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A-827-88
Attorney General of Canada (Applicant) v.
Marlene McAlpine, Canadian Human Rights Commission (Respondents)
INDEXED AS: CANADA (ATTORNEY GENERAL) V. MCALPINE (CA.)
Court of Appeal, Heald, Urie and Marceau JJ.A.—Ottawa, April 20 and May 18, 1989.
Human rights — Human Rights Tribunal ordering employ er to pay compensation for unemployment insurance benefits lost as result of discriminatory practice — No jurisdiction under Canadian Human Rights Act, s. 41(2) to make such award — Tribunal erred in assessing damages when applied principle of restitutio in integrum without considering remote ness or reasonable foreseeability.
Unemployment insurance — Human Rights Tribunal order ing employer to compensate employee for unemployment in surance benefits lost as result of discriminatory practice — No jurisdiction under Canadian Human Rights Act, s. 41(2) to make such award — Cases where evidence leading to clear inference entitled to benefits distinguished.
This was an application to set aside a decision of the Canadi- an Human Rights Tribunal ordering an employer, who had admitted engaging in a discriminatory practice, to pay an employee damages for loss of unemployment insurance ben efits. An offer of employment was withdrawn in accordance with then-existing policy when the employer learned that the employee was pregnant. As a result of the discrimination, the employee did not work, and therefore did not qualify for unemployment insurance benefits. In awarding damages, the Tribunal applied the principle of restitutio in integrum. The applicant argued that subsection 41(2) of the Canadian Human Rights Act did not authorize compensation for lost unemploy ment insurance benefits, and that even if it did, the Tribunal applied wrong principles in its assessment of damages.
Held, the application should be allowed.
The plain, ordinary and grammatical meaning of subsection 41(2) does not permit the relief given by the Tribunal. Para graph 41(2)(b) is restricted to relief in the nature of specific performance. The Druken case, wherein the Unemployment Insurance Commission was ordered to pay unemployment in surance benefits lost as a result of a discriminatory practice, was distinguished. There, the benefits had been paid and entitlement could be reasonably inferred from the evidence. The Commission was ordered to do what it was required to do under the Act. Here, the respondent had not acquired any rights in respect of which she was entitled to an order for specific performance. The Tribunal did not have the power to award the compensation under paragraph 41(2)(c). Even if
unemployment insurance benefits could be said to be a conse quence of the employment contract, they were not wages. Paragraph 41(2)(d) is restricted to reimbursement for the cost of necessary alternative goods, services, facilities or accommo dation. The discretion conferred upon the Tribunal by Parlia ment is operative only within the confines of the jurisdiction given to it under paragraphs 41(2)(b),(c) and (d).
The Tribunal erred in failing to address the issue of reason able foreseeability in assessing damages. Only such part of the actual loss as is reasonably foreseeable is recoverable.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canadian Human Rights Act, S.C. 1976-77, c. 33, ss.
7(a), 41 (as am. by S.C. 1980-81-82-83, c. 143, s. 20). Canadian Human Rights Act, R.S.C., 1985, c. H-6, s.
53(2).
Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28.
Ontario Human Rights Code, R.S.O. 1980, c. 340. Unemployment Insurance Act, 1971, S.C. 1970-71-72, c.
48.
CASES JUDICIALLY CONSIDERED
APPLIED:
Canadian National Railway Co. v. Canada (Canadian Human Rights Commission), [1987] 1 S.C.R. 1114; Rosanna Torres v. Royalty Kitchenware Limited and Francesco Guercio (1982), 3 C.H.R.R. D/858 (Ont. Bd. of Inquiry); DeJager v. Canada (Department of National Defence) (1987), 8 C.H.R.R. D/3963.
DISTINGUISHED:
Canada (Attorney General) v. Druken, [1989] 2 F.C. 24; (1988), 9 C.H.R.R. D/5359 (C.A.).
