Judgments

Decision Information

Decision Content

JPD-6-76
Edgar Lloyd Fisher and Anita Inis Fisher (Applicants)
v.
The Queen (Respondent)
Trial Division, Walsh J.—Ottawa, April 28 and May 6, 1977.
Jurisdiction — Warrant for eviction by Federal Court Judge as persona designata under Expropriation Act — Section 28 application before Court of Appeal — Judge who issued warrant is functus — Whether or not the Court has jurisdic tion to grant interim relief pending resolution of s. 28 applica tion — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, ss. 28 and 30(1)— Federal Court Rules 1904 and 1909.
A Federal Court Judge, as persona designata under the Expropriation Act, issued an eviction warrant in accordance with the Federal Court Rules. The Court of Appeal, for want of jurisdiction, refused applicants' section 28 application for a stay of execution and the Judge who issued the warrant is functus. Applicants now seek remedies pending the final deter mination of the section 28 application, namely: (1) an order that the sheriff not execute the warrant, (2) a stay of execution, and (3) an order for custody of the property.
Held, the application is dismissed. The Court has no jurisdic tion to entertain the motion and the applicants, therefore, have no recourse to prevent the execution of the writ of possession. Section 50(1) of the Federal Court Act is to be applied by the Trial Division if a stay of proceedings is justified by the same claim being proceeded with in an entirely different court. The Appeal Court cannot be considered another court. Then, too, the proceedings must be within the Trial Division's jurisdiction in the first place. The Court has no inherent jurisdiction and cannot assume it by analogy to grant an order merely because the order for the warrants of possession was made pursuant to the Court's Rules. Rules 1904 and 1909 cannot be used simply because there is a proceeding in the Court. This application relates to the decision of Mahoney J. which is not before this Court, and not to the section 28 application. The Trial Division cannot issue an injunction concerning a matter before the Court of Appeal on a section 28 application.
Communications Workers of Canada v. Bell Canada and Canadian Telephone Employees Association 11976] 1 F.C. 282, followed; B. Keith Penner, Norman Cafik, Harry Assad and the Northwestern Ontario Municipal Association v. The Representation Commissioner for Canada 11977] 1 F.C. 147, followed.
APPLICATION. COUNSEL:
David Estrin for applicants. Thomas Dunne for respondent.
SOLICITORS:
David Estrin, Toronto, for applicants.
Deputy Attorney General of Canada for respondent.
The following are the reasons for judgment rendered in English by
WALSH J.: This motion came on for hearing in Ottawa on April 28, 1977, and was heard jointly with identical motions in the cases of Presutti v. The Queen, JPD-19-76, and Leach v. The Queen, JPD-12-76. The decision on this motion will be applicable to the said two other motions. The motion seeks the following:
1. An Order pursuant to Rule 1904 of the Federal Court Rules, requiring that the Sheriff of the Region in which the Applicants' lands are located not execute the warrant issued by Mr. Justice Mahoney on the 18th day of April 1977 until the final determination of the Section 28 Application commenced in the Federal Court of Appeal by the Applicants dated April 5, 1977, to review and set aside the Order of Mr. Justice Mahoney dated the 30th day of March 1977.
2. A stay of execution, pursuant to Rule 1909 of The Federal Court Rules, or a stay pursuant to Section 50(1)(b) of The Federal Court Act, or both, staying the said Order of Mr. Justice Mahoney dated the 30th day of March 1977 directing a warrant issue to the said Sheriff and staying the execution of the warrant issued on April 18th to the said Sheriff, pending the final determination of the said Section 28 Application.
3. An Order that the custody of the property of the Applicants being the subject matter of the said Order and Warrant issued by Mr. Justice Mahoney remain in and be preserved to the Applicants pending the final determination of the said Section 28 Application.
