Judgments

Decision Information

Decision Content

T-812-84
Le Groupe des éleveurs de volailles de l'est de l'Ontario, D. Beauchesne, J. Beauchesne, E. Guay, G. Dupont, B. Piche, M. Piche, M. Ranger, Jacques Drouin, Jeanne Drouin, P. Soucy, M. Thiele, F. Quesnel, C. Levac, F. Neveu, A. Lafleche, P. St.-Onge, B. Lalonde, M. Lamou- reux, D. Bourgon, R. Seguin, R. Bourgoie, A. Peloquin, J. C. St-Denis, C. Gravel, A. Grenier, D. Lauzon, L. Duval, Y. Duval and R. Lalonde (Applicants)
v.
Canadian Chicken Marketing Agency (Respond- ent)
Trial Division, Strayer J.—Ottawa, June 25 and August 30, 1984.
Agriculture Marketing Boards Intra and interprovin- cial trade Quotas Provincial boards establishing criteria for allotment of quotas for interprovincial or export trade Ss. 10 and 10.1 of Regulations requiring boards to issue quotas to producers having intraprovincial quotas at time marketing plan came into effect, and to producers engaged in interprovincial marketing during year prior to operation of plan Provincial Board refusing application for quotas Federal authorities not intervening Action against federal Agency and provincial Board as agent for certiorari, injunc tion, prohibition and declaration Regulations attacked as inconsistent with objects of Act, discriminatory and unreason able Procedural and jurisdictional issues raised Farm Products Marketing Agencies Act, S.C. 1970-71-72, c. 65, ss. 2(e), 6, 7, 18, 22, 23(2),(3) Canadian Chicken Marketing Quota Regulations, SOR/79-559, ss. 3, 4, 5, 6, 10, 10.1 (as am. by SOR/82-859, Schedule, s. 1), Schedule III, ss. 1, 3 (as am. idem, s. 2) Canadian Chicken Marketing Agency Proclamation, SOR/79-158, ss. 1, 5, 6 Canadian Chicken Marketing Agency Delegation of Quotas Order, SOR/79-535, s. 3.
Constitutional law Charter of Rights Mobility rights S. 6(2)(b) guaranteeing right to pursue gaining of livelihood in any province S. 6(3)(a) subjecting s. 6(2) rights to laws of general application provided not discriminating on basis of province of residence Marketing laws of general application No discrimination within s. 6(3)(a) Law Society of Upper Canada v. Skapinker, 11984] 1 S.C.R. 357 considered Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.), s. 6(2)(b),(3)(a)•
Constitutional law Charter of Rights Life, liberty and security of person Meaning of "liberty and security of person" from R. v. Operation Dismantle Inc., 119831 1 F.C. 745 (C.A.) applied S. 7 not guaranteeing substantive rights, but providing procedural protection with respect to manner of denial of rights No denial of fundamental justice in Agen- cy's refusal to hear appeal Legislation interfering with freedom of contract or to engage in trade strictly construed S. 26 not elevating common law freedoms higher than this Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.), ss. 7, 26.
Constitutional law Distribution of powers Trade and commerce Parliament's jurisdiction over trade and com merce not including intraprovincial trade and commerce Delegation of responsibility to provincial agencies for adminis tration of quota scheme regulating interprovincial trade in chicken meat Applications unable to obtain quotas Action against federal Agency and provincial Board as agent Jurisdictional issues raised Constitution Act, 1867, 30 & 31 Vict., c. 3 (U.K.) /R.S.C. 1970, Appendix II, No. 51 (as am. by Canada Act 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 1), ss. 96, 101.
Bill of rights Equality rights S. 1(b) protecting right of individual to equality before law Eastern Ontario Broiler Producers' Association obtaining amendment to Regulations enabling members to acquire quotas Regulations not amended for applicants Legislation inconsistent with s. 1(b) only if creating distinctions between different classes of individuals, having no rational relationship to valid legislative purpose Regulations reasonable and having rational rela tionship to marketing plan Regulations not requiring exclusion of others from receiving quotas Canadian Bill of Rights, R.S.C. 1970, Appendix III, s. 1(b).
Jurisdiction Provincial superior courts Supreme Court of Ontario unable to grant certiorari or mandamus against federal agency Uncertain whether provincial superior courts able to give declaration as to validy of federal regulations conflicting with Charter No reason for implied guaranteed right to issue declaration, as situation not menacing federal system or constitutional safeguards of individual rights and freedoms Attorney General of Canada et al. v. Law Society of British Columbia et al., 119821 2 S.C.R. 307 considered..
Jurisdiction Federal Court Trial Division Provin cial Board established under provincial law, not within judicial review powers of Federal Court, Trial Division Court of Appeal not proper forum as proceedings not involving func tions of judicial or quasi-judicial nature Ss. 2 and 18 giving Court exclusive jurisdiction over federal Agency, estab-
lished under federal law and exercising jurisdiction conferred under Act of Parliament Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, ss. 2, 18, 28.
Judicial review Prerogative writs Agriculture Cer- tiorari available to review delegated legislation for validity Suggestions in Martineau v. Matsqui Institution Disciplinary Board (No. 2), [19801 1 S.C.R. 602, legislative processes not subject to judicial review referring to absence of procedural requirements of fairness in legislative process Courts unable to review legislative decisions on procedural grounds Certiorari available where alleged grounds matters normally entertained by Court Certiorari inappropriate where seek ing particular interpretation of Regulations No denial of fairness in Agency's refusal to hear appeal.
Practice Stay of proceedings Application to stay proceedings, pending determination of Supreme Court of Ontario action, dismissed Lack of identity between actions and uncertainty as to availability of all remedies in Supreme Court of Ontario Respondent not party to other action and plaintiffs additionally seeking damages..
Practice Declarations Applicant seeking declaration ss. 10 and 10.1 of Regulations invalid by motion Declarato- ry relief not available by motion where respondent objecting R. 603 providing either action or motion appropriate for proceedings under s. 18, other than proceeding for declaratory relief R. 319(1) requiring specific authorization to apply to Court by motion No specific authorization, nor discretion, to permit application for declaration Parties to have advan tage of pleadings, discovery, production of documents as result of declaratory judgment similar to result if substantive relief available Canadian Chicken Marketing Quota Regulations, SOR/79-559, ss. 10, 10.1 (as am. by SOR/82-859, Schedule, s. 1), Schedule III, ss. 1, 3 (as am. idem, s. 2) Federal Court Rules, C.R.C., c. 663, RR. 319(1), 603.
Because courts have held that the jurisdiction of Parliament with respect to "the regulation of trade and commerce" does not include intraprovincial trade and commerce for the most part, and since agricultural products are commonly produced in circumstances where it is not known at the time of production whether they will be marketed inside or outside the province, it has been found desirable to combine powers deriving from both federal and provincial laws with respect to the marketing of such products in one integrated system of regulation.
Parliament has provided a means for the regulation of inter- provincial and international trade in certain commodities and
has authorized the delegation of the administration of such regulatory schemes to provincial agencies.
The Canadian Chicken Marketing Agency was established by proclamation on December 28, 1978, together with the marketing plan that the Agency was to administer. The Procla mation defines "quota system" as a system established by the Agency, by which a Board, pursuant to a delegation from the Agency, allots quotas to chicken producers thus enabling the Board to determine the quantity in which chickens may be marketed in interprovincial or export trade.
