Judgments

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Decision Content

A-43-78
Bell Canada (Appellant) (Respondent) v.
Challenge Communications Limited (Respondent) (Applicant)
Court of Appeal, Heald, Urie and Ryan JJ. — Ottawa, April 11, 12 and 24, 1978.
Communications — Jurisdiction — Bell Canada telephone tariffs — Tariff concerning Automatic Mobile Telephone Ser vice (AMTS) reserving right to supply equipment to Bell Canada on rental basis, excluding option of Customer Owned and Maintained (COAM) equipment — Unjust discrimination claimed by COAM supplier — CRTC disallowed tariff and ordered that new tariff proposals include COAM option and that specifications for production of equipment compatible with AMTS system be disclosed — Appeal on questions of law and jurisdiction — Railway Act, R.S.C. 1970, c. R-2, ss. 320, 321 — National Transportation Act, R.S.C. 1970, c. N-17, ss. 45(2), 46(1), 57(1), 58, 64(2).
This is an appeal on questions of law and jurisdiction, under section 64(2) of the National Transportation Act, against a decision and order by the CRTC. The CRTC had disallowed certain provisions of appellant's general tariff on the basis that those provisions concerning AMTS were unjustly discriminato ry and caused unreasonable advantage to appellant over respondent. It also ordered appellant to submit new proposals for tariff, including new options of ownership with AMTS, and to provide specifications for equipment necessary for produc tion of equipment compatible with Bell Canada's system. The appellant, under its tariff, had reserved to itself the right to supply AMTS and on a rental basis only; customer owned mobile units would not be provided with automatic service. Respondent specialized in providing and servicing COAM equipment. Appellant raises six questions in this appeal: (1) Did the CRTC err in law in finding that appellant acted in breach of section 321(2)(a),(b),(c) of the Railway Act by stipulating in its general tariff concerning AMTS that appel lant alone would provide, install and maintain the radio equip ment? (2) Did the CRTC err in law or exceed its jurisdiction by ordering appellant to supply specifications necessary for the design of equipment compatible with its system? (3) Did the CRTC err in law and exceed its jurisdiction by ordering appellant to prepare Mobile-Telephone Service tariff proposals to include the COAM option? (4) Did the CRTC err in law and exceed its jurisdiction by ordering preparation of tariff proposals including a "roaming" option? (5) Did the CRTC err in law in finding section 321(2)(a),(b),(c) of the Railway Act applies to cases of alleged unjust discrimination? (6) Did the CRTC err in law and exceed its jurisdiction by construing section 321 of the Railway Act as meaning it had jurisdiction between Bell Canada and competing suppliers of telephone equipment and facilities?
Held, the appeals, with one exception, are dismissed. Ques tion No. 1 is answered in the negative. General Regulations No. 7 and No. 9, when read in context of all the Regulations and the applicable sections of the Railway Act, permit and allow the CRTC to deal with matters of ownership and mainte nance of telephone service and with matters relating to the connection of COAM equipment to the appellant's work as component parts of the Bell Tariffs which are required to be approved by the CRTC. When the Regulations are interpreted in this fashion, no conflict arises. Question No. 5 is answered in the negative. Section 321(2) of the Railway Act prohibits discrimination against "any person or company". Appellant is precluded, by the Act, from giving to itself any undue or unreasonable preference or advantage. Respondent is also en titled to the protection of section 321 when the clear and unambiguous words "any ... company" are used. This section, with its plain and ordinary meaning, applies to any person or company, not just customers. Question No. 2 is answered in the negative. The CRTC's order for substitution of a new tariff permitting COAM equipment in the AMTS field could be frustrated and rendered ineffective if the specifications were to be kept secret, for the COAM-AMTS equipment must connect with appellant's telephone system. Authority for making this portion of the order is to be found in the National Transporta tion Act, sections 45(2), 46(1) and 57(1) and the Railway Act, section 321(5), since interconnecting specifications are neces sarily a matter relating to tariffs. Question No. 3 is answered in the negative for reasons similar to those concerning Question No. 2. Question No. 4 is answered in the affirmative. The question of "roaming" was not an issue in the hearings before the CRTC. It is unnecessary for this Court to determine whether the CRTC had power to make this portion of the order, since the parties and the intervener cannot be said to have been heard on this issue. Question No. 6 need not be answered as it proceeds from an unfounded assumption. Although the effects of the order might be to equalize competi tion, this fact does not render invalid an order validly made in the proper exercise of jurisdiction.
