Judgments

Decision Information

Decision Content

T-1064-90
Donald P. Gracey and Coldham-Gracey Manage ment and Communications Inc. (Plaintiffs)
v.
Canadian Broadcasting Corporation, an Agent of Her Majesty The Queen, Patricia Best, Donna Tranquada and Ken Wolff (Defendants)
INDEXED AS: GRACEY V. CANADIAN BROADCASTING CORP. (T.D.)
Trial Division, Rouleau J.—Toronto, October 24; Ottawa, December 19, 1990.
Federal Court jurisdiction — Trial Division — Libel and slander action against CBC, employees — Requirements for Federal Court jurisdiction set by Supreme Court in ITO case not met — That claim against CBC insufficient to confer jurisdiction on Federal Court, unless remedy contemplated by Broadcasting Act or Crown Liability Act — Proper definition of "existing and applicable federal law" at issue — Action not founded on federal law, therefore cannot be tried in Federal Court — Libel and slander common law tort not within Parliament's legislative competence, accordingly within pro vincial superior court jurisdiction.
Crown — Torts — Libel and slander — Action against CBC, employees for allegedly malicious, defamatory state ments broadcast — Motion by defendants seeking order strik ing statement of claim under R. 419(1)(a) — Broadcasting Act not specifically contemplating Federal Court jurisdiction over libel and slander suit — Since libel and slander not within Parliament's legislative competence, Court lacking jurisdiction herein.
Broadcasting — Libel and slander action against CBC, employees for allegedly malicious, defamatory statements broadcast — Broadcasting Act not contemplating Federal Court jurisdiction over such cases — Libel and slander outside legislative competence of Parliament — Matter for provincial superior Courts.
Both motions relate to a libel and slander action brought by the plaintiffs against the Canadian Broadcasting Corporation and certain of its employees who made allegedly malicious, false and defamatory statements, on CBC's "The Morning Show", concerning RCMP searches of plaintiffs' offices. The plaintiffs say that the statements contained inferences and innuendos with respect to certain business activities conducted by them. Defendants' motion seeks an order striking out the statement of claim on the grounds that it discloses no reason able cause of action and that the Court lacks jurisdiction. The plaintiffs' motion sought an order adding the Crown as a party
defendant. The main issue is whether the Court has jurisdiction to entertain this action. The plaintiffs argued that the federal Broadcasting Act, which establishes the Canadian Broadcast ing Corporation, is sufficient federal law upon which to base a libel and slander suit in this Court and that without it, there could be no libel and slander because the CBC derives its mandate from that federal legislation.
Held, defendants' motion to strike for want of jurisdiction should be granted; plaintiffs' motion should be denied.
Jurisdiction in respect of proceedings by or against the Federal Crown is largely governed by the Federal Court Act, section 17 which provides that the Federal Court has jurisdic tion in all cases where relief is claimed against the Crown and that, subject to certain exceptions, this jurisdiction is exclusive, and section 23 which contemplates jurisdiction in the Federal Court in certain proceedings between citizens subject to a number of pre-conditions. Section 101 of the Constitution Act, 1867 enables the Federal Parliament to establish courts "for the better Administration of the Laws of Canada". The extent of Federal Court jurisdiction was determined by the Supreme Court case, ITO—International Terminal Operators Ltd. v. Miida Electronics Inc. which established three requirements for jurisdiction to exist.
(1) There must be a statutory grant of jurisdiction by the federal Parliament. The Federal Court is not a court of general jurisdiction in all federal matters: its jurisdiction must be founded in the specific language used by Parliament in the conferring legislation. Subsections 17(1) to (3) of the Federal Court Act apply to cases where relief is sought against the Crown. The fact that the plaintiffs' claim is brought against the CBC, a national broadcasting institution and a federal Crown corporation, is not sufficient to confer jurisdiction on this Court unless the remedy sought is contemplated by the Broadcasting Act or the Crown Liability Act. There is nothing in the Broadcasting Act which specifically contemplates Federal Court jurisdiction over a libel and slander suit. Although subsection 15(2) of the Crown Liability Act was capable of an interpretation which would confer jurisdiction on the Federal Court to try this matter, that issue did not have to be decided in the case at bar. For even if it conferred a general assignment of jurisdiction, the second of the ITO requirements still had to be satisfied.
