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T-3339-77
In re Order No. 1977-A-443 of the Air Transport Committee of the Canadian Transport Commis sion and in re the operation of a commercial air service by Anishenineo Piminagan Inc.
Trial Division, Mahoney J.—Ottawa, September 15 and 19, 1977.
Practice — Application to rescind certificate re order of Canadian Transport Commission — Alternatively, application to stay order pending judgment in another action — Certifi cate making order of CTC an order of Court by operation of National Transportation Act — Whether or not that order can be rescinded, and if so, whether or not it should be rescinded — Alternatively, whether or not the order should be stayed — Aeronautics Act, R.S.C. 1970, c. A-3, ss. 9(1), 10(1),(2), 17(1) — National Transportation Act, R.S.C. 1970, c. N-17, ss. 4(b), 61(1),(2), 64(2) to 64(9) inclusive — Federal Court Rules 330, 1904, 1909.
An order made by the Canadian Transport Commission pursuant to the Aeronautics Act was entered of record in the Federal Court pursuant to and with the effect prescribed by the National Transportation Act. Applicant seeks an order rescind ing this order constituted by certificate pursuant to Rule 330. Two issues are involved in this motion: firstly, is what is now an order of this Court subject to rescission by this Court? and secondly, if so, should it be rescinded? Alternatively, applicant seeks an order pursuant to Rules 1904 and 1909 staying the order until judgment is rendered in an action by applicant, as plaintiff, against the Canadian Transport Commission.
Held, the applications are dismissed. Parliament has given the CTC the option of following the "usual practice and procedure" of the Court or of following the procedure it did in this instance. It would be unreasonable to hold that if it chooses the second, it is bound by requirements that pertain only to the first. Parliament has prescribed, in unambiguous terms, a procedure for making the orders of the CTC orders of this Court, which, unlike the Court's own procedures, excludes compliance with the principle audi alteram partem. That procedure has been scrupulously followed here and, according ly, the order is no more subject to rescission than had it been registered after due compliance with the "usual practice and procedure" of the Court. The Court has no doubt as to its jurisdiction to stay this order following its usual practice and procedure. The order sought to be stayed is a final order and subsections 64(2) to 64(9) inclusive of the National Transpor tation Act provide for an appeal from that final judgment to the Court of Appeal. The proceedings taken for declaratory and injunctive relief in this Court are not such an appeal. The discretion of this Court to change the time fixed for compliance with the order ought to be exercised only in circumstances where the Court would vary or stay one of its own final
judgments in similar fashion. It would not do so unless an appeal had been taken or, at least, an undertaking given that one would be taken.
Public Service Alliance of Canada, Local 660 v. Canadi- an Broadcasting Corporation [1976] 2 F.C. 151, distin guished; International Brotherhood of Electrical Workers, Local 529 v. Central Broadcasting Co. Ltd. [1977] 2 F.C. 78, distinguished; R. v. Star Treck Holdings Ltd. [1978] 1 F.C. 61, distinguished.
APPLICATION. COUNSEL:
Walter O. Fedoryk for Canadian Transport Commission.
Michael L. Phelan for Anishenineo Pimina- gan Inc.
SOLICITORS:
Deputy Attorney General of Canada for Canadian Transport Commission.
Herridge, Tolmie, Ottawa, for Anishenineo Piminagan Inc.
The following are the reasons for order ren dered in English by
MAHONEY J.: This is an application by Anishe- nineo Piminagan Inc. (hereafter called the "appli- cant") for an order rescinding the certificate of this Honourable Court dated August 30, 1977 or alternatively for an order staying the order con stituted by that certificate until judgment in an action commenced in this Court by the applicant, as plaintiff, against the Canadian Transport Com mission (hereafter called the "CTC"), as defendant'. On August 24, 1977, the Air Trans port Committee of the Canadian Transport Com mission made Order No. 1977-A-443. On August 30, a copy of the order was entered of record in this Court pursuant to and with the effect pre scribed by subsections 61(1),(2) and (3) of the National Transportation Act 2 . Order No. 1977-A 443 was made pursuant to section 10 of the
' Court No. T-3002-77, commenced July 21, 1977. 2 R.S.C. 1970, c. N-17.
Aeronautics Act 3 . The motion to rescind the Court's certificate is made pursuant to Rule 330 and the alternative motion to stay pursuant to Rules 1904 and 1909.
As to the first motion, there are two distinct issues to be determined. Firstly, is what is now an order of .this Court subject to rescission by this Court? Secondly, if so, should it be rescinded?