REFERRED TO:
Asamera Oil Corporation Ltd. v. Sea Oil & General Corporation et al., [1979] 1 S.C.R. 633; B.D.C. Ltd. v. Hofstrand Farms Ltd., [1986] 1 S.C.R. 228; 26 D.L.R. (4th) 1.
AUTHORS CITED
Driedger, Elmer A. Construction of Statutes, 2nd ed. Toronto: Butterworths, 1983.
Living Webster Encyclopedic Dictionary of the English Language, "Wage". Chicago: English—Language Insti tute of America, Inc., 1971.
Shorter Oxford English Dictionary, 3rd ed., "Wage". Oxford: Clarendon Press, 1978.
COUNSEL:
Bruce S. Russell for applicant. James R. Hendry for respondents.
SOLICITORS:
Deputy Attorney General of Canada for applicant.
Canadian Human Rights Commission, Ottawa, for respondents.
The following are the reasons for judgment rendered in English by
HEALD J.A.: This is a section 28 [Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10] application to review and set aside a decision rendered pursu ant to section 41 of the Canadian Human Rights Act, S.C. 1976-77, c. 33 (the Act), by a Tribunal appointed to inquire into a complaint lodged by the respondent McAlpine against the Department of National Defence (DND). The complaint alleged that DND was guilty of a discriminatory practice by refusing to employ her on a prohibited ground of discrimination pursuant to paragraph 7(a) of the Act.'
The facts as agreed by counsel before the Tri bunal established that the respondent McAlpine was a member of the Canadian Forces Reserve. She had received training as a clerk. On May 22, 1985, an offer was made to her for employment as an administrative clerk. The offer was subject to a policy of the Canadian Forces at that time which prohibited a person while pregnant, from being engaged in such employment with the Canadian Forces. That policy is no longer in effect. When it was discovered that the respondent was pregnant, the offer of employment was withdrawn. At the hearing before the Tribunal, counsel further stipu lated: that Marlene McAlpine would have worked from July 3, 1985 to October 11, 1985 inclusive (14 weeks); that she did not work any of those weeks because of the Forces policy referred to
7. It is discriminatory practice, directly or indirectly,
(a) to refuse to employ or continue to employ any individual,
or
on a prohibited ground of discrimination.
supra; that only ten weeks were necessary to quali fy her for unemployment insurance benefits; that but for the fact that she did not have any insurable weeks, she would have paid the necessary unem ployment insurance premiums, filed her claim for benefits on January 27, 1986 and would have received unemployment insurance for the week beginning on Sunday, January 26, 1986, to the week ending and including June 7, 1986. The Tribunal noted, (Case, Vol. 1, pages 6-7):
All aspects of this case have been settled by a Consent Order, except whether or not there is an entitlement to damages as a result of her failure to receive her unemployment insurance benefits.
The quantum of those damages, if payable, were agreed on at $4,692. After a review of what it considered to be the relevant statutory provisions as well as the applicable jurisprudence, the Tri bunal concluded (Case, Vol. 1, pages 11-12):
Marlene McAlpine would have been paid her wages, had she worked, and she would have been entitled to unemployment insurance benefits as her employer would have made the appro priate deductions. But for the discrimination, Marlene McAl- pine would have had unemployment insurance benefits .... Marlene McAlpine has a claim for compensation. Here, compensation must be payment of damages. The appropriate remedy is to award unemployment insurance benefits that would have been available to the complainant had she not been a victim of discrimination. The loss to Marlene McAlpine flows directly from the discriminatory employment practice. As this loss is direct and the Act is essentially remedial, it follows that to be consonant with the latest cases from the Supreme Court of Canada, this tribunal must direct the Respondent to com pensate McAlpine for her losses suffered as a result of the discriminatory practices by the Respondent.
In the result, the Tribunal's order provided, inter alia, that the Canadian Forces pay to Marlene McAlpine the sum of $4,692 in compensation for loss of unemployment insurance benefits.
