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T-4569-75
Maritime Telegraph & Telephone Company Lim ited (Plaintiff)
v.
Canada Labour Relations Board, and Internation al Brotherhood of Electric Workers, Local 1030 (Defendants)
and
Attorney General of Nova Scotia (Intervener)
Trial Division, Thurlow A.C.J.—Ottawa, Febru- ary 25, 26 and March 10, 1976.
Jurisdiction—Labour relations Application for prohibition to restrain Canada Labour Relations-Board from proceeding with certification application by defendant union Whether plaintiff's facilities and functions federal work, undertaking or business—Whether Trial Division has jurisdiction to grant prohibition against Board—Canada Labour Code, R.S.C. 1970, c. L-1, as am. S.C. 1972, c. 18, ss. 2, 108, 122, 133— British North America Act, 1867, s. 92(10).
Plaintiff applied for prohibition to restrain the Canada Labour Relations Board from proceeding with an application for certification by defendant union as agent for a unit contain ing employees of plaintiff. Plaintiff contended that its facilities and functions do not constitute a federal work, undertaking or business in respect of which Parliament can legislate. The Board raised a preliminary objection, based on section 122 of the Canada Labour Code, claiming that the Trial Division has no jurisdiction to grant prohibition against it. Since section 122(1) provides for review of Board decisions in the Court of Appeal, it claimed, it should not be interpreted as a privative provision, but as intending that the Court of Appeal should be the only Court having jurisdiction.
Held, in the exercise of the Court's discretion, the applica tion should be dismissed. Section 122(1) does not oust jurisdic tion: The section is limited to proceedings under Part V of the Code, which, by section 108, is made applicable only to the persons therein mentioned in respect of the operation of a federal work, etc. Unless the enterprise is such, proceedings are not authorized by or under Part V, and section 122(2) has no application. And, if the enterprise is not one in respect of which Parliament can legislate, section 122(2) cannot prevent the Court from exercising its supervisory authority.
It is incumbent on plaintiff to establish clearly, and leave the Court in no doubt as to the nature of its undertaking. The
granting of prohibition is discretionary, and, where the facts, though not necessarily in dispute, have not been put before the Court to a sufficient extent to demonstrate lack of jurisdiction, the Court is justified in being reluctant to decide once and for all that jurisdiction does not exist, and that the Board is not entitled to explore the facts upon which jurisdiction turns.
It is not apparent that the Board is persuaded by the union that it has jurisdiction to proceed, or that, at this stage, it has determined to assert jurisdiction. Since plaintiff has raised the objection, the Board appears to have followed a course calculat ed to elicit information upon which to decide whether it should assume and assert jurisdiction, or decline it. It is not presently threatening the exercise of jurisdiction over plaintiff.
British Columbia Packers v. Canada Labour Relations Board [1973] F.C. 1194; [1974] 2 F.C. 913; [1976] 1 F.C. 375; Montreal Boatman Limited v. Canada Labour Rela tions Board (not reported, T-3556-75) and Bonanza Creek Gold Mining Co. v. The King [1916] 1 A.C. 566, dis cussed. In re Birch (1855) 15 C.B. 743; 139 E.R. 617; Taylor v. Nicholls (1876) 1 C.P.D. 242; Bell v. Ontario Human Rights Commission [1971] S.C.R. 756, applied.
APPLICATION. COUNSEL:
D. M. Nunn, Q.C., and G. North for
plaintiffs.
G. Henderson, Q.C., and G. Hynna for
defendant CLRB.
P. Landry for defendant I.B.E.W.
G. Duncan and J. W. Kavanagh, Q.C., for
intervener.
SOLICITORS:
Cox, Downie, Nunn & Goodfellow, Halifax, for plaintiff.
Gowling & Henderson, Ottawa, for defendant CLRB.
Horne, Langille & Maclntyre, Dartmouth, for defendant I.B.E.W.
