rule of law must in all events mean "the law is supreme" and that officials of the Government have no option to disobey it. It would be unthinkable, under the rule of law, to assume that a process of enforcement is required to ensure that the Government and its officials will faithfully discharge their obligations under the law. That the Government must and will obey the law is a first principle of our Constitution.
The consequence of this principle for declarato- ry proceedings has, it seems to me, already been implicitly established by this Court in the Gould case: Gould v. Attorney General of Canada, [1984] 1 F.C. 1119 (T.D.), Reed J.; Attorney General of Canada v. Gould, [1984] 1 F.C. 1133 (C.A.); affirmed by [ 1984] 2 S.C.R. 124; 13 D.L.R. (4th) 491
That case involved a motion for an interlocutory injunction (in an action for declaratory relief) requiring the Chief Electoral Officer and the Solicitor General to enable the applicant peniten tiary inmate to exercise his right to vote in the
' In its recent decision in B.C.G.E.U. v. British Columbia (Attorney General), [19881 2 S.C.R. 214, at p. 229, Dickson C.J.C. writing for the majority declared that "rule of law is the very foundation of the Charter."
1984 federal election, despite paragraph 14(4)(e) of the Canada Elections Act [R.S.C. 1970 (1st Supp.), c. 14]. In assessing the balance of conve nience with respect to an interlocutory injunction, the Trial Judge said, at page 1127:
It seems clear that the balance of convenience is all in the applicant's favour in this case. His claim relates only to his right to vote. He is not claiming on behalf of all inmates.
I recognize that had the claim been on behalf of a great many inmates the balance of convenience might have tipped in the other direction because it would simply be impossible to set up the machinery before September 4 for providing all inmates (or a large number) with the right to vote.
Mahoney J. for the majority in this Court wrote as follows, at page 1139:
To treat the action as affecting only the rights of the respondent is to ignore reality. If paragraph 14(4)(e) is found to be invalid in whole or part, it will, to that extent, be invalid as to every incarcerated prisoner in Canada.
The Chief Justice of Canada, in dismissing the appeal to the Supreme Court, commented [at page 124] that "We generally share the views expressed by Mr. Justice Mahoney".
It seems to me that we must similarly say that to treat the Macdntyre case as affecting only the rights of the inmate in that case is to ignore reality—and indeed the wording of the Court's holding in that case, which answered in a universal proposition a general question as to the meaning of section 24.2 of the Penitentiary Act [R.S.C. 1970, c. P-6 (as added by S.C. 1976-77, c. 53, s. 41)]. The question was put this way, at page 609:
7. The question for adjudication proposed by and concurred in by both parties is as follows:
Does the term in Section 24.2 of the Penitentiary Act, namely "The sentence he was then serving", mean a "Sentence consisting of a term of imprisonment commencing on the earliest day on which any of those sentences of imprisonment (to which he was subject) commenced and ending on the expiration of the last to expire of such terms of imprisonment", pursuant to Section 14(1) of the Parole Act?
8. If the Court shall be of opinion in the positive, a declaratory order is to be made that the Applicant is entitled to earned remission up to one-third of the aggregate calculated on that basis.
9. If the Court shall be of opinion in a negative, then the Applicant is not entitled to earn any earned remission after December 1st, 1979, and his release date is to be calculated accordingly.
To that question, the Court's stated answer was as follows, at page 624:
I am accordingly of the opinion that the appeal should be allowed, the order appealed from should be set aside and the question posed in paragraph 7 of the special case should be answered in the positive. There should also be a declaration, in accordance with paragraph 8 of the special case, that the appellant is entitled to statutory and earned remission up to one-third of the aggregate calculated on the basis that "the sentence he is then serving" in section 24.2 of the Penitentiary Act means, in the case of the appellant, a "sentence consisting of a term of imprisonment commencing on the earliest day on which any of the sentences of imprisonment to which the appellant was subject commenced, i.e. July 6, 1971, and ending on the expiration of the last to expire of such terms of imprison ment, pursuant to subsection 14(1) of the Parole Act".
Government officials could not have been in any doubt as to the generality of the Court's pronouncement.
The appellant argued before this Court that Government officials must nevertheless have been in a quandary because of the apparent conflict of the Maclntyre decision with that of the Saskatche- wan Court of Appeal in Re Sowa and the Queen (1979), 50 C.C.C. (2d) 513. Thurlow C.J., concur ring in Maclntyre, expressly distinguished Sowa (at page 605). The respondent argued that the majority implicitly did so as well.
But accepting, arguendo, that the two cases were in conflict and that officials were caught in a genuine dilemma as to what to do with respect to inmates in the Prince Albert Penitentiary in Sas- katchewan, the proper course of action for the appellant, as the Trial Judge pointed out, would have been to seek to have the judgment in MacIn- tyre postdated pursuant to Rule 338(2) [Federal Court Rules, C.R.C., c. 663] or to seek leave to appeal to the Supreme Court along with a stay of the Maclntyre judgment. Even if in the minds of its officials it has good reason to pause and consid er, it is not enough for the Government to remain outwardly mute and disobedient in the face of a declaratory judgment, because such an apparent
failure to obey the law is a ready occasion of scandal for the public. The Government must be seen to be obedient to the law. If it has some reason for uncertainty, it owes it to the principle of the rule of law to reveal its position publicly, through a legal challenge to its apparent duty as declared by the courts. In my view, the rule of law can mean no less. I therefore reject the appellant's contention that she had no obligation to follow the declaratory judgment in Maclntyre.
