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T-2210-76
Chief William Sunday, Benjamin Roundpoint, James Caldwell, Lawrence Francis, Catherine Day, Cecilia Buckshot, Francis Sam, Gerald Shar- row, Michael Francis, Reginald Mitchell, James Lazore and Michael David (acting personally as well as on behalf of the members of the Iroquois of St. Regis Indian Band) and The Iroquois of St. Regis (Indian Band) (Plaintiffs)
v.
The St. Lawrence Seaway Authority, The Queen in right of Canada, The Hydro Electric Power Commission of Ontario (Ontario Hydro) and The Queen in right of Ontario (Defendants)
and
The Receiver General of Canada (Mis -en-cause)
Trial Division, Marceau J.—Toronto, September 15; Ottawa, November 5, 1976.
Practice—Motion to strike out Ontario Hydro as defending party—Jurisdiction of Court—Indian Act, R.S.C. 1970, c. 1-6—International Rapids Power Development Act, R.S.C. 1952, c. 157, ss. 3 and 4—The St. Lawrence Development Act, 1952 (No. 2), S.O. 1952 (2nd Session) c. 3, ss. 3, 15(1) and 23—Federal Court Act, ss. 17(1) and (2), 19, 22(1), 23 and 25.
Ontario Hydro contends that the Federal Court has no jurisdiction to entertain the claim advanced against it, relying mainly on The St. Lawrence Development Act, 1952 (No. 2) (S.O. 1952 (2nd Session) c. 3) and sections 3 and 4 of the International Rapids Power Development Act. Plaintiffs claim that neither Act applies and that the Court has jurisdiction under sections 17, 19, 22(1), 23 and 25 of the Federal Court Act, the Indian Act, Orders in Council made thereunder and the St. Regis Islands Act.
Held, the motion is granted. Section 4 of the International Rapids Power Development Act applies by virtue of section 3 of that Act and the relevant Orders in Council, although made under section 35 of the Indian Act, were made to give effect to and within the limits of the first-named Act. The fact that a defendant has been joined with others who are properly before the Court does not give the Court jurisdiction over him. There is no controversy between the federal and provincial govern ments so as to give the Court jurisdiction under section 19 of the Federal Court Act, and the right conferred by that section may be invoked on behalf of the federal Crown only. The issues raised do not deal with navigation and shipping or with inter- provincial undertakings so as to bring them within the ambits of sections 22(1) and 23 of the Federal Court Act. Finally, as
to section 25 of the Federal Court Act, the Supreme Court of Ontario undoubtedly has jurisdiction to enforce a claim against Ontario Hydro relating to lands wholly situate within the Province.
Anglophoto Limited v. The "Ikaros" [1973] F.C. 483; Quebec North Shore Paper Company v. Canadian Pacific Limited (1976) 9 N.R. 471 (S.C.C.) and Union Oil Co. of Canada Ltd. v. The Queen [1976] 1 F.C. 74, applied.
MOTION. COUNSEL:
J. O'Reilly and W. Grodinsky for plaintiffs.
Paul J. Evraire for defendants St. Lawrence Seaway Authority, The Queen in right of Canada and mis -en-cause Receiver General of Canada.
R. F. Wilson, Q.C., and E. R. Finn for defendant Hydro Electric Power Commission of Ontario.
Julian Polika for defendant The Queen in right of Ontario.
SOLICITORS:
O'Reilly, Hutchins & Archambault, Mont- real, for plaintiffs.
Deputy Attorney General of Canada for defendants St. Lawrence Seaway Authority, The Queen in right of Canada and mis -en- cause Receiver General of Canada.
Day, Wilson, Campbell, Toronto, for defend ant Hydro Electric Power Commission of Ontario.
Deputy Attorney General of Ontario for defendant The Queen in right of Ontario.
The following are the reasons for order ren dered in English by
MARCEAU J.: This is a motion to strike out Hydro-Electric Power Commission of Ontario (Ontario Hydro) as a party defendant in the action on the ground that there is no jurisdiction in this Court to entertain the claim advanced therein against it.