The applicant attacks the decision of the Tri bunal on two grounds, firstly that subsection 41(2) [as am. by S.C. 1980-81-82-83, c. 143, s. 20] of the Act does not authorize or permit an award of compensation for foregone unemployment insur ance benefits, and, secondly, even assuming such authority, the Tribunal applied erroneous princi ples in its assessment of damages in the circum stances of this case.
The parameters of relief available pursuant to subsection 41(2) of the Act
Subsection 41(2) of the Act (now cited as sub section 53(2); R.S.C., 1985, c. H-6) provides:
4I....
(2) If, at the conclusion of its inquiry, a Tribunal finds that the complaint to which the inquiry relates is substantiated, subject to subsection (4) and section 42, it may make an order against the person found to be engaging or to have engaged in the discriminatory practice and include in such order any of the following terms that it considers appropriate:
(a) that such person cease such discriminatory practice and, in order to prevent the same or a similar practice from occurring in the future, take measures, including
(i) adoption of a special program, plan or arrangement referred to in subsection 15(1), or
(ii) the making of an application for approval and the implementing of a plan pursuant to section 15.1,
in consultation with the Commission on the general purposes of those measures;
(b) that such person make available to the victim of the discriminatory practice on the first reasonable occasion such rights, opportunities or privileges as, in the opinion of the Tribunal, are being or were denied the victim as a result of the practice;
(c) that such person compensate the victim, as the Tribunal may consider proper, for any or all of the wages that the victim was deprived of and any expenses incurred by the victim as a result of the discriminatory practice; and
(d) that such person compensate the victim, as the Tribunal may consider proper, for any or all additional cost of obtain ing alternative goods, services, facilities or accommodation and any expenses incurred by the victim as a result of the discriminatory practice.
The compensatory paragraphs in subsection (2) of section 41 are paragraphs (b), (e) and (d). In the applicant's submission, none of these para graphs entitled the Tribunal to award compensa tion for foregone unemployment insurance ben efits. In so far as paragraph (b) is concerned, the applicant submits that the plain, ordinary and grammatical sense of the wording employed indi cates that paragraph 41(2)(b) is intended as a non-monetary remedy. Turning to paragraphs 41(2)(c) and (d), the applicant agrees that these paragraphs provide for monetary remedies but argues that they provide for specific heads of compensation rather than for compensation gener ally.
I agree with these submissions. Turning firstly to paragraph 41(2) (b), and examining the words used therein in their context and in their gram-
matical and ordinary sense harmoniously with the scheme of the Act, the object of the Act and the intention of Parliament, 2 I interpret this provision as affording to the victim of a discriminatory practice, a remedy in specific performance. A perusal of the French version supports such an interpretation. In my view, both the English ver sion "make available to the victim of the dis criminatory practice" and the French version "d'accorder à la victime" do not make provision for monetary compensation. It would have been a simple matter for Parliament to provide for com pensatory relief in this paragraph had it so intend ed. The language employed herein is foreign to the traditional language used in conferring power to grant monetary relief. Moreover, the fact that Parliament has expressly provided for monetary relief in paragraphs 41(2)(c) and (d), fortifies my view that paragraph 41(2)(b) must be restricted to relief in the nature of specific performance.
Counsel for the respondents, however, relies on the recent decision of this Court in the case of Canada (Attorney General) v. Druken. 3 In that case, the Tribunal had found that certain provi sions of the Unemployment Insurance Act, 1971 [S.C. 1970-71-72, c. 48] contravened the Canadi- an Human Rights Act. The impugned provisions prohibited the complainant from eligibility for benefits on the ground of marital status (the com plainant had been employed by her husband). The Tribunal ordered, inter alia, the Unemployment Insurance Commission to pay the unemployment insurance benefits that would have been received by the complainant but for the discriminatory practice. However, Druken is distinguishable from the case at bar because, in Druken, "each of the respondents had, in fact, been paid benefits and it was, therefore proper to infer that each was other wise entitled to benefits".'
Mr. Justice Mahoney was careful to narrow the limits of entitlement to those cases where entitle ment could reasonably be inferred from the
2 This is the test propounded by Dr. Driedger in Construction of Statutes, 2nd ed. Toronto: Butterworths, 1983, at p. 87.