The other issue on the appeal is that of the exem plary damages in themselves.
The appellant argued that, since the purpose of an award of exemplary damages is deterrence rather than compensation, such damages are awarded only to punish a tortfeaser for high-hand ed, malicious or arbitrary conduct, conduct that is sufficiently outrageous as to warrant the condem nation of the Court, and never where the defen dant acted in good faith. The Trial Judge made no finding of malice. It was, he said, [at page 609] "not proved on the part of anyone in particular and ... cannot be inferred".
The leading authority, Rookes v. Barnard, [1964] 1 All E.R. 367 (H.L.), dealt with the question of exemplary damages for the tort of intimidation on the part of a trade union. Lord Devlin stated the issue thus, at page 407:
Exemplary damages are essentially different from ordinary damages. The object of damages in the usual sense of the term is to compensate. The object of exemplary damages is to punish and deter. It may well be thought that this confuses the civil and criminal functions of the law; and indeed, so far as 1 know, the idea of exemplary damages is peculiar to English law. There is not any decision of this House approving an award of exemplary damages and your lordships therefore have to con sider whether it is open to the House to remove an anomaly from the law of England.
After reviewing the authorities, he concluded, at pages 410-411:
These authorities convince me of two things. First, that your lordships could not without a complete disregard of precedent, and indeed of statute, now arrive at a determination that refused altogether to recognise the exemplary principle. Secondly, that there are certain categories of cases in which an award of exemplary damages can serve a useful purpose in vindicating the strength of the law, and thus affording a practical justification for admitting into the civil law a principle which ought logically to belong to the criminal. I propose to state what these two categories are ....
The first category is oppressive, arbitrary or unconstitutional action by the servants of the government. I should not extend this category,—I say this with particular reference to the facts of this case,—to oppressive action by private corporations or individuals. Where one man is more powerful than another, it is inevitable that he will try to use his power to gain his ends; and if his power is much greater than the other's, he might perhaps be said to be using it oppressively. 1f he uses his power illegally, he must of course pay for his illegality in the ordinary way; but he is not to be punished simply because he is the more powerful. In the case of the government it is different, for the servants of the government are also the servants of the people and the use of their power must always be subordinate to their duty of service.
Cases in the second category are those in which the defen dant's conduct has been calculated by him to make a profit for himself which may well exceed the compensation payable to the plaintiff.
In a case in which exemplary damages are appropriate, a jury should be directed that if, but only if, the sum which they have in mind to award as compensation (which may of course be a sum aggravated by the way in which the defendant has behaved to the plaintiff) is inadequate to punish him for his outrageous conduct, to mark their disapproval of such conduct and to deter him from repeating it, then they can award some larger sum.
Lord Devlin here recognized that "outrageous" or "oppressive" conduct on the part of the Govern ment is quite different from similar conduct by powerful corporations or individuals, and that it is much more serious, "for the servants of the gov ernment are also the servants of the people and the use of their power must always be subordinate to their duty of service." 2 There is no mention that the conduct must be malicious or in bad faith.
2 In a subsequent case, Broome v. Cassell & Co. Ltd., [1972] A.C. 1027 (H.L.), Lord Diplock alone doubted that it is still necessary to retain this category relating to government action.
Lord Devlin's category is "oppressive, arbitrary or unconstitutional action by the servants of the gov ernment." This was the very standard applied by the learned Trial Judge in the case at bar. He referred to [at page 609] the "oppressive and wilful or wanton disregard of the plaintiff's right to be released", and to [at page 609] the persist ence "in deliberately detaining him in prison until the day before his motion for a mandatory injunc tion was returnable to this Court".
The appellant argued that the Trial Judge drew a wrong inference from the failure to act, given the conflicting Saskatchewan decision and the fact that the date on which the respondent was released was still well within the time prescribed by law within which leave to appeal could have been sought against the Maclntyre decision.
But in my view, this argument could succeed only if malice were required to found exemplary damages. If, as seems clear to me, malice is not necessary for the existence of "oppressive, arbi trary or unconstitutional action by the servants of the government", the appellant's argument serves only to strengthen the Trial Judge's finding that the conduct of the Government was wilful and deliberate. As I have already said in dealing with an earlier argument, apparently persistent failure by the Government to obey a clear judicial deci sion is not consonant with the principle of the rule of law.
I would therefore dismiss the appeal with costs.
In his cross-appeal, the respondent sought an increase in general damages from $10 a day to $500 a day and in exemplary damages from $10,000 to $50,000.