4. Such further and other Order or relief as may seem just.
The warrant in question was issued by Mr. Justice Mahoney pursuant to the provisions of section 35 of the Expropriation Act' which reads as follows:
35. (1) When the Minister, or a person acting for him, is prevented from entering upon or taking physical possession or making use of any land to the extent of any interest expropriat ed under this Part, a judge of the Court or any judge of a superior court of a province may, on proof of the expropriation
' R.S.C. 1970 (1st Supp.), c. 16.
and, when required, of the right of the Crown to take physical possession or make use thereof, and after notice to show cause given in such manner and to such persons who shall be parties to the proceedings as the judge prescribes, issue his warrant in accordance with the form set out in Schedule I to this Act to the appropriate sheriff directing him to put the Minister, or a person authorized to act for him, in physical possession of the land to the extent of the interest expropriated.
(2) The sheriff shall forthwith execute a warrant issued to him under this section and shall make return of the warrant to the court to which the judge who issued it belongs, and of the manner in which it was executed.
It is not disputed that in making the order issuing the warrant Mr. Justice Mahoney was acting as persona designata by virtue of the said Act so that the order was not an order of this Court and it is on this basis that the section 28 application against same was brought. While applicants' counsel con tends that in the absence of specific direction as to procedure to give effect to section 35 of the Expropriation Act Mr. Justice Mahoney applied the Rules of this Court, this does not have the effect of making the decision and order a judgment of the Court. In the last paragraph of his decision dated March 30, 1977, he states:
In order to avoid execution of the warrant prior to the Respondents having an opportunity to take any appeal that they may wish in respect of this decision, I will defer issue of the warrant until April 18, 1977 and, on that date, will issue it unless stayed from doing so by order of the appellate tribunal.
The section 28 application was initiated in the Federal Court of Appeal by the applicants on April 5, 1977, and in due course an application was made to the said Court of Appeal for stay of the execution of the warrant which application was refused by the Court of Appeal allegedly for lack of jurisdiction although no written reasons were given. It is of some interest to note that in the section of the Rules dealing with appeals from the Trial Division, Rule 1213 provides for stay of execution of a judgment appealed from but there is no similar Rule in the division dealing with appeals from tribunals or authorities other than the Trial Division, and in any event the proceeding before the Court of Appeal is not an appeal strictly speaking but a section 28 application.
Mr. Justice Mahoney having rendered his deci sion pursuant to section 35 of the Expropriation
Act is functus so that no application could be made to him to suspend the execution of the warrant of possession issued pursuant to his order. The present applications were therefore brought to the Trial Division of this Court.
On the question of jurisdiction applicants' coun sel invokes section 50(1) of the Federal Court Act 2 which reads as follows:
50. (1) The Court may, in its discretion, stay proceedings in any cause or matter,
(a) on the ground that the claim is being proceeded with in another court or jurisdiction; or
(b) where for any other reason it is in the interest of justice that the proceedings be stayed.
There would seem to be considerable doubt, how ever, as to whether this section can be applied in the present circumstances. Section 4 of the Act reads as follows:
4. The Federal Court of Canada shall hereafter consist of two divisions, called the Federal Court—Appeal Division (which may be referred to as the Court of Appeal or Federal Court of Appeal) and the Federal Court—Trial Division.
and I do not think that the Appeal Division can be considered as "another Court". It might perhaps be argued that it constitutes "another jurisdiction" although this question was not raised in argument before me. I am inclined to believe, however, that if this section is intended to be applied by the Trial Division it would only justify the stay of proceed ings in that Division on the ground that the same claim is being proceeded with in an entirely differ ent Court. It may well be that the broad wording of paragraph (b) permitting the stay "where for any other reason it is in the interest of justice" might be applicable, but again it would appear that in order to stay the proceedings they must be within the jurisdiction of the Trial Division in the first instance. Section 46 of the Act provides for the making of Rules not inconsistent with the Act and applicants' counsel invokes two Rules, namely 1904(1) and 1909 which read respectively as follows:
Rule 1904. (1) Notwithstanding that a judgment or order requiring a person to do an act specifies a time within which the act is to be done, the Court may make an order requiring the act to be done within another time, being such time after
2 R.S.C. 1970 (2nd Supp.), c. 10.
service of that order, or such other time, as may be specified therein.