Attorney General of Nova Scotia for intervener.
The following are the reasons for judgment rendered in English by
THURLOW A.C.J.: This is an application for a writ in the nature of prohibition to restrain the Canada Labour Relations Board from proceeding with an application made before it by the defend ant union for certification under the Canada Labour Code as the bargaining agent for a bar-
gaining unit including employees of the plaintiff and of Island Telephone Company Limited.
The Board's authority to grant certification to a trade union is contained in Part V of the Canada Labour Code which, by section 108, is made appli cable in respect of
employees who are employed upon or in connection with the operation of any federal work, undertaking or business and in respect of the employers of all such employees in their relations with such employees and in respect of trade unions and employ ers' organizations composed of such employees or employers.
The expression "federal work, undertaking or business" is defined in section 2 as meaning:
any work, undertaking or business that is within the legislative authority of the Parliament of Canada, including ... .
The basis for the application for prohibition is the plaintiff's contention that its facilities and functions do not constitute a federal work, under taking or business in respect of which Parliament has authority to legislate. The Attorney General of Nova Scotia, who by order dated the 3rd day of February, 1976, was given leave to intervene, sup ported the application. Counsel for the Board took no position on the constitutional question but sub mitted that the Court should exercise its discretion to refuse the application.
At the outset of the hearing in this Court, counsel for the Board also raised a preliminary objection, based on section 122 of the Canada Labour Code, that the Trial Division of this Court is without jurisdiction to grant relief in the nature of prohibition directed to the Board. That section reads as follows:
122. (1) Subject to this Part, every order or decision of the Board is final and shall not be questioned or reviewed in any court, except in accordance with section 28 of the Federal Court Act.
(2) Subject to subsection (1), no order shall be made, pro cess entered or proceeding taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or other wise, to question, review, prohibit or restrain the Board in any of its proceedings under this Part.
Counsel's contention was that since subsection 122(1) provides for a review of the Board's deci sions in the Federal Court of Appeal the section
should not be interpreted as a privative provision but as intending that the Court of Appeal should be the only Court having jurisdiction over the Board. In the course of argument reference was made to the decision of the Court of Appeal in British Columbia Packers Limited v. Canada Labour Relations Board' which suggested that prohibition in the Trial Division was a course open to the parties for raising a question of jurisdiction based on a constitutional point, to the judgment of Addy J. on the subsequent application for prohibi tion in that case' and to the judgment of Dubé J. in Montreal Boatman Limited v. Canada Labour Relations Board (Court No. T-3556-75, unreport- ed). The last mentioned case was said to be in conflict with the opinions expressed in the other two cases. It does not appear from Mr. Justice Dubé's reasons that the British Columbia Packers case was cited to him.
At the hearing, I stated that I was inclined to think that the better view was that the Trial Division has jurisdiction and that I would hear the application. I remain of that opinion.
It appears to me that there are at least two reasons for holding that in a case of this kind subsection 122(2) does not oust the jurisdiction of the Trial Division under section 18 of the Federal Court Act. The first is that subsection 122(2) is, by its language, restricted to proceedings before the Board under Part V of the Canada Labour Code which, by section 108, is made applicable only to the persons therein mentioned in respect of the operation of a federal work, undertaking or business. Accordingly, unless the enterprise in question is a federal work, undertaking or busi ness, the proceedings before the Board are not proceedings authorized by, nor are they proceed ings under Part V, and subsection 122(2) by its terms has no application.
The other reason is that if the enterprise in question is not one in respect of which Parliament has authority to legislate, subsection 122(2) is
[1973] F.C. 1194.
2 [1974] 2 F.C. 913 at page 920. [Decision upheld on appeal.
See [1976] 1 F.C. 375—Ed.]
subject to the same frailty and cannot operate to prevent the Court from exercising its supervisory authority in the case.
I am accordingly of the opinion that the juris diction of the Trial Division to entertain the present application is not ousted by subsection 122(2) of the Canada Labour Code.