APPEAL. COUNSEL:
E. E. Saunders, Q.C. and P. J. Knowlton for appellant.
H. Soloway, Q.C. and J. , Shields for respondent.
T. G. Heintzman and Peter S. Grant for CRTC.
Gordon F. Henderson, Q. C. and Gordon E. Kaiser for Director of Investigation and Research, Combines Investigation Act.
SOLICITORS:
Bell Canada Legal Department, Montreal, for appellant.
Soloway, Wright, Houston, Greenberg, O'Grady, Morin, Ottawa, for respondent. McCarthy & McCarthy, Toronto, for CRTC.
Gowling & Henderson, Ottawa, for Director of Investigation and Research, Combines Investigation Act.
The following are the reasons for judgment rendered in English by
HEALD J.: This is an appeal on questions of law and jurisdiction under section 64(2) of the Nation al Transportation Act, R.S.C. 1970, c. N-17, pur suant to leave to appeal granted to the appellant by this Court. The appeal is against a decision and order by the Canadian Radio-television and Tele communications Commission (CRTC) on Decem- ber 23, 1977, 3 C.R.T. 489, (Telecom Decision CRTC 77-16). By this decision, CRTC disallowed certain provisions of the appellant's general tariff on the basis that those provisions which concerned Automatic Mobile-Telephone Service (AMTS) were unjustly discriminatory against, and caused undue or unreasonable prejudice or disadvantage to the respondent, and gave an undue or unreason able preference or advantage to the appellant over the respondent. The decision also ordered the appellant to report to CRTC with proposals for the implementation of a new Mobile-Telephone Ser vice tariff which would include certain features and options related to automatic telephone service not previously included in the appellant's tariff, and ordered the appellant to supply to CRTC, to the respondent and to any other person requesting same, a copy of all specifications of the Access 450 equipment and any other equipment or facilities necessary for the design and production of compat ible ultra-high frequency (UHF) mobile telephone service equipment. The "Access 450" equipment is the name of the new type of mobile telephone radio equipment introduced by the appellant in Canada for use in automatic telephone radio ser-
vice. The decision further ordered both the appel lant and respondent to report to CRTC not later than February 13, 1978, with proposals for a schedule for the implementation of a new Mobile- Telephone tariff including, with respect to the appellant, an offering of the option of automatic (dial-up) UHF mobile customer owned and main tained equipment compatible with the North American signalling system.
The relevant facts in this appeal are not in dispute. On April 29, 1977, the appellant filed with CRTC four revised pages of its General Tariff, those pages bearing the general title of "Mobile Telephone Service" and dealing with two types of mobile telephone service, namely, Manual Mobile-Telephone Service (MMTS) and Auto matic Mobile-Telephone Service (AMTS). In motor vehicle mobile telephone service, there is equipment located in the automobile, known as the "radio equipment", and land equipment known as the "base station". The radio equipment in the automobile communicates by radio with the base station, which forms part of the appellant's tele phone network. While there are certain other types of mobile-telephone service, such as that used by water craft, the present appeal concerns only the type of mobile-telephone service used by owners of motor vehicles. The equipment in the automobile consists essentially of two units, one of which is known as the "control head" and the other which is transmitting and receiving radio equipment. The control head usually includes a hand set similar to an ordinary home telephone hand set, which fits into a cradle on a piece of equipment which appears usually in the front part of the interior of the automobile, within easy reach of the driver. The transmitting and receiving equipment is usual ly, but not necessarily, located in the automobile trunk. The control head is the equipment whereby the automobile driver signals to the base station and he, of course, carries on his conversation using the hand set. The control head is connected to the transmitting and receiving equipment and there is usually an exterior aerial on the automobile to assist in transmission and reception.
Manual Mobile-Telephone Service (MMTS) has been offered by the appellant in its general
tariff for many years, but up until the amendments filed on April 29, 1977, and referred to supra, the tariff also provided that the customer could elect to provide, install and maintain his own manual radio equipment in his automobile. Such equip ment could be obtained by the customer from any supplier. When a customer chooses to provide, install and maintain his own radio equipment in his automobile, the equipment is referred to as "COAM" (Customer Owned and Maintained) equipment. The respondent is a seller and supplier of COAM equipment, mostly in the Toronto- Hamilton area, but with some business in other parts of Ontario and Quebec.
The new tariff pages filed by the appellant on April 29, 1977 included an offering of AMTS for the first time. AMTS was designed to use UHF channels rather than the VHF channels used in MMTS. AMTS also offered direct dial capability, that is the ability to make and receive calls in the automobile without telephone operator involve ment when the automobile was in its home area. This was a new feature, since MMTS requires communication with the operator on each call.