Rule 1909. A party against whom a judgment has been given or an order made may apply to the Court for a stay of execution of the judgment or order or other relief against such judgment or order, and the Court may by order grant such relief, and on such terms, as it thinks just.
These Rules appear in a section of the Rules entitled ENFORCEMENT OF JUDGMENTS AND ORDERS—GENERAL and are evidently intended to apply to judgments and orders of the Court. Coun sel for applicants argues that since Mr. Justice Mahoney relied on Rules of the Court in making his order for the warrants of possession, the Rules of the Court can also be relied on to grant a stay of execution of such order. I have already indicated that I do not believe that this argument can be accepted. This Court is a statutory court with no inherent jurisdiction and it cannot acquire jurisdic tion on the basis that some of its Rules might be applicable by analogy to proceedings dealt with by one of its judges sitting as persona designata and ' not by the Court itself.
Applicants' counsel further argues that since there is a proceeding in the Court, namely, the section 28 application, Rules 1904 or 1909 could be applied. I cannot accept this argument. The present application does not relate to the section 28 proceedings before the Court of Appeal, but to the order of Mr. Justice Mahoney which is not a proceeding before the Trial Division of this Court. In this connection reference might be made to the case of Communications Workers of Canada v. Bell Canada and Canadian Telephone Employees Association 3 in which the Canada Labour Rela tions Board had ordered the employer to desist from prohibiting union membership solicitation on company premises during non-working hours and the employer Bell Canada applied for a stay of execution of this order pending the judgment of the Court of Appeal on its section 28 application. In that judgment of Mr. Justice Dubé it was pointed out that section 123 of the Canada Labour
3 [1976] 1 F.C. 282.
Code 4 provides for the registration with the Feder al Court of orders of the Board. Reference was made by Mr. Justice Dubé at page 288 to a judgment of Chief Justice Jackett in the case of Central Broadcasting Company Limited v. Canada Labour Relations Board, Court No. T-803-75, in which, sitting as an ex officio judge of the Trial Division he stayed the operation of an order of the Labour Relations Board which he "regarded as a judgment of this Court by virtue of section 123 of the Canada Labour Code", holding that "the relevant powers of the Trial Division with reference to a judgment of that Court are contained in Rule 1909". [Underlining mine.] It was on this basis that Mr. Justice Dubé decided that the Court had jurisdiction to grant a stay of execution of the order of the Board, although he subsequently refused, after considering the balance of convenience, to grant the stay. In the present case there is of course no similar provision for registration of Mr. Justice Mahoney's order made pursuant to section 35 of the Expropriation Act in the Trial Division of this Court.
Reference might also be made to the recent decision of Associate Chief Justice Thurlow in the case of B. Keith Penner, Norman Cafik, Harry Assad and the Northwestern Ontario Municipal Association v. The Representation Commissioner for Canada 5 in which he found that an injunction could not be issued by the Trial Division in con nection with a matter before the Court of Appeal on a section 28 application, referring to section 28(3) which reads as follows:
28. (3) Where the Court of Appeal has jurisdiction under this section to hear and determine an application to review and set aside a decision or order, the Trial Division has no jurisdic tion to entertain any proceeding in respect of that decision or order.