The material put before the Court by the plain tiff in support of the application consists of a single affidavit of the president and chief operating offi cer of the plaintiff company, which, apart from paragraphs exhibiting correspondence between the plaintiff and the Board in respect of the applica tion for certification, contains the following:
3. THAT MT & T is a company incorporated by a special Act of the Legislature of the Province of Nova Scotia (S.N.S. 1910, c. 156 as amended by S.N.S. 1966, c. 5 and S.N.S. 1972, c. 122).
10. THAT MT & T is a company providing telecommunication service solely within the Province of Nova Scotia and that its only customers are the residents of the Province of Nova Scotia.
11. THAT MT & T is located solely in the Province of Nova Scotia, all of its physical plant and assets are within the Province, and all of its approximately 3,500 employees reside and work in the Province.
12. THAT I am advised by our solicitor, D. Merlin Nunn, Q.C., and do verily believe that the Defendant Board lacks the constitutional jurisdiction to deal with the certification applica tion of the Defendant Union and that therefore the Defendant Board is not entitled in law to proceed with the hearing of the application.
There was no cross-examination of the deponent on this affidavit and no evidence was adduced by the defendant union. An affidavit of the acting secretary of the Canada Labour Relations Board was filed by counsel for the Board exhibiting the file of the Board relating to the application for certification, but this establishes nothing further by way of description of the plaintiff's physical facilities or its undertaking.
The submission of counsel for the plaintiff was that the facts established by the plaintiff's affida vit are sufficient to show that the plaintiff's facili ties are a local work within the Province of Nova Scotia and that its enterprise is a local undertaking within the Province, and that nothing in the evi dence shows it to fall within any of the exceptions referred to in head (10) of section 92 of the British North America Act, 1867, so as to bring it within the legislative authority of Parliament, and thus
within the definition of "federal work, undertaking or business" as defined in section 2 of the Canada Labour Code.
In support of his position, counsel contended that since the plaintiff was incorporated by a special Act of the legislature of Nova Scotia, on the authority of Bonanza Creek Gold Mining Co. v. The King', the applicant was without capacity or power to carry on an undertaking beyond the limits of the Province of Nova Scotia. With respect to this particular argument, however, it appears to me that the plaintiff has had, since at least as far back as 1921, the power and capacity of exercising its functions outside of Nova Scotia, and of accept ing and receiving from any competent authority outside of Nova Scotia, the rights and powers necessary to enable it, to do outside of Nova Scotia, any act or thing which it has the right or power to do within Nova Scotia. See Statutes of Nova Scotia 1921, c. 40, s. 1; R.S.N.S. 1923, c. 173, ss. 3, 4 & 5; R.S.N.S. 1954, c. 74, ss. 2, 3 & 4; and R.S.N.S. 1967, c. 59, ss. 2, 3 & 4.
Turning to what is disclosed by the affidavit, the matters set out in paragraphs 3, 10 and 11 of the plaintiff's affidavit are all consistent with the plaintiff's enterprise being a local provincial undertaking. Indeed they strongly suggest that conclusion. But precisely what is involved in pro viding "telecommunication service" in Nova Scotia to customers residing there, on a scale involving the work of some 3,500 employees, is not expanded or elaborated and what is involved in the provision to customers in Nova Scotia of long distance interprovincial and international service, which I understood counsel to say might be assumed to be available to them, and the arrange ments by which such services are provided are left unexplained. The affidavit is also silent as to what part the plaintiff plays and the arrangements under which it plays that part in the interprovin- cial service rendered to their customers by compa nies operating outside Nova Scotia in completing their calls to the plaintiff's customers. The evi dence is, therefore, in my opinion, not necessarily inconsistent with the undertaking being in fact one
3 [1916] 1 A.C. 566.
which includes the provision of services of an extraprovincial character.