In the proposed amendment filed on April 29, 1977, the appellant advised CRTC that it did not propose to provide customer owned mobile units with automatic service, proposing instead that it would provide, install and maintain, on a rental basis only, all such mobile units. These new tariff pages were approved by CRTC to be effective July 20, 1977. Immediately thereafter, the appellant engaged in an advertising campaign promoting AMTS on a rental basis. Under the amended tariff, the appellant had reserved to itself the exclusive right to supply AMTS and on a rental basis only. The appellant continued to offer the MMTS service on the same basis as before.
The respondent specializes in the provision and servicing of the COAM equipment referred to supra. By July of 1977, the majority of customers using MMTS equipment were COAM users.
On September 26, 1977, the respondent filed with the CRTC an application challenging appel lant's amended tariff alleging, inter alia, that it was unjustly discriminatory and that the appellant had thereby created an undue preference or advan tage in its favour and that such action by the appellant was contrary to section 321 of the Rail way Act, R.S.C. 1970, c. R-2.
The CRTC held hearings on the respondent's application in Ottawa from November 8, 1977 to November 16, 1977. The evidence adduced at the hearing . established that as of July 1977, there were 1,588 users of MTS in the Toronto-Hamilton area, of which 1,264 were COAM users. The evidence also established that in the few months following July 25, 1977, the date on which Bell's amended tariff concerning AMTS was approved, Bell obtained some 300 AMTS customers.
The appellant raises six questions of law or jurisdiction in this appeal and submits that each of those questions should be answered in the affirma tive. On the other hand, the respondent and the Director of Investigation and Research, Combines Investigation Branch (who intervened in the hear ing before the CRTC pursuant to section 27.1 of the Combines Investigation Act, R.S.C. 1970, c. C-23, and participated fully therein and appears in this appeal pursuant to Rule 1313) both submit that all six questions should be answered in the negative. Counsel for the Commission makes a similar submission. I will now deal with those six questions:
Question No. 1
Did the Commission err in law in finding that the appellant, while acting pursuant to Rules 7 and 9 of its General Regulations, acted in breach of Subsections (a) (b) and (c) of Section 321(2) of the Railway Act, by stipulating with regard to AMTS in its Revised Page 410 of its General Tariff, that the appellant would pro vide, install and maintain the radio equipment for Automatic mobile units, while not permit ting others to do so?
In support of its submission herein, the appellant alleges error in law by CRTC in finding that the appellant breached the provisions of section 321(2) of the Railway Act, R.S.C. 1970, c. R-2 (as
amended) because, in its submission, it was acting pursuant to and in compliance with Rules 2, 7 and 9 of its General Regulations which were prescribed by a predecessor agency to the CRTC, upon the application of the appellant, as the terms and conditions under which traffic could be carried by the appellant. The authority for these Regulations was a predecessor section to what is now subsec tion 322(3) of the Railway Act. Subsequently, with the leave of the Board of Transport Commis sioners for Canada, the Regulations were pub lished three times in the Canada Gazette, pursuant to a predecessor section to what is now section 62 of the National Transportation Act. The relevant provisions herein referred to read as follows:
Rule 2.—(a) Telephone service and equipment offered by the Company's Tariffs, when provided by the Company, shall be furnished upon and subject to the terms and conditions con tained in
(i) these Regulations,
(ii) all the applicable Tariffs of the Company, and
(iii) the written application (if any) to the extent that it is not inconsistent with these Regulations or said Tariffs,
all of which shall be binding on the Company and its customers.
(b) Any change in these Regulations or in the Company's Tariffs shall contemporaneously with the effective date thereof effect the modification of the obligations of the Company and its customers towards each other to conform thereto. A change in rates is applicable on and from its effective date notwith standing the fact that the customer may have been billed and/or have paid in advance at the previous rate.
Rule 7.—Except where otherwise stipulated in its tariffs or by special agreement, the Company shall provide and install all poles, conduits, plant, wiring, circuits, instruments, equipment, fixtures and facilities required to furnish service and shall be and remain the owner thereof, and shall bear the expense of ordinary maintenance and repairs.
Rule 9.—The Company's equipment and wiring shall not be rearranged, disconnected, removed or otherwise interfered with, nor shall any equipment, apparatus, circuit or device which is not provided by the Company be connected with, physically associated with, attached to or used so as to operate in conjunc tion with the Company's equipment or wiring in any way, whether physically, by induction or otherwise, except where specified in the Tariffs of the Company or by special agree ment. In the event of a breach of this Rule, the Company may rectify any prohibited arrangement or suspend and/or termi nate the service as provided in Rule 35.
Subsection 322(3) of the Railway Act: 322. . ..