The Canadian Chicken Marketing Agency delegated to the Ontario Chicken Producers' Marketing Board the power to allot quotas to Ontario producers with respect to chicken to be sold in interprovincial and export trade.
Section 10 of the Canadian Chicken Marketing Quota Regulations provides that producers in operation at the time the plan came into effect should be automatically entitled to an interprovincial and export quota if they had, at that time, an intraprovincial quota. The Regulations were amended in Sep- tember 1982 by the addition of section 10.1 and Schedule III. Section 10.1 required the allotment of an interprovincial quota to certain producers who had been engaged in interprovincial marketing even though they did not have an intraprovincial quota from the provincial Board, during the year prior to the coming into operation of the marketing plan.
With respect to new producers, the Board may either allot such quotas on the same basis as that on which intraprovincial quotas are allotted or resort to some other criteria.
In November 1982 the applicants sought a quota stating that they "presently produce broiler chickens and will be in a position to produce as of December 31, 1982". Apparently they were not engaged in the production or interprovincial market ing of chicken during the qualifying period, nor were they truly engaged in interprovincial marketing of chicken prior to July, 1983. They had been producing for some months prior to that and had been nominally selling to a Montreal firm, but the chickens were destined to an Ontario processor. The chickens never left Ontario and the "sale" through the Montreal firm was only a paper transaction.
The applicants applied individually in January 1983 for an interprovincial quota, but their applications were refused for failing to provide evidence of marketing chicken in interprovin- cial trade during the qualifying period. The Board refused to hear an appeal as it had no authority to "go beyond the legislation". As a result of a meeting between the executive committees of the Canadian Chicken Marketing Agency and the National Farm Products Marketing Council, it was agreed that any individual applicant might apply to the Agency for a review of his application. The applicants as a group requested a hearing to establish the production in the years preceding 1978, but the Agency refused to act on this request because it was not a request for a hearing on an individual basis, was not directed to interprovincial trade, and related to production in the period 1965-1978 which was beyond the Agency's mandate.
The applicants raised the following issues: (1) the Agency wrongly refused to entertain an appeal from the applicants (2) sections 10 and 10.1 of the Canadian Chicken Marketing Quota Regulations are invalid because not authorized by the Farm Products Marketing Agencies Act (3) the Regulations are constitutionally invalid for conflict with paragraph 6(2)(b) of the Charter, which guarantees the right to pursue the gaining of a livelihood in any province (4) the Regulations are invalid because they conflict with section 7 of the Charter guaranteeing the right to life and liberty, and (5) the Regula tions must be construed and applied consistently with para graph 1(b) of the Canadian Bill of Rights. The relief sought on this motion includes a declaration, certiorari, prohibition, and injunction.
As a preliminary matter the respondent objected to the proceeding on the basis that essentially it was a request for a declaration, with other forms of relief being incidental thereto. A proceeding for declaration should be commenced by action and not by motion. The respondent also contends that these proceedings should be stayed pending the determination of a Supreme Court of Ontario action against the Board, claiming inter alla, damages in tort and damages pursuant to section 31.1 of the Combines Investigation Act. The respondents also claim that the Federal Court, Trial Division does not have jurisdiction under section 18 of the Federal Court Act over the Board, which was established under provincial law.
Held, the application should be dismissed.
Declaratory relief cannot be obtained by motion, at least where the respondent objects thereto. Rule 603 provides that either an action or a motion may be used for proceedings under section 18, other than a proceeding for declaratory relief. The wording of Rule 319(1) means that there must be specific authorization to apply to the Court by motion. There is no specific authorization for a declaration to be sought by applica tion, nor is there discretion to allow declarations to be sought by way of motion. The practical result of a declaratory judg ment ought to be much the same as if substantive relief were available, and therefore the parties ought to have the advantage of pleadings, discovery and production of documents.
These proceedings should not be dismissed in their entirety nor stayed as they involve in part judicial review of a federal Board, the Canadian Chicken Marketing Agency, established under federal law and exercising or purporting to exercise jurisdiction conferred under an Act of Parliament. Section 18 of the Federal Court Act grants the Trial Division of the Federal Court exclusive original jurisdiction against such a board. Superior courts such as the Supreme Court of Ontario cannot grant certiorari or mandamus against a federal agency. The Supreme Court of Ontario might not be able to give the
declaration requested as to the validity of federal regulations but in this Court such a declaration can clearly be made. Even if the Attorney General of Canada et al. v. Law Society of British Columbia et al., [1982] 2 S.C.R. 307 applies so as to ensure the Supreme Court of Ontario the power to make a declaration as to conflicts between regulations made by federal boards and the Charter, it is doubtful that the principle can be carried beyond that so as to authorize judicial review of the acts of a federal agency in the form of a declaration that its regulations, though within federal jurisdiction were not author ized by Parliament. There is no reason for an implied guaran teed right of the provincial superior courts to issue such a declaration as the situation does not menace the federal system or constitutional safeguards of individual rights and freedoms. A provincial superior court may determine whether a federal regulation is valid where it is relevant to a cause of action and to parties within the court's jurisdiction and if otherwise the court would have to give effect to an invalid regulation. But that is a different matter from making a declaration in a proceeding brought solely for that purpose. The stay is also refused because the parties and issues in the two actions differ.
Since it is not definite that the proceedings involved functions of a judicial or quasi-judicial nature, it was correct to proceed under section 18 of the Act.
The Court does not have jurisdiction to grant relief against or review the decision of the Ontario Board.
The Court heard evidence relating to the legal nature of the "appeal" to the Agency and the conduct by the Agency of such proceeding, to the validity of the statutory instruments, and to any possible violations by the Agency of rights under section 6 or 7 of the Charter.
The Agency was prepared to hear appeals by way of individual hearings with respect to any applicant. It has no power to allot individual quotas nor to change such allotment. It can only establish a system by which quotas are allotted to producers by the provincial boards. There is no specific require ment for the Agency to hear appeals from Board decisions nor is there any power in the Agency to direct a board to alter an allotment. At most, an informal practice has developed where by the Agency will hear representations and make suggestions or recommendations to a provincial Board.
There is no basis for a complaint of denial of fairness in the fact that the Agency has not conducted a general inquiry into the production of chickens in Eastern Ontario. What the appli cants want is a change in the Regulations that would entitle them to quotas for interprovincial marketing. This would involve a legislative process. The requirements of fairness do not apply to an essentially legislative process. Therefore there is no basis for an order against the respondent as to its procedure with respect to an appeal.
The validity of the Regulations was considered, even though a declaration was not obtainable, because in principle certiorari
should be available to review delegated legislation for validity. The suggestions in Martineau v. Matsqui Institution Discipli nary Board (No. 2), [1980] 1 S.C.R. 602 that legislative processes may not be subject to judicial review refer to an absence of procedural requirements of fairness in the legislative process, resulting in a lack of ability in the courts to review legislative decisions on procedural grounds. Certiorari should be available where grounds are alleged that a court can normal ly entertain, such as lack of jurisdiction (statutory or constitu tional). An injunction would not be appropriate against the respondent because there is no proof that it is taking steps to enforce these Regulations.