(2) There must be an existing body of federal law which is essential to the disposition of the case and which nourishes the statutory grant of jurisdiction. In Quebec North Shore Paper Co. et al. v. Canadian Pacific Ltd. et al. and McNamara Construction (Western) Ltd et al. v. The Queen, the Supreme Court held that there must be existing and applicable federal law upon which the jurisdiction of the Federal Court can be exercised. The distinction between claims considered to be founded on federal law and those which are not lies in the source of the right alleged to be infringed. The plaintiffs'action against the Canadian Broadcasting Corporation and the other
defendants named cannot be tried in this Court because such a suit is not founded on federal law.
(3) The law on which the case is based must be "a law of Canada" as the phrase is used in section 101 of the Constitu tion Act, 1867. Libel and slander is a common law tort over which Parliament has no legislative competence and according ly the matter falls under provincial superior court jurisdiction.
Since the Court lacks jurisdiction to entertain these proceed ings, the defendants' motion to strike out the statement of claim under Rule 419 could not be granted. In any event, defendants had not established that it was plain and obvious that no cause of action exists. Plaintiffs' motion to add the Crown as a party defendant had to be denied since it is a pre-condition to the adding of parties that the Federal Court have jurisdiction over the action as between the party to be joined and the opposite party.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Broadcasting Act, R.S.C., 1985, c. B-9, s. 31(4).
Constitution Act, 1867, 30 & 31 Vict., c. 3 (U.K.) (as am. by Canada Act 1982, 1982 (U.K.), Schedule to the Constitution Act, 1982, Item 1), [R.S.C., 1985, Appen dix II, No. 5] s. 101.
Crown Liability Act, R.S.C., 1985, c. C-50, ss. 2, 3, 15(1),(2), 21(2), 36(1).
Federal Court Act, R.S.C., 1985, c. F-7, ss. 17, 23. Federal Court Rules, C.R.C., c. 663, RR. 419(1)(a), 1716.
Libel and Slander Act, R.S.O., c. 237.
CASES JUDICIALLY CONSIDERED
FOLLOWED:
Quebec North Shore Paper Co. et al. v. Canadian Pacific Ltd. et al., [1977] 2 S.C.R. 1054; (1976), 9 N.R. 471; McNamara Construction (Western) Ltd. et al. v. The Queen, [1977] 2 S.C.R. 654; (1977), 75 D.L.R. (3d) 273; 13 N.R.181; ITO—International Terminal Opera tors Ltd. v. Miida Electronics Inc. et al., [1986] 1 S.C.R. 752; (1986), 28 D.L.R. (4th) 641; 34 B.L.R. 251; 68 N.R. 241; Rasmussen v. Breau, [1986] 2 F.C. 500; (1986), 30 D.L.R. (4th) 399; 68 N.R. 379 (C.A.).
APPLIED:
Bassett v. Canadian Broadcasting Corp. (1980), 30 O.R. (2d) 140; 116 D.L.R. (3d) 332; 17 C.P.C. 254 (H.C.); Airport Taxicab (Malton) Association v. Canada (Minis- ter of Transport) et al. (1986), 7 F.T.R. 105 (F.C.T.D.); Forde et al. v. Waste Not Wanted Inc. et al. (1984), D.R.S. 55-027 (F.C.T.D.); Pacific Western Airlines Ltd. v. R., [1980] 1 F.C. 86; (1979), 105 D.L.R. (3d) 60; 14
C.P.C. 165 (C.A.); Stephens v. R. (1982), 26 C.P.C. 1; [ 1982] CTC 138; 82 DTC 6132; 40 N.R. 620 (F.C.A.).