The plaintiffs are all registered Indians within the meaning of the Indian Act, members of the
Iroquois of St. Regis Indian Band and elected members of the St. Regis Band Council. They act, in the proceedings, personally as well as in a representative capacity, on behalf of the Band and of all its members, and their action is launched against four defendants: Her Majesty the Queen in right of Canada (hereafter referred to as the feder al Crown); the St. Lawrence Seaway Authority; Her Majesty the Queen in right of Ontario (here- after referred to as the Ontario Crown); and Ontario Hydro.
As against the two last mentioned defendants, the subject-matter of the action can be very briefly summarized as follows.
To carry out works in relation to an electric power development in the St. Lawrence River at the International Rapids section near the St. Regis and Cornwall Island Indian Reserves, the Ontario Crown and Ontario Hydro "appropriated" many years ago, pursuant to various Orders in Council, certain lands over which the plaintiffs had personal and usufructuary rights. The works were carried out and as a result damage was caused to lands which were to remain within the Band's reserves. The plaintiffs allege that to date they have been paid only part of the compensation and damages to which they are entitled for the loss of the lands expropriated and that they have received no com pensation for the damage caused to their reserves in carrying out the power project works. They also allege that the Ontario Crown and Ontario Hydro were under an obligation to return to the Band all unflooded portions of the lands "appropriated" after construction of the works for which they were needed, an obligation which has not as yet been fulfilled. The relief sought is then expressed in two subparagraphs of the declaration, which pray that:
f) Defendants Her Majesty the Queen in right of Ontario and the Hydro-Electric Power Commission of Ontario (Ontario Hydro) be jointly and severally condemned to pay plaintiffs or to the mis -en-cause on behalf of plaintiff band the amount of $1,000,000.00 with interest at the legal rate for the respective dates of expropriation;
g) Defendants Her Majesty the Queen in right of Ontario and the Hydro-Electric Power Commission of Ontario (Ontario Hydro) be ordered to convey to or for the benefit of plaintiff
the Iroquois of St. Regis Indian Band all unflooded portions of the islands mentioned in paragraph 17 hereof.
Ontario Hydro contends that this Court has no jurisdiction to entertain the claim advanced against it. It relies mainly on The St. Lawrence Development Act, 1952 (No. 2) (S.O. 1952 (2nd Session), c. 3) as amended, according to which the lands concerned were vested in it and the works referred to were carried out. This Act, in effect, provides as follows:
3. Upon the transfer of the administration of the lands belonging to Canada provided for in Article V of the Canada- Ontario agreement, such lands vest in the Commission.
15. (1) Where the Commission and the owner cannot agree upon the amount of compensation, either party may give notice in writing to the other and to the Board requiring that the amount of compensation be determined by the Board, and thereupon the Board shall be seized of the matter, which shall be proceeded with in accordance with the practice and proce dure of the Board.
23. All claims and proceedings in respect of compensation or damages for any land or property acquired, taken or used in or injuriously affected in the carrying out of the purposes of this Act shall be brought under and in accordance with this Act and not otherwise, and subsection 8 of section 24 of The Power Commission Act applies mutatis mutandis to every act and proceeding of the Commission under this Act.
The plaintiffs deny that The St. Lawrence De velopment Act applies. They contend that basically their claims relate to unfulfilled conditions in respect of the transfers of federal lands, compensa tion for the taking of federal reserve lands and damage to their rights and interests in their reserve lands in general. Their claims, they say, arise from the Indian Act (R.S.C. 1970, c. I-6) and the St. Regis Islands Act (17 Geo V c. 37), the latter being an Act which had the effect of placing some of the islands in question under the power of the Superintendent General of Indian Affairs.
To understand the plaintiff's contentions, a brief examination of the legislation relating to the lands involved is necessary.
The general authority for the construction of the aforesaid hydro-electric project was the federal International Rapids Power Development Act (R.S.C. 1952, c. 157), which approved an agree ment of the previous year between the Government of Canada and the Government of Ontario provid ing for the development of the power resources in the International Rapids section of the St. Law- rence River. Sections 3 and 4 of that Act provided as follows:
3. The Governor in Council may transfer to the Government of Ontario the administration of lands or property belonging to Canada that in the opinion of the Governor in Council are necessary for the construction, operation or maintenance of the works to be constructed pursuant to the agreement set out in the Schedule.