The applicants contend that sections 10 and 10.1 of the Regulations are inconsistent with the Act. By section 22 of the Act, the objects of the Agency are "to promote a strong, efficient and competitive production and marketing industry" and "to have due regard to the interests of producers and consumers". By the terms of a federal-provincial agreement, the parties endorsed a policy "to work towards minimizing quota values". The applicants contend that the system created by the Regulations eliminates competition, has little regard for consumer interests, and has the effect of making quotas expen sive commodities: a new producer can only acquire a quota by purchasing a property with respect to which a quota has been issued in the past, the purchase price strongly reflecting the value of the quota. It is doubtful that inconsistency with a federal-provincial agreement would be a basis for attacking the validity of the Regulations.
The Regulations do not represent a restriction on the number or kinds of producers who may be given quotas by a provincial board. Rather, they guarantee that certain producers will be allotted a quota. The Regulations do not preclude allotments for interprovincial and export trade beyond the ones required by sections 10 and 10.1. Section 4 of the Regulations, which provides that no producer shall market chicken in interprovin- cial or export trade unless a quota has been allotted, means that a producer must obtain an allotment from the provincial Board even for marketing outside the province. It does not mean that a producer must have a quota for intraprovincial marketing in order to obtain a quota for marketing outside the province.
On this interpretation, the Regulations are not inconsistent with the statute (section 22), nor are they discriminatory or unreasonable. It seems quite rational at the commencement of a marketing plan to preserve the marketing rights of those who have demonstrated that they are genuine and competent pro ducers. The exercise of the provincial Board's discretion is not under review. However, in adopting the Regulations, and then leaving the measure of discretion which it has to the provincial Board with respect to allotment of quotas, the Agency has acted reasonably and in a manner consistent with the objects of the Act.
The applicants argue that they are being denied the right to gain a livelihood in Quebec by selling their chickens there.
They contend that the right protected under paragraph 6(2)(b) does not require, for its enjoyment, that one move to the province where one wishes to make a livelihood. The Supreme Court of Canada, in Law Society of Upper Canada v. Skapink- er, [1984] 1 S.C.R. 357, held that paragraph 6(2)(b) does not create a right to gain a livelihood in one's own province independent of some element of interprovincial movement. The Skapinker case does not precisely cover the situation here where producers resident in Ontario are prevented from gaining a livelihood in Quebec through selling chickens there, even though they may never have occasion to go there to carry on business in that Province. It is not clear whether, to be con sistent with Skapinker, paragraph 6(2)(b) can be applied to protect those who simply wish to sell their products in another province without physically going there.
Under paragraph 6(3)(a), restrictions may be imposed on the right set out in paragraph 6(2)(b) by laws of general applica tion so long as said laws do not discriminate "among persons primarily on the basis of province of present or previous residence". The marketing laws here in question are laws of general application. With specific reference to the quota system, they do not discriminate against anyone on the basis of his province of present or previous residence. To the extent that they prevent anyone who was not engaged in interprovincial marketing or did not have an intraprovincial quota, immediate ly prior to December 28, 1978, they restrict equally persons not so qualified, whether they are or were residents of Ontario. Nor can it be said that the applicants are barred from selling in Quebec simply because they are residents of Ontario. Rather, it is because they do not have any interprovincial quota, and those quotas have been issued without any reference to the residence of the producer. There is no conflict with section 6 of the Charter.
The applicants contend that "liberty" in section 7 of the Charter includes freedom of contract which has allegedly been denied to them by the impugned Regulations. The American cases dealing with the guarantee of "liberty" found in the Fourteenth Amendment are not particularly helpful as there "liberty" is referred to in association with "due process".
There are no substantive rights guaranteed by section 7. Its purpose is to provide procedural protection with respect to the manner of denial of those rights.
There was no denial of fundamental justice arising out of the Agency's supposed refusal to hear an appeal for reasons previ ously stated.
The applicants seek to elevate to a right recognized by section 26 of the Charter, the common law approach to free dom of contract and freedom to engage in a trade. The common law approach has never been that statutes or regulations inter fering with these freedoms were invalid. Rather such freedoms have been, in areas not regulated by statute, recognized to the extent that the courts would not uphold certain kinds of contracts unduly interfering with them. In areas regulated by legislation, there has been a tendency to construe strictly statutes interfering with freedom of contract or freedom to
engage in trades, but the "common law principles" can be put no higher than that.
The applicants complain that they have been treated differ ently from the way in which members of the Eastern Ontario Broiler Producers' Association were treated. Section 10.1 was added to the Regulations as a result of this Association's request for quotas. Thus, other producers obtained an amend ment enabling them to obtain quotas, whereas they have not been amended to enable the applicants to do so.
A statute or regulation would be inconsistent with paragraph 1(b) of the Canadian Bill of Rights only if it creates distinc tions between different classes of individuals which have no rational relationship or purpose. The Regulations are reason able and have a rational relationship to the launching of the marketing plan. The Regulations do not require the exclusion of other persons from receiving allotments, and if such persons as the applicants have been excluded, that is the responsibility of the provincial Board which is not a party in this Court.
If there was an inconsistency between the Regulations and the Canadian Bill of Rights, certiorari may not be an appropri ate remedy because all that is required is a particular interpre tation of the Regulations, and not a quashing of the Regulations.
CASES JUDICIALLY CONSIDERED
APPLIED:
Sherman & Ulster Ltd. v. Commissioner of Patents and Industrial Chemical Industries Ltd. (1974), 14 C.P.R. (2d) 177 (F.C.T.D.); Martineau v. Matsqui Institution Disciplinary Board (No. 2), [1980] 1 S.C.R. 602; R. v. Operation Dismantle Inc., [1983] 1 F.C. 745 (C.A.); deMercado v. The Queen et al., judgment dated March 19, 1984, Federal Court, Trial Division, T-2588-83, not yet reported.
NOT FOLLOWED:
Re Williams and Attorney-General for Canada et al. (1983), 6 D.L.R. (4th) 329 (Ont. Div. Ct.).
CONSIDERED:
National Parole Board v. MacDonald, [1'976] 1 F.C. 532 (C.A.); Attorney-General for Manitoba v. Manitoba Egg and Poultry Association et al., [19711 S.C.R. 689; Attor ney General of Canada et al. v. Law Society of British Columbia et al., [1982] 2 S.C.R. 307; Law Society of Upper Canada v. Skapinker, [1984] 1 S.C.R. 357.
REFERRED TO:
"B" v. Department of Manpower & Immigration, [1975] F.C. 602 (T.D.); Alexandre v. Minister of Employment & Immigration, judgment dated May 15, 1984, Federal Court, Trial Division, T-675-84, not yet reported; Lodge v. Minister of Employment and Immigration, [1979] 1 F.C. 775 (C.A.), 94 D.L.R. (3d) 326; C.P. Transport Co. Ltd. v. Highway Traffic Bd., [1976] 5 W.W.R. 541
(Sask. C.A.); Re Bicknell Freighters Ltd. and Highway Transport Board of Manitoba (1977), 77 D.L.R. (3d) 417 (Man. C.A.); Carruthers v. Therapeutic Abortion Committees, [1983] 2 F.C. 581; 6 D.L.R. (4th) 57 (C.A.); Canada Labour Relations Board et al. v. Paul L'Anglais Inc. et al., [1983] 1 S.C.R. 147; Bates v. Lord Hailsham of St. Marylebone, [1972] 1 W.L.R. 1373 (Ch.D.); Attorney General of Canada v. Inuit Tapirisat of Canada et al., [1980] 2 S.C.R. 735; New Brunswick Broadcasting Co., Limited v. Canadian Radio-television and Telecommunications Commission, [1984] 2 F.C. 410 (C.A.); Re Bedesky et al. and Farm Products Marketing Board of Ontario et al. (1975), 8 O.R. (2d) 516 (Div. Ct.); Latham v. Solicitor General of Canada, [1984] 2 F.C. 734 (T.D.); MacKay v. The Queen, [1980] 2 S.C.R. 370.