NOT FOLLOWED:
Brière v. Canada Mortgage and Housing Corporation, [1986] 2 F.C. 484; (1986), 30 D.L.R. (4th) 375; 68 N.R. 385; 42 R.P.R. 66 (C.A.).
CONSIDERED:
Oag v. Canada, [1987] 2 F.C. 511; (1987), 33 C.C.C. (3d) 430; 73 N.R. 149 (C.A.).
REFERRED TO:
Dene Nation v. The Queen, [1983] 1 F.C. 146 (T.D.); Waterside Cargo Co-operative v. National Harbours Board (1979), 107 D.L.R. (3d) 576 (F.C.T.D.).
COUNSEL:
Darlene Madott for plaintiffs. John Vaissi-Nagy for defendants.
SOLICITORS:
Teplitsky & Colson, Toronto, for plaintiffs.
Deputy Attorney General of Canada for defendants.
The following are the reasons for order ren dered in English by
ROULEAU J.: This motion on behalf of the defendants seeks an order striking out the plain tiffs' statement of claim pursuant to Rule 419(1)(a) of the Federal Court Rules [C.R.C., c. 663]; it is submitted that the statement of claim discloses no reasonable cause of action and also that this Court lacks jurisdiction to entertain the proceedings. The plaintiffs also brought a motion seeking an order permitting Her Majesty in Right of Canada to be added as a party defendant to the statement of claim.
These motions relate to a libel and slander suit brought by the plaintiffs against the Canadian Broadcasting Corporation and certain of its employees. It relates to statements made on CBC's "The Morning Show" concerning a series of RCMP searches conducted at the offices of the plaintiffs and those of their accounting firm. It is alleged that these statements were malicious, false
and defamatory and contained inferences and innuendos with respect to certain business activi ties conducted by the plaintiffs.
In light of the lengthy jurisdictional argument the application should have been more properly brought pursuant to Rules 401 or 409 of the Federal Court Rules. This raises the more difficult issue: does the Court have jurisdiction with respect to the libel and slander action brought by the plaintiffs against the defendants. Very simply, the question is whether jurisdiction has been conferred on this Court to entertain such an action. I have decided to canvass the issue rather than submit the parties to a further debate.
Jurisdiction in respect of proceedings by or against the Federal Crown is a matter largely governed by the Federal Court Act [R.S.C., 1985, c. F-7]. Section 17 provides, inter alia, that the Federal Court has jurisdiction in all cases where relief is claimed against the Crown and that, sub ject to certain exceptions, this jurisdiction is exclu sive. It further provides that in proceedings of a civil nature in which the Crown claims relief as therein defined, the Federal Court has concurrent jurisdiction with the superior courts of the prov inces. Thus the Crown can, subject to important pre-conditions, sue in the Federal Court or the superior courts of the provinces. Section 23 of the Act, in simple terms, contemplates jurisdiction in the Federal Court in certain proceedings between citizens subject to a number of pre-conditions.
This basic outline of the essentials of jurisdiction must be considered within the framework of a large body of jurisprudence developed since the establishment of the Federal Court and which has unfortunately, resulted in a great deal of confu sion. Problems of jurisdictional restrictions are most often rooted in considerations of constitution al law.
The power of the federal Parliament to establish federal courts is limited by the terms of section
101 of The British North America Act [Constitu- tion Act, 1867, 30 & 31 Vict., c. 3 (U.K.) (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 1), [R.S.C., 1985, Appendix II, No. 5]]. That section author izes courts "for the better Administration of the Laws of Canada" but it does not authorize the establishment of courts of general jurisdiction akin to the provincial courts. Therefore, the Federal Court can only be given jurisdiction over disputes governed by the "Laws of Canada". It is well settled that this phrase does not mean all laws in force in Canada whatever their source, but means federal laws, the clearest example being a federal statute including regulations and orders made thereunder.
At one time there was substantial judicial sup port for the view that the Federal Court had jurisdiction over any matter in relation to that over which the federal Parliament had legislative competence, even if that matter was not in fact regulated by federal statute law. On this basis the "Laws of Canada" could include a rule of provin cial statute law or a rule of the common law if its subject-matter was such that the law could have been enacted or adopted by the federal Parlia ment.
