Judgments

Decision Information

Decision Content

T-183-88
Antrim Yards Ltd., Bakerview Forest Products Inc., Brink Forest Products Inc., Byrnexco Inc., English Bay Cedar Products Ltd., Faulkener Wood Specialties Ltd., Greenwood Forest Prod ucts (1983) Ltd., Hollcan Millworks Ltd., Marks Lumber Limited, Midland Wood Products Ltd., Naimark Lumber Ltd., Northwest Pre-Cut Inc., Okanagan Lumber Services Ltd., Pacific Pallet Ltd., Portbec Forest Products Ltd., Prince George Precut Limited, Quadra Wood Products Ltd., Ridge Forest Products Inc., Sauder Industries Limited, Shera Wood Products Inc., Spruceland Millworks B.C. Ltd., Spruceland Millworks Ltd., Still Creek Forest Products Ltd., Summerland Forest Products, Tyee Timber Products Ltd., Moga Timber Mill Ltd., Peter F. Beulah, John Brink, Trevor Russell Buddo, George Burns, Harry Earnest Erskine, Vernon D. Friesen, Jean Patricia Fujikawa, Levi Giesbrecht, John Gorman, Morris Grondin, Raymond Harms, Ian C. Hudson, William LaCoste, William Arthur McInnes, Erik Madsen, Fred Marks, Barry Nai- mark, Peter Redeker, William L. Sauder, Ben Sawatzky, Peter Sheremeta, David M. Sweeney, Robert F. West and Balwinder Brar (Plaintiffs)
v.
Her Majesty the Queen (Defendant)
INDEXED AS: ANTRIM YARDS LTD. V. CANADA (T.D.)
Trial Division, Strayer J.—Vancouver, March 26; Ottawa, April 29, 1991.
Constitutional law — Charter of Rights — Equality rights — Softwood Lumber Products Charge Exemption Order exempting from 15% export charge only those companies already exempted by U.S.A. — Corporate plaintiffs not pro tected under Charter s. 15 which applies only to natural persons — Distinctions created by Exemption Order not con trary to s. 15 — S. 15 prohibiting only discrimination on enumerated or analogous grounds — Prohibited discrimina tion involving distinctions based on personal characteristics not readily changed — Plaintiffs not prejudicially affected by membership in group of companies not exempted from duty as group not existing before alleged discrimination — Adoption of distinctions of timeliness of applications and economic grounds used by American authorities to deny exemption not "so grossly unfair" or "devoid of any rational relationship to legitimate state purpose" as to offend against principle of equality before and under law — None of indicia of discrimi-
nation for identifying analogous grounds (stereotyping, his torical disadvantage, political isolation) present.
Practice — Parties — Standing — Application for declara tion of invalidity of Softwood Lumber Products Export Charge Exemption Order as contrary to Charter, s. 15 and for recovery of export charges already paid — Requirements of standing vary according to remedy — Corporate and individu al plaintiffs granted standing to seek declaration of invalidity — Application of criteria in Minister of Justice of Canada et al. v. Borowski — Plaintiff corporations granted standing re: claim for damages or recovery of money, but individual plain tiffs denied standing with respect thereto — Only party suffer ing loss can claim recovery of money or damages.
Construction of statutes — Charter of Rights, s. 15 — Whether equality rights of natural persons only guaranteed More precise meaning of "individual" preferred to potentially broader "personne" in French version as consistent with pro hibited forms of discrimination involving personal characteris tics.
This was an application for a declaration that the Softwood Lumber Products Export Charge Exemption Order was invalid as inconsistent with Charter, section 15. The plaintiffs also sought an order discharging the corporate plaintiffs from liabil ity for unpaid export charges under the Softwood Lumber Products Export Charge Act, special damages for such export charges as had already been paid, and general damages for loss of sales.
American competitors, asserting that the Canadian lumber industry was unfairly subsidized by government programs, petitioned the United States Department of Commerce to impose a 27% countervailing duty on imported softwood lumber. On June 30, 1986 the Department of Commerce advised that Canadian exporters had until July 11 to apply for an exclusion from the countervailing duty order. Some of the plaintiffs were not notified that they could make such applica tion. Others, who had been certified by the Canadian Govern ment as entitled to exclusions, were not approved for exclusion by the Department of Commerce. When it became apparent that a countervailing duty of at least 15% would be imposed, an agreement was reached that a 15% export charge would be imposed by the Government of Canada on softwood lumber products exported to the U.S.A. in return for a withdrawal of the petition. It was agreed that only companies already granted an exclusion by the Department of Commerce would be exempted from this charge. Shortly after the agreement was signed the Softwood Lumber Products Export Charge Act, which permitted the Governor in Council to "exempt any person from the requirement to pay such a charge", was
introduced. The Governor in Council then adopted the Soft wood Lumber Products Export Charge Exemption Order which exempted the twenty companies and two of their associ ates already excluded by the U.S.A. from its countervailing duty. The companies not excluded had to pay the Canadian export charge throughout 1987.
Charter, section 15 guarantees the right of "[e]very individu al" to equal protection and benefit of the law. The defendant argued that the corporate plaintiffs had no standing because they were not entitled to protection under subsection 15(1), which only guarantees the rights of individuals. Relying on the principle in Foss v. Harbottle that only a corporation may sue for a wrong done to it, the defendant further argued that the individual plaintiffs had no standing because any alleged loss they had suffered resulted from injury to the corporations and not to them. The plaintiffs argued that the use of "personne" in the French version of section 15 was broad enough to include corporations.
The plaintiffs submitted that it was "discrimination" to deny the plaintiff companies an exemption under Canadian law based on the denial of an exclusion from the foreign counter- vailing duty pursuant to American law, either because they had been late applying for an exclusion or because their application had been refused. The issues were (1) whether the plaintiffs had standing to bring this action; (2) whether Charter, subsec tion 15(1) applies to corporations; (3) whether Charter, subsec tion 15(1) prohibits the type of distinctions made in the Soft wood Lumber Products Export Charge Exemption Order; and (4) whether the remedies sought were appropriate.
Held, the action should be dismissed.
(1) As the requirements for standing vary from one remedy to another, it was necessary to look at each remedy separately.