COUNSEL:
E. Binavince and R. Lunau for applicants.
F. Lemieux and P. J. Wilson for respondent. T. B. Smith, Q.C. and M. Kinnear for interve- nant (Attorney General of Canada).
SOLICITORS:
Cowling & Henderson, Ottawa, for appli cants.
Herridge, Tolmie, Ottawa, for respondent. Deputy Attorney General of Canada for intervenant (Attorney General of Canada).
The following are the reasons for order ren dered in English by
STRAYER J.: Relief Requested
This is an application for various forms of relief which cannot be readily summarized and are therefore quoted in full as follows:
(a) an order declaring that Sections 10 and 10.1 of the Canadian Chicken Marketing Quota Regulations, as amended, ("the Regulations") enacted by the Respond ent are invalid in that:
(i) they are not within the authority of the Respondent as established by the Farm Products Marketing Agencies Act, S.C. 1970-1971 c. 65;
(ii) they are inconsistent with the Constitution of Canada, particularly Sections 6(2)(b) and 7 of the
Canadian Charter of Rights and Freedoms;
(b) an order quashing:
(i) the decision of the Ontario Chicken Producers' Marketing Board, acting as agent of the Respond ent, denying the application of the Applicants for interprovincial and foreign marketing quota; and
(ii) the decision of the Respondent refusing to entertain an appeal from the decision of the Ontario Chicken Producers' Marketing Board referred to in (b)(i) above,
in that both decisions, by relying on Sections 10 and 10.1 of the Regulations and by reason of the breach of the duty of fairness by the Respondent and by the Ontario Chicken Producers' Marketing Board, in their consideration of the application for interprovincial and foreign quota and of the request for appeal, are invalid on the grounds, among others, mentioned in paragraphs (a)(i) and (a)(ii), above;
(c) an order prohibiting the Respondent from applying or otherwise acting upon, or from directing or causing its agent the Ontario Chicken Producers' Marketing Board to apply or otherwise act upon, Sections 10 and 10.1 of the Regulations in considering and deciding upon the applications for interprovincial and foreign quota of the Applicants;
(d) an order
(i) permanently enjoining the Respondent, its officers, servants, agents and any other person who shall have knowledge of the order from interfering, in any manner, with the enjoyment by the Applicants of their right to pursue the gaining of a livelihood in any province, pursuant to Section 6(2)(b), and their right to life and liberty, pursuant to Section 7, of the Canadian Charter of Rights and Freedoms, particularly with the operation of their business of producing and marketing broiler chickens in inter- provincial and foreign commerce;
or, alternatively,
(ii) directing the Respondent or its agent, the Ontario Chicken Producers' Marketing Board, to make an immediate grant of quota to the Applicants to produce eight million (8,000,000) pounds of broiler chicken in Ontario and to market such broiler chickens in Quebec, elsewhere in Canada and for eign countries;
(e) such remedy, in the nature of the above or otherwise, deemed by the Court as appropriate and just in the circumstances pursuant to Section 24 of the Canadian Charter of Rights and Freedoms.
At the outset counsel for the respondent raised several objections with respect to the procedures being employed by the applicants and to the juris diction of the Court to give the relief requested.
Availability of Declaration on Motion
First, the respondent objected to the whole pro ceeding on the basis that essentially it was a request for a declaration, with other forms of relief being merely incidental thereto. As a proceeding for a declaration, it should have been commenced as an action and not as a motion. The applicants contended that by section 18 of the Federal Court Act [R.S.C. 1970 (2nd Supp.), c. 10], which gives the Trial Division exclusive original jurisdiction to grant declaratory relief, this Division has its juris diction by statute which it can exercise in any proceeding. To the extent that the jurisprudence of this Court has indicated in the past that such relief cannot be obtained by way of motion, the appli cants argued that it could be distinguished and if not was wrong. I ruled that declaratory relief could not be obtained by way of a motion, at least where the respondent objects thereto. While the Trial Division no doubt has statutory jurisdiction to grant declaratory relief, it is obliged to follow the Rules of Court [Federal Court Rules, C.R.C., c. 663] until those Rules are changed. Rule 603 provides that:
Rule 603. Proceedings under section 18 of the Act for any of the relief described therein, other than a proceeding against the Attorney General of Canada or a proceeding for declaratory relief, may be brought either
(a) by way of an action under Rule 400; or
(b) by way of an application to the Court under Rules 319 et seq. [Emphasis added.]
Thus Rule 603 does not give one a choice of using either an action or a motion for the purpose of obtaining a declaratory order. Admittedly, Rule 603 does not specify which procedure is to be used for obtaining such an order. However, Rule 319(1) provides that "Where any application is author ized to be made to the Court, a judge or a pro- thonotary, it shall be made by motion" (emphasis added). This means that there must be specific authorization to do so before an application may be made to the Court by motion. I have been unable to ascertain any specific authorization for a declaration to be sought in this Court by way of an
application. It is to be noted that in Sherman & Ulster Ltd. v. Commissioner of Patents and Industrial Chemical Industries Ltd. (1974), 14 C.P.R. (2d) 177 (F.C.T.D.), at page 180, Mahoney J. held that a declaration could not be sought by way of application. See also the judg ment of Addy J. in `B" v. Department of Man power & Immigration, [1975] F.C. 602 (T.D.) at pages 606, 621-622; and of Dubé J. in Alexandre v. Minister of Employment and Immigration (judgment dated May 15, 1984, Federal Court, Trial Divison, T-675-84, not yet reported). It is my understanding of its judgment that the Court of Appeal in National Parole Board v. MacDonald, [1976] 1 F.C. 532, at pages 533-534 confirmed that such a procedure would be "inappropriate" although in that case they proceeded to deal with an appeal involving such a procedure because at that point neither party was relying on procedural error and both wanted to have an appeal judgment on the merits.
This requirement of an action for a declaration is not merely a procedural technicality. I agree respectfully with the views of Mahoney J. in the Sherman & Ulster Ltd. case, supra, where at page 180 he explained the rationale: that the practical result of obtaining a declaratory judgment ought to be much the same as if substantive relief were available, and therefore the procedure for obtain ing the one should be similar to that for obtaining the other. That is, the parties ought to have the advantage of pleadings, discovery, production of documents, etc. In my view, it might well be appropriate for the Court to have a discretion in appropriate cases to allow declarations to be sought by way of motion, but I do not find any discretion to do so under the present rules.
I therefore held that the relief sought in para graph (a) of the notice of motion as quoted above could not be had in this proceeding. I dismissed
that part of the motion without prejudice to the right of the applicants to seek a similar remedy by way of an action if they chose to do so. At the same time I declined to dismiss the rest of the application at that stage because it appeared to me that prima facie the other remedies sought could stand on their own and were not dependent on the issuance of an order declaring the Canadian Chicken Marketing Quota Regulations [SOR/79- 559] to be invalid. That is, it appeared to me that many of the issues that would be involved in making such a declaration could equally be addressed in relation to the other remedies.