While the present proceedings do not seek an injunction but merely a stay of proceedings some
° R.S.C. 1970, c. L-1 as amended by S.C. 1972, c. 18. 5 [1977] 1 F.C. 147.
of the reasoning of that decision is equally appli cable. On page 150 he states:
On its face however the present application is not directed against the report. It is directed against an act to be done by the respondent. But the question whether that act must be carried out, and, indeed, the whole case of the applicants as well, are entirely dependent on the legal effect or validity of the decision of the Commission which is the subject of the applica tion under section 28. In the circumstances the application for an order enjoining the Commission from carrying out the duty to follow or act upon the Commission's decision, if it is to succeed, appears to me to involve at least some consideration of the validity of the Commission's decision and to involve as well interference with the decision's effect. It seems to me, there fore, that the present application is in substance and in fact a proceeding "in respect of" the Commission's decision within the meaning of subsection 28(3) and that this division has no jurisdiction to entertain it.
and again on the same page:
But even if this view of the effect of subsection 28(3) is broader than the provision warrants the subsection seems to me to apply where, as in the present instance, the only basis put forward for such interlocutory relief is the alleged invalidity of the order which is the subject of the section 28 application.
I therefore must conclude that this Court has no jurisdiction to entertain the present motion. Admittedly this places the applicants in a difficult position. If Mr. Justice Mahoney cannot vary or suspend the execution of his order, having become functus as a persona designata after having ini tiated it, and the Court of Appeal has decided that it has no jurisdiction to grant a stay pending the decision of the section 28 application before it to have the said order set aside, and the Trial Divi sion also has no jurisdiction to grant the stay of an order which is not an order of the Court, or is before the Court of Appeal on a section 28 application then applicants are presumably in a position where they have no recourse to prevent the execution of the writ of possession if respond ent wishes to do so before awaiting the decision of the Court of Appeal on the section 28 application. The Court cannot change the law and Rules of this Court relating to its rights to order a stay of proceedings or suspend the execution of the war rant of possession pending the outcome of the section 28 application even if these Rules appear to be somewhat unsatisfactory and to lead to considerable uncertainty in their application, but must apply the existing law at the date of the application and be guided by the relevant jurispru-
deuce. In the case of Wardair Canada Limited v. Canadian Transport Commission 6 at page 603, referred to in the case of Communications Work ers of Canada v. Bell Canada (supra) at page 290, I had occasion in commenting on the attempt of the applicant to use a writ of prohibition to stay the execution of a judgment under review as follows:
What the applicant is seeking to do is to use a writ of prohibition to obtain a stay of execution of a judgment which is under review and appeal because there is no procedure in the Rules of this Court for such a stay. The absence of such Rule would not be sufficient ground for abusing the use of a preroga tive writ whether it be prohibition or injunction. [Underlining mine.]
Applicants' counsel also invoked Rule 470 of the Rules of this Court which provides in general that before or after the commencement of an action, the Court may, on the application of any party, make an order for the detention, custody or preser vation of any property that is the subject matter of the action. Reference was made to Rule 2 which defines action as follows:
"action" means a proceeding in the Trial Division other than an appeal, an application or an originating motion, and includes such a proceeding by or against the Crown or any person acting for or on behalf of the Crown;
Although the definition is a broad one it appears clear to me that it refers to actions in the Trial Division of the Court and that Rule 470 would not be applicable in the present case. In fact any attempt to apply it would be in direct contraven tion of the provisions of the Expropriation Act and in particular section 35 thereof, and certainly even if the Court had jurisdiction a Rule of the Court could not be used to defeat the express provision of a statute.
While the conclusions I have reached as to lack of jurisdiction dispose of the application and it is therefore unnecessary to go into its merits, consid erable argument was devoted to this and, in the event that it should be found on appeal from this judgment that in fact the Trial Division does have
6 [1973] F.C. 597.
jurisdiction to order the stay sought, I will deal briefly with the merits. Reference was made to considerable jurisprudence dealing with stay of proceedings pending an appeal. One of the best expressions of the principles is found in the case of Empire-Universal Films Limited v. Rank' adopt ed by Heald J. in Weight Watchers International Inc. v. Weight Watchers of Ontario Ltd.B and again referred to by Dubé J. in the case of Com munications Workers of Canada v. Bell Canada (supra) at page 289. This finding is to the effect that:
In order to justify a stay two conditions must be satisfied, one positive and the other negative: (a) the defendant must satisfy the Court that the continuance of the action would work an injustice because it would be oppressive or vexatious to him or would be an abuse of the process of the Court in some other way; and (b) the stay must not cause an injustice to the plaintiff. On both the burden of proof is on the defendant.