Material provisions of the Aeronautics Act are:
9. (1) In this Part
"commercial air service" means any use of aircraft in or over Canada for hire or reward;
"Commission" means the Canadian Transport Commission;
"hire or reward" means any payment, consideration, gratuity or benefit, directly or indirectly charged, demanded, received or collected by any person for the use of an aircraft;
10. (1) The Commission has full jurisdiction to inquire into, hear and determine any matter
(a) where it appears to the Commission that any person has failed to do any act, matter or thing required to be done by this Part or by any regulation, licence, permit, order or direction made thereunder by the Commission, or that any person has done or is doing any act, matter or thing contrary to or in violation of this Part or any such regulation, licence, permit, order or direction, or
(b) where it appears to the Commission that the circum stances may require the Commission, in the public interest, to make any order or give any direction, leave, sanction or approval that by law it is authorized to make or give, or with respect to any matter, act, or thing that by this Part or any such regulation, licence, permit, order or direction is prohib ited, sanctioned or required to be done.
(2) The Commission may order and require any person to do, forthwith, or within or at any specified time and in any manner prescribed by the Commission so far as it is not inconsistent with this Act, any act, matter or thing that such person is or may be required to do under this Part, or any regulation, licence, permit, order or direction made thereunder
3 R.S.C. 1970, c. A-3.
by the Commission and may forbid the doing or continuing of any act, matter or thing that is contrary to this Part or any such regulation, licence, permit, order or direction and, for the purposes of this section, has full jurisdiction to hear and determine all matters, whether of law or fact.
17. (1) No person shall operate a commercial air service unless he holds a valid and subsisting licence under section 16.
Section 17 goes on to provide that its violation is an offence and for penalties upon summary conviction.
The full text of Order No. 1977-A-443 follows:
WHEREAS it has come to the attention of the Air Transport Committee that an alleged commercial air service had been commenced on or about July 1, 1977 between Winnipeg and Island Lake, Manitoba using an ST-27 aircraft;
WHEREAS by letter of June 30, 1977, the Chiefs for the Indian Bands of St. Theresa, Waasagamack, Red Sucker Lake and Garden Hill submitted to the Chairman, Air Transport Board [sic] that "Our organization does not intend to be an "air carrier" within the meaning of Part II of the Act but we are not quite clear as to the application of the definition of "hire or reward" as related to a service owned and operated by an organization for the benefit of its own membership. It is clear that the operating costs must be defrayed in some way but we are most anxious to do nothing which will infringe against the Act or your regulations. We would accordingly appreciate receiving your sanction and approval of our operation. If you require any further information or assurances please be assured of our complete co-operation.";
WHEREAS the Committee in a letter of July 12, 1977 requested from the Solicitor for Anishenineo Piminagan Inc. responses to certain questions in order to determine whether the service being operated was commercial in nature;
WHEREAS by telex of July 15, 1977, the Committee request ed of the Solicitor for Anishenineo Piminagan Inc., on an urgent basis, to respond to the questions set out therein not later than Tuesday, July 19th;
WHEREAS no response was received from the Solicitor for Anishenineo Piminagan Inc.;
WHEREAS by telex of July 20, 1977 to the Board of Gover nors and the Solicitor for Anishenineo Piminagan Inc., the Committee made a further request for the information sought and also stated "However based on the material at hand and as understood by the Committee a commercial air service is being operated which is in violation of Section 17 of the Aeronautics Act" ;
WHEREAS the Committee also directed in the aforesaid telex "Accordingly said Corporation and those responsible should cease and desist forthwith from engaging in the further opera tion of commercial air services.";
WHEREAS the Solicitor for Anishenineo Piminagan Inc. has now submitted a response to the questions posed by the Committee;
WHEREAS the Committee has considered the matter and confirms its previous order that Anishenineo Piminagan Inc. should cease and desist forthwith from providing a commercial air service in contravention of Section 17 of the Aeronautics Act;
IT IS ORDERED THAT:
Pursuant to Section 10(2) of the Aeronautics Act Anishe- nineo Piminagan Inc. is hereby ordered to cease and desist forthwith the operations of a commercial air service.
Material provisions of the National Transporta tion Act are:
4. This Act applies to the following modes of transport:
(b) transport by air to which the Aeronautics Act applies;
(Section 5 expressly makes the provisions of Part IV of the Act, including the following sections, applicable to proceedings before the CTC pursuant to the Aeronautics Act.)
61. (1) Any decision or order, made by the Commission may be made a rule, order or decree of the Federal Court, or of any superior court of any province of Canada, and shall be enforced in like manner as any rule, order or decree of such court.
(2) To make such decision or order a rule, order or decree of any such court, the usual practice and procedure of the court in such matters may be followed; or, in lieu thereof, the Secretary may make a certified copy of such decision or order, upon which shall be made the following endorsement signed by the President and sealed with the official seal of the Commission:
To move to make the within a rule (order or decree, as the case may be) of the Federal Court of Canada (or as the case may be).
Dated this day of A.D. 19....
A.B.
[Seal.] President of the Canadian Transport Commission.