Objections to Jurisdiction and Remedies; Request for Stay
Counsel for the respondent then raised several other objections to the jurisdiction of the Court and to the remaining aspects of the application being heard at this time. These objections for the most part arise out of the rather complex joint federal-provincial arrangements which it has been necessary to develop in this country in the field of marketing of natural products in order to avoid certain constitutional rigidities. Briefly put, because the courts have held that the jurisdiction of Parliament with respect to "The Regulation of Trade and Commerce" does not include intrapro- vincial trade and commerce for the most part, and since agricultural products are commonly pro duced in circumstances where it is not known at the time of production whether they will be mar keted inside or outside the province, it has been found desirable to combine powers deriving from both federal and provincial laws with respect to the marketing of such products in one integrated system of regulation. Such a system is involved in the present case.
While the constitutional parameters of such joint marketing schemes have now become reason ably well defined, the procedural and jurisdictional issues involved in the present proceedings raise associated questions which have not been as fully explored. What is involved here at the outset are the roles of the Federal Court and of provincial superior courts in the exercise of supervisory powers over administrative agencies engaged in the administration of these interlocking federal and provincial laws for the establishment of joint mar-
keting schemes. Consequently, problems arise as to the proper interpretation of sections 96 and 101 of the Constitution Act, 1867, 30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5] (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 1).
The Farm Products Marketing Agencies Act, S.C. 1970-71-72, c. 65, was adopted by Parliament in 1972. It was in part a legislative response to the regulatory and constitutional problems illustrated by the so-called "chicken and egg war" of the late 1960's and early 1970's. This "war" involved attempts by certain provinces to protect their own producers of chickens or eggs by limiting or pre venting importation of the surplus production in such commodities from other provinces. The Supreme Court of Canada in Attorney-General for Manitoba v. Manitoba Egg and Poultry Asso ciation et al., [1971] S.C.R. 689 held that prov inces could not, for the purpose of protecting their own producers, restrict importation of such prod ucts from other provinces as this amounted to "a regulation of trade and commerce" which is a matter assigned to Parliament involving, as it does, interprovincial trade.
The Farm Products Marketing Agencies Act provides, inter alia, for the establishment of a National Farm Products Marketing Council, to be appointed by the Governor in Council. The duties of the Marketing Council, as set out in section 6 of the Act, include that of advising the Minister with respect to the establishment and operation of "agencies". By section 7 the Council is supposed to consider requests for the establishment of an agency in respect of the marketing of a farm product and also to recommend terms of a "mar- keting plan" to be administered by that agency. By paragraph 2(e) of the Act, "marketing plan" is defined as:
2.
(e) . . . a plan relating to the promotion, regulation and control of the marketing of any regulated product in inter- provincial or export trade that includes provision for all or any of the following:
(iii) the marketing of the regulated product on a basis that enables the agency that is implementing the plan to fix and determine the quantity, if any, in which the regulated product or any variety, class or grade thereof may be marketed in interprovincial or export trade by each person engaged in such marketing thereof and by all persons so engaged, ...
By section 17 of the Act the Governor in Council is authorized to establish such agencies by procla mation and by section 18 such proclamation is to set out the terms of the marketing plan that the agency is empowered to implement. By subsection 18(3) it appears that, notwithstanding the general language employed earlier in the Act, the Gover nor in Council can confer on an agency the power to determine the quantity in which a regulated product can be marketed in interprovincial or export trade only if that product is eggs or poultry.
Section 23 of the Act sets out a number of the objects and powers of such agencies. Subsections (2) and (3) are of particular significance for present purposes. They provide as follows:
23. ...
(2) An agency may perform on behalf of a province any function relating to intraprovincial trade in any regulated product in relation to which it may exercise its powers that is specified in an agreement entered into pursuant to section 32.
(3) An agency may, with the approval of the Governor in Council, grant authority to any body, authorized under the law of a province to exercise powers of regulation in relation to the marketing locally within the province of any regulated product in relation to which the agency may exercise its powers, to perform on behalf of the agency any function relating to interprovincial or export trade in the regulated product that the agency is authorized to perform.
Thus, provision is made for interdelegation of administrative powers, either from the province to the federal agency as in subsection 23(2), or from the federal authority to a provincial agency as in subsection 23(3). It is the latter subsection which has been employed in the present case.
On December 28, 1978, the Governor in Council approved the signature by the Minister of Agricul ture of a federal-provincial agreement, entered into with most of the provinces, which had endorsed a marketing plan for chickens. On the same day the Canadian Chicken Marketing
Agency Proclamation, SOR/79-158 was adopted by the Governor in Council. It purports to be made under subsection 17(1) of the Act and establishes both the Canadian Chicken Marketing Agency and the marketing plan (as approved by the signa tory provinces) which the Agency is to administer. The term "Commodity Board" is defined by sec tion 1 of the Proclamation to include, in Ontario, the Ontario Chicken Producers' Marketing Board, which is the Board referred to in the applicants' notice of motion here in. The term "quota system" is defined as:
5....
... a system established by the Agency by which a Board or Commodity Board, pursuant to a delegation from the Agency, allots quotas to chicken producers thus enabling the Board or Commodity Board to fix and determine the quanti ty, if any, in which chickens of any variety, class or grade may be marketed in interprovincial or export trade.
Similarly, section 6 provides for the quota system which is to obtain under the marketing plan that the Agency is to administer. Subsection 6(1) pro vides as follows:
6. (1) The Agency shall, by order or regulation, establish a quota system for the regulated area by which quotas are allotted to all members of classes of chicken producers in each province to whom quotas are allotted by the appropriate Board or Commodity Board.
Subsection 6(4) requires the Agency, in establish ing the quota system, to allot quotas to each province in such a way that the quota for a given province shall equal the amount of chicken meat produced and sold within the province, plus the amount of chicken meat which may be produced and sold outside the province in interprovincial and export trade, plus chicken meat produced in the province which is not subject to quota. Subsection 6(5) of the Proclamation proceeds to fix the pro vincial quotas in specific numbers of pounds and kilograms, province by province. There have been several amendments to this Proclamation which I think do not affect the present situation.
Subsequent to the issuance of this Proclamation, the Governor in Council approved on July 19, 1979 the Canadian Chicken Marketing Agency Delegation of Quotas Order, SOR/79-535, which
had been made by the Agency and approved by the Council. Section 3 of this Order provides as follows:
3. Subject to and in accordance with any regulations made by the Agency , the Agency hereby authorizes each Commodity Board in respect of a province to allot, on behalf of the Agency, quotas in interprovincial and export trade to producers in the province and, for such purposes, to exercise all or any powers like the powers exercisable by such Commodity Board in relation to the marketing of chicken locally within the province.
Thus the Agency, with the approval of the Council and the Governor in Council, pursuant to subsec tion 23(3) of the Act delegated to, inter alia, the Ontario Chicken Producers' Marketing Board the power to allot quotas to producers in Ontario with respect to chicken to be sold in interprovincial and export trade.
Further, the Agency with the approval of the Council adopted on July 30, 1979 the Canadian Chicken Marketing Quota Regulations, SOR/79- 559. These Regulations provide inter alia as follows:
4. No producer in a province that is a regulated area shall market chicken in interprovincial or export trade unless a quota has been allotted to that producer by the Commodity Board of that province.
5. A Commodity Board in respect of a province shall allot quota in interprovincial and export trade to producers in that province and may, for such purposes, exercise all or any powers like the powers exercisable by it in relation to the marketing of chicken locally within that province.