(3) The Commission may by regulation prescribe the terms and conditions under which any tariff may be carried by the company.
Section 62 of the National Transportation Act:
62. Any rule, regulation, order or decision of the Commis sion, when published by the Commission or by leave of the Commission, for three weeks in the Canada Gazette, and while the same remains in force, has the like effect as if enacted in this Act, and all courts shall take judicial notice thereof.
Thus, it is appellant's submission that the CRTC "erred in their interpretation of the legal status of Bell Canada's General Regulations, and in not interpreting Section 321 of the Railway Act in conjunction with the provisions of Rules 7 and 9 of the Bell Canada's General Regulations." (Appel- lant's factum, page 41.) And again, on page 42 of its factum, the appellant submits:
101. The CRTC, in its Decision, has relied exclusively on Section 321 to justify both its Decision and the Orders it has issued. In the passages of the Decision just quoted, the CRTC appears to treat Rules 2, 7 and 9 of Bell Canada's General Regulations as "second-class citizens", not having the true status of statutory provisions. Rather than attempting to inter pret Rules 2, 7 and 9 as provisions of law to be read with the other "substantive" provisions of the Railway Act, the Com mission appears to downgrade the importance of the provisions.
Section 321 of the Railway Act reads as follows:
321. (1) All tolls shall be just and reasonable and shall always, under substantially similar circumstances and condi tions with respect to all traffic of the same description carried over the same route, be charged equally to all persons at the same rate.
(2) A company shall not, in respect of tolls or any services or facilities provided by the company as a telegraph or telephone company,
(a) make any unjust discrimination against any person or company;
(b) make or give any undue or unreasonable preference or advantage to or in favour of any particular person or com pany or any particular description of traffic, in any respect whatever; or
(c) subject any particular person or company or any particu lar description of traffic to any undue or unreasonable preju dice or disadvantage, in any respect whatever;
and where it is shown that the company makes any discrimina tion or gives any preference or advantage, the burden of proving that the discrimination is not unjust or that the prefer ence is not undue or unreasonable lies upon the company.
(3) The Commission may determine, as questions of fact, whether or not traffic is or has been carried under substantially similar circumstances and conditions, and whether there has, in any case, been unjust discrimination, or undue or unreasonable preference or advantage, or prejudice or disadvantage, within the meaning of this section, or whether in any case the com pany has or has not complied with the provisions of this section or section 320.
(4) The Commission may
(a) suspend or postpone any tariff of tolls or any portion thereof that in its opinion may be contrary to section 320 or this section; and
(b) disallow any tariff of tolls or any portion thereof that it considers to be contrary to section 320 or this section and require the company to substitute a tariff satisfactory to the Commission in lieu thereof or prescribe other tolls in lieu of any tolls so disallowed.
(5) In all other matters not expressly provided for in this section the Commission may make orders with respect to all matters relating to traffic, tolls and tariffs or any of them.
(6) In this section and section 322, the expressions "compa- ny", "Special Act", "toll" and "traffic" have the meanings assigned to them by section 320.
The applicable portion of section 320 of the Rail way Act reads as follows:
320. (1) In this section
"company" means a railway company or person authorized to construct or operate a railway, having authority to construct or operate a telegraph or telephone system or line, and to charge telegraph or telephone tolls, and includes also tele graph and telephone companies and every company and person within the legislative authority of the Parliament of Canada having power to construct or operate a telegraph or telephone system or line and to charge telegraph or telephone tolls;
The appellant submits that the CRTC has, in effect, decided that the provisions of section 321 supra, override the provisions of Rules 7 and 9 of Bell Canada's General Regulations, and that, in so deciding, the CRTC has erred in law.
Despite the very able argument of appellant's counsel, I am not persuaded that this submission is a valid one. As stated by counsel for the Commis sion, to adopt this view would result in this appel lant being given immunity from the tariff approv ing function of the Commission which role brings section 321 of the Railway Act into play. A perus al of the General Regulations of the appellant (Case pp. C101 and following) makes it clear, in my view, that this appellant is to be regulated through tariffs approved by the CRTC. Section 1 of the enabling order, for example, describes the General Regulations as being the terms and condi tions under which the appellant "shall furnish to the public the telephone service and equipment described in its effective Tariffs from time to time filed with and approved by the Board." [Emphasis added.] Rule 2 of the General Regulations pro-
vides for telephone service and equipment offered by the Company's Tariffs to be furnished subject, inter alia, to the terms and conditions contained in "(ii) all the applicable Tariffs of the Company". Rule 7 uses the qualifying words "Except where otherwise stipulated in its tariffs ...". Rule 9 uses the qualifying words: "except where specified in the Tariffs of the Company . ..". [The emphasis is added in the quotations from Rules 2, 7 and 9.] It seems clear from the general scheme of the Rules that, with respect to any dealing with a customer, the appellant has to have a tariff and that tariff, to be effective, requires Commission approval. I agree with counsel for the Commission that the system contemplated under Bell's General Rules and Regulations is based on approved tariffs. Accordingly, it is my firm opinion that the General Regulations and the Rules passed thereunder are not intended to have paramountcy over such sub stantive provisions of the Railway Act as section 321 thereof when considering the tariffs filed by the appellant and thus said Rules do not have the effect of "insulating" the appellant from the Com mission's tariff approving function.