The corporate and individual plaintiffs had standing to seek the declaration of invalidity. On the one hand, the defendant argued that the plaintiffs could not assert a "public interest" standing because they were seeking relief from taxes, i.e. because they had a particular interest in setting aside the Exemption Order. On the other hand, it was argued that the validity of the Exemption Order could not be attacked by the plaintiffs because the parties directly affected, the corporate plaintiffs, had no right to invoke the Charter, and the individu al plaintiffs who alleged indirect prejudice had no right to complain of damage to the corporation. In respect of standing to seek declarations, one had to distinguish between the estab lishment of standing to bring the action and the ultimate proof of violation of a substantive right of the plaintiff. Where there is a justiciable issue, standing may be based on "the right of the citizenry to constitutional behaviour by Parliament" and equal ly by the Governor in Council. There was a justiciable issue. The plaintiff need not show a substantive legal injury to himself
to have standing to sue, provided the criteria for standing for a declaration of invalidity set out by the Supreme Court of Canada in Minister of Justice of Canada et al. v. Borowski are met. Applying those criteria: (1) The possible infringement of the Charter by the Exemption Order was a serious issue. (2) The plaintiff companies were directly affected by the law by being obliged to pay the export charge when certain of their competitors did not have to pay it. They should not be refused standing on the ground that they will not be able to make out their constitutional claim. They have a "genuine interest" as Canadian entrepreneurs in the validity of the law. A corpora tion which can demonstrate its own financial loss flowing from an unconstitutional law has an "interest" in seeking a declara tion of invalidity. The individual plaintiffs, as officers and shareholders of companies which have lost money pursuant to a law, also have a "genuine interest" in attacking the validity of that law. They were also "directly affected" by the loss of salary and dividends. (3) The only other means to bring the matter before the courts would be actions by the defendant to enforce taxes due or prosecutions of the corporate or individual plaintiffs under the Act for failure to pay. The plaintiffs did not have to wait until they are sued or prosecuted to impugn the statute under which such enforcement measures might be taken.
Only the plaintiff corporations had standing with respect to the claim for damages or recovery of money because they were seeking the recovery of money paid and losses suffered by them as a result of the Exemption Order. An action for recovery of money or damages can only be brought by the party who actually suffered the loss.
(2) The word "individual" in the English version of section 15 guarantees equality rights to natural persons only, according to its normal meaning and several decisions of the Federal Court of Appeal. The more precise meaning of "individual" in the English version of section 15 is more consistent with the forms of discrimination — involving personal characteristics prohibited by subsection 15(1) than is the potentially broader language of the French version.
(3) The distinctions created by the Exemption Order were not contrary to the guarantees of subsection 15(1). Although unfavourable treatment of an economic nature, even of a tax nature, can form the basis for a claim under subsection 15(1), the grounds for making this unfavourable distinction must amount to "discrimination" within section 15. There must be an unfavourable distinction on one of the enumerated or analo gous grounds. "Discrimination" involves distinctions based on
"personal characteristics" which individuals cannot readily change.
The plaintiffs were not prejudicially affected because of their membership in a group i.e. those companies not entitled to exemption from the U.S. countervailing duty. For a person to be prejudicially treated due to association with a group, the group must have existed before the act of alleged discrimina tion.
The plaintiffs also argued that there could be unconstitution al discrimination going beyond the grounds enumerated in subsection 15(1). The adoption by Canadian authorities of the distinctions of timeliness of applications and economic grounds used by American authorities was not "so grossly unfair" or "devoid of any rational relationship to a legitimate state pur pose" as to offend against the principle of equality before and under the law and to merit intervention under subsection 15(1). Those who filed late were partially responsible for their applications being out of time. The plaintiffs' argument that the Canadian Government should not have entered into the agreement could not be accepted since the second guessing of policy decisions is beyond the "institutional competence of the courts". Although the prohibited grounds of discrimination may not necessarily be limited to those enumerated in subsec tion 15(1) or those analogous thereto, such possibilities have been narrowed in ways relevant to the present case. Of the indicia of discrimination for the purpose of identifying analo gous grounds i.e. stereotyping, historical disadvantage, or politi cal isolation, none were present in the group represented by the plaintiffs.
(4) There were several difficulties with the remedies as sought. A declaration that the Exemption Order was invalid would not exempt the plaintiffs from payment of the export charge under the Act. The results would be that the companies exempted by the Order would have to pay the export charge and that an order that the corporate plaintiffs be discharged from all liability for unpaid export charges could not be grant ed. The claim for "special damages" already paid could not succeed if the Exemption Order were simply declared invalid. To recover the charges paid, it would have to be proven that the payments had been made under coercion resulting in the unjust enrichment of the defendant.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.) [R.S.C., 1985, Appendix II, No. 44], ss. 1, 15.
Softwood Lumber Products Export Charge Act, S.C. 1987, c. 15, s. 15.
Softwood Lumber Products Export Charge Exemption Order, SOR/87-480 (as am. by SOR/88-67).
CASES JUDICIALLY CONSIDERED
APPLIED:
Thorson v. Attorney General of Canada et al., [1975] 1 S.C.R. 138; (1974), 43 D.L.R. (3d) 1; 1 N.R. 225; Minister of Justice of Canada et al. v. Borowski, [1981] 2 S.C.R. 575; (1981), 130 D.L.R. (3d) 588; [1982] 1 W.W.R. 97; 12 Sask. R. 420; 64 C.C.C. (2d) 97; 24 C.P.C. 62; 24 C.R. (3d) 352; 39 N.R. 331; Canadian Council of Churches v. Canada, [1990] 2 F.C. 534; (1990), 106 N.R. 61 (C.A.); Foss v. Harbottle (1843), 67 E.R. 189 (Ch.); Edmonton Journal v. Alberta (Attorney General), [1989] 2 S.C.R. 1326; (1989), 103 A.R. 321; 64 D.L.R. (4th) 577; [1990] 1 W.W.R. 577; 71 Alta. L.R. (2d) 273; 45 C.R.R. 1; 102 N.R. 321; Association des détaillants en alimentation du Québec c. Ferme Carnaval Inc., [1986] R.J.Q. 2513; [1987] D.L.Q. 42 (C.S.); Andrews v. Law Society of British Columbia, [1989] 1 S.C.R. 143; (1989), 56 D.L.R. (4th) 1; [1989] 2 W.W.R. 289; 34 B.C.L.R. (2d) 273; 36 C.R.R. 193; 91 N.R. 255; R. v. Turpin, [1989] 1 S.C.R. 1296; (1989), 48 C.C.C. (3d) 8; 69 C.R. (3d) 97; 96 N.R. 115.
CONSIDERED:
Reference Re Workers' Compensation Act, 1983 (Nfld.), [1989] 1 S.C.R. 922; (1989), 76 Nfld. & P.E.I.R. 181; 56 D.L.R. (4th) 765; 235 A.P.R. 181; 96 N.R. 227.