6. A quota may be allotted to a producer in a province upon the like terms and conditions and in the like manner as a quota is allotted in relation to the marketing of chicken locally within that province.
10. The Commodity Board in respect of a province shall authorize any producer in that province to market chicken in interprovincial and export trade if, on or before December 28, 1978, he was, and since that day has continued to be, author ized by that Commodity Board to market chicken locally within that province.
The Regulations were amended by the Agency, with the approval of the Council on September 14, 1982, by SOR/82-859 [s. 1]. These amendments include the following:
10.1 Notwithstanding section 10, where, on or before Decem- ber 28, 1978, the Commodity Board of a province was author ized, pursuant to subsection 2(1) of the Agricultural Products Marketing Act, to regulate the marketing of chicken, that Commodity Board shall authorize a producer in that province
to market chicken in interprovincial trade, subject to and in accordance with the provisions of Schedule III, if
(a) on or before December 28, 1978, the producer was not authorized by that Commodity Board to market chicken locally within that province; and
(b) the producer engaged in the marketing of chicken in interprovincial trade during the qualifying period as defined in section 1 of Schedule III.
In section 1 of the new Schedule III referred to in section 10.1, there is the following definition:
1. ...
"qualifying period" means the period commencing on the 28th day of December, 1977 and ending on the 27th day of December, 1978;
Section 3 of Schedule III further provides:
3. ...
(2) A Commodity Board shall not issue a basic broiler quota to an applicant therefore unless the Commodity Board has verified the information contained in the application and the applicant makes available to it such books and records as may be necessary to enable the Commodity Board to verify the quantity of broiler chicken produced and marketed in interpro- vincial trade during the qualifying period from the registered premises of the applicant.
While it may be necessary to consider other aspects of the legislation and statutory instru ments, the foregoing provide the essential frame work of the scheme and will explain the jurisdic tional issues raised by the respondent. This framework reveals that Parliament has provided a means for the regulation of interprovincial and international trade in certain commodities, and has authorized the delegation of the administration of such regulatory schemes to provincial agencies. Further, it appears such a delegation has been made with respect to, inter alia, the allotment of quotas in interprovincial and export trade in chick en meat to Ontario producers thereof. The federal Regulations require that such a producer have a quota allotted by the Ontario Chicken Producers' Marketing Board in order to sell in interprovincial or export trade. Section 6 of the Regulations permit, but do not require, the provincial Board to allot interprovincial and export quotas on the same basis as intraprovincial quotas. However, section 10 does require that, vis-à-vis producers in opera tion at the time the plan came into effect, they should be automatically entitled to an interprovin- cial and export quota if they had, at that time, an intraprovincial quota. The amendment, section 10.1 of the Regulations, further requires the allot-
ment of an interprovincial quota to certain pro ducers who had been engaged in interprovincial marketing, even though they did not have an intra- provincial quota from the provincial Board, during the year prior to the coming into operation of the marketing plan. This was frequently referred to as a "grandfather clause" during argument.
It appears to me from the foregoing that the provincial Board, while required to grant interpro- vincial or interprovincial and export quotas to certain specified classes of producers in operation before the coming into force of the plan, may with respect to new producers either allot such quotas on the same basis as that on which intraprovincial quotas are allotted or resort to some other criteria. The essential complaint of the applicants herein is that they have not been able to bring themselves within any of the categories to which the provin cial Board is required by federal Regulations to grant interprovincial or export quotas. They say that they have engaged, and want to engage, in interprovincial and possibly export trade but have been denied quotas to do so by the provincial Board. They further say that notwithstanding sub missions to the federal Agency and the National Farm Products Marketing Council, these federal authorities have not taken steps to see that such quotas are issued in interprovincial or export trade. Hence these proceedings against the Agency in which relief is sought both with respect to activi ties of the Agency and with respect to activities of the provincial Board which, according to the appli cants, is simply an agent of the federal Agency.
As noted earlier counsel for the respondent took several further objections to the procedures being employed and the jurisdiction of the Court. First, while conceding that Rule 603 permits the obtain ing of an injunction by application without the necessity of an action, this apparently having been implicitly confirmed by the Court of Appeal in Lodge v. Minister of Employment and Immigra-
tion, [1979] 1 F.C. 775 at page 783; 94 D.L.R. (3d) 326, at page 333, he says that it is not appropriate in a case such as the present to grant a permanent injunction without a full trial of the facts by way of an action. I think I need not consider this objection further at this point. In my view it is necessary first to see if there is any legal basis for issuing an injunction and then consider whether judicial discretion should nevertheless be exercised against its issuance.
Further, the respondent objected that to the extent that the remaining relief still in issue at this point (i.e., everything except the declaration requested in paragraph (a)) is sought against the Ontario Chicken Producers' Marketing Board, such relief is beyond the jurisdiction of this Court to give. He relied on section 18 of the Federal Court Act which essentially gives the Trial Divi sion jurisdiction to give relief against a "federal board, commission or other tribunal". Section 2 of that Act defines "federal board, commission or other tribunal" in such a way as to include bodies exercising powers conferred by or under an Act of Parliament but not including such bodies if they are "constituted or established by or under a law of a province". The Ontario Chicken Producers' Marketing Board, it was agreed on all sides, is established under provincial law and therefore does not come within the judicial review powers of the Federal Court, Trial Division. Counsel for the respondent cited in support of this conclusion the following cases: C.P. Transport Co. Ltd. v. High way Traffic Bd., [1976] 5 W.W.R. 541 (Sask. C.A.); Re Bicknell Freighters Ltd. and Highway Transport Board of Manitoba (1977), 77 D.L.R. (3d) 417 (Man. C.A.). See now also Carruthers v. Therapeutic Abortion Committees, [1983] 2 F.C. 581; 6 D.L.R. (4th) 57 (C.A.) (leave to appeal refused by S.C.C. Feb. 2, 1984).
Finally, the respondent contended that in any event I ought to stay the present proceedings in the Federal Court pending the determination of a proceeding commenced by the applicants herein in the Supreme Court of Ontario. This is an action commenced on January 23, 1984, approximately three months before the present motion was filed
in the Federal Court. While the plaintiffs in that action appear to be the same as the applicants herein, the respondent before me is not a party to that action. Instead the defendants in that action include the Ontario Chicken Producers' Marketing Board, La Fédération des producteurs de volailles du Québec, (referred to hereinafter as "Volbec") and a number of individuals. While there is some similarity in the relief sought, in that the plaintiffs in that action also seek an order requiring the issue to them of quotas by the provincial Board and an injunction preventing interference with their pur suit of a livelihood through the sale of chicken meat outside the province, they also seek damages in tort and damages pursuant to section 31.1 of the Combines Investigation Act [R.S.C. 1970, c. C-23 (as am. by S.C. 1974-75-76, c. 76, s. 12)]. In addition they seek declarations as to invalidity, not only of regulations or orders of the provincial Board but also of
any applicable orders, regulations, statutes made by or pursu ant to the authority of the provinces of Ontario and Quebec and of Canada or the prerogative of the Crown ... supporting the unlawful actions of the defendants
as being inconsistent with the Constitution. Appar ently a statement of defence has now been filed in that action. The plaintiffs therein had applied for an interlocutory injunction in February and on June 28, 1984 Callon J. dismissed that application. While he considered that there is a substantial issue to be tried he did not think it an appropriate case in which to issue an interlocutory injunction prior to the trial and disposition of the action.
