CROWN |
Tessier v. Canada Ports Corporation
T-923-99
2004 FC 29, Martineau J.
9/1/04
10 pp.
Crown Corporations--Plaintiff, formerly employed by Canadian Pacific Ltd. (CP), then President of Canada Ports Corporation, claimed $366,243.12 from defendant, plus interest and costs--This amount paid by defendant to buy back 13.75 years of service by plaintiff with CP--Defendant subsequently obtained return of amount on ground payment made without required authorization--Question as to terms on which defendant could legally pay amount in question for benefit of plaintiff--Plaintiff maintained payment of amount in question authorized by defendant's board of directors (document P-9), which in circumstances was sufficient--In case at bar amount in question corresponds to nearly three years' salary for plaintiff--Payment of amount for benefit of plaintiff constituted "form of monetary compensation" under Crown Corporation General Regulations, 1995, s. 7--Such monetary benefit may readily be likened to bonus employer may pay employee for good performance on job--Clear from Financial Administration Act, s. 108(3) that payment of amount in question had to be previously authorized by Governor in Council; as no such authorization given, plaintiff had no right of action against defendant--Document P-9 neither resolution of board of directors nor resolution of defendant's executive committee--Authorization contained in document P-9 ultra vires authority delegated by board of directors to acting chairman of board of directors and so unenforceable against defendant--Plaintiff's action dismissed --Financial Administration Act, R.S.C., 1985, c. F-11, s. 108(3)--Crown Corporation General Regulations, SOR/95-226, s. 7.