Reference was also made to the British case of Polini v. Gray 9 in which Jessel, Master of Rolls, stated at page 443:
The question before us is this: An action is brought to determine the rights of claimants to a fund. The Plaintiffs fail in the Court of first instance and in the Court of second instance, but are about, bonâ fide, to prosecute an appeal to the Court of ultimate resort. The Plaintiffs allege that that appeal will be nugatory if the fund is paid out to the Defendants, and that if the Plaintiffs should ultimately succeed in the House of Lords, that success will be useless to them unless an interim order is made for preserving the fund. I say they so contend, and, assuming that contention to be correct in fact, the question is, whether this Court has jurisdiction to prevent such a conse quence. It appears to me on principle that the Court ought to possess that jurisdiction, because the principle which underlies all orders for the preservation of property pending litigation is this, that the successful party in the litigation, that is, the ultimately successful party, is to reap the fruits of that litiga tion, and not obtain merely a barren success.
Again at page 445 he states:
The Court having arrived at the conclusion that the appeal is bonâ fide, that she intends to prosecute it with a view to determine her rights and to get a final decision on those rights; and the Court, I assume (for I do not know the facts), being satisfied that there would be danger, if it were not to interfere for the interim protection of the fund, of its not being forthcom ing if she succeeded in the House of Lords, the question is, is it not the duty of this Court to say that the fund ought to be preserved for the successful party? Looking at the facts of this
[1947] O.R. 775.
B [1972] 25 D.L.R. (3d) 419 at page 426.
9 (1879) 12 Ch. D. 438.
case, not forgetting the amount in dispute, and remembering the peculiar circumstances under which the fund was obtained, I think it would be right so to mould the order of the Court of Appeal as to keep the fund safe until the decision of the House of Lords is obtained. It must not be supposed from what I have said that I consider such an order to be by any means of course, or one that ought to be made except under very special or peculiar circumstances; but I think that when those special and peculiar circumstances exist the jurisdiction ought to be exercised.
In the same case Cotton L.J. stated at page 446:
The only question we have to consider is, whether or no the Court has jurisdiction in a proper case to stay all dealings with a fund pending an appeal to the House of Lords although the Court has decided against the title of the Plaintiff and dis missed the action. I see no difference in principle between staying the distribution of a fund to which the Court has held the Plaintiff not to be entitled, and staying the execution of an order by which the Court has decided that a Plaintiff is entitled to a fund. In that case, as in this case, the Court, pending an appeal to the House of Lords, suspends what it has declared to be the right of one of the litigant parties. On what principle does it do so? It does so on this ground, that when there is an appeal about to be prosecuted the litigation is to be considered as not at an end, and that being so, if there is a reasonable ground of appeal, and if not making the order to stay the execution of the decree or the distribution of the fund would make the appeal nugatory, that is to say, would deprive the Appellant, if successful, of the results of the appeal, then it is the duty of the Court to interfere and suspend the right of the party who, so far as the litigation has gone, has established his rights. That applies, in my opinion, just as much to the case where the action has been dismissed, as to the case where a decree has been made establishing the Plaintiff's title.
In the case of Battle Creek Toasted Corn Flake Co. Ltd. v. Kellogg Toasted Corn Flake Co. 10 at page 132 referred to in the case of Talsky v. Talsky (No. 2)" at page 154 and also referred in Communications Workers of Canada v. Bell Canada (supra) at page 289, Middleton J. stated:
In all cases in which the stay will impose little suffering upon the respondent, and this can be compensated by payment of actual damages which admit of easy and substantially accurate computation, and in which on the other hand grievous loss and irremediable harm will be done the appellant if the stay is refused, the operation of the judgment ought to be stayed. The principle then is the same as that applied in the case of an application for an interim injunction—the balance of conveni ence, with an added factor of the greatest weight, the actual adjudication that has taken place, and which must be regarded as prima facie right.