The respondent contended that the action in the Supreme Court of Ontario covers the issues raised in these proceedings and is more comprehensive in that it also involves the claim for damages. He further contended that the Supreme Court of Ontario would have power to issue any necessary declarations as to the validity of the Proclamation, the Delegation of Quotas Order, and the Regula tions, issued by the federal authorities herein. He relied for this proposition on the cases of Attorney General of Canada et al. v. Law Society of British
Columbia et al., [1982] 2 S.C.R. 307 and Re Williams and Attorney-General for Canada et al. (1983), 6 D.L.R. (4th) 329 (Ont. Div. Ct.).
Counsel for the applicants contended that the present case would be an appropriate one for an injunction to be issued. As to the jurisdiction of the Court, he contended essentially that what was involved in the present proceeding was judicial review of a federal agency. While conceding that, by virtue of section 2 of the Federal Court Act, this Court could not exercise powers of judicial review over the provincial Board as such, it has exclusive jurisdiction over the federal Agency and could make orders against the Agency and its agents with respect to the regulation of interpro- vincial and export trade. He distinguished the proceedings in the Supreme Court of Ontario on the basis that they involve an action in tort and also that, to the extent that they involve a declara tion as to the validity of the quota system, this pertained to intraprovincial quotas whereas the proceedings in the Federal Court, Trial Division relate to interprovincial and export quotas. He therefore opposed the stay of the present proceedings.
After consideration of these submissions, I ruled that I could not conclude at that point that the proceedings herein should be dismissed in their entirety or stayed. I noted the normal reluctance of the Court to dismiss or strike out proceedings on preliminary objections if it is not abundantly clear that such proceedings cannot succeed.
More specifically, I was not prepared to dismiss the proceedings as being beyond the jurisdiction of this Court or to stay them in favour of the action in the Supreme Court of Ontario, because it appears to me that these proceedings involve, in part, judicial review of a federal Board, namely the Canadian Chicken Marketing Agency, established under federal law and exercising or purporting to exercise jurisdiction conferred under an Act of Parliament. By section 18 of the Federal Court Act the Trial Division of the Federal Court has exclusive original jurisdiction to grant relief
against such a Board. I understand from this that it was the intention of Parliament that judicial review of federal agencies should normally be effected by the Federal Court and not by provin cial superior courts such as the Supreme Court of Ontario.
It is not clear that the Supreme Court of Ontario can give all of the relief sought by the applicants in the present proceeding. It obviously cannot give certiorari or mandamus against a federal agency. It might not be able to give the declaration requested as to the validity of federal regulations. It is true that, as submitted by the respondent, the Supreme Court of Ontario is en titled according to the authority of the Law Socie ty of British Columbia case, supra, to issue decla rations to the effect that federal statutes or regulations are invalid because in conflict with the distribution of powers prescribed by the Constitu tion. It appears from the judgment of Estey J., writing for the Supreme Court of Canada, at pages 328-329 that it is not sufficient that a superior court authorized by section 101 of the Constitu tion Act, 1867 (i.e., the Federal Court), whose decisions are reviewable by another section 101 court (the Supreme Court of Canada), have the jurisdiction to grant such a declaration; such juris diction must also be available to the superior courts of the provinces authorized (though not established) by section 96 of the Constitution Act, 1867 whose decisions are equally appealable to a section 101 court (the Supreme Court of Canada). To deny provincial courts such jurisdiction
... would strip the basic constitutional concepts of judicature of this country, namely the superior courts of the provinces, of a judicial power fundamental to a federal system ....
This decision has since been followed in Canada Labour Relations Board et al. v. Paul L'Anglais Inc. et al., [1983j 1 S.C.R. 147. These cases involved the distribution of powers. Whether the same principle should apply where the declaration sought, as in the present case, relates to possible conflicts with the Canadian Charter of Rights and Freedoms [being Part I of the Constitution Act,
1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.)] remains to be seen, since the purported violation of the Charter does not imply an unau thorized intrusion by federal authorities into pro vincial jurisdiction and therefore does not threaten the "federal system". Even assuming, however, that the principle of the Law Society of British Columbia case applies so as to ensure the Supreme Court of Ontario the power to make a declaration as to conflicts between regulations made by federal boards and the Charter, it is doubtful that the principle can be carried beyond that so as to authorize such judicial review of the acts of a federal agency in the form of a declaration that its regulations, though within federal jurisdiction, were not authorized by Parliament. I can see no reason for an implied guaranteed right of the provincial superior courts to issue such a declara tion, as the situation does not menace the federal system or constitutional safeguards of individual rights and freedoms. For this reason I respectfully decline to adopt the reasoning of the Divisional Court of Ontario in Re Williams and Attorney- General for Canada et al., supra, where it appar ently interpreted the Law Society of British Columbia decision to authorize a provincial supe rior court to determine, in a proceeding for a declaration, whether the Governor in Council had acted within the statutory authority granted to it by Parliament. See Mullan, Annotation (1983), 3 Admin. L.R., at pages 114-115. I have no doubt that, were such a question relevant to a cause of action and to parties within the jurisdiction of a provincial superior court, and if the court were in a position where, if it could not consider the validity of a federal regulation vis-à-vis its statutory authorization the court might have to give effect to an invalid regulation, then it should be able to consider that question and make a determination for the purposes of that action. But that is a different matter from making a declaration in a proceeding brought solely for that purpose. At this point it is not possible to say in what circumstances the Supreme Court of Ontario might be expected to make the declaration concerning federal laws and regulations as requested in the prayer for relief in the action in that Court. It is not clear, therefore, that a declaration could be made in the proceedings in that Court. In this Court such a declaration clearly can be made if the proceedings are in an appropriate form.
I would also refuse the stay of the present proceedings because of other differences between them and the action in the Ontario Court. The respondent here is not even a party to the provin cial action. The provincial Board and Volbec are parties to that action but not to the present pro ceedings. There are a number of different issues raised by the Ontario action including rather far- ranging tort claims.
Given this great lack of identity between the two actions, and given the fact that not all of the remedies sought here could necessarily be obtained in the provincial Court, I declined to grant the stay.
It had also been suggested by counsel for the Attorney General of Canada that this matter might have been better dealt with by proceedings brought under section 28 of the Federal Court Act for review by the Court of Appeal. I concluded that at that stage of the proceedings I was unable to determine that these proceedings involved func tions of the Agency of a judicial or quasi-judicial nature and therefore it appeared to me that the proper avenue was under section 18 of the Act as the applicants had chosen. I might add that noth ing that later transpired has altered this conclu sion.
Having held that the proceedings should contin ue, I ruled at the same time that there were certain forms of relief referred to in the notice of motion which would not be available. First, as previously determined, the declaration sought in paragraph (a) is not available herein because these proceed ings were not commenced in the form of an action. Further, there could be no form of relief against, or judicial review of, the Ontario Chicken Produc ers' Marketing Board because that is not within the jurisdiction of this Court. I also expressed some doubt as to whether any of the decisions
under attack, if essentially of a legislative nature, could be reviewable by certiorari.