Furthermore, it should be noted that Rules 7 and 9, relied on by the appellant are Rules and Regulations passed under the authority of the Railway Act. As such, they cannot operate as amendments of that statute'. Where there is a conflict between one of the provisions of a statute and a regulation passed thereunder, the statute itself is treated as supplying the governing con sideration and the regulation is treated as being subordinate to it 2. A perusal of the Belanger case (supra) makes it clear that all five Justices held that in such a case of conflict, the provisions of the statute will govern and the regulations, in so far as they are inconsistent with sections of the Act must give way. However, Anglin J., in the Belanger case
' See: Belanger v. The King (1916) 54 S.C.R. 265 at p. 268 per Sir Charles Fitzpatrick C.J.
2 See: Belanger v. The King (1916) 54 S.C.R. 265 at p. 276 per Duff J. (as he then was).
(supra) expressed the further view that such a regulation should, if possible, be given a construc tion which will not conflict with the statute'. In my view, such a construction is possible in the case at bar. Rule 7 imposes an obligation upon the appellant to provide, install and maintain its own works to the extent necessary to furnish service to its customers but makes the exception referred to earlier that such matters of ownership and mainte nance are expressly contemplated to be dealt with in the tariffs which require Commission approval. Likewise Rule 9 which, prima fade, prohibits any re-arrangement of appellant's equipment and wiring and further prohibits any one from connect ing with the appellant's works expressly contem plates that the connection of COAM equipment is one of the matters to be dealt with in the tariffs required to be approved by the Commission.
Accordingly, while I consider the Belanger case (supra) to be applicable to this case, notwithstand ing the strenuous efforts of appellant's counsel to distinguish it, I have the view that the wording of Rules 7 and 9 expressly contemplates a consider ation of the matters therein dealt with in the appellant's tariffs and such a consideration brings section 321 of the Railway Act into play since, on the facts herein found by the Commission, the Commission has found as a fact that the appellant has breached the provisions of section 321 (2)(a),(b) and (c) in so far as the respondent is concerned 4 .
Appellant's counsel relied on the case of B.G. Linton Construction Ltd. v. C.N. 5 and in particu lar the comments of Ritchie J. at page 688 relating to certain orders passed and published in the Canada Gazette under the predecessor section to section 62 of the National Transportation Act that "they thereafter had the force of law as if they had been enacted in the Railway Act itself." In my view of the matter however, the Linton case (supra) does not assist the appellant here because, in Linton (supra), the Supreme Court was not called upon to decide a conflict between a regula-
' See: Belanger v. The King (1916) 54 S.C.R. 265 at p. 280 per Anglin J.
4 There was ample evidence to justify these findings, particu larly in view of the fact that the appellant chose not to adduce any evidence before the Commission.
5 [1975] 2 S.C.R. 678.
tion and a section of the Railway Act. What was decided in that case was that an Order of the Board of Railway Commissioners had the force of law as part of the Railway Act upon due publica tion in the Canada Gazette. I do not read the Linton case (supra) as being inconsistent with the Belanger case (supra) where, as in the case at bar, there is a possibility of conflict between a regula tion passed under the Railway Act and a section of the Railway Act itself. Appellant's counsel also relied on the case of The Corporation of the City of Ottawa v. The Corporations of the Town of Eastview and the Village of Rockcliffe Park 6 . That case, in my view, has no application to the situation at bar because in that case, the conflict being considered was between a statute of the Province of Ontario and the Special Acts of the Legislature concerning the waterworks systems of the City of Ottawa. That seems to me to be quite a different situation from the instant case where the possible conflict is between a regulation and a substantive section of the same Act. To summa rize: I have concluded that Bell General Regula tions No. 7 and No. 9 when read in the context of all of the regulations and the applicable sections of the Railway Act permit and allow the Commission to deal with the matters of ownership and mainte nance of telephone service and with matters relat ing to the connection of COAM equipment to the appellant's work as component parts of the Bell Tariffs which are required to be approved by the Commission. When the Regulations are interpret ed in this fashion, no conflict arises. If, however, a conflict were to arise and the question of para- mountcy needed to be determined, I would, on the authority of the Belanger case (supra), hold that section 321 of the Railway Act governs and that the Rules in question must give way. For the foregoing reasons, Question No. 1 should, in my opinion, be answered in the negative.