3 [1989] 2 F.C. 24, at p. 36; (1988), 9 C.H.R.R. D/5359 (C.A.), at p. D/5368.
4 The above is a quotation from the judgment of the Court written by Mahoney J.A. at pp. 36 F.C.; D/5368 C.H.R.R. at paragraph 40154.
evidence.' In my view, the circumstances at bar do not warrant the drawing of the same inference as was drawn in Druken. In Druken, unemployment insurance benefits had, in fact, been paid. In this case, the respondent McAlpine was never, in fact, employed by DND. Accordingly, we have here a situation where entitlement cannot reasonably be inferred from the evidence. In Druken, the impugned order was directed to the Unemploy ment Insurance Commission ordering it to do what it was required to do pursuant to the provisions of the Unemployment Insurance Act, 1971. In the case at bar, as noted supra, the respondent could not be said to have acquired any rights in respect of which she was entitled to an order for specific performance.
Turning now to paragraph 41(2)(c), it is the submission of the respondents that since the provi sion of unemployment insurance benefits can be said to be a consequence of the employment con tract, such benefits are encompassed by the provi sions of paragraph 41(2)(c). I do not agree. Even accepting the view that such benefits can be said to be a consequence of the employment contract, I do not think they can be considered to be wages. The Shorter Oxford English Dictionary defines "wage", inter alia, as: "A payment to a person for service rendered." The Living Webster Encyclope dic Dictionary of the English Language defines "wage" inter alia, as "money paid for labor or services, usu. according to specified intervals of work, as by the hour, day, or week". Bearing these definitions in mind, I do not think that unemploy ment insurance benefits can be said to be included in the category of wages. Unemployment insur ance benefits are a species of insurance payable in circumstances where wages are not being received. Accordingly, I do not think the Tribunal had the power to award the compensation herein in issue pursuant to paragraph 41(2)(c) of the Act.
In so far as paragraph 41(2)(d) is concerned, I think it obvious, based on the plain language of the paragraph, that it is restricted to reimbursement for the cost of necessary alternative goods, ser vices, facilities or accommodation. By no stretch of
5 See the Druken case, at pp. 36 F.C.; D/5368 C.H.R.R. at paragraph 40155.
the imagination could it be interpreted so as to include compensation for foregone unemployment insurance benefits.
Counsel for the respondent submits, however, by a reference to the provisions of paragraphs 41(2)(b), (c) and (d) that Parliament has given the Tribunal wide discretionary powers in respect of its power to award compensation. He empha sizes the words "in the opinion of the Tribunal" in paragraph 41(2)(b), in paragraph 41(2)(c), the words "as the Tribunal may consider proper" and in paragraph 41(2)(d), the same words "as the Tribunal may consider proper". Because of this wide discretion, counsel suggests that this is a case for the application of the doctrine of judicial defer ence to the decision of the Tribunal since, on these facts, there is nothing to suggest that the discretion was not exercised in good faith or that it was based upon irrelevant considerations.
My problem with that submission is that the discretion conferred upon the Tribunal by Parlia ment is only operative within the confines of the jurisdiction given to it pursuant to paragraphs 41(2)(b), (c) and (d). For the reasons given supra, I have concluded that the plain, ordinary and grammatical sense of the wording utilized therein does not permit or allow the relief given by the Tribunal in this case. In arriving at this conclusion, I have endeavoured to ascribe to the words of the Act their plain meaning while at the same time giving the rights enunciated in the legislation their full recognition and effect. 6
The assessment of damages
Having decided that the statute does not confer jurisdiction upon the Tribunal to award compensa tion for foregone unemployment insurance ben efits, such a conclusion is sufficient to dispose of this section 28 application. However, since both counsel made extensive submissions on the second ground of attack on the Tribunal's decision, I propose to deal with that issue as well. Applicant's counsel submitted that the Tribunal erred in the principles which it applied to the assessment of damages under this Act. The tests asserted by the
6 This approach is the one set out by Chief Justice Dickson in Canadian National Railway Co. v. Canada (Canadian Human Rights Commission), [1987] 1 S.C.R. 1114, at p. 1134.