4. For the purpose of constructing, operating and maintain ing the works to be undertaken pursuant to the agreement set out in the Schedule,
(a) The Hydro-Electric Power Commission of Ontario shall have the powers and capacities of a natural person as if it were incorporated by Letters Patent under the Great Seal for that purpose; and
(b) the provisions of the Power Commission Act of the Province of Ontario with respect to the expropriation or taking of lands or property apply mutatis mutandis to the expropriation or taking of lands or properties for the works, and have effect as if enacted in this Act in relation thereto.
To give effect to the agreement, Ontario, for its part, first enacted The International Rapids Power Development Agreement Act, 1952 (S.O. 1952, c. 42), then it passed a second Act, The St. Lawrence Development Act, already referred to, which basically provided that Ontario Hydro was to undertake and perform the obligations of the Government of Ontario under the Canada-Ontario agreement and was authorized to proceed with the construction, maintenance and operation of the works contemplated.
By Orders in Council passed in 1955 and 1956 (exhibit P-2) the lands which were needed for the works contemplated and which are the subject of this action were transferred to the Province of Ontario. The Orders in Council were all drawn up the same way, so it will be sufficient to reproduce one of them:
WHEREAS Her Majesty in right of the Province of Ontario is empowered to take or to use lands or any interest therein without the consent of the owner and Her Majesty in right of
the said Province has applied to exercise this power in relation to lands forming part of the St. Regis Indian Reserve known as Sheek Island;
AND WHEREAS Her Majesty in right of the said Province advises that as part of the works to develop the power resources of the International Rapids section of the St. Lawrence River to be undertaken by Ontario, it is necessary to take or acquire the said lands;
AND WHEREAS section 35 of the Indian Act provides that an expropriating authority may take lands in an Indian reserve with the consent of the Governor in Council and that the Governor in Council may when he has so consented, authorize the transfer or grant of such lands to the expropriating author ity, subject to any terms that he may prescribe.
THEREFORE, His Excellency the Governor General in Coun cil, on the recommendation of the Minister of Citizenship and Immigration and pursuant to section 35 of the Indian Act, is pleased, hereby, to consent to Her Majesty in right of the Province of Ontario taking the lands described in the schedule hereto, and is pleased to transfer and doth hereby transfer the said lands to Her Majesty in right of the said Province, subject to payment within ninety days of the date hereof of such amount in full compensation therefor as may be agreed upon by the Band of Indians concerned, the Minister of Citizenship and Immigration and Her Majesty in right of the said Province, such amount to be exclusive of any claim for encumbrances such as leases but including all encumbrances for which the Indians have a direct claim and subject to such other terms as may be agreed upon between the persons aforesaid.
The plaintiffs first contend that the provisions of section 4 of the federal International Rapids Power Development Act do not apply since these provisions have reference only to the expropriation or taking of lands, an effect the Orders in Council did not have; the provincial The St. Lawrence Development Act, 1952, can have no application either since the lands were not acquired through the procedure there provided; it follows that primarily the issue of jurisdiction should be resolved with reference only to the Indian Act, the Orders in Council made thereunder and the St. Regis Islands Act. The plaintiffs then submit that this Court has jurisdiction under various sections and subsections of the Federal Court Act, namely: subsection 17(1), subsection 17(2), section 19, subsection 22(1), section 23 and section 25.
I do not agree with the contention that the provisions of paragraph 4(b) of the federal Inter national Rapids Power Development Act do not apply. In my view, the expression "taking of
lands" used by Parliament in that paragraph was meant to cover the eventual "transfers of lands" by the Governor in Council as contemplated by the preceding section 3. The Orders in Council were made—as they had to be—under section 35 of the Indian Act but nevertheless they were made to give effect to and within the limits of the Interna tional Rapids Power Development Act. It is to be remembered that the relief sought by this action is not the annulment of the Orders in Council but rather, at least in a sense, their enforcement.