REFERRED TOE
Rogers v. Bank of Montreal, [1985] 5 W.W.R. 193; (1985), 64 B.C.L.R. (2d) 63; 30 B.L.R. 41 (B.C.S.C.); affd [1987] 2 W.W.R. 364; (1986), 9 B.C.L.R. (2d) 190 (B.C.C.A.); McCauley v. B.C. (1989), 39 B.C.L.R. (2d) 223 (C.A.); Operation Dismantle Inc. et al. v. The Queen et al., [1985] 1 S.C.R. 441; (1985), 18 D.L.R. (4th) 481; 12 Admin. L.R. 16; 13 C.R.R. 287; 59 N.R. 1; Irwin Toy Ltd. v. Quebec (Attorney General), [1989] 1 S.C.R. 927; (1989), 58 D.L.R. (4th) 577; 25 C.P.R. (3d) 417; 94 N.R. 167; National Anti-Poverty Organization v. Canada (Attorney General), [1989] 3 F.C. 684; (1989), 60 D.L.R. (4th) 712; 26 C.P.R. (3d) 440; 28 F.T.R. 160; 99 N.R. 181 (C.A.); New Brunswick Broadcasting Co., Limited v. Canadian Radio-television and Telecom munication Commission, [1984] 2 F.C. 410; (1984), 13 D.L.R. (4th) 77; 2 C.P.R. (3d) 433; 12 C.R.R. 249; 55 N.R. 143 (C.A.); Canada (Attorney General) v. Central Cartage Co., [1990] 2 F.C. 641; (1990), 71 D.L.R. (4th) 253; 109 N.R. 357 (C.A.); Re Aluminum Co. of Canada, Ltd. and The Queen in right of Ontario; Dofasco Inc., Intervenor (1986), 55 O.R. (2d) 522; 29 D.L.R. (4th) 583; 19 Admin. L.R. 192; 1 C.E.L.R. (N.S.)1; 25 C.R.R. 50; 16 O.A.C. 14 (Div. Ct.); Milk Bd. v. Clearview Dairy Farm Inc., [1987] 4 W.W.R. 279; (1987), 12 B.C.L.R. (2d) 116 (B.C.C.A.); United States v. Carolene Products Co., 304 U.S. 144 (S.C., 1938); Jacobs (George Porky) Enterprises Ltd. v. City of Regina, [1964] S.C.R. 326; (1964), 44 D.L.R. (2d) 179; 47 W.W.R. 305; Eadie v. Township of Brantford, [1967] S.C.R. 573; (1967), 63 D.L.R. (2d) 561; Hydro Electric Commission of Nepean
v. Ontario Hydro, [1982] 1 S.C.R. 347; (1982), 132 D.L.R. (3d) 193; 16 B.L.R. 215; 41 N.R. 1.
AUTHORS CITED
Ely, John Hart Democracy and Distrust, Cambridge, Mass.: Harvard Univ. Press, 1980.
COUNSEL:
Bryan Williams, Q.C. and Meredith A. Quar- termain for plaintiffs.
Harry J. Wruck and Mary A. Humphries for defendant.
SOLICITORS:
Swinton & Company, Vancouver, for plain tiffs.
Deputy Attorney General of Canada for defendant.
The following are the reasons for judgment rendered in English by
STRAYER J.:
Relief Requested
The plaintiffs seek a declaration that the Soft wood Lumber Products Export Charge Exemp tion Order,' made under the Softwood Lumber Products Export Charge Act, 2 was invalid as being inconsistent with subsection 15(1) of the Canadian Charter of Rights and Freedoms [being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.) [R.S.C., 1985, Appendix II, No. 44]]. They also seek an order that the corporate plaintiffs be discharged from all liability to the defendant for any unpaid export charge under the said Act, special damages for such amounts of export charge as have already been paid by the corporate plaintiffs to the defend ant, and "general damages".
1 SOR/87-480 of July 30, 1987, as amended by SOR/88-67
of December 31, 1987.
2 S.C. 1987, c. 15.
Before the trial the parties had filed an agreed statement of facts, and some witnesses and docu ments were produced at the trial. At the opening of the trial it was explained that the parties had agreed that I should decide the issues on the basis of the evidence which would be produced concern ing Antrim Yards Ltd. ("Antrim") and Prince George Precut Limited ("PGP"), two of the corpo rate plaintiffs, and on the evidence concerning William LaCoste and William McInnes, major shareholders of Antrim and PGP respectively, being two of the individual plaintiffs. The parties accepted that my decision in respect of these par ties would be applied to the other plaintiffs.
It was also agreed that I would not need to determine the quantum of damages, if any, such matter being left presumably for a reference to be ordered in the judgment if necessary.
Facts
The corporate plaintiffs in question were at all relevant times secondary manufacturers of soft wood lumber products in Canada and exporters of such products to the United States. As I under stand it, a "secondary manufacturer" is one who does not directly cut trees in the forest, but who takes rough cut lumber and processes it into pre cise dimension material, cuts or finishes wood parts to the specification of certain end users, or "upgrades" lower quality cuts obtained from pri mary producers by selective trimming and piecing.
According to the agreed statement of facts, on May 19, 1986 the Coalition for Fair Lumber Imports, an American group representing soft wood lumber associations and forest product com panies in the United States, filed a petition with the United States Department of Commerce alleg ing that the Canadian lumber industry was unfair ly subsidized by certain federal and provincial programs. It asked that a 27% countervailing duty be placed on certain softwood lumber products imported into the United States from Canada. On or about June 11, 1986, the Department of Com-
merce commenced an investigation in response to the petition.
The defendant, represented by the Government of Canada, became aware of this petition on the day it was filed. The Canadian Forest Industries Council which represents eighteen member asso ciations (which in turn represent most primary lumber producers in Canada and some secondary lumber producers) also became aware of it at an early date. It advised its members as early as June 3 of the investigation and informed them that they could request an exclusion from a countervailing duty order. According to the agreed statement of facts, it was not until June 30, 1986 that the Department of Commerce officially informed the Government of Canada that requests for exclusion would be considered and that the deadline for submitting such requests was July 11, 1986. Any Canadian company wishing to request an exclusion was required to inform the Department of Com merce by that date. Thereafter to complete their applications such companies would have to answer a questionnaire and the Government of Canada was then required to certify with respect to each company whether it benefited from any such "sub- sidy" program. Even for those companies so bene fiting, if the Government of Canada certified that their benefits were "de minimis" they would still be eligible for an exclusion. The questionnaires and certifications had to be completed by October 16, 1986.