Tribunal (Case, page 10), were that: "the princi ples employed by courts when awarding compensa tory damages in civil litigation" should be fol lowed. The applicable criterion in this case was then stated as follows:
The root principle of the civil law of damages is "restitution integrum": the injured party should be put back into the position he or she would have enjoyed had the wrong not occurred, to the extent that money is capable of doing so, subject to the injured party's obligation to take reasonable steps to mitigate his or her losses.
The principle relied on is slightly misquoted but the obvious intention was to rely on the doctrine of "restitutio in integrum". However, the proper test must also take into account remoteness or reason able foreseeability whether the action is one of contract or tort. Only such part of the actual loss resulting as is reasonably foreseeable is recoverable.'
The doctrine of reasonable foreseeability has also been accepted by other Human Rights Tri bunals as a necessary component in the assessment of damages. I refer particularly to the Torres case.' In that case, Professor Peter Cumming stated:
... what is the durational extent to which general damages should be ordered in effectuating compensation? There are analogous issues in tort law and contract law, of course, where damages are limited to those reasonably forseeable [sic] to the wrongdoer. It seems to me, at first impression, that these principles are appropriate to awarding general damages under the Code. That is, there is a cut-off point in awarding general damages by way of compensation. 1 would express this as saying that a respondent is only liable for general damages for a reasonable period of time, a "reasonable" period of time being one that could be said to be reasonably forseeable [sic] in the circumstances by a reasonable person if he had directed his mind to it.
The Torres case was a decision under the Ontario Human Rights Code [R.S.O. 1980, c.
Compare: Asamera Oil Corporation Ltd. v. Sea Oil & General Corporation et al., [1979] 1 S.C.R. 633, at pp. 645, 646, 673.
To the same effect, see B.D.C. Ltd. v. Hofstrand Farms Ltd., [1986] 1 S.C.R. 228, at pp. 243-246; 26 D.L.R. (4th) 1 at pp. 13-15.
8 Rosanna Torres v. Royalty Kitchenware Limited and Francesco Guercio (1982), 3 C.H.R.R. D/858 (Ont. Bd. of Inquiry), at p. D/872, par. 7748.
340]. The rationale quoted supra, in Torres was followed by a Tribunal appointed under this Act in the 1987 case of DeJager v. Canada (Department of National Defence). 9 Applying the doctrine of reasonable foreseeability, the Tribunal in DeJager awarded compensation pursuant to paragraph 41(2)(c) until the end of the applicant's enrolment period in the Armed Forces, which, in the view of the Tribunal, was a "reasonably foreseeable time" in the circumstances of that case.
Having regard to the abundance of jurispru dence supra, I am persuaded that this Tribunal committed further reviewable error in failing to address itself to the issue of reasonable foreseeabil- ity in the case at bar. This forms an additional ground in my view for setting aside the decision of the Tribunal.
Remedy
The remedy provided by the Tribunal reads as follows (Case, Vol. 1, pages 12 and 13):
1. DECLARES that the Respondent engaged in discriminatory practices against McAlpine and that the actions of the Respondent deprived McAlpine of employment opportunities on a prohibited ground of discrimination.
2. ORDERS that Marlene McAlpine be compensated for the loss of her right to unemployment insurance benefits that she would have been able to receive had she been able to work the stipulated insurable weeks of employment.
3. ORDERS that the Respondent pay to Marlene McAlpine the sum of $4,692.00 in compensation for loss of unemployment insurance benefits.
For the reasons expressed supra, the section 28 application should be allowed, and paragraphs 2 and 3 of the decision of the Tribunal dated July 19, 1988 should be set aside.
URIE J.A.: I concur.
MARCEAU J.A.: I concur.
9 (1987), 8 C.H.R.R. D/3963, at pp. D/3966 and D/3967.
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