This notion was finally put to rest by the Supreme Court of Canada in Quebec North Shore Paper Co. et al. v. Canadian Pacific Ltd. et al., [1977] 2 S.C.R. 1054 and McNamara Construc tion (Western) Ltd. et al. v. The Queen, [ 1977] 2 S.C.R. 654. In the Quebec North Shore case the issue was whether the Federal Court had jurisdic tion over a dispute arising out of a contract for the transportation of newsprint from Quebec to the United States. The Federal Court Act [R.S.C. 1970 (2nd Supp.), c. 10] appeared to give jurisdic tion, because by section 23 it gave jurisdiction to determine controversies in respect of undertakings extending beyond the limits of a province. The only doubt stemmed from the fact that the con tract in dispute was governed by Quebec law and not by federal law. It appeared that the Federal Court Act contemplated this aspect because section 23 authorized the granting of relief "under an Act of the Parliament of Canada or otherwise".
The Supreme Court of Canada held that the Fed eral Court did not have jurisdiction on the grounds that there was no applicable and existing federal law, whether under statute or regulation or common law, upon which the jurisdiction of the Court could be exercised.
In the McNamara Construction case, the Supreme Court of Canada held that the Federal Court had no jurisdiction over an action brought by the Crown against a builder and an architect, alleging the breach of a contract to build a peni tentiary in Alberta. Again, the Federal Court Act purported to grant jurisdiction over the case. Fur ther, that the test of federal legislative competence was satisfied because the Constitution Act, 1867 conferred on the federal Parliament legislative competence over the federal Crown and over peni tentiaries. However, because the applicable law was the common law, the Supreme Court held that the new requirement of "applicable and existing federal law" was not satisfied and concluded that the Federal Court had no jurisdiction over the case.
Finally, in ITO—International Terminal Oper ators Ltd. v. Miida Electronics Inc. et al., [1986] 1 S.C.R. 752, the Supreme Court developed a three-pronged test for the determination of Feder al Court jurisdiction. The Court stated at page 766:
The general extent of the jurisdiction of the Federal Court has been the subject of much judicial consideration in recent years. In Quebec North Shore Paper Co. v. Canadian Pacific Ltd., [1977] 2 S.C.R. 1054, and in McNamara Construction (West- ern) Ltd. v. The Queen, [1977] 2 S.C.R. 654, the essential requirements to support a finding of jurisdiction in the Federal Court were established. They are:
1. There must be a statutory grant of jurisdiction by the federal Parliament.
2. There must be an existing body of federal law which is essential to the disposition of the case and which nourishes the statutory grant of jurisdiction.
3. The law on which the case is based must be "a law of Canada" as the phrase is used in s. 101 of the Constitution Act, 1867.
I propose to address each of those requirements in light of the facts now before me for the purpose of determining whether this Court possesses juris diction over the matter in question.
1. Statutory Grant of Jurisdiction
The first requirement often finds expression in the statement that the Federal Court is a statutory court without inherent jurisdiction. That being so, the Federal Court Act or some other federal stat ute must confer jurisdiction over the matter. The Federal Court is not a court of general jurisdiction in all federal matters: its jurisdiction must be founded in the specific language used by Parlia ment in the conferring legislation. Such language is of course found in sections 17 and 23 of the Federal Court Act.
Subsections 17(1) to (3) of the Federal Court Act apply to cases where relief is sought against the Crown. Subsection 17(4) only refers to actions against the Crown eo nomine and does not include an action by or against a Crown agency. As the style of cause in the plaintiff's statement of claim is presently worded, none of these sections confers jurisdiction on this Court since the Crown is not named as a party to the proceedings and the named defendants are neither Crown officers or servants.