At the outset, according to the evidence, the Government of Canada in consultation with pro vincial governments decided to rely on the Canadi- an Forest Industries Council to inform its member associations who would in turn inform their mem bers. This was thought to be the best means of making the Canadian softwood manufacturing industry aware of the possibility and means for obtaining an exclusion from any possible counter- vailing duty. Typical of various of the plaintiff companies, Antrim was not a member of any association affiliated with the Canadian Forest
Industries Council and therefore received no notice concerning applications for exclusions. PGP was a member of the British Columbia Council of Forest Industries, a member association of the Canadian Forest Industries Council, and thus did receive notification. By July 11, 1986, fifty-nine Canadian companies had applied to the Department of Com merce in Washington for exclusions. PGP was one of these. Antrim, being unaware of the need or possibility to apply for an exclusion, did not do so before July 11. By October 16, the Government of Canada had certified forty-seven of the fifty-nine timely applicants as being entitled to exclusions. This included PGP which was certified as receiv ing only de minimis benefits under the alleged "subsidy" programs.
On October 16, 1986, the Department of Com merce issued a preliminary determination finding that subsidies to Canadian producers amounted to 15% of the value of the lumber produced and it imposed a preliminary countervailing duty of 15% on certain softwood lumber products exported to the United States from Canada. Of the forty-seven companies certified by the Government of Canada as being entitled to exclusions, only twenty were approved for exclusion by the Department of Commerce.
A final determination as to the existence of a subsidy was required to be made by the Depart ment of Commerce by December 31, 1986. It was not known by the Government of Canada with complete certainty whether the final determination would be the same as the preliminary determina tion, whether there would be any significant coun- tervailing duty and if so in what amount or wheth er further exclusions would be granted beyond the twenty already granted. The Government of Canada, specifically the Department of External Affairs and International Trade, prepared new submissions in respect of companies whose timely applications for exclusion had been turned down,
and also received and processed for certification applications from other companies who had only heard about the possibility of applying after the July 11 deadline had passed. Antrim, as one of the latter companies, had only heard of the possibility of exclusions after October 16 when it learned that twenty companies, including some of its competi tors, had been excluded. Its application was pro cessed by the Department of External Affairs and International Trade. Notwithstanding the fact that the U.S. Department of Commerce indicated on December 4, 1986 that it would consider no new applications for exemptions beyond those received prior to July 11, the Government of Canada on December 23 submitted seventy additional applications with the proper certification, together with eleven revised certifications for companies which had filed a request before July 11 but had been turned down in the decision announced on October 16.
According to the agreed statement of facts, however, as the dispute progressed it had become increasingly apparent to the Government of Canada that the Department of Commerce deter mination would be unfavourable and that a coun- tervailing duty of at least 15% would be imposed and perhaps one as high as 27%. During this period after October 16 discussions were also pro ceeding at the political level. In answers obtained by the plaintiffs on examination for discovery of Donald Campbell, Assistant Deputy Minister (United States), Department of External Affairs and International Trade, and from documents pro duced in connection therewith and put in as evi dence by the plaintiffs, it appears that the then Minister for International Trade, Honourable Pat Carney, had discussions with Malcolm Baldridge, the United States Secretary of Commerce. There was also a meeting of Canada's first ministers in Vancouver on November 21, 1986 where the matter was discussed. An agreement was reached in support of a proposal whereby, in return for a withdrawal of the countervail proceeding before the Department of Commerce in Washington, the
Canadian Government would take action (in the words of the news release following that meeting)
... that will allow the provinces to retain the right to manage their natural resources without foreign restrictions and that will retain resource revenues in Canada.
By this time the Government of Canada had already proposed to the Government of the United States, on or about November 16, that the dispute be settled by the imposition by the Government of Canada of a 15% export charge on certain soft wood lumber products exported from Canada to the United States, in return for the withdrawal of the countervailing duty petition to the Department of Commerce. It is admitted that during these negotiations the Government of Canada was aware of the unequal treatment already accorded to Canadian companies, as between those who had successfully applied prior to July 11 for an exclu sion and those companies such as Antrim and PGP who in the opinion of the Government of Canada were also entitled to exclusion but for whom there seemed little prospect of exclusion in the process then under way.
The agreement finally reached between the Gov ernments of Canada and the United States was set out in a memorandum of understanding which was finalized on December 30, 1986. It provided for the withdrawal of the countervail petition and for the imposition by the Government of Canada of a 15% export charge on certain softwood lumber products exported from Canada to the United States on or after January 8, 1987. It was under stood that the only companies which could be exempted from this charge would be the twenty already granted an exclusion by the Department of Commerce to the countervailing duty, it having been made clear (according to the agreed state ment of facts) by the U.S. negotiators that there would be no agreement if more than the existing exclusions were insisted upon. Shortly after this agreement was signed the Government of Canada introduced in Parliament the Softwood Lumber Products Export Charge Act which was eventually adopted and proclaimed on July 20, 1987. Subsec tion 15(1) of that Act provided, inter alia, that the Governor in Council could "exempt any person from the requirement to pay such a charge". On July 30, 1987 the Governor in Council adopted the Softwood Lumber Products Export Charge
Exemption Order ("Exemption Order") which exempted twenty-two companies from the require ment to pay the export charge imposed by the Act. These twenty-two companies were the twenty com panies already excluded by the U.S. from its coun- tervailing duty plus two additional companies agreed to be associated with two respective exclud ed companies and to have been covered by the U.S. exclusionary decision. Neither Antrim nor PGP were, of course, exempted. Those companies not exempted were obliged to pay the Canadian export charge throughout 1987. By January 1, 1988 all company exclusions were ended as prov inces replaced the export charge with other meas ures to capture additional revenues for the prov ince while avoiding any further countervail action. During 1987 PGP paid only part of the export charge owing by it: it remitted some $203,000 but failed to pay the remainder owing, the claim of the Government of Canada for the unpaid remainder together with interest being, at the time of trial, some $380,000. Antrim paid all of the export charge due from it in 1987, some $205,000. As noted earlier, these plaintiff companies seek the return of any charge paid in 1987 and in the case of PGP a discharge from liability for any unpaid export charge.
