CROWN |
Torts |
A. O. Farms Inc. v. Canada
T-1620-95
Hugessen J.
27/10/00
6 pp.
Plaintiff entered into contracts for sale of barley to American customers during month when Continental Barley Market Policy in force--Policy and relevant regulations revoked by newly elected government--Managed to fulfill contracts with difficulty and at greater cost to itself--Hence claim for damages against Crown--Plaintiff alleging government negligent in carrying out legislative changes, negligent misrepresentation--Motion for summary judgment dismissing plaintiff's action--Motion allowed--No action can lie against government for adopting legislation subsequently found ultra vires--Principle applicable to decision to legislate as well as decision how to legislate (here, amending regulations)--As to negligent misrepresentation, first test whether reasonable for plaintiff to rely on representation made--Very few people would consider reasonable to rely on promises made by politicians in pre-election period--Representations statement made as to past or present fact--Promise, in contrast, undertaking as to future action--Absent fraud or bad faith, promise does not constitute basis of action in negligence--As pleaded statements here all as to future conduct, cannot be tortious--Obiter: More modern approach to claim in negligence against public authorities: Anns/Kamloops test (Anns v. Merton London Borough Council, [1978] A.C. 728 (H.L.); Kamloops (City of) v. Nielsen et al., [1984] 2 S.C.R. 2)--(1) Whether relationship of proximity between plaintiff and authority such as to give rise to duty of care--Here relationship between government and governed not one of individual proximity--Duty owed to public collectively, not individually--(2) Whether statute or policy considerations mitigate, colour or negate duty--Public authority must be free to make choices with eye only to political consequences, not to possibility of being sued for damages--Government, when legislating, even wrongly, incompetently, stupidly, or misguidedly, not liable in damages.