It is, no doubt, not to be presumed that by providing in some way for the carriage of the extraprovincial telecommunication traffic of its customers, the plaintiff does so by carrying on an extraprovincial, and thus a federal, undertaking. But while that is not to be presumed, as it appears to me, it is incumbent on a plaintiff, in seeking in this Court prohibition to prevent the Canada Labour Relations Board from carrying out its statutory function, which includes at least the exploring, if not the final adjudication of its juris diction to deal with the matter in respect of which its authority has been invoked, to establish the facts clearly and leave the Court in no doubt as to the precise nature of the undertaking that is being carried on.
Prohibition is not a remedy claimable as of right. The grant of it is discretionary and even if such evidence as has been put before the Court should, having regard to the jurisdiction of the Court to find the facts and to the failure of the defendant union to cross-examine the deponent or adduce evidence, be regarded as favouring the conclusion urged by the plaintiff it appears to me to be open to the Court, in exercising its discretion, to take into account the meagre character of the evidence and its lack of explanations that might have either confirmed the conclusion, or on the other hand, shown it to be unsound. 4
An application for prohibition is an appropriate procedure for having a question of jurisdiction authoritatively determined at an initial stage, where there is a clear question of law arising on facts which are not in dispute.' But it seems to me that where the facts, though not necessarily in dispute, or though not necessarily open to serious contest, have not been put before this Court to a sufficient extent to demonstrate the lack of juris diction the Court is justified in being reluctant to
4 Compare In re Birch (1855) 15 C.B. 743, 139 E.R. 617 and Taylor v. Nicholls (1876) 1 C.P.D. 242.
See Bell v. Ontario Human Rights Commission [1971] S.C.R. 756 and the passage cited therein from the judgment of Lord Goddard C.J. in Ex parte Northfield (Highgate) Ltd. [1957] 1 Q.B. 103 at page 107.
decide once and for all that jurisdiction does not exist and that the Board is not entitled to so much as explore the facts upon which its jurisdiction turns.
A second and somewhat related matter which appears to me to bear on the question whether prohibition should be granted arises from the course which the-proceedings have so far taken before the Canada Labour Relations Board and their present status. For this purpose it will be necessary to describe briefly the correspondence which has passed between the Board and the plain tiff and what resulted from it.
The union's application to the Board was filed on January 24, 1975. It sought certification for a group of some 1,560 employees of the plaintiff and of Island Telephone Company Limited of Char- lottetown, Prince Edward Island, and it stated inter alia that the union was already certified under the laws of Nova Scotia as the bargaining agent for the employees included in the group. I pause to note that this statement seems to have been inaccurate in so far as it refers to the employees of the Island Telephone Company Limited.
The application was accompanied by a letter from the union's solicitors saying that they felt the Board had jurisdiction under subsection 2(b) of the Canada Labour Code and referring as well to section 133 of the Act. The file indicates that the Board received, on February 23, 1975, copies of the orders of the Nova Scotia Labour Relations Board and, on March 5, 1975, copies of certifica tion orders of the Prince Edward Island Labour Relations Board, relating to the defendant union.
On March 3rd, the Canada Labour Relations Board wrote to the plaintiff informing it of receipt of the application for certification, enclosing a copy, referring the plaintiff to various regulations made under the Canada Labour Code and to a section of the Act itself and requiring the plaintiff to comply therewith.
On March 10th, the plaintiff acknowledged receipt of the Board's letter, pointed out that Schedules A and B of the application had not been
included in the material enclosed with the Board's letter and asked for copies of them "so that we can proceed in accordance with CLRB 2 `Notes to Employer Concerning Posting' ". The Board's file indicates that a letter was also received from the Island Telephone Company Limited, the first three paragraphs of which are identical with the three paragraphs of the plaintiff's letter.