Section 23 of the Federal Court Act confers jurisdiction where a claim for relief meets two conditions. First, the claim must be made "under an Act of the Parliament of Canada or otherwise" and second, it must relate to a matter coming within any of the classes of subjects specified in the latter part of the section. The cause of action on which the plaintiffs are relying must fall within the parameters of paragraph (c) of section 23, that is, "works and undertakings, connecting a province with any other province or extending beyond the limits of a province." The question therefore posed is whether the fact that the plaintiffs' claim is brought against the CBC, a national broadcasting institution and a federal Crown corporation, suffi cient to confer jurisdiction on this Court to hear
the matter. In my view, the answer to this question is no, unless the remedy sought by the plaintiffs is contemplated by the Broadcasting Act, R.S.C., 1985, c. B-9 itself or the Crown Liability Act, R.S.C., 1985, c. C-50.
There is nothing in the Broadcasting Act which specifically contemplates Federal Court jurisdic tion over a libel and slander suit. Subsection 31(4) of the Broadcasting Act provides as follows:
31....
(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.
Similar provisions are found in a number of legislative enactments which establish Crown cor porations. In Rasmussen v. Breau, [1986] 2 F.C. 500 (C.A.), the respondents instituted an action in the Federal Court against the appellant Crown corporation based on the tort of conversion. The Saltfish Act, R.S.C. 1970 (1st Supp.), c. 37, con tained a section identical in wording to subsection 31(4) of the Broadcasting Act. Thurlow C.J., unequivocally rejected the argument that the Court had jurisdiction to hear the matter. Con cerning the meaning of the above-quoted section, he stated at page 505:
Plainly this section does nothing to confer on this Court jurisdiction to entertain an action against the appellant. It does, however, deprive the appellant of any right it might otherwise have had to assert in any court of competent jurisdiction immunity from suit on the basis of its being or its having acted as an agent of the Crown. Similar provisions were held to confer on provincial courts authority to entertain claims based on contract against the Crown's statutory agent in Yeats v. Central Mortgage & Housing Corp. ([1950] S.C.R. 513.)
I agree that this section does not confer jurisdic tion on the Federal Court. To the contrary, it expressly instructs litigants to file suits where they would normally be tried. In the case of libel and slander, as well as most torts, this would be the provincial superior courts. Support for this propo sition is found in Bassett v. Canadian Broadcast ing Corp. (1980), 30 O.R. (2d) 140 (H.C.). In that
case, Southey J. dismissed an application to strike a defamation suit from the record of the Ontario High Court on the grounds that subsection 31(4) [then subsection 40(4)] of the Broadcasting Act was enacted for the purpose of putting the CBC in the same position as an ordinary corporation in respect of amenability to civil suits.
Counsel for the plaintiffs submits that even if I were to decline jurisdiction on the basis of the Federal Court Act or the Canadian Broadcasting Act, the Crown Liability Act, confers jurisdiction on this Court to entertain the proceedings in question.
Under the old common law rule "the King could do no wrong", the Crown itself could not be sued in tort. Crown assets could not be reached indirect ly by suing in tort a Department of Government, or an official of the Crown. Additionally, govern ment departments, not being legal entities could not be sued. Servants of the Crown could not be made liable vicariously for the torts of subordi nates who were also servants of the Crown and not of their superiors. Servants committing wrongs were personally liable at common law to those injured and, if the act was done at the superior's behest, the latter may have been held liable as well, not vicariously, but because the subordinate's act in such circumstances was his own act.
The Crown Liability Act changed the old public law rules. Pursuant to sections 2 and 3 of the Act, the Crown is now liable in tort for the damage caused by a servant who commits a tort. A servant of the Crown includes an agent such as the Canadian Broadcasting Corporation. Section 15 of the Act confers on the Federal Court exclusive original jurisdiction to hear and determine every
claim for damages under the Act. That section reads as follows:
15. (1) Except as provided in section 21 and subject to section 36, the Federal Court has exclusive original jurisdiction to hear and determine every claim for damages under this Act.
(2) The Federal Court has concurrent original jurisdiction with respect to the claims described in subsection 21(2) and any claim that may be the subject-matter of an action, suit or other legal proceeding referred to in section 36.