The learned Trial Judge reviewed the law, including all of the authorities cited before this Court by the respondent, and also the respondent's long life of criminal activity, beginning with a first incarceration in 1942 and culminating in a convic tion for breaking and entering in March 1983, after the events herein, to which the Trial Judge
attributed the delay in the hearing of this trial until the fall of 1986. On general damages, he concluded [at pages 606-6071:
The above recitation indicates why the damages awarded in the cases cited for the plaintiff are greater than he can expect to recover here. Upon becoming sui juris, if one does not exercise that restraint which nourishes personal liberty but continually victimizes others by means of criminal depreda tions, one is responsible for the devaluation of one's own liberty. Such a person cannot reasonably require the people and govern ment of Canada to pay him a princely price for the liberty which he himself has constantly undervalued and squandered. The plaintiff is a virtually life-long tax consumer who seeks to impose the price of his 43 days of loss of his cheap liberty on the taxpayers of Canada. Indeed, if all monetary values were counterpoised as sums, it is almost certain that the plaintiff would owe the people of Canada, whom he has cheated and robbed, more for food and lodging, social burden and criminal misconduct than he could ever pay. In that regard, it may be wondered why the defendant did not assert a set-off herein.
How, then, is the plaintiff to be compensated for his self- devalued, squandered liberty? His behavioural record and his subsequent misconduct indicate the probability that, left at large to his own devices on August 10, 1982, the plaintiff could well have incurred negative gain during the following 43 days. Yet, he would (but for how long?) have been able to draw the sweet air of liberty and, arguably, might have been able to find legitimate employment. That counts for something, but in the plaintiff's particular case, not much. In 1982 he was being paid a wage of $35 per week in Collins Bay. If that were his measure of fixed compensation—$5 per day his damages would be assessed at $215 for the 43 days. But even to the Charles LeBars of this world loss of liberty is worth more than that. Doubling that sum to $10, and realizing that if he had been so paid over the last 20 years, 1962 to 1982, when he was incarcerated (generously overlooking his periods of being unlawfully at large, when self-help was his necessity), it is evident that he could have emerged from prison in 1982 with $10 x 365 days x 20) $73,000, plus interest if he had frugally saved it all. The taxpayers of Canada cannot reasonably be expected to pay more than $10 per day in general damages for the liberty which Mr. LeBar himself has so apparently despised both before and after August 10, 1982. The Court therefore awards the plaintiff $430 in general damages for his unlawful imprisonment between midnight of August 10, 1982, and what ever time he was released on September 22, 1982.
In my opinion, the respondent has not succeeded in establishing any reviewable error in this award. Indeed, the Supreme Court of Canada adopted a functional approach for general damages in its trilogy of judgments of January 19, 1978: Andrews et al. v. Grand & Toy Alberta Ltd. et al., [1978] 2 S.C.R. 229; 83 D.L.R. (3d) 452; Arnold et al. v. Teno et al., [1978] 2 S.C.R. 287; 83 D.L.R. (3d)
609; Thornton v. School District No. 57 (Prince George) et al., [1978] 2 S.C.R. 267; 83 D.L.R. (3d) 480. Subsequently, in Lindal v. Lindal, [1981] 2 S.C.R. 629, at page 637; 129 D.L.R. (3d) 263, at page 270, the Court emphasized that "An appreciation of the individual's loss is the key" (per Dickson J. as he then was). This was the approach of the Trial Judge.
In awarding the respondent the sum of $10,000 for exemplary damages, the learned Trial Judge noted [at page 609] that "the jurisprudence, .. . unfortunately for the assessor of damages, does not present any exactly, or even nearly, similar situa tion". His analysis of the factual evidence was as follows [at pages 607-608]:
Counsel for the defendant pleaded in argument that there was at the relevant time no computer whereby the defendant's servants could immediately identify the "20 or so" prison inmates (Transcript: pages 73 and 74) out of a total inmate population of "13,000 people incarcerated in some seven prov inces" (Transcript: page 89) who were in the same plight as the plaintiff's. As counsel rightly noted, there is no evidence before the Court about the necessity of effecting a manual search of inmate records, but even so, one may in law ask, "So, what?" Complex as the legislative provisions are, the judgment in the Maclntyre case did not further complicate computation of terms of imprisonment. The statutory provisions remain as complex as before.
It must be remembered that, through his solicitor and coun sel the plaintiff attempted appropriately to mitigate damages by reasonably timely notification of the defendant's proper servants, and even the Minister, to the effect that he ought to be released on the basis of a proper method of calculation declared by the Federal Court of Appeal. If the prison authori ties had set a sentence administrator immediately to the task of computing and verifying the plaintiff's release date, and if he had thereupon been released, the Court would not now be considering exemplary damages. No one would begrudge the defendant's officials taking several hours, even a day, after notification, to calculate the plaintiff's correct date of release.
Again, the respondent has failed to demonstrate any error. The sum of $10,000 is far from negli gible and I believe large enough to qualify as a deterrent against future conduct of this kind, espe cially since the financial consequences will in all likelihood be visited upon the budget of the par ticular Government agency at fault.
I would therefore dismiss the cross-appeal. Since the respondent was successful on the appeal, and since a minimum of the parties' effort was directed to the cross-appeal, I would not award costs on the cross-appeal.
URIE J.: I agree.
MAHONEY J.: I agree.
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