However, on March 17th, 1975, the plaintiff's solicitor returned to the Board all the documents which had been sent to it by the Board with a letter, the first paragraph of which read as follows:
I have been retained by Maritime Telegraph & Telephone Company Limited with regard to the above noted matter. I am instructed to advise you that Maritime Telegraph & Telephone Co. Ltd. is a Special Act Company of the Nova Scotia legisla ture. The Company is regulated by the Board of Commission ers of Public Utilities of Nova Scotia. The employees who would be in the unit applied for by the I.B.E.W. are presently certified by the Labour Relations Board (Nova Scotia). The Company operates solely within the boundary of the Province of Nova Scotia and in no way can be considered to be a "federal undertaking". It is obvious that there is no jurisdiction whatsoever for the application contained herein.
On March 19th precisely similar action was taken by solicitors for the Island Telephone Com pany Limited.
The Board replied on April 2nd, 1975 by similar letters to both firms of solicitors. The body of that written to the plaintiff's solicitors was as follows:
This is to acknowledge receipt of your letter dated March 17, 1975 and enclosures.
Taking into account the points raised in your letter, I have been instructed to request that you comply with the Canada Labour Relations Board Regulations 6 and 10 through 12 which outline the criteria to be met in order to file a reply to this application.
It is noted that any reply that you may file, will be received without prejudice to your position regarding the jurisdictional question in this matter.
I enclose the correspondence, application and the "Notice to Employer Concerning Posting" that was mailed to your client on March 3, 1975.
Mr. J. Vines, Labour Relations Officer, will be contacting you in the near future. I trust that you will meet the require ments of the Canada Labour Code and provide Mr. Vines with all the information required by him in the course of his investigation.
The plaintiff's solicitors replied on April 9th by a letter, the first two paragraphs of which were:
This will acknowledge receipt of your letter of April 2, 1975 which was received in this office on April 7th. I have again taken the matter up with my client and I am instructed to repeat to you the provisions of my earlier letter and point out that my client is unwilling to post notices which would only have a disruptive effect on our employees and is unwilling to go to the expense necessary to prove what must be obvious at the outset. Even the applicant admits that it is certified provincially under the laws of Nova Scotia. In an obvious case such as this, surely it is your responsibility to advise the applicant that you do not have jurisdiction over the employees it represents. We would suggest that you request some proof from the applicant that you have jurisdiction before commencing the procedures. I need not point out to you further that your jurisdiction is based on "federal work undertaking or business" and all the operative provisions of the Act are based on jurisdiction.
I am, therefore, returning herewith again the documentation which you provided, on the basis that you do not have jurisdic tion to cause the procedures to commence.
And the solicitors for the Island Telephone Com pany Limited followed suit on April 11th, 1975.
The Board's file indicates that the matters raised by the plaintiff's solicitors were under con sideration in July 1975 and that on August 11th, 1975, the Board, by letter, required the union to substantiate its application by filing written sub missions inter alia supporting its claim that the Board had jurisdiction to act on its application. In response to its letter, the Board, on October 2nd, 1975, received from the solicitors for the union a submission consisting of some 49 typewritten pages, 32 of which were concerned with the Board's jurisdiction and the plaintiff's objection thereto. This contained on page 9 a statement that
It cannot be denied that MT & T and IT carry on inter-provin cial communications.
and on page 11, the following:
Therefore even though MT & T and IT may not themselves own telephone lines in other provinces and thence may not be able to be said to be "works" their situation fits perfectly the definition of "undertaking" as found above. Here the telephone companies have an "arrangement" under which physical things are used. That "arrangement" is the "Trans Canada Telephone System" through which the eight major telephone companies in Canada co-operate with one another in order to facilitate long distance operations. Hence it is respectfully submitted that MT & T and IT fall within the scope of inter-provincial undertak-
ings as defined by judicial decisions and hence are subject to federal jurisdiction.