Question No. 5
Did the Commission err in law in finding that Subsections (a),(b) and (c) of Section 321(2) of the Railway Act apply to cases of alleged unjust
6 [1941] S.C.R. 448 at p. 461.
discrimination, alleged undue or unreasonable preference or advantage, or alleged undue or unreasonable prejudice or disadvantage, arising from an act or acts of Bell Canada, where those parties allegedly adversely affected by such act or acts are suppliers to the public of mobile telephone service equipment, in competition with Bell Canada and are _ adversely affected only in their quality as such suppliers?
The appellant here submits that Parliament intended, in section 320(1) and section 321(2) (supra), that a telephone company such as the appellant should not be permitted to discriminate unjustly as between its own customers; that section 321(2) is "customer-oriented", i.e., that the section requires that anyone taking service from a tele communications company be treated fairly and according to rules set out in section 321(2) but that the section applies only to customers and not to competitors of the appellant.
I do not agree that section 321(2) should be interpreted in such a restrictive manner. Section 321 prohibits discrimination against "any person or company". Subsection (6) thereof states that, in section 321, the expression "company" shall have the meaning assigned to it by section 320. By section 320(1) quoted earlier herein "company" is defined, inter alia, so as to include telephone companies and every company and person within the legislative authority of the Parliament of Canada having power to construct or operate a telephone system or line and to charge telephone tolls. Accordingly, it is clear that the word "com- pany" as used in section 321(2)(b) includes the appellant itself. Thus the appellant is precluded from giving to itself any undue or unreasonable preference or advantage. Furthermore, under sec tion 28 of the Interpretation Act, R.S.C. 1970, c. I-23, "person" is defined to include a corporation. Thus, clearly, the respondent is also entitled to the protection of section 321 when the clear and unambiguous words "any . .. company" are used. I agree with counsel for the Director that if section 321(2)(a) were to be restricted to customers, the word "amongst" or "between" would have been more apt than the word "against". Giving to this section its plain and ordinary meaning (and we were not referred to any authorities which are persuasive against giving the words used their
plain and ordinary meaning), it seems to me that section 321 applies to any person or company, not just customers. I have accordingly concluded that Question No. 5 should also be answered in the negative.
Question No. 2
Did the Commission err in law or exceed its jurisdiction when it ordered Bell Canada to serve on the Commission, the respondent and any other party which requests it, a copy of all specifications of the Access 450 equipment or facilities necessary for the design and production of compatible UHF mobile telephone service equipment?
The appellant submits that the authority which is conferred upon the CRTC under the provisions of the Railway Act is restricted to that which can be found within the four corners of the Act. The appellant further submits that nowhere within the four corners of the Act is CRTC empowered to order the appellant to provide to third parties information and specifications of the type herein being dealt with. The specifications being sought in this portion of the Commission's order were not the actual design of the appellant's Access 450 equipment but only the minimum standards for COAM equipment which would be capable of inter-connecting with appellant's AMTS system so that telephone messages could be exchanged.
The Commission, after stating its conclusion [3 C.R.T. 489 at page 502] that appellant's revised tariff pages had contravened section 321(2) of the Railway Act, expresses on page 502 its reasons for making that portion of the order herein being impugned, as follows:
The Commission does not intend to substitute a tariff in lieu of the disallowed tariff at this time. Instead, it intends to maintain the present tariffs in force pending the filing of a new tariff for mobile telephone service that, at a minimum, provides for COAM equipment throughout the MTS, with equality of access to the switched telephone network.
It is clear, however, that the mere act of filing a revised tariff in accordance with these criteria will not eliminate the disad vantageous situation created by the revised tariff pages. The former tariff was in force for approximately three months, during which time Bell Canada had exclusive access to the AMTS market. In this period, Bell rented approximately 200 AMTS units, whereas it had only 324 manual units rented at
July 20, 1977, in the Toronto-Hamilton area, a total achieved after many years in the competitive manual MTS market.