Subsection 21(2) provides that a claim against the Crown for a sum not greater than $1,000 belongs in the provincial court. Nevertheless, sub section 36(1) provides as follows:
36. (1) Subsections 15(1) and 21(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 sections 3 to 8 brought or taken in a court other than the Federal Court 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.
The effect of this provision is to render subsec tion 15(1), by which exclusive original jurisdiction is conferred on the Federal Court, inoperable in the event that an Act of Parliament has directed the bringing of the action in the provincial courts. In my opinion, subsection 36(1) precludes Federal Court jurisdiction where the Crown corporation's enabling legislation authorizes the action to be brought in the provincial superior courts. After reading this section together with subsection 31(4) of the Broadcasting Act one is led to conclude the libel and slander action against the defendants cannot be tried in this Court. This finding is consistent with the concept of the Federal Court as a statutory court with jurisdiction limited to that which is conferred upon it by statute. In the alternative, an alleged cause of action such as this does not invoke whatever inherent jurisdiction resides in this Court by virtue of the constitutional section 101, together with its dependent legisla tion.
Subsection 15(2) of the Crown Liability Act provides that the Federal Court has concurrent jurisdiction with respect to any claim that may be the subject-matter of an action, suit or other legal proceeding referred to in section 36. The present action certainly fits that description: the Canadian Broadcasting Corporation is an agent of the
Crown, and the enabling legislation authorizes actions to be brought in the provincial superior court. In my view, this section is capable of an interpretation which would confer jurisdiction on the Federal Court to try this matter.
However, this is not an issue which necessarily needs to be decided in the case at bar. Even if subsection 15(2) of the Crown Liability Act does constitute a general assignment of jurisdiction to the Federal Court, the second requirement for jurisdiction established by the Supreme Court in the ITO decision must still be satisfied.
2. Existing Federal Law
The second requirement to support a finding of jurisdiction in the Federal Court is that there be an existing body of federal law that is essential to the disposition of the case and that nourishes the statutory grant of jurisdiction. This requirement was articulated in Quebec North Shore and NcNamara Construction, wherein the Supreme Court held that legislative competence alone was not enough; there must be existing and applicable federal law upon which the jurisdiction of the Federal Court can be exercised. Only then can it be said that the matter comes within the expres sion "Administration of the Laws of Canada" in section 101 of the Constitution Act, 1867. It is notable that the Supreme Court never addressed the concept of the better administration of those laws, but that is another matter.
This test, while appearing straightforward, is only easy to apply in extreme cases. Where federal legislation gives a complete right of action, by creating the obligation and conferring the remedy, there is no question but that the proceeding is founded on federal law. At the other extreme, if the obligation arises and the remedy is available in the provincial law, the Quebec North Shore and McNamara cases apply and the Federal Court has been held to lack jurisdiction. It is the numerous cases which fall within this wide-ranging spectrum that have created and continue to create litigation as to the extent of this Court's jurisdiction.
The question which invariably arises in these cases is the proper definition of the term "existing and applicable federal law". Counsel for the plain tiffs argued before me that the Broadcasting Act, pursuant to which the defendants were acting or working at the time they committed the alleged tort, is sufficient federal law to meet this second requirement.
The Federal Court of Appeal has been faced with this issue on a number of occasions in consid ering actions in tort against Crown servants or officers. In each case the plaintiff, just as in this case, sought to invoke the federal legislation pursu ant to which the Crown servant was acting when allegedly committing the tort. In Pacific Western Airlines Ltd. v. R., [1980] 1 F.C. 86 (C.A.), it was held that claims in respect of the crash of an aircraft against air traffic controllers and other Department of Transport employees who had been carrying out responsibilities under the Aeronautics Act [R.S.C. 1970, c. A-3] and regulations could not be said to be founded on that legislation. The claims were struck for want of jurisdiction.
In Stephens v. R. (1982), 26 C.P.C. 1 (F.C.A.), the claim was against officers of Revenue Canada who were alleged to have trespassed and commit ted an illegal seizure, exceeding their authority under the Income Tax Act [S.C. 1970-71-72, c. 63]. Even though that Act would have application to questions of the validity and legal justification of the officers' actions, the Court concluded that the right to damages was created by provincial law and was beyond the jurisdiction of the Federal Court.