The plaintiff companies also claim general dam ages, and I understand from the tenor of argument that these damages allegedly include losses said to be suffered by the plaintiff companies through loss of sales experienced as a result of certain of their competitors being exempted from payment of the export charge pursuant to the Exemption Order. It was agreed that the quantum of damages was not a matter for determination at trial but there was a dispute between counsel as to whether the plain tiffs needed to establish some loss in order to enable the Court to make a finding of liability. It was further disputed as to whether the plaintiffs had in fact provided proof of any loss due to certain of their competitors being exempted. How ever, in examination for discovery answers entered
at trial Mr. Donald Campbell, representative of the defendant, had admitted that the companies included in the Exemption Order would have a "competitive advantage" over the companies not exempted from payment of the export charge. There was also evidence on behalf of both Antrim and PGP to the effect that they had lost sales as a result of the export charge being imposed on them. While the evidence was seriously lacking in specif ics it was not effectively refuted on cross-examina tion or by any evidence adduced by the defendant. I find that there was sufficient evidence of finan cial prejudice to the plaintiffs at least to sustain a claim for a declaration of invalidity (other criteria being met) and probably to support a finding of liability, albeit that on a reference to fix quantum it would be necessary for the plaintiffs to establish any actual damages suffered on a precise cause and effect basis to be laid out in the terms of the reference. For reasons which will become apparent later, I do not believe that the plaintiffs' case stands or falls on this issue.
The two individual plaintiffs whose situations provide the "test case" for all the named individual plaintiffs both testified. They are William Arthur McInnes, President of PGP and William LaCoste, a Vice-President of Antrim. Each testified that because of his company's losses he suffered a reduction in income. I believe this establishes a sufficient prejudice to them to make out a prima facie case of damages which could be particula rized on a suitably instructed reference, were all the necessary other elements of liability estab lished. Again, for reasons which will become apparent, I do not think all the individual plain tiffs' claims can be dismissed out-of-hand simply because of lack of specific evidence as to their
losses. There are more fundamental issues upon which the case must turn.
Issues
The principal issues flowing from the pleadings and argument appear to me to be:
(1) Do the corporate and individual plaintiffs respectively have standing to bring this action?
(2) Does subsection 15(1) of the Canadian Chart er of Rights and Freedoms protect corporations against discrimination?
(3) Does subsection 15(1) of the Charter prohibit the type of distinctions made in the Softwood Lumber Products Export Charge Exemption Order?
(4) If the distinctions under the Exemption Order are prohibited by subsection 15 (1) of the Charter, are they nevertheless justifiable under section 1 of the Charter?
(5) Are the remedies sought by the plaintiffs available and appropriate?
Conclusions
I shall deal with each of these issues in turn.
Standing
The essential argument of the defendant is that the corporate plaintiffs have no standing because corporations are not entitled to protection under subsection 15(1) of the Charter, and the individual plaintiffs have no standing because any alleged loss they have suffered has been suffered due to injury to the corporations and not to them. With respect to the latter point, reliance is placed on the
principle in the case of Foss v. Harbottle 3 that only a corporation may sue for a wrong done to it.
In matters of standing, it is necessary to look at each remedy separately since the requirements of standing vary from one to another. One of the remedies being sought here is a declaration of invalidity. It seems to me that the defendant goes too far in asserting that none of the plaintiffs have standing to seek a declaration of the constitutional invalidity of the Exemption Order. On the one hand the defendant argues that the plaintiffs cannot assert a "public interest" standing because they are after the recovery of, or relief from, taxes—i.e. because they have a particular interest in setting aside the Exemption Order. On the other hand the defendant argues that the validity of the Exemption Order cannot be attacked by either of these parties because the parties directly affected, the corporate plaintiffs, have no right to invoke the constitutional norm in question, and the individual plaintiffs who allege to be indirectly prejudiced by the Exemption Order have no right to complain of damage to the corporation.
In respect of standing to seek declarations, at least, it is I believe necessary to distinguish be tween the establishment of the standing of the plaintiff to bring the action and the ultimate proof of violation of a substantive right of the plaintiff. As Laskin J. [as he then was] said in Thorson v. Attorney General of Canada et al., where there is a justiciable issue standing may be based on
... the right of the citizenry to constitutional behaviour by Parliament ....
The same can equally be said of constitutional behaviour by the Governor in Council acting under Acts of Parliament. There is no dispute that there
3 (1843), 67 E.R. 189 (Ch.); followed in such Canadian cases as Rogers v. Bank of Montreal, [1985] 5 W.W.R. 193 (B.C.S.C.); affd [1987] 2 W.W.R. 364 (B.C.C.A.); and McCauley v. B.C. (1989), 39 B.C.L.R. (2d) 223 (C.A.).
4 [1975] 1 S.C.R. 138, at p. 163.
is a justiciable issue involved in this case. The requirements for standing for a declaration of invalidity of a law have been stated by the Supreme Court to be that: there must be a serious issue as to invalidity, the person seeking a declara tion must show that he is affected directly by that law or has a "genuine interest as a citizen" in its validity, and that there is no other reasonable and effective manner in which the issue may be brought before the Court. 5 It is obvious from the modern jurisprudence concerning "public interest" standing to seek declarations of invalidity, and in particular from the very case in which these cri teria were authoritatively enunciated, the Borow- ski case, that it is not essential that a plaintiff seeking such a declaration be able to show a substantive legal injury to himself in order to have standing to sue. In relying on Charter jurispru dence it is necessary to distinguish cases where claims for declarations have failed not for want of standing but because of an inability to establish a substantive right or the denial thereof. 6 If a plain tiff meets the three criteria referred to above he may be recognized as having standing, even where he cannot demonstrate that he is personally en titled to the substantive constitutional right whose denial he alleges.
In applying these three criteria to the present case, it is not in dispute that there is a serious issue to be considered as to the possible infringement of the Charter by the Exemption Order. The second
5 Minister of Justice of Canada et al. v. Borowski, [1981] 2 S.C.R. 575, at p. 598.
6 See e.g. Operation Dismantle Inc. et al. v. The Queen et al., [1985] 1 S.C.R. 441; Irwin Toy Ltd. v. Quebec (Attorney General), [1989] 1 S.C.R. 9' 7 with particular reference to the unsuccessful claim based on section 7 of the Charter, at pp. 1002-1004; Edmonton Journal v. Alberta (Attorney General), [1989] 2 S.C.R. 1326, at p. 1382 where La Forest J. writing for three judges, expressly made this distinction and declined to deal with the standing issue.
criterion, that the plaintiff either be affected "directly" or that he have a "genuine interest as a citizen" in the validity of the legislation, would appear to me to be met here by both the corporate and the individual plaintiffs. The plaintiff compa nies allege that they have been directly affected by the law in question by being obliged to pay the export charge when certain of their competitors did not have to pay it, and they allege the invalidi ty of this law which has so affected them. They should not be refused standing simply on the grounds that they will not be able to make out their constitutional claim: that might have been a basis for applying to have the action struck out on substantive grounds but is not a proper basis for denying them standing at this point. Further, they can be seen to have a "genuine interest" (I attach no particular importance to the words "as a citi zen" found in the Borowski decision) as Canadian entrepreneurs in the validity of this law. The Fed eral Court of Appeal in Canadian Council of Churches v. Canada' recognized that a corpora tion could have sufficient interest in the fairness of treatment for refugees to seek declarations as to the invalidity of amendments to the Immigration Act, 1976 8 at least where there was "no other reasonable and effective manner" in which such issues might be brought before the Court—the third criterion enunciated in Borowski for standing to seek a declaration of invalidity. A fortiori a corporation which can demonstrate its own finan cial loss flowing from an unconstitutional law must surely have an "interest" of some sort in seeking a declaration of invalidity.