(3) The Secretary may forward such certified copy, so endorsed, to the registrar, or other proper officer of such court, who shall, on receipt thereof, enter it as of record, and the decision or order shall thereupon become and be the rule, order or decree of such court.
Subsection (3) would appear to apply only to the alternate procedure authorized by the last portion of subsection 61(2). That is the procedure which
the CTC elected to follow and, technically, it is rescission of the certificate issued by this Court's Administrator as to the entry of record of Order No. 1977-A-443 that is sought. Rule 330 is invoked as authority for such an order.
Rule 330. The Court may rescind any order that was made ex parte, but no such rescission will affect the validity or character of anything done or not done before the rescinding order was made.
Presumably the effect of rescinding that certificate would be to rescind Order No. 1977-A-443 as an order of this Court. I intend, for conve nience, hereafter to refer to what is sought to be rescinded or, alternatively, stayed as the "order".
In arguing that the Court has jurisdiction, the applicant relies on two decisions of this Court dealing with registrations of orders under Part V of the Canada Labour Code". In the earlier cases, my brother Walsh struck out the registration of an arbitrator's order effected, ex parte, under section 159 of the Code. My brother Cattanach, while dealing with numerous other matters, adopted Mr. Justice Walsh's decision in holding the ex parte registration of an order of the Canada Labour Relations Board under section 123 of the Code to be a nullity 6 . Section 159 provides:
159. (1) Where any person or organization has failed to comply with any order or decision of an arbitrator or arbitra tion board, any person or organization affected by the order or decision may, after fourteen days from the date on which the order or decision is made, or the date provided in it for compliance, whichever is the later date, file in the Federal Court of Canada a copy of the order or decision, exclusive of the reasons therefor.
(2) On filing in the Federal Court of Canada under subsec tion (1), an order or decision of an arbitrator or arbitration board shall be registered in the Court and, when registered, has the same force and effect, and all proceedings may be taken thereon, as if the order or decision were a judgment obtained in the Court.
S.C. 1972, c. 18.
5 Public Service Alliance of Canada, Local 660 v. Canadian Broadcasting Corporation [1976] 2 F.C. 151.
6 International Brotherhood of Electrical Workers, Local 529 v. Central Broadcasting Co. Ltd. [1977] 2 F.C. 78.
It is unnecessary to recite section 123. As Mr, Justice Cattanach observed, at page 82,
Except for minor differences in the language in section 123 and section 159 dictated by the necessity of the subject mattes ... the language in each section is identical.
The ratio of Mr. Justice Walsh's decision is expressed in the following passage commencing al page 152:
Petitioner invokes section 159(2) of the Canada Labour Code. arguing that the decision of the Arbitrator can be registered in the Court without any prior notice and when so registered has the same force and effect and all proceedings may be taken thereon, as if the order or decision were a judgment obtained in the Court. However this subsection cannot be read without reference to subsection (1) of section 159 which provides for the filing of such a decision after 14 days for registration in the Court "Where any person or organization has failed to comply with any order or decision of an arbitrator or arbitration board". This is a condition which must be fulfilled before such a filing for registration can be made and subsection (2) merely sets out the effect of such a registration. Rule 321 of the Federal Court Rules clearly provides that unless otherwise authorized to be made ex parte motions must be served on the opposite parties at least 2 clear days before the hearing, unless this is dispensed with. Rule 319 requires that the motion shall be supported by an affidavit setting out all the facts on which the motion is based that do not appear from the record, and that the adverse party may file an affidavit in reply, and that by leave of the Court a witness may be called to testify in relation to an issue of fact raised by an application.
While petitioner's motion for inter alla, the registration of the arbitration award was accompanied by an affidavit setting out that respondent has not complied entirely with the arbitra tion award, no details were given as to which conditions were not complied with, and more important it was not served on the opposite party before the registration was effected so as to give the respondent the opportunity to deny, as it does, that the award was not complied with. This is contrary to Federal Court Rule 321 and to the basic principle of equity audi alteram partem. The establishment that the arbitration award has not been complied with is a condition sine qua non of its registra tion in this Court.
Parliament's prescription for the making of an order of the CTC an order of this Court under section 61 of the National Transportation Act is quite different from its prescription for giving similar effect to orders under sections 123 and 159 of the Canada Labour Code. It is unnecessary here to consider the significance, if any, of the distinc tion that, by subsection 61(3), a CTC order, upon entry of record in the Court, "shall thereupon become and be" the order, of the Court while
under the particular provisions of the Canada Labour Code, an order, upon registration, "has the same force and effect ... as if ... [it] were a judgment obtained in the Court." The sections of the Canada Labour Code prescribe no procedure for effecting registration. In the absence of such prescription, the procedures of the Court govern with the result indicated in the decisions cited. Section 61 of the National Transportation Act does, however, prescribe procedure. The CTC has the choice of following the "usual practice and procedure" of the Court or it may follow the procedure it did in this instance. Where Parlia ment has given the CTC that clear option, it would be unreasonable to hold that if it chooses the second, it is bound by requirements that pertain only to the first.