As previously mentioned, in Rasmussen v. Breau, an action was commenced against the Crown corporation based on the tort of conversion. The Federal Court held that there was no federal law to be administered against the appellant for
damages for the alleged conversion. The whole basis for relief was the law of the province of Newfoundland in which the asserted unlawful pur chase and sale had taken place. Indeed in the Rasmussen case it was ultimately the Crown eo nominee which was held to have committed that tort because of its dealings with the corporation.
Two other Federal Court of Appeal decisions, which are difficult to reconcile with the Pacific Western, Stephens and Rasmussen cases, demon strate how subtle the distinction may become be tween claims considered to be founded on federal law and those which are not. In Oag v. Canada, [1987] 2 F.C. 511 (C.A.), the Court considered an action against the chairman and a member of the National Parole Board in tort for damages for wrongfully revoking a prisoner's release. This claim for false arrest and wrongful imprisonment was held to be founded on the federal legislation that governed the prisoner's right to be released, a finding which appears entirely contrary to the one made in Stephens.
Apparently, the distinction lies in the source of the right alleged to be infringed. In Oag, the Court said the right to freedom was derived, not from the common law, but from the federal statute whereas in Stephens, it was the common law right to free enjoyment of the property that was alleged to have been infringed, and the Income Tax Act applied, if at all, only to justify the trespass to property.
The second case is Brière v. Canada Mortgage and Housing Corporation, [1986] 2 F.C. 484 (C.A.), wherein the plaintiffs instituted two actions based on tort in the Federal Court, one against the Queen in Right of Canada and one against the Central Mortgage and Housing Corpo ration. Marceau J. writing for the Court, held that a determination as to whether the cause of action was based on federal law, required a consideration of the extent to which the Crown Liability Act had altered the public law rules pertaining to immuni-
ties and prerogatives of the Crown. At page 494 His Lordship stated:
It was not until 1953, with the adoption of the Crown Liability Act, R.S.C. 1970, c. C-38, that a major transforma tion of the ordinary law regarding the tortious liability of the Crown was introduced. 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 liability of corporations which are Crown agents.
Marceau J. went on to conclude that where the wrongdoing was committed by one of the corpora- tions's employees who was not a Crown servant, the Act precluded the corporation from relying, as an agent of the Crown, on an immunity which no longer existed (for the Crown itself). Accordingly, since the victim's remedy against the corporate body for the wrongful acts of its employees was created by the Crown Liability Act, the cause of action was directly associated with federal law. The requirement that the action be based, at least in part, on federal law was accordingly held to have been satisfied.
With all due respect, I am unable to agree with this reasoning. I do not think that sections 3, 15, 21 and 36 of the Crown Liability Act are capable of supporting the jurisdiction of this Court over any type of civil action simply because the Crown in Right of Canada or one of its agents is a party defendant to the action and, the Act itself is concerned with the Crown's tortious liability. This is not, in my view, what the Supreme Court of Canada envisioned when it spoke of "existing and applicable federal law" in the Quebec North Shore, McNamara and ITO cases; that is, a body of law essential to the disposition of the case and which nourishes the statutory grant of jurisdiction.
These sections cannot properly be construed as conferring jurisdiction on the Federal Court to entertain this type of action because they cannot properly be read as being free from all limitations.
They must be confined to actions and suits in relation to some subject-matter, legislation in regard to which is within the legislative compe tence of the federal Parliament. That legislation must, in turn, give a complete right of action, by creating an obligation and conferring a remedy.
I conclude therefore, that the plaintiffs' action against the Canadian Broadcasting Corporation and the other defendants named cannot be tried in this Court because such a suit is not founded on federal law. Moreover, even if there was a statu tory grant of jurisdiction to the Federal Court to try this case, there is no federal body of libel and slander law nourishing this grant. This issue will be addressed in the following section.
