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POSTAL SERVICES

Canada (Attorney General) v. Canadian Union of Postal Workers

T-626-01

2004 FC 153, Hugessen J.

30/1/04

9 pp.

Litigation arose out of 1997 postal strike by defendant-- Parliament adopted back-to-work legislation shortly after strike started--Under Postal Services Continuation Act, 1997 (Act), Crown suing to recover costs said to have been incurred in arbitration and mediation which back-to-work legislation ordered--Act compulsorily imposed mediation and arbitration upon both parties--Act, s. 15 providing costs of mediation-arbitration divided equally between parties--Crown sought and successfully obtained payment from Canada Post Corporation, but defendant Union resists payment on two grounds--First, defendant saying no proof arbitrator obtained approval of Minister to engage services of lawyers as technical experts as required by Act, s. 8(4)--Argument without force-- Appointed mediator-arbitrator certified in writing obtained Minister's approval before engaging experts--Suggestion impolitic or dangerous for defendant to impugn arbitrator's decision to retain services of these experts groundless considering two applications made to Federal Court during currency of mediation and arbitration impugning certain of arbitrator's actions--Second ground based on alleged non-compliance with Financial Administration Act (FAA), s. 34-- S. 34 not applicable here--Arbitrator, Superior Court Judge, not part of Public Service of Canada; his expenses not related to Public Service--Defendant has not put in any serious evidence establishing breach of FAA--No fiduciary duty owed by Crown to defendant--Fiduciary duties only arising where person has discretion to exercise--Crown had no discretion to exercise in payment of bills properly approved, certified--Payment by defendant to Crown of claimed amount ordered--Postal Services Continuation Act, 1997, S.C. 1997, c. 34, ss. 8, 15--Financial Administration Act, R.S.C., 1985, c. F-11, s. 34 (as am. by S.C. 1991, c. 24, s. 13; 2003, c. 22, s. 224(z.37)).

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