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A-397-79
James Croy, Valerie Croy, Charles Myers, Shar- ron Myers, Henry Venema, Mary Anne Venema and the Renfrew County Citizens for Nuclear Responsibility (Applicants)
v.
Atomic Energy Control Board, Ontario Hydro and Atomic Energy of Canada Limited (Respondents)
Court of Appeal, Jackett C.J., Le Damn J. and Kerr D.J.—Ottawa, September 10 and 11, 1979.
Judicial review — Jurisdiction — Motion to quash a s. 28 application which was directed against a refusal by the Atomic Energy Control Board to initiate proceedings to revoke, sus pend or amend a licence under s. 27 of the Atomic Energy Control Regulations — Respondents contend that Board's response is not a decision within the meaning of that term in s. 28 of the Federal Court Act, and, if it is a decision, it is not a decision required to be made on a judicial or quasi-judicial basis — Whether the Court has jurisdiction to hear s. 28 application — Motion allowed — Atomic Energy Control Regulations, C.R.C. 1978, Vol. III, c. 365, s. 27 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28.
Motion to quash a section 28 application which was directed against a refusal by the Atomic Energy Control Board to initiate proceedings to revoke, suspend or amend a licence under section 27 of the Atomic Energy Control Regulations pursuant to request of applicants. Section 27(3) would require the Board to form an opinion that there are reasons for the proposed action and to inform the licensee in writing of such reasons. The respondents contend that the response of the Board to the request of the applicants is not a decision within the meaning of that term in section 28 of the Federal Court Act, and alternatively, if it is a decision, it is not a decision required by law to be made on a judicial or quasi-judicial basis. The question is whether the Court has jurisdiction to hear the section 28 application.
Held, the motion is allowed. The hearing contemplated by section 27(3)(b) may only be held if the Board has first concluded that there are "reasons" for a "proposed issue of a notice" under section 27(1). Such a conclusion is, in effect, a conclusion as to whether there is a prima facie case for a section 27 (1) notice as opposed to a decision to issue such a notice. Not only is there no express requirement for a hearing before reaching such a conclusion, but it is not a matter in respect of which, such a requirement will be implied. The fact that the Board did accord what was, in substance, a "hearing" does not make the conclusion attacked a "decision" that is required "by law" to be made on a judicial or quasi-judicial basis. What is being attacked is clearly a conclusion in an
administrative matter that is not required by law to be made on a judicial or quasi-judicial basis.
APPLICATION for judicial review. COUNSEL:
A. Roman and N. J. Schultz for applicants. A. D. Gardner for respondent Ontario Hydro.
L. P. Chambers, Q.C. and L. S. Holland for Attorney General of Canada.
SOLICITORS:
The Public Interest Advocacy Centre,
Ottawa, for applicants.
Law Department, Ontario Hydro, Toronto,
for respondent Ontario Hydro.
Deputy Attorney General of Canada for
Attorney General of Canada.
The following are the reasons for judgment delivered orally in English by
JACKETT C.J.: This is a motion to quash a section 28 application on the ground inter cilia that the decision attacked thereby is a decision "of an administrative nature not required by law to be made on a judicial or quasi-judicial basis".
The decision attacked, as I understand counsel, is a decision not to accede to a request by the applicants to take action, in respect of a licence for the operation of a nuclear facility, under section 27 of the Atomic Energy Control Regulations, C.R.C. 1978, Vol. III, c. 365, which reads in part:
27. (1) Subject to subsections (2) and (3), the Board or a designated officer may, by notice in writing to the holder of any licence, revoke or suspend the licence or amend the terms and conditions thereof.
(3) The Board or a designated officer shall not issue a notice pursuant to subsection (1) unless the holder of the licence
(a) has been informed in writing of the reasons for the proposed issue of the notice and, in the case of an amend ment of the terms and conditions thereof, the proposed amendments; and
(b) has been given reasonable opportunity to be heard by the Board after receiving the information referred to in para graph (a).