The effective date of the substituted tariff must therefore be delayed until there is a COAM option available for customer use with AMTS equipment. This will require that potential COAM equipment manufacturers and suppliers be permitted to examine AMTS system specifications and to have sufficient time to develop and produce compatible equipment. In this regard, the Commission notes the remarks of Messrs. Francis and Deering that it would take approximately four months to adapt their equipment to the AMTS system. At the same time, the Commission believes that it is important to resume AMTS service as soon as possible. An acceptable alternative for the interim period would be the availability to COAM suppliers, under fair terms and conditions, of the equipment now provided exclusively to Bell Canada by Martin Marietta and Motorola.
In my view, the approach taken by the Commis sion in this matter is reasonable and logical. Having found discrimination under section 321(2), the Commission was empowered to disallow appel lant's revised tariff, as it did and to require the substitution of a new tariff satisfactory to the Commission. That power includes, in my view, the power to require that the new tariff permit COAM equipment in the AMTS field. Since that equip ment must connect with the appellant's telephone system, the Commission and persons wishing to provide COAM-AMTS equipment need to know the general specifications for connecting to appel lant's AMTS system. Were the appellant allowed to keep those specifications secret, the Commis sion's order under section 321 could be frustrated and rendered ineffective.
Turning now to the question of statutory author ity, it seems to me that ample authority for making this portion of the Commission's order is to be found in sections 45(2), 46(1) and 57(1) of the National Transportation Act ? and particularly
7 45. ...
(2) The Commission may order and require any company or person to do forthwith, or within or at any specified time, and in any manner prescribed by the Commission, so far as is not inconsistent with the Railway Act, any act, matter or thing that such company or person is or may be required to do under the
(Continued on next page)
in section 321(5) of the Railway Act (supra) since interconnecting specifications are necessarily a matter relating to tariffs. They are also, by defini tion, a matter relating to traffic' since such specifications are designed to permit messages originating on COAM equipment to be transmit ted to and from the appellant's telephone network. Accordingly, and for the above reasons, I would answer Question No. 2 in the negative.
Question No. 3
Did the Commission err in law or exceed its jurisdiction when it ordered Bell Canada to report to the Commission with proposals for a schedule for the implementation of a new MTS (Mobile-Telephone Service) tariff which will include the COAM (customer owned and main tained) option?
(Continued from previous page)
Railway Act, or the Special Act, and may forbid the doing or continuing of any act, matter or thing that is contrary to the Railway Act, or the Special Act; and for the purposes of the Railway Act has full jurisdiction to hear and determine all matters whether of law or of fact.
46. (1) The Commission may make orders or regulations
(a) with respect to any matter, act or thing that by the Railway Act or the Special Act is sanctioned, required to be done, or prohibited;
(b) generally for carrying the Railway Act into effect; and
(c) for exercising any jurisdiction conferred on the Commis sion by any other Act of the Parliament of Canada.
57. (1) The Commission may direct in any order that such order or any portion or provision thereof, shall come into force at a future time or upon the happening of any contingency, event or condition in such order specified, or upon the perform ance to the satisfaction of the Commission, or a person named by it, of any terms which the Commission may impose upon any party interested, and the Commission may direct that the whole, or any portion of such order, shall have force for a limited time, or until the happening of a specified event.
8 The relevant portion of section 320(12) reads as follows: 320. (12) ...
"traffic" means the transmission of and other dealings with telegraphic and telephonic messages.
As in Question No. 2, the appellant here submits that the CRTC has acted without jurisdiction and by this portion of its order "has stepped outside of its role as regulator under the Railway Act, and has purported to give Bell Canada orders as to how Bell Canada should manage its business." It seems to me, however, that most of the comments made with respect to Question No. 2 apply also to Question No. 3. Since, under section 321, the Commission has the power to eliminate discrimi nation in tariffs, and since a necessary condition precedent for the elimination of that discrimina tion would be an AMTS which includes the COAM option, then the Commission would have the consequential and incidental power under sec tion 321(5) to make that portion of the order being impugned by Question No. 3. Since the appellant has offered the service, the Commission has the power and the duty to ensure that it be offered on a non-discriminatory basis. Quite apart from the specific powers set out in section 321(5) of the Railway Act, it seems to me that the general powers contained in sections 45(2) (supra), 46(1) (supra), 57(1) (supra) and 58 9 of the National Transportation Act give the Commission ample authority to make this portion of their order, even absent section 321(5) of the Railway Act. I would therefore answer Question No. 3 in the negative.
Question No. 4
Did the Commission err in law or exceed its jurisdiction when it ordered Bell Canada to report to the Commission with proposals for a schedule for the implementation of a new MTS tariff which will include an offering of a "roam- ing" option of automatic (dial-up) UHF Mobile-Telephone COAM equipment and net work service that is compatible with the North American signalling system?