It would also appear that the individual plain tiffs, as officers and shareholders of companies which have allegedly lost money pursuant to a law, have a "genuine interest" in attacking the validity of that law. They can also be seen as "directly affected" by that law, certainly much more so than
7 [1990] 2 F.C. 534 (C.A.), at pp. 546-547. 8 S.C. 1976-77, c. 52.
the individual plaintiff who sought the declaration in the Borowski case. If the individual plaintiffs could prove their damages, these would consist of loss of salary and dividends which losses would be direct effects of the law.
With respect to the third Borowski criterion as to whether the validity of the Exemption Order might be brought before the courts by other means, it appears to me that the only other means probable would be actions by the defendant to enforce taxes due or prosecutions of the corporate or individual plaintiffs under the Softwood Lumber Products Export Charge Act for failure to pay. I do not understand the jurisprudence on standing to seek declarations of invalidity to require plaintiffs to wait until they are sued or prosecuted to impugn the statute under which such charges might be laid.
In the exercise of my discretion I would there fore grant standing to the corporate and individual plaintiffs to seek the declaration of invalidity.
With respect to the claim for damages or recov ery of money, I think it will suffice to say that the plaintiff corporations have standing because what they seek is the recovery of money paid by them and losses allegedly suffered by them as a result of the Exemption Order. I am unable to find any basis for standing for the individual plaintiffs to seek recovery of money paid out by their compa nies or business losses suffered by their companies alleged to be attributable to the impugned Order. I believe the rule in Foss v. Harbottle 9 precludes any action by them as a matter of law. Unlike an action for a declaration, an action for recovery of money or damages can only be brought by the party who actually suffered the loss. It was the corporations who were the taxpayers and who were the competitors of those exempted by the Exemp
t Supra, note 3.
tion Order. I therefore find that the individual plaintiffs lack standing to claim recovery of tax monies paid or damages suffered pursuant to the Exemption Order.
Application of Charter subsection 15(1) to corporations
Subsection 15(1) of the Charter provides as follows in both official languages:
15. (1) Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination and, in particular, without discrimination based on race, national or ethnic origin, colour, religion, sex, age or mental or physical disability.
The defendant takes the position that because this subsection guarantees the rights of every "individual" those rights are not guaranteed to corporations. Therefore the plaintiff corporations cannot be said to have suffered any denial of rights under this subsection. The corporate plaintiffs con tend, however, that the terminology in the French version of subsection 15 (1) is broad enough to include corporations. They point out that else where in the Charter, for example in subsection 6(4), where the word "individuals" is used in English the word "individus" is used in the French version whereas in subsection 15(1) where the English version employs the phrase
15. (1) Every individual is equal before and under the law .... [Emphasis added.]
the French version provides that
15. (1) La loi ne fait acception de personne et s'applique également à tous ... [Emphasis added.]
They say that the use of the term "personne" which arguably could apply to corporate as well as natural persons and the reference to the applica tion of the law equally "à tous" which need not be confined to human beings, the French version indi cates an intention that the guarantees of subsec-
tion 15(1) should apply to corporations as well as natural persons.
Certainly the normal understanding of the word "individual" would confine its application to human beings. I am bound by several decisions of the Federal Court of Appeal which have so held in respect of subsection 15(1). 10 Various provincial courts have held to the same effect." This view has also been endorsed by three judges of the Supreme Court in Edmonton Journal v. Alberta (Attorney General). 12 The corporate plaintiffs submit, however, that in none of these cases was the potentially broader language of the French version considered. While this is so, I would respectfully adopt the reasoning of Gonthier J. while a judge of the Superior Court of Quebec in the case of Association des détaillants en alimen- tation du Québec c. Ferme Carnaval Inc. 13 where he compared the two versions of subsection 15 (1) and concluded that the guarantees therein did not apply to corporations. He reasoned as follows:
[TRANSLATION] The phrase "ne fait acception de personne" ["Every individual is equal"] is not defined and does not specify what type of person may be affected. The pronoun "tous" ["Every individual"] is also not defined.
The English text, on the other hand, states:
[English text quoted]
The word used here, "individual" is precise and not open to ambiguity. It excludes corporations.
The word "individual" is also consistent with the grounds of discrimination listed in the section, dealing with attributes which only an individual, a natural person, can have, such as race, ethnic origin, colour, religion, sex, age or mental or physical disability. Only a national origin could thus be ascribed to a corporation. These same attributes are repeated in
10 National Anti-Poverty Organization v. Canada (Attorney General), [1989] 3 F.C. 684 (C.A.); New Brunswick Broad casting Co., Limited v. Canadian Radio-television and Tele communication Commission, [1984] 2 F.C. 410 (C.A.); Canadian Council of Churches v. Canada, supra, note 7; Canada (Attorney General) v. Central Cartage Co., [1990] 2 F.C. 641 (C.A.).
" See e.g. Re Aluminum Co. of Canada, Ltd. and The Queen in right of Ontario; Dofasco Inc., Intervenor (1986), 55 O.R. (2d) 522 (Div. Ct.); Milk Bd. v. Clearview Dairy Farm Inc., [1987] 4 W.W.R. 279 (B.C.C.A.).
12 Supra, note 6. The other judges did not deal with this point.
13 [1986] R.J.Q. 2513 (C.S.), at p. 2533.
subsection (2), where the French text used the word "individus".
He thus favours the more precise meaning of "individual" in the English version because it is more consistent with the forms of discrimination— involving personal characteristics—prohibited by subsection 15(1).
I therefore conclude that the word "individual" should be given its natural meaning in the English version so as to guarantee equality rights in sub section 15(1) to natural persons only and not to corporations.
This means that the Exemption Order could only be declared invalid if it were somehow demonstrated to abridge the rights of natural per sons under subsection 15(1) of the Charter.
Are the distinctions made by the Exemption Order contrary to Charter subsection 15(1)?