The steps contemplated by this provision may be summarized as follows:
(a) a decision by the Board as to "reasons for the proposed issue of the notice" and as to the "proposed amendments", if any;
(b) communication to the licensee in writing of the "reasons" and "proposed amendments", if any;
(c) reasonable opportunity to the licensee to be heard by the Board;
(d) a decision by the Board to issue, or not to issue, a section 27(1) "notice in writing".
What is attacked by the section 28 application is, in substance, the Board's "decision" not to "hold a public hearing" (including, presumably, the "decision" not to take steps that are a condi tion precedent thereto).
In effect, as I understand it, the hearing contem plated by section 27(3)(b) may only be held if the Board has first concluded that there are "reasons" for a "proposed issue of a notice" under section 27(1). (See section 27(3)(a).) Such a conclusion is, in effect, a conclusion as to whether there is a prima facie case for a section 27(1) notice as opposed to a decision to issue such a notice. Not only is there no express requirement for a hearing before reaching such a conclusion but it is not a matter in respect of which, in my opinion, such a requirement will be implied. Compare R. v. Ran- dolph (1966) 56 D.L.R. (2d) 283, Wiseman v. Borneman [ 1971] A.C. (H.L.) 297 at page 308 and M.N.R. v. Coopers and Lybrand [ 1979] S.C.R. 495 at pages 502-503. 2
' Some of the references to the Board in this paragraph include "a designated officer".
2 See also S.E.A.P. v. Atomic Energy Control Board [1977] 2 F.C. 473 and AGIP S.p.A. v. Atomic Energy Control Board [1979] 1 F.C. 223.
In my view, the fact that, in this case, the Board did accord what was, in substance, a "hearing" does not make the conclusion attacked a "deci- sion" that is required "by law" to be made on a judicial or quasi-judicial basis. Compare Mar- tineau v. The Matsqui Institution Inmate Disci plinary Board [ 1978] 1 S.C.R. 118.
Having come to that conclusion, I do not have to consider whether what is attacked by the section 28 application is a "decision" within section 28 of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10. It is clearly a conclusion in an administrative matter that, in my opinion, is not required by law to be made on a judicial or quasi-judicial basis.'
For the above reasons, I am of opinion that the section 28 application should be quashed for lack of jurisdiction.
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' The only view suggested in argument for the conclusion in question being a "decision" within the meaning of section 28 of the Federal Court Act of a character that might affect the question whether it has to be reached on a judicial or quasi- judicial basis is as I understand it
(a) that a regulatory tribunal such as the Atomic Energy Control Board has a "common law" duty in certain circum stances to exercise a power such as that contained in section 27 of the Regulations,
(b) that such "common law" duty arises on the application of persons who have a concern or interest in the exercise of the power, and
(c) that upon an application by such persons, the regulatory tribunal has a legal power (jurisdiction) to make a binding decision as to whether the circumstances have arisen that give rise to the Board's duty to act.
On that view, so the suggestion goes as I understand it, the Board must make the decision as to whether the duty has arisen on a quasi-judicial basis because the applicants must be heard with regard thereto. The Board is, therefore, so it is suggested, subject to supervision by the Courts in deciding whether or not to exercise its section 27 powers. No authority was suggested for the wide general duty set out in paragraphs (a) and (b) supra; and I can find nothing in the Act and Regulations with which we are concerned from which to imply any such duty. This is not to say that the proposition might not, in my view, be arguable if section 27 spelled out the circumstances in which the powers contained therein are to be exercised and conferred on the Board the power to decide whether such circumstances existed.
The following are the reasons for judgment delivered orally in English by
LE DAIN J.: This is a motion to quash a section 28 application on the ground that the Court lacks jurisdiction. The section 28 application is directed against a refusal by the Atomic Energy Control Board to initiate proceedings for the revocation, suspension, or amendment of a licence under sec tion 27 of the Atomic Energy Control Regula tions, made pursuant to the Atomic Energy Con trol Act, R.S.C. 1970, c. A-19. Section 27 reads as follows:
27. (1) Subject to subsections (2) and (3), the Board or a designated officer may, by notice in writing to the holder of any licence, revoke or suspend the licence or amend the terms and conditions thereof.