3. Legislative Competence
The third requirement for Federal Court juris diction is that the federal law relied upon to support the Court's jurisdiction be within the legis lative competence of the Parliament of Canada. The offence in question is libel and slander, which has historical origins in the common law. Accord ingly, the action is normally heard in provincial superior courts. The Libel and Slander Act, R.S.O., c. 237, on which this action is founded, is provincial legislation which has codified this common law tort.
As mentioned, counsel for the plaintiffs argues that the federal Broadcasting Act, which estab lishes the Canadian Broadcasting Corporation is sufficient federal law upon which to base a libel and slander suit in this Court. Without the Broad casting Act it is argued, there could be no libel and slander because the CBC derives its mandate from that federal legislation.
I am not persuaded by this argument. The fact that the CBC is a federal body is ancillary, the main issue is whether its servants libelled and slandered the plaintiffs. This cause of action must be seen as existing separate and apart under the law of tort, unless such an action has been contem plated by the Broadcasting Act. An examination
of the Act shows this not to be the case. In my view, this is a common law tort over which the Parliament of Canada has no legislative compe tence and accordingly the matter belongs in the provincial superior courts. Nor, may I add, has Parliament purported to make the Crown liable for the alleged libel and slander committed by its corporation.
Since the Court lacks jurisdiction to entertain these proceedings, I am unable to grant the defendants' motion to strike out the plaintiffs' statement of claim pursuant to Rule 419. How ever, were I to find this Court to have jurisdiction, I would refuse to strike out the plaintiffs' state ment of claim on the grounds it discloses no reasonable cause of action. The Court will dismiss an action or strike a claim on this basis only in plain and obvious cases or where it is satisfied beyond a reasonable doubt that the plaintiffs' case would not succeed. On a motion of this nature, the Court will generally exercise its discretion to refuse to strike out the statement of claim where it is not patently clear that the plaintiffs' claim is without legal justification. If there is any doubt, the matter is properly left to the Trial Judge.
Accordingly, an applicant under Rule 419(1)(a) bears a heavy onus. In the present case that onus has not been met. The plaintiffs' statement of claim alleges the tort of libel and slander, a cause of action known to law, to have been committed by the defendants. Assuming all the facts alleged in the statement of claim to be true, the plaintiffs have an arguable case. The defendants have not persuaded me that this case is "plain and obvious" nor has it succeeded in showing beyond a reason able doubt that no cause of action exists.
The final question to be decided is the plaintiffs' motion to add the Crown in Right of Canada as a party defendant to the statement of claim. Rule 1716 of the Federal Court Rules provides for the addition of parties as plaintiffs or defendants. The case law which has evolved in respect of this Rule makes it abundantly clear that I am not in a
position to grant the plaintiffs' motion. It is a pre-condition to the adding of parties that the Federal Court have jurisdiction over the action as between the party to be joined and the opposite party. The applicant must show a federal law capable of supporting an action between itself and the party against whom it seeks to add.
In Airport Taxicab (Mallon) Association v. Canada (Minister of Transport) et al. (1986), 7 F.T.R. 105 (F.C.T.D.), the Court held it improper to add a co-defendant under Rule 1716 where no cause of action based on federal law can be assert ed against the proposed defendant. Likewise, in Forde et al. v. Waste Not Wanted Inc. et al. (1984), D.R.S. 55-027 (F.C.T.D.), the Court refused to add applicants as party defendants where it had no jurisdiction to entertain the action by the plaintiff as against the applicants. The same findings were made in Dene Nation v. The Queen, [1983] 1 F.C. 146 (T.D.) and in Waterside Cargo Co-operative v. National Harbours Board (1979), 107 D.L.R. (3d) 576 (F.C.T.D.). This list is by no means comprehensive of all the cases on point.
For these reasons, the plaintiffs' motion adding the Crown in Right of Canada is denied. The defendants' motion that the plaintiffs' statement of claim be struck on the grounds that this Court lacks jurisdiction to entertain the proceedings is granted.
Costs to the defendants.
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