The discrimination alleged against the defend ant is that "arbitrary and unfair" distinctions were made between the twenty companies and their two associates, on the one hand, exempted under the Exemption Order from paying the export charge, and the other companies exporting secondary soft wood lumber products to the United States includ ing the corporate plaintiffs. It is contended that, notwithstanding the fact that the defendant knew that the plaintiff companies had unfairly been denied by U.S. authorities an exclusion from the countervailing duty, through signing the memoran dum of understanding and implementing it by the Exemption Order the defendant perpetuated that arbitrary and unfair distinction by making it part of Canadian law. By this means the corporate and individual plaintiffs allegedly were denied equal protection and equal benefit of the law without discrimination. In essence they are saying that it was "discrimination" for the plaintiff companies to be denied an exemption under Canadian law based on the fact that they had, through either filing late for an exclusion from the countervailing duty (in the case of Antrim) or through a refusal on the part of U.S. authorities to grant an exclusion applied for in a timely fashion (in the case of
PGP), been denied an exclusion from the U.S. countervailing duty pursuant to U.S. law.
I have no doubt that unfavourable treatment of an economic nature, even of a tax nature, can form the basis for a claim under subsection 15(1), pro vided that the grounds for making this unfavour able distinction amount to "discrimination". But there are several Supreme Court of Canada deci sions which have held that, for there to be "dis- crimination" within the meaning of subsection 15(1), there must be an unfavourable distinction made by or under the law on one of the grounds enumerated in that subsection or on a ground analogous thereto. 14 Counsel for the plaintiffs con tends, however, that in the first of these cases, Andrews v. Law Society of British Columbia, the Supreme Court kept open the possibility of exten sions beyond these grounds. In reviewing the judg ments of McIntyre and Wilson JJ. writing for the majority, it appears to me that while they both wanted to avoid premature limitation of the mean ing of "discrimination", they both essentially viewed it as involving distinctions based on "per- sonal characteristics" of a kind which individuals cannot readily change. As McIntyre J. said:
I would say then that discrimination may be described as a distinction, whether intentional or not but based on grounds relating to personal characteristics of the individual or group, which has the effect of imposing burdens, obligations, or disad vantages on such individual or group not imposed upon others, or which withholds or limits access to opportunities, benefits, and advantages available to other members of society. Distinc tions based on personal characteristics attributed to an individual solely on the basis of association with a group will rarely escape the charge of discrimination, while those based on an individual's merits and capacities will rarely be so classed. 15
'4 Andrews v. Law Society of British Columbia, [1989] 1 S.C.R. 143; Reference Re Workers' Compensation Act, 1983 (Nfld.), [1989] 1 S.C.R. 922; R. v. Turpin, [1989] 1 S.C.R. 1296.
15 Andrews case, ibid., at pp. 174-175.
All judges of the Court participating in that deci sion agreed with McIntyre J.'s analysis.
Some argument was made in the present case that the plaintiffs were prejudicially affected because of their membership in a "group", namely the group of companies not entitled to exemption from the U.S. countervailing duty. I have two basic difficulties with this argument. First, I think one must view with scepticism any claim to dis crimination under subsection 15 (1) where a person has been singled out for unfavourable treatment simply on the basis of some act of omission or commission on the part of that person. Second, I think one must view with equally great scepticism any allegation of discrimination of a person by reason of membership in a group, where there was no pre-existing identification of that group in fact or in law prior to the allegedly discriminatory action taken against it. That is, if the group is defined solely by the common feature that all of its members have suffered the same alleged discrimi nation, it would normally not be considered the kind of group referred to in the judgment of McIntyre J. For a person to be prejudicially treat ed due to association with a group, there must have been a group which pre-existed the act of alleged discrimination.
In the present case the plaintiffs were all treated unfavourably under the Exemption Order simply because they had, whether through their own fault or otherwise, failed to satisfy U.S. authorities that they should be excluded from the countervailing duty. This unfavourable distinction, initially made under U.S. law, was adopted by the Government of Canada in passing the Exemption Order. Those not exempted under Canadian law were selected on the basis of their inability to satisfy U.S. authorities and it was such identification of these individual companies which produced a "group". I am unable to find any basis for extending the concept of discrimination enunciated in the judg ment of McIntyre J., and approved by all the judges participating in the Andrews decision, to the present circumstances.
The plaintiffs also sought support in the sepa rate judgment of La Forest J. in that case for possible findings of unconstitutional discrimination going beyond the enumerated grounds of subsec tion 15(1) and grounds analogous thereto. La Forest J. said:
... there may well be legislative or governmental differentia tion between individuals or groups that is so grossly unfair to an individual or group and so devoid of any rational relationship to a legitimate state purpose as to offend against the principle of equality before and under the law as to merit intervention pursuant to s. 15. For these reasons I would think it better at this stage of Charter development to leave the question open. ' 6
Again I am unable to characterize the present circumstances as falling within this language as being "so grossly unfair" or "devoid of any ration al relationship to a legitimate state purpose". I am not called upon to decide whether the memoran dum of understanding between Canada and the United States was the best arrangement Canada could achieve in the interest of the softwood lumber industry as a whole in Canada. But it seems clear from the evidence that the limitation of exemptions to the twenty companies and their associates already exempted by U.S. authorities was an integral part, a sine qua non, of that agreement. It also appears that the plaintiff com panies had not achieved an exclusion from the countervailing duty and hence had failed to get an exemption under Canadian law because they either did not apply in time for the U.S. exclusion or were unable to convince U.S. authorities that they were not the beneficiaries of undue subsidies. I agree with counsel for the plaintiffs that if U.S. authorities had distinguished among Canadian softwood manufacturers on some basis related to race, sex, or other ground enumerated in subsec tion 15(1) or analogous thereto, the Parliament and Government of Canada would violate that subsection if it were to give force to the same distinction by Canadian law. But where U.S. authorities had rejected certain applications because they were untimely and others on econom ic grounds applied pursuant to American law, I am unable to say that the adoption of the same dis tinctions by Canadian authorities is "grossly unfair" or "devoid of any rational relationship to a
16 Ibid., at p. 194.
legitimate state purpose". It is arguable at least that those who filed late applications due to igno rance of U.S. requirements bear at least some of the responsibility for their applications being out of time. Perhaps the Government of Canada could or should have done more by way of notifying them rather than relying on the advice of provin cial governments and communicating to the indus try through the Canadian Forest Industries Coun cil. But it could also be argued that Canadian entrepreneurs who export to the United States, a market which they themselves say is very impor tant to them, should take some steps to ensure that they are aware of U.S. import regulations affect ing their products. They attach much blame to the Government of Canada for its failure to inform them, but initially this was legally a matter be tween the U.S. Government and these Canadian exporters, not between the two Governments. In declining to find that the present circumstances fit within the hypothetical category of "grossly unfair" differentiations referred to by La Forest J. in the Andrews judgment, I am very mindful of another comment which he made in that judgment immediately prior to the passage now relied on. He said:
I am convinced that it was never intended in enacting s. 15 that it become a tool for the wholesale subjection to judicial scrutiny of variegated legislative choices in no way infringing on values fundamental to a free and democratic society. Like my colleague, I am not prepared to accept that all legislative classifications must be rationally supportable before the courts. Much economic and social policy-making is simply beyond the institutional competence of the courts: their role is to protect against incursions on fundamental values, not to second guess policy decisions."