(2) A notice under subsection (1) is not required if the revocation, suspension or amendment of the terms and condi tions is at the request of the holder of the licence.
(3) The Board or a designated officer shall not issue a notice pursuant to subsection (1) unless the holder of the licence
(a) has been informed in writing of the reasons for the proposed issue of the notice and, in the case of an amend ment of the terms and conditions thereof, the proposed amendments; and
(b) has been given reasonable opportunity to be heard by the Board after receiving the information referred to in para graph (a).
(4) Notwithstanding subsection (3), the Board or a desig nated officer may, by notice in writing stating the reasons therefor, suspend a licence without giving the holder thereof an opportunity to be heard, where it is considered necessary to do so in the interests of health, safety or security.
(5) Where a licence has been suspended under subsection
(4), the holder of the licence may within 10 days of the date of receipt of the notice of suspension submit a request in writing to the Board to hold an inquiry into the reasons for such suspension.
(6) On receipt of a written request referred to in subsection
(5), the Board shall
(a) hold an inquiry within 30 days of the receipt of such request; and
(b) provide the holder of the licence at least 7 days notice in writing of the time and place of the inquiry.
(7) At the conclusion of an inquiry under subsection (5), the Board may
(a) revoke the licence;
(b) revoke the suspension thereof; or
(c) extend the suspension thereof until the conditions pre scribed by the Board have been complied with.
(8) Where a licence is suspended under subsection (4) and a request has been made to hold an inquiry under subsection (5),
the licensee may at any time prior to the date for the holding of the inquiry waive the requirement for the holding of the inquiry.
The applicants in the section 28 application are persons who claim to be threatened by the opera tion of a nuclear power demonstration reactor (NPD reactor) at Rolphton in the County of Ren- frew. The reactor is operated by the respondents. The applicants contend that it is being operated in breach of the licence issued by the Board. An "application" was made on their behalf to the Board calling on the Board to "review the issuing" of the licence and for that purpose to hold a public hearing. The import of thé application was that the Board should take action pursuant to section 27 of the Regulations. This, as appears from subsection (3) of that section, would require the Board to form an opinion that there are rea sons for the revocation, suspension or amendment of the licence and to inform the licensee in writing of the reasons for the proposed action. The Board replied to the applicants by letter dated May 31, 1979 in which it expressed the following conclusion:
The Application has been considered by the Board and its staff. In view of the concern of the applicants that the NPD reactor constitutes a danger to their health and safety, the Application has been reviewed to establish whether it contained any new factual information which would indicate that the Board should take licensing action. Our conclusion is that the Application does not contain any factual information which was not considered by the Board in the course of licensing and our ongoing review of NPD. It is, therefore, the opinion of the Board that there is no compelling reason to restrict the opera tion of the NPD reactor or to hold a public hearing into the safety of the NPD reactor.
Enclosed with the Board's letter was a report prepared by the Board's staff and entitled "The History of ECCS at NPD." (The letters "ECCS" stand for Emergency Core Cooling System.) That report dated May 30, 1979, purports to review the steps taken and the conclusions reached in deter mining whether and under what conditions the reactor should be permitted to operate at full power and expresses the following conclusion:
In summary, the AECB has reviewed the ECCS at NPD. The modifications made to the reactor are, in the judgment of the Board, sufficient to limit the number of fuel failures following a postulated LOCA. Inasmuch as it meets the safety standard, by which the reactor at Rolphton was judged when it was licensed for operation, NPD is operating within the terms
of its licence. The overall risk to the public was, and is still, considered to be acceptably low.
