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A-362-74
Canadian National Railway Company (Plaintiff) v.
The Ship M/ V Norango and Norango Charters Ltd. Owners of the Defendant MIV Norango (Defendants)
Court of Appeal, Urie and Le Dain JJ. and Shep- pard D.J.—Vancouver, February 24 and 25, 1976.
Practice—Order requiring claimants to file affidavits—Two parties applying for extension of time—Addy J. extending time, providing that in event of failure claimants 'forever barred" from filing—Decary J. varying order of Addy J., granting further extension—Whether empowered to so do— Whether proper exercise of power—Federal Court Rules 3(1)(c).
In order to prove claims with respect to money paid into Court from the sale of a seized ship, supporting affidavits were required to be filed by August 8, 1974. Two claimants applied for and were granted extensions until October 21, by order of Addy J.; failure would forever bar them from filing thereafter. In response to a further application, Decary J. varied the order of Addy J. to permit filing on the day of the application, and service before November 21, 1974. Two of the other claimants appealed. Questions raised are: (1) did Decary J. have the power to vary Addy J.'s order in view of its peremptory nature? and (2) if so, was the power properly exercised?
Held, the appeal is dismissed. (1) The power to vary existed in spite of the wording of Addy J.'s order. The words "forever barred", if taken literally, would have the effect of removing the clear discretion to extend the time in spite of application after the set date, as provided in Rule 3(1)(c). No judge has such power. (2) Normally, an appeal court should interfere with the discretion of a trial judge acting within his jurisdiction only if it has been wrongly exercised through application of a wrong principle of law or because some injustice would result. Decary J. did not proceed on a wrong principle. He had the duty to exercise his discretion, and such exercise should not be interfered with. Nor did any injustice result.
APPEAL. COUNSEL:
J. F. Dixon and Henry C. Wood for appel lants W. H. Parry and Norwest Oyster Seed Ltd.
E. B. Ruryk for claimants Royal Bank of Canada and Matsumoto.
SOLICITORS:
Clark, Wilson & Co., Vancouver for
appellants.
Ernest B. Ruryk, Vancouver, for respondents.
The following are the reasons for judgment delivered orally in English by
URIE J.: This is an appeal from an order of the Trial Division made the 18th day of November 1974 which, inter alia, varied a previous order of that Division.
A brief review of the proceedings to date will indicate the basis upon which the appeal is brought. As a result of the plaintiff's action to recover unpaid dockage fees and charges, together with interest thereon, arising out of the moorage of the defendant ship at the plaintiff's dock, the ship was arrested and eventually, pursuant to an order of the Trial Division, was sold by the Marshal of the City of Vancouver on March 27th, 1974 for the sum of $85,000, which was paid into Court.
On July 5th, 1974, upon the plaintiff's applica tion for directions and upon all parties and claim ants having been served with the material in sup port of the application, Collier J. of the Trial Division ordered, inter alia, that each claimant on or before August 8th, 1974, prepare and file in the Vancouver Registry affidavits proving their respective claims. He also ordered that unless on or before September 1st, 1974 the claims so proved were contested, they would be deemed admitted subject only to a later ordering of the priorities of all valid claims.
As a result of an application made by the plain tiff on October 7th, 1974 for payment out of Court of poundage fees, certain costs and the claims of those parties who had complied with the order of Collier J. counsel on behalf of Matsumoto Ship yards Limited and The Royal Bank of Canada, neither of whom had filed the requisite affidavits, orally applied for an extension of time within
which to do so and thus to prove their respective claims. Addy J. thereupon
(a) adjourned the plaintiff's motion for pay ment out to November 18th, 1974;
(b) ordered that The Royal Bank and Mat- sumoto Shipyards Ltd. pay forthwith to each of those who had appeared on the motion costs in the sum of $75.00;
(c) gave leave to The Royal Bank and Mat- sumoto Shipyards Ltd. to file and serve notices of motion, with affidavits in support thereof, on each of the parties who had appeared on the return of the motion, requesting leave to extend the time in which to file proofs of claim in the manner laid down in the order of Collier J.;
(d) ordered that the material filed by The Royal Bank of Canada and Matsumoto Ship yards Ltd. should include a full explanation as to why the affidavits verifying their alleged claims were not filed on time, as well as affida vits establishing fully the nature and extent of the claims;
(e) ordered that in the event that either of them failed to file and serve the documents mentioned in (d) on or before October 21st on each of the other parties appearing, "The Royal Bank of Canada or Matsumoto Shipyards Ltd. as the case may be, shall be forever barred from doing so";
(f) directed that nothing in the order should be construed as an adjudication upon the merits of any such future application on behalf of either The Royal Bank or Matsumoto Shipyards Ltd. for an extension of time to file their respective affidavits proving their claims.