17 Ibid.
Here the plaintiffs say that the Government of Canada should not have entered into the memo randum of understanding; that it should have left it open to the plaintiffs to pursue such remedies as they might have had under U.S. law whereby they might have succeeded in defeating or reducing the countervailing duty; or that if Canada was to enter into a memorandum of understanding, such agree ment should either have exempted all the corpo rate plaintiffs from paying the export charge which was to replace the countervailing duty, or it should have provided that no Canadian companies would be exempted (thus precluding an Exemption Order). On the other hand it is apparent from portions of the examination for discovery of the defendant's witness as put in by the plaintiffs, and from the agreed statement of facts, that the Gov ernment of Canada considered it better to have an agreement whose effect would be certain as com pared to the uncertainty of the countervail pro ceedings still pending at that time; that it was better for the Canadian industry as a whole to preserve at least the twenty exemptions which the U.S. had granted; and that the overall result of the agreement would be to keep within Canada reve nues under the Softwood Lumber Products Export Charge Act (estimated to be from $400 million to $600 million per year) rather than to have similar revenues collected by U.S. authorities under a countervailing duty charged at the same rate. Whatever the respective merits of these positions, I believe their review by this Court to involve, in the language of La Forest J., the second guessing of policy decisions beyond the "institutional compe tence of the courts".
Although the language of the judgments of both Wilson J. and La Forest J. in the Andrews case did, as the plaintiffs contend, leave open possibili ties for extending prohibited grounds beyond those enumerated in subsection 15(1) or those analogous thereto, subsequent decisions of the Supreme Court written by the same learned Judges have, I believe, narrowed such possibilities in ways rele vant to the present case. In the Andrews case McIntyre J. had found that non-citizens were a
"discrete and insular minority"" and thus a group subjected to discrimination on grounds analogous to those enumerated in subsection 15(1). Wilson J. in the same case elaborated on that concept, invok ing the writings of J. H. Ely [Democracy and Distrust, Cambridge, Mass.: Harvard Univ. Press, 1980] to the effect that such groups require pro tection because elected officials have no direct interest in protecting non-voters. She went on to say that whether a group falls into an analogous category is a determination
... which is not to be made only in the context of the law which is subject to challenge but rather in the context of the place of the group in the entire social, political and legal fabric of our society. 19
Writing for the majority in the later Turpin case she referred to certain indicia of discrimination, for the purpose of identifying analogous grounds, as including "stereotyping, historical disadvantage or vulnerability to political and social preju dice ...." She then went on to apply these tests to the "group" of persons invoking subsection 15(1) in that case, namely those charged outside of Alberta with murder, and found that it had none of these characteristics. 20
Similarly, in the present case I can see none of these characteristics in the "group" said to be represented by the plaintiffs. They have none of the attributes of stereotyping, historical disadvan tage, or political isolation. Indeed they had access to the political process in Canada, having hired a representative who appeared before the Parliamen tary Committee considering the Softwood Lumber Products Export Charge Act and met with the Minister of International Trade. As the employers of many Canadian voters, they could not simply be ignored by elected officials.
" Ibid., at p. 183, employing the language of the U.S. Supreme Court in United States v. Carolene Products Co., 304 U.S. 144 (1938), at pp. 152-153.
19 Ibid., at p. 152.
20 Supra, note 14, at pp. 1332-1333.
The decision of the Supreme Court in Reference Re Workers' Compensation Act, 1983 (Nfld.) 21 is another application of the Andrews decision as a limitation on the scope of subsection 15(1). La Forest J., who had suggested in the Andrews deci sion that there might be some kinds of "grossly unfair" differentiations which would still be pro hibited by subsection 15 (1) even if they did not fall within the enumerated grounds or those analogous thereto, nevertheless in this Reference limited pro hibited forms of discrimination to such grounds. Writing for the Court, he rejected the proposition that the limitation imposed on those covered by the Act, to the compensation provided under that Act in lieu of a right of action, was not a differen tiation analogous to those listed in subsection 15(1). It can be observed that the "group" in question there was defined by the very legislation which was attacked as discriminatory, and was not identified with any historical prejudice or stereoty ping or political and social isolation.
I therefore conclude that the kind of distinctions created by the Exemption Order and complained of by the plaintiffs are not contrary to the guaran tees of subsection 15(1) of the Charter.
Justification of the Exemption Order under Charter section 1
Given my finding that there is no abridgment of rights guaranteed by subsection 15(1), I need not consider this issue.
Availability and appropriateness of remedies
sought
Although for the same reason I need not consid er these issues, I wish to indicate that there are several difficulties with the remedies as sought.
The plaintiffs seek a declaration that the Exemption Order is invalid. Even if this were granted, it would not prevent the plaintiffs from being subject to payment of the export charge under the Softwood Lumber Products Export Charge Act. It would simply mean that the twenty
21 Supra, note 14.
companies and their two associates exempted by the Exemption Order would become subject to payment of the export charge.
This would in turn preclude an order, as requested by the corporate plaintiffs, that they "be discharged from all liability ... for any unpaid export charge".
With respect to the claim for "special damages" in the amount of any export charges already paid, these too would be unavailable (even if properly pleaded) if the Exemption Order were simply declared invalid so that all softwood lumber exporters to the United States were subject to the export charge. But even if it had been successfully pleaded that the whole export charge scheme, including the Act, was invalid as discriminatory, it would then be necessary to plead properly for the recovery of charges paid pursuant to that scheme. This would, I believe, involve alleging that the payments had been made under coercion resulting in an unjust enrichment of the defendant. 22 These necessary elements have neither been pleaded nor proven in the present case.
I specifically decline any comment on the remedy of general damages although I have noted earlier that the individual plaintiffs are not entitled to damages in respect of what is alleged to be business losses of the corporate plaintiffs.
Disposition
The action is therefore dismissed with costs.
22 See e.g. Jacobs (George Porky) Enterprises Ltd. v. City of Regina, [1964] S.C.R. 326; Eadie v. Township of Brantford, [1967] S.C.R. 573; and Hydro Electric Commission of Nepean v. Ontario Hydro, [1982] 1 S.C.R. 347.
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