In this connection the appellant submits that in making the order with respect to the "roaming" option, the CRTC gave no indication in its reasons
9 58. Upon any application made to the Commission, the Commission may make an order granting the whole or part only of such application, or may grant such further or other relief, in addition to or in substitution for that applied for, as to the Commission may seem just and proper, as fully in all respects as if such application had been for such partial, other, or further relief.
as to the basis for its jurisdiction. The appellant further submits that with regard to this particular option, the CRTC has not even determined the existence of real or alleged unjust discrimination as set out in section 321(2) and that in the case of "roaming", there is a total absence of evidence of the necessary prerequisite, i.e., unjust discrimina tion. While the respondent and interveners do not concede that there wasn't any evidence with respect to the "roaming" option, they do concede that the Commission made no finding of discrimi nation against AMTS users who wish to use their equipment while travelling outside the areas ser viced by Bell. The Commission's comments on "roaming" appear at 503 and read as follows:
One of the Applicant's allegations was that the Respondent's actions constituted discrimination against AMTS users who wish to use their equipment while travelling in the U.S.A. ("roaming"). Although the Commission has not found it neces sary to make a determination on this claim, it has considered the evidence with respect to the roaming feature as it pertains to the future of MTS in Canada. While it is true that certain areas in the U.S.A. do not permit dial-up access by users from other areas, the Commission believes that, in principle, all MTS equipment introduced should be compatible with the North American signalling system. Therefore, the Commission directs that the Respondent include, in the MTS tariff to be filed pursuant to paragraph (a) above, an offering of the option of automatic (dial-up) UHF mobile telephone COAM equipment and network service that is compatible with the North Ameri- can signalling system.
In my opinion, one of the difficulties with the position of the respondent and interveners on Question No. 4 is that the question of "roaming" was not in issue in the hearings before the CRTC because it had not been put in issue by the parties prior to the hearings. A perusal of the permanent relief requested by the respondent (Case, pp. B3 and B4) clearly indicates that the respondent asked for no relief in respect of the roaming option nor was the matter raised in any of the material filed by the appellant in response thereto. Like wise, it was not suggested to this Court that the matter was raised by the intervener prior to the hearings. It appears that some of the witnesses discussed the roaming option during the hearings. The fact remains however that the roaming option was not one of the issues, properly defined, upon which the parties came to the hearing. Thus, it is,
in my view, unnecessary for this Court to deter mine whether the Commission had power under section 321(5) or under section 5 of Bell's Special Act, [S.C. 1967-68, c. 48, s. 6] to make this portion of the order, since the parties and the intervener cannot be said to have been heard on this issue. Therefore I believe that the CRTC erred in making an order with respect thereto and I would accordingly answer this question in the affirmative.
Question No. 6
Did the Commission err in law or exceed its jurisdiction when it construed Section 321 of the Railway Act as meaning that the Commission has the jurisdiction under said Section 321 to equalize competition between Bell Canada and competing suppliers of telephone equipment and facilities?
Concerning this question, I do not agree with the assumption made that, in its decision, the CRTC exercised its section 321 jurisdiction to equalize competition between the appellant and competing suppliers of telephone equipment and facilities. In my view, the decision of the CRTC was a finding that the appellant's revised tariff pages contra vened section 321(2) and for this reason, those revised pages were disallowed. Thus, in making such a decision, the CRTC was acting within the jurisdiction conferred upon it under section 321. It may well be that one of the effects of its order would be to equalize competition. This would not, however, invalidate an order validly made in the proper exercise of jurisdiction given to the CRTC by the statute. I accordingly do not propose to answer Question No. 6 since, in my view, it pro ceeds from an unfounded assumption.
I would accordingly dismiss the appeal in respect of the various Orders made by the CRTC as set out on pages 503, 505, 506 and 507 [3 C.R.T. 489] with the exception of Order No. 2 as set out on page 503. In respect of Order No. 2, I would delete the following words therefrom on page 503: "and the roaming option as discussed in paragraph (b) below." The Court has authority to make such a revision in the Orders of the CRTC
pursuant to the provisions of section 52(c)(i) of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c.
10 10 .
Concerning costs, since no special reasons for the award of costs have been established, I would make no order as to costs 11 .
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URIE J.: I concur.
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RYAN J.: I concur.
1 o52. ...
(c) in the case of an appeal other than an appeal from the
Trial Division,
(i) dismiss the appeal or give the decision that should have been given, or
(ii) in its discretion, refer the matter back for determina tion in accordance with such directions as it considers to be appropriate; and
11 Rule 1312. No costs shall be payable by any party to an appeal under this Division to another unless the Court, in its discretion, for special reasons, so orders.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.