Parliament has, in unambiguous terms, pre scribed a procedure for the making of orders of the CTC orders of this Court which, unlike the Court's own procedures, excludes compliance with the principle audi alteram partem. That procedure has been scrupulously followed here and, accord ingly, the order is no more subject to rescission than had it been registered after due compliance with the "usual practice and procedure" of the Court. The motion to rescind the order will be dismissed and I turn now to the alternative motion to stay it.
The order being, by virtue of subsection 61(3), the order of this Court, I have no doubt as to this Court's jurisdiction to stay it in accordance with the usual practice and procedure of the Court. The CTC argued that the recent decision in The Queen v. Star Treck Holdings Ltd.' was on point to the contrary effect. I do not agree that it is on point. In that case the Crown sought an order amending a certificate registered in this Court pursuant to
7 [ 1978l I P.C. 61.
section 223 of the Income Tax Acts.
223. (1) An amount payable under this Act that has not been paid or such part of an amount payable under this Act as has not been paid may be certified by the Minister
(2) On production to the Federal Court of Canada, a certifi cate made under this section shall be registered in the Court and when registered has the same force and effect, and all proceedings may be taken thereon, as if the certificate were a judgment obtained in the said Court for a debt off the amount specified in the certificate plus interest to the day of payment as provided for in this Act.
The Minister's certificate remains the Minister's certificate notwithstanding that it "has the same force and effect ... as if the certificate were a judgment" of this Court; it does not, as does an order to which subsection 61(3) of the National Transportation Act applies, "become and be the ... order" of the Court. The Minister's certifi cate does not, by registration, become the Court's certificate to amend; the CTC's order does become the Court's order to stay or otherwise.
The stay is sought under Rules 1904 and 1909:
Rule 1904. (1) Notwithstanding that a judgment or order requiring a person to do an act specifies a time within which the act is to be ,done, the Court may make an order requiring the act to be one within another time, being such time after service of that order, or such other time, as may be specified therein.
(2) Where a judgment or order requiring a person to do an act does not specify a time within which the act is to be done, the Court may subsequently make an order requiring the act to be done within such time after service of that order, or such other time, as may be specified therein.
Rule 1909. A party against whom a judgment has been given or an order made may apply to the Court for a stay of execution of the judgment or order or other relief against such judgment or order, and the Court may by order grant such relief, and on such terms, as it thinks just.
It is sought until judgment is rendered in an action commenced by the applicant against the CTC in this Court which seeks declaratory and injunctive relief on the premise that the applicant is not operating a commercial air service, a conclusion
8 S.C. 1970-71-72, c. 63.
contrary to the decision rendered in the order. The action was commenced July 21; the CTC entered an appearance and has filed a notice of motion, which it proposes be dealt with under Rule 324, seeking to strike out the statement of claim as disclosing no reasonable cause of action and to dismiss the action.
In addition to the action in this Court, there is an action in the Manitoba Court of Queen's Bench by a licensed commercial carrier against the appli cant in which, it appears, the question of whether the applicant is, or is not, operating a commercial air service must be decided by that Court. The trial has concluded. An interlocutory injunction against the applicant has been refused. That court has, it appears, asked for written arguments and has reserved its decision. To complete the picture, a prosecution against the applicant in the Manito- ba Provincial Court under section 17 of the Aeronautics Act has been stayed pending the out come of one or the other or both of the actions in the Court of Queen's Bench and this Court. The evidence indicates it is the latter while, in argu ment, counsel indicated it was the former. That said, it is the action in this Court that is expressly referred to in this motion.
The order sought to be amended or stayed is in the nature of a final judgment; it is not an inter locutory order. There is provision made, by subsec tions 64(2) to 64(9) inclusive of the National Transportation Act, for an appeal from that "final judgment" to the Federal Court of Appeal. The proceedings taken for declaratory and injunctive relief in this Court are not such an appeal 9 . I am of the view that the discretion of this Court to change the time fixed for compliance with the order, either by staying its execution or by fixing a different time for compliance, ought to be exer cised only in circumstances where the Court would vary or stay one of its own final judgments in a similar fashion. I do not see that it would do so
9 Indeed, in this case, those proceedings were commenced before the order was made with the apparent intent of forestall ing it.
unless an appeal had been taken or, at least, an undertaking given that one would be taken. The application must be dismissed and, in the absence of that sine qua non, it is not necessary for me to indicate the result I should have felt obliged to reach on the basis of the other material before me.
ORDER
The application is dismissed with costs.
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