10 (1923-24) 55 O.L.R. 127.
11 (1974) 1 O.R. (2d) 148.
From these cases it is apparent that the balance of convenience must be taken into consideration. Unfortunately on the facts in the present case, while on the one hand it appears unlikely that respondent would suffer any serious inconvenience if the execution of the writ of possession is delayed since it has no immediate need for possession of the land in question, it is equally true on the other hand that from a realistic point of view it is unlikely that applicants would suffer immediate eviction from the premises if the stay is not grant ed. It is true that they would be placed in jeopardy and in a sense at the mercy of respondent who could immediately direct the warrant for posses sion to be executed without awaiting the outcome of the section 28 application, but in practice this is highly unlikely. Applicants have taken the position that respondent is not entitled to possession of the property having indicated that there is no longer any immediate need for it for the building of an airport for which purpose it was expropriated. They have therefore refused to accept the indemni ty offered or to enter into any lease for their Continued occupancy of the premises. On the other hand they have been allowed to have undisturbed use and enjoyment of the premises up to the present and in practice it appeared unlikely that respondent would wish to alter this status quo pending the decision of the Court of Appeal on the section 28 application, which applicants' counsel indicates, and respondent's counsel does not dis pute, can be disposed of at a relatively early date.
Accordingly the Court suggested to respondent's counsel that it might be helpful, and pertinent to a decision of whether, on balance of convenience, a stay should be granted or not in the event the Court concluded that it had jurisdiction, if he would seek instructions as to whether the Crown would insist on immediate execution of the writ of possession in the event the stay was refused. I have now been advised in writing by respondent's coun sel with copy sent to applicants' counsel that his instructions are as follows:
(1) the Crown hereby undertakes to not issue execution upon the Warrants for Possession or take any steps to enforce same pending the decision of the Federal Court of Appeal in respect of the Section 28 Applications presently before it.
(2) the above undertaking is given upon the express conditions that:
(a) the appeal be expedited;
(b) the stay last only so long as it takes the Federal Court of Appeal to dispose of this matter.
(3) the Crown does not insist upon any other terms such as the payment of back rent.
Without expressing any doubt as to the bona fides of the section 28 application or of the inten tion of applicants to proceed with same it would appear that, to say the least, it is highly unlikely the decision will have the effect of setting aside the order of Mr. Justice Mahoney in view of the previous decision of the Court of Appeal in the case The Queen v. Bolton 12 in which the right to possession by virtue of section 35(1) of the Expro priation Act was very clearly upheld. In rendering the judgment of the Court Chief Justice Jackett stated at page 235:
The right to take physical possession of, or make use of, expropriated land under section 17(1)(c) does not, in my opinion depend upon the fact that such possession or use is, in fact, needed at that time.
Leave to appeal this case to the Supreme Court was refused by that Court.
Applicants' counsel states that he proposes to raise a new argument which was not considered by the Court of Appeal in the Bolton case, namely a constitutional one that the Crown cannot expropri ate property for a certain purpose and later change the purpose for which it is to be used. He has a right to raise this argument and it will be for the Court of Appeal to decide whether this distin guishes the present section 28 application from the Bolton case.
What the Crown was really seeking before Mr. Justice Mahoney in the present case was a deter mination that it now has the right to take posses sion. The commitment now made overcomes appli cants' apprehensions as to the legal danger of their position if the stay was refused. I would not grant the present application therefore even if I had concluded that it was within the jurisdiction of this Court to do so. The applications in all three cases will therefore be dismissed with costs, one-third of the fees being attributable to each case and the same reasons for judgment will apply in each case.
12 [1 976j 1 F.C. 232.
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