I should note at this point that counsel for the plaintiff objected that allegations of fact in the submission, in the absence of verification by affidavit, should not be taken as proven for the purposes of this application. With this I agree. On the other hand, in my opinion, neither are the allegations disproved by the affidavit filed by the plaintiff in support of this application. For exam ple; the existence of partnership arrangements under which interprovincial telecommunication service may be provided in Nova Scotia by the plaintiff and the operator of an interprovincial telecommunication service is not negatived.
The material also shows that on November 20th, copies of the union's submissions were for warded to the plaintiff and to its solicitors together with copies of a letter from the Board to the union's solicitors, the body of which read as follows:
We acknowledge receipt of the document entitled "Submis- sions on Behalf of the Applicant" dated September 26, 1975, which you have submitted pursuant to the Board's request in its letter dated August 18, 1975.
While reserving any decision on the merits of your submis sions, the Board considers it appropriate in the circumstances, that all interested parties have the opportunity of responding to the arguments you have made. Accordingly, a copy of your submission is being transmitted to all of the parties listed hereunder who are also being given a copy of this letter. These parties are being given the opportunity of commenting on your submission on or before December 18, 1975.
The body of the covering letter of the same date to the plaintiff and other parties read:
Please find enclosed a copy of the document entitled "Sub- missions on behalf of the Applicant", received from Mr. Peter Landry, Counsel of the International Brotherhood of Electrical Workers. Also enclosed, for your information is a copy of our letter of acknowledgement to Mr. Landry of today's date.
You will note that the Board has reserved any decision on the merits of Mr. Landry's submissions until the parties concerned have had an opportunity to submit any written comments they may wish to make on or before December 18, 1975.
In my view, it is apparent from this correspond ence that while the Board, in its first communica-
tion to the plaintiff, that is to say, its letter of March 3, 1975, purported to exercise its authority by demanding compliance with certain statutory regulations and a provision of the Canada Labour Code it has not, since the first of the letters of the plaintiff's solicitors, that of March 17th, 1975, made so much as an assertion that it has jurisdic tion over the plaintiff. Its response of April 2nd, 1975 is, in my opinion, not a demand, but a mere request that the plaintiff comply without prejudice to its position on the question of jurisdiction. This was answered not merely by a denial of the request, but by a suggestion on the part of the plaintiff that the Board request proof from the applicant union of the Board's jurisdiction "before commencing the procedures".
The Board appears to have accepted this sugges tion. It called on the union to support its position and on receiving the union's submissions, it for warded copies to the plaintiff. It thereupon invited the plaintiff to comment on or before December 18, 1975 and in the meantime reserved "any deci sion on the merit of Mr. Landry's submissions". Neither a reply to the Board's letter nor comments by the plaintiff on the union submission appear in the Board's file and as the present application was filed on December 18th, 1975, it is safe to assume that no reply or comment was sent.
It is, therefore, by no means apparent from the material before the Court either that the Board is persuaded by the union's submissions, whether commented on or not by the plaintiff, that it has jurisdiction to proceed with the union application, or that, at this stage, it has determined to assert jurisdiction over the plaintiff. The plaintiff having raised the objection, the Board appears to me to have simply followed a course calculated to elicit information upon which to determine whether it should assume and assert jurisdiction or decline it. So matters stood at the time when this application was launched and, so far as appears from the material before the Court, the plaintiff was not at any time since April 2nd, 1975, and is not at the present time, threatened with < span> exercise by the Board of an unwarranted jurisdiction over it. The Board may yet conclude, on what is before it, that it should not assert jurisdiction. Or it may decide to investigate the matter further before determin-
ing its course. In either case, it is not presently threatening the exercise of jurisdiction over the plaintiff, and this, in my view, is a matter to be taken into account in exercising the Court's discre tion to grant or deny the issue of prohibition directed to the Board at this stage.
On the whole, I reach the conclusion that in the exercise of the Court's discretion, the application should be refused and it will, therefore, be dis missed, with costs.
There will be no costs payable by or to the intervener.
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