Even if I were to accept the contention that the provisions of paragraph 4(b) of the federal Inter national Rapids Power Development Act and those of section 3 of the provincial The St. Law- rence Development Act, 1952 do not apply, I fail to see how any of the sections of the Federal Court Act relied upon by the plaintiffs are applicable to the action as it is framed.
As to section 17 of the Federal Court Act, counsel for the plaintiffs contends that as long as the federal Crown is a defendant, this suffices to give the Court jurisdiction, regardless of the iden tity or character of the other defendants. In my view, the contention is wrong. The fact that a defendant has been joined with other defendants who are properly before the Court does not operate as to give the Court jurisdiction over him. I agree with the comments of Collier J. in the case of Anglophoto Limited v. The `Ikaros" ([1973] F.C. 483), to which Heald J. referred with approval in the case of Desbiens v. The Queen ([1974] 2 F.C. 20), where he said [at page 498]:
I suggest a proper test to apply in approaching the question of jurisdiction is to see whether this Court would have jurisdic tion if the claim advanced against one particular defendant stood alone and were not joined in an action against other defendants over whom there properly was jurisdiction.'
The result may be that for the plaintiffs to obtain complete relief an action will have to be brought both in this Court and the applicable Provincial Court. Nevertheless Parliament must be taken to
' The above judgment of Collier J. was reversed on appeal but the portion of his judgment quoted here was not affected by the appeal judgment.
have been well aware of the difficulty and the situation must be accepted as it is. (See also: Sumitomo Shoji Canada Ltd. v. The "Juzan Maru" [ 1974] 2 F.C. 488.)
As to section 19 of the Federal Court Act, counsel for the plaintiffs argues that the issues in the action raise controversies between Canada and Ontario, having in mind the special clause in the Canada-Ontario agreement of 1951 by which Ontario is pledged to save Canada harmless for any claim "arising out of the construction, mainte nance or operation of the works". There is no such existing controversy between the two governments and the mere fact that there might eventually be one is not sufficient to give the court jurisdiction. This action does not have the effect of raising such a controversy and in any case the plaintiffs, being third parties, would have no status to raise it themselves. The clause referred to may give a right to the federal Crown, but it is a right which may be invoked on behalf of the federal Crown only, and would not be accruing to the plaintiffs.
As to sections 22(1) and 23 of the Federal Court Act, counsel for the plaintiffs contends that the issues here deal with "navigation and ship ping" to the extent that the International Rapids Power Development Act is concerned; and they involve at the same time works and undertakings connecting a province with another, the St. Law- rence Seaway being a waterway between Lake Erie and the Port of Montreal. But, to my mind, the claim is essentially one for compensation for the taking of and causing damage to lands wholly situate in the Province of Ontario. It is a claim partly in tort and partly for the enforcement of an undertaking. I fail to see how this falls within "navigation and shipping" or "interprovincial" matters. (See: Quebec North Shore Paper Com pany v. Canadian Pacific Limited (1976) 9 N.R. 471 (S.C.C.).)
Finally as to section 25 of the Federal Court Act, counsel for the plaintiffs submits that the Supreme Court of Ontario does not have jurisdic tion to deal with Indian reserve land questions. Again, the action must be taken as it stands and I think that the Supreme Court of Ontario undoubt edly has jurisdiction to enforce a claim against Ontario Hydro which is one partly in tort and partly for the enforcement of an agreement, pray ing for compensation for the taking of and causing damage to land wholly situate within the Province.
It is clear that this Court is a statutory Court and its jurisdiction with respect to a specific suit must be found in the Federal Court Act or in some other statute or law meant to confer jurisdiction. I do not think any of the statutory provisions I was referred to or any others which I am aware of authorize this Court to entertain or hear the claim advanced in this suit against Ontario Hydro. (See also: Union Oil Co. of Canada Ltd. v. The Queen [1976] 1 F.C. 74.)
The motion will therefore be acceded to. There will be an order striking out Ontario Hydro as a defendant in this case. Ontario Hydro is entitled to its costs from the plaintiffs of entering a condition al appearance and of this motion.
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