The applicants attack this response to their "application" on grounds that are set out in the notice of their section 28 application as follows:
TAKE NOTICE THAT the Applicants hereby apply for an order pursuant to section 28 of the Federal Court Act to set aside the decision of the Respondent Atomic Energy Control Board dated May 31st, 1979 that there is no compelling reason for the Respondent Board to restrict the operation of the NPD Reactor or to hold a public hearing into the safety of the NPD Reactor or to take licensing action on the grounds that:
a) The Board erred in failing to find that the NPD Reactor is operating in violation of its operating license, the said error constituting both an error of law and a failure to exercise its jurisdiction;
b) The Board erred in deciding that it was not required to invoke its jurisdiction under section 27 of the Atomic Energy Control Regulations, SOR/74-334, to review the issuing of the NPD operating license, the said error also being an error of law;
c) The Board erred in deciding that a "compelling reason" is required to invoke the Board's jurisdiction to hold a public hearing, the said error constituting both an error of law and a failure to exercise jurisdiction;
d) The Board erred in failing to decide a matter specifically put before it, namely, a request to make public certain terms and conditions attached to the NPD operating license, the said error constituting both an error of law and a failure to exercise jurisdiction;
e) The Board erred in failing to disclose to the Applicants certain documents referred to in the Board's decision, the said error constituting a denial of natural justice;
f) The Board erred in failing to advise the Applicants if the Board had received any submissions from the Respondents Ontario Hydro and Atomic Energy of Canada Limited and the substance of any such submissions, the said error con stituting a denial of natural justice;
g) The Board erred in failing to permit the Applicants to appear before the Board prior to the making of the Board's decision, the said error constituting a denial of natural justice;
h) The Board erred in construing section 26 of the Atomic Energy Control Regulations as presenting a bar to the disclo sure of information received from the Respondents Ontario Hydro and Atomic Energy of Canada Limited with respect to the safety of the NPD Reactor without the consent of the Respondents Ontario Hydro and Atomic Energy of Canada Limited, the said error constituting an error of law.
It is the contention of the respondents in support of their motion to quash that the response of the Board to the request of the applicants is not a decision within the meaning of that term in section 28 of the Federal Court Act, and alternatively, if it is a decision, it is not a decision required by law to be made on a judicial or quasi-judicial basis. They also contended at the hearing that the applicants lacked status to bring a section 28 application, assuming the Board's response was a decision sub ject to review under that section, but this conten tion was not pressed in argument, and is clearly in my opinion without any merit.
In my view the section 28 application should be dismissed for the reason that the Board's response to the applicants' "application" was not a decision within the meaning of that section. Section 27 of the Regulations does not expressly or impliedly confer upon the applicants, however serious their interest may be, a right to obtain from the Board a decision as to whether it will initiate proceedings under that section. Whatever other recourse the applicants may have for injury caused or threat ened to them by the operation of a licensed reactor in alleged breach of the terms and conditions of the licence, they do not have the right to apply for the revocation, suspension or amendment of the licence pursuant to section 27, in the sense that the Board has a statutory duty, upon receipt of such an application, to come to a decision as to whether section 27 action should be taken. Such persons have, of course, a perfect right like other citizens to bring information to the attention of the Board which they think should be considered by the Board in determining its conduct from time to time. But any response which the Board chooses to make to such a submission as a matter of policy is not a decision which it is required to make in the exercise of its statutory authority, and as such, is not a decision within the meaning of section 28. The issue may be tested by considering whether a licensee, upon receiving written notice of the rea sons for a proposed revocation pursuant to section 27(3) of the Regulations, could at that stage attack the Board's opinion that there are such reasons, or its initiation of revocation proceedings, as a decision under section 28. A right to a deci sion arises where a statute provides that a person may apply to an administrative authority for a
decision. The fact that an authority chooses as a matter of policy to express an opinion in response to a request or submission by an interested person does not convert that expression of opinion into a decision within the meaning of section 28 when it has not been given that character by the governing statute.
In view of this conclusion I do not find it necessary to express an opinion as to whether, assuming that the response of the Board to the "application" in the present case were a decision within the meaning of section 28, it would be a decision that would be required by law to be made on a judicial or quasi-judicial basis.
I would allow the application and quash the section 28 application.
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KERR D.J. concurred.
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