Neither The Royal Bank nor Matsumoto Ship yards Ltd. filed and served the notice of motion and affidavits in support on or before October 21st, 1974. On November 18th, 1974 The Royal Bank and Matsumoto Shipyards Ltd. made application for leave to yet again extend the time to file the requisite affidavits and proofs of their claims. In support of this application were read the notice of motion and the affidavits filed in support thereof, filed on November 18th, 1974, immediate-
ly prior to the application and then handed to those counsel present, none of whom had been previously notified of the application.
Decary J. ordered, inter alia, that the order of Addy J. dated October 7th, 1974 be varied to permit the solicitors for The Royal Bank of Canada and Matsumoto Shipyards Ltd. to file their affidavits that day and serve them on the other parties to the action prior to November 21st, 1974. It is from that order that this appeal is brought by two of the claimants whose claims had been proved in the manner prescribed by the order of Collier J. These appellants are Wesley H. Parry and Surfside Shellfish Co. Ltd. (now Norwest Oyster Seed Ltd.)
While neither Addy J. nor Decary J. gave rea sons for making their respective orders, it is appar ent that they were made pursuant to Rule 3(1)(c) of the General Rules and Orders of this Court, which Rule reads as follows:
(c) the Court may enlarge or abridge the time appointed by these Rules, or fixed by any order, for doing any act or taking any proceeding upon such terms, if any, as seem just, and any such enlargement may be ordered, although the application for the same is not made until after the expira tion of the time appointed or fixed,
There does not appear to be any doubt that Addy J. in making his order of October 7, 1974 validly exercised the discretion conferred on him by the foregoing Rule. There are two questions which, in my view, are raised by this appeal:
1. Did Decary J. have the power to vary Addy J.'s order in view of the peremptory nature thereof?
2. If he did have such a power, did he properly exercise it in the circumstances of this case?
With respect to the first question, in my view it is beyond doubt that the power to vary existed notwithstanding the inclusion in Addy J.'s order of the words "The Royal Bank of Canada or Mat- sumoto Shipyards Ltd., as the case may be, shall be forever barred from doing so", if they failed to file the affidavits in question on or before October 21, 1974. The wording of the Rule clearly sets out that the time fixed by any order for doing any act may be enlarged although the application is not made until after the time fixed by the order. The effect of the words "forever barred", if accepted
literally as finally disposing of the matter, would be to deprive another Judge or even Addy J. himself, from exercising, in a proper case, the clear discretion given him by the wording of Rule 3(1)(c). In my opinion, no Judge of the Court has such a power so that Decary J. was in a position to extend the time limit imposed by Addy J.
The second question presents a somewhat more difficult problem in light of the unusual circum stances of this case. The normal rule is that an appellate court ought not to interfere with the discretion of a trial judge acting within his juris diction unless it is clearly satisfied that the discre tion has been wrongly exercised either because the judge had acted on some wrong principle of law or because on other grounds the decision would result in some injustice being done. (See McKinnon Industries Limited v. Walker [1951] 3 D.L.R. 577 at page 579 (P.C.).)
That being said it is difficult for it to be con cluded in this case that the learned Judge acted on a wrong principle of law unless it could be found that the excuses put forward by the claimants for their failure to comply with Addy J.'s order were so clearly unsatisfactory or unreasonable that Decary J. acted on a wrong principle of law in accepting them and further extending the time to file their affidavits. Addy J. undoubtedly made the order in the mandatory way in which he did because of the unconscionable delays by the claim ants in failing properly to prove their claims but that does not mean that there could not be circum stances in which the granting of a further delay might not be found to be acceptable.
Even if I had concluded that had I been in the position of Decary J. I would not have granted the order—and I am not saying that I would have reached such a conclusion—that would not justify me in saying that this Court ought to set aside the order. This is so because it is clear that there were reasons advanced for the failure to file within the time limited by Addy J. which, if accepted could justify the order further extending the time. Thus, Decary J. did not, in my opinion, proceed on a wrong principle. He had the duty and obligation to exercise his discretion on the circumstances as they
appeared to him and I do not believe that we should interfere with the exercise of this discretion.
In so far as the question of injustice is con cerned, there is nothing in this case which impels one to the view that the granting of the order resulted in any injustice to any one of the parties more than another and it thus does not appear to be a factor to be taken into account in this appeal.
For all of the above reasons, therefore, the appeal should be dismissed but in view of the unusual circumstances the respondents ought not to be entitled to their costs in the appeal.
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LE DAIN J. concurred.
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SHEPPARD D.J. concurred.
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