I therefore concluded that the only issues which I could address in these proceedings were as fol lows. With respect to the relief sought in para graph (b), I could only consider the suitability of the order referred to in subparagraph (ii). With respect to the order requested in paragraph (c), I could only consider that possibility vis-à-vis the respondent Agency. I held that I was prepared to consider this as a request for relief either in the form of prohibition or an injunction, depending on which, if either, were warranted by the facts and further argument. With respect to the relief requested in paragraph (d), I held that I would only consider the request in subparagraph (i) in so far as it would involve an order against the respondent Agency but not as against the provin cial Board as the "agent" of the respondent. With respect to the alternative relief sought in subpara- graph (ii), the order previously given by Walsh J. on May 31, 1984, was to the effect that, because proper evidence was available on which could be given an order requiring the allotment of a quota with respect only to a few of the applicants, the applicants were allowed to withdraw their request for the relief sought in this subparagraph without prejudice to their right to renew it following the hearing on this application. I will not deal with that matter further at this stage. The relief sought in paragraph (e), being anything which the Court deems appropriate, was left for consideration in my final order.
By way of summary then I indicated that I was prepared to hear evidence and argument as to the legal nature of the "appeal" to the Agency as referred to in subparagraph (b)(ii) and the con duct by the Agency of such a proceeding, evidence and argument as to the validity of the statutory instruments, and evidence and argument as to any possible violations by the Agency of rights under
section 6 or 7 of the Canadian Charter of Rights and Freedoms. I excluded evidence or argument as to what the provincial Board has done in the exercise of authority delegated to it by the federal statutory instruments or otherwise. I concluded by noting that if this division of various forms of relief appeared complicated, it is because it reflects the complications of the Constitution which divided authority between the two levels of government with respect to the regulation of trade and author ized the creation of (without itself creating) supe rior courts by both Parliament and provincial legislatures to engage in judicial review of the administrative tribunals created by each of those legislative bodies.
On the basis of the foregoing the application was then heard. I will summarize the essential facts and then deal with the substantive issues as raised by the parties.
Facts
The Ontario Chicken Producers' Marketing Board was established under provincial law in 1965. It proceeded to grant intraprovincial quotas, i.e. quotas for the production of chickens for sale in Ontario, to Ontario producers. According to counsel for the applicants, some 834 chicken pro ducers received such a quota from the Board, but none of these, with the exception of one quota granted in 1969, was a producer of chickens east of Kingston in Ontario prior to 1983. It is not disputed that there were nevertheless chicken pro ducers operating in Eastern Ontario during this period, and selling all or much of their production in Quebec and in the United States.
As noted earlier, the marketing plan for chick ens established under the Farm Products Market ing Agencies Act came into effect on December 28, 1978. In early 1979 Mr. Yvon Montpetit, a barrister and solicitor in Hawkesbury, Ontario, submitted a memorandum to the Farm Products Marketing Council established under the Act on behalf of 11 producers in that area who, along with others, had formed the Eastern Ontario Broil er Producers' Association. The gist of this representation was that his clients had been pro-
timing broilers since 1967 for sale in the Montreal market. They had not been made aware of the marketing plan and quota restrictions when they were established in Ontario in the 1960's. The provincial Board had shown very little interest in them and appeared only concerned that they not sell in the Toronto market. As these producers wished to continue selling in Montreal they asked for a "permit" from the federal authorities to do so, either on a permanent basis or until the Ontario Board made the determination concerning their applications for quotas. These representations were apparently brought to the attention of the Canadian Chicken Marketing Agency in March, 1979 and were discussed by the Agency at a meeting in May, 1979. According to the affidavit of Mr. Romeo Leblanc, General Manager of the Agency, the problem of the Eastern Ontario Broil er Producers' Association, and possible solutions to the problem, were discussed with representatives of all the provinces which had signed the federal- provincial agreement endorsing the marketing plan. These discussions took place in 1980 and 1981. Following this the amendments to the Regu lations now found in section 10.1 and Schedule III were adopted on September 14, 1982 and pub lished in the Canada Gazette as SOR/82-859. The effect of those amendments was to require provin cial boards to authorize marketing in interprovin- cial trade for producers who had been engaged in interprovincial marketing during the "qualifying period" and who had not had a quota from the provincial Board at that time. The "qualifying period" was defined as December 28, 1977 to December 27, 1978, being the year immediately preceding the coming into force of the marketing plan. This covered the situation of the members of the Eastern Ontario Broiler Producers' Associa tion.
Shortly after these amendments were adopted and published, the Agency published advertise ments as to the nature of the amendments and as to how application could be made for such quotas. These advertisements were published in 13 news papers circulating in eastern Ontario including
both English and French language papers and including what appear to be three trade journals. It was after this that the Agency received its first communication from the applicants in the present proceedings. A Mr. Pierre Lamoureux, a barrister and solicitor of Ottawa, wrote to the Agency on their behalf. His letter dated November 26, 1982 stated that his clients "presently produce broiler chickens and will be in a position to produce as of December 31, 1982". He made reference to other producers in the area who had been producing without a quota and who had been given the right to an interprovincial quota. This presumably is a reference to the members of the Eastern Ontario Broiler Producers' Association. He asked for simi lar consideration for his clients.
The evidence is unsatisfactory as to the date of commencement, and quantity, of chicken produc tion of most of the applicants, and as to whether this is for most of them a principal occupation. Affidavits were sworn by only seven of the appli cants and all but one of these is to a large extent simply confirmatory of the affidavit of François Quesnel, the President of Le Groupe des éleveurs de volailles de l'est de l'Ontario (GEVEO), one of the applicants herein to which the other applicants belong. Much of the evidence in these affidavits also appears to be hearsay, which is not adequate for a motion of this kind which is not an interlocu tory proceeding. There is some difference of opin ion between the respondent and the applicants as to when the latter started producing chickens. There is little evidence to suggest that they were engaged in much production before the last half of 1982. In particular, it appears to be common ground that the applicants were not engaged in the production or interprovincial marketing of chicken during the qualifying period prescribed for Regu lation 10.1, namely December 28, 1977 to Decem- ber 27, 1978. Further, according to the affidavit of Mr. Leblanc, which is supported by the affidavit of Thomas McClintock, a chartered accountant who was appointed as an inspector of the Agency for this purpose, the applicants were not truly engaged in interprovincial marketing of chicken at least prior to July, 1983. They had apparently been producing for some months prior to that and had nominally been selling to a Montreal firm, Cronkhite Poultry (Montreal) Ltd. but it was the opinion of the deponents Leblanc and McClintock
that in fact the destination of the chickens was an Ontario processor, Maple Lodge Farms of Norval, Ontario. That is, the chickens never left Ontario and the "sale" through the Montreal firm was in their view only a paper transaction.
As a result of the advertisements noted above, and the communications with the Agency, the applicants herein individually applied to the Ontario Chicken Producers' Marketing Board in January, 1983, for an interprovincial quota. In February they were sent letters by the Board indicating that they had to produce books and records to establish their marketing of chicken in interprovincial trade during the qualifying period, December 28, 1977—December 27, 1978. Subse quently, in April, 1983 they were sent letters advising them that their applications had been refused because they had failed to provide evi dence of marketing chicken in interprovincial trade during the qualifying period. The applicants then sent individual letters dated June 2, 1983 to the Board requesting an appeal of its decision. By a letter dated June 13, 1983 the Secretary-Manag er of the provincial Board wrote to Mr. Quesnel representing the applicants saying that the Board had no authority to "go beyond the legislation" and that any appeal should be made to the Canadian Chicken Marketing Agency and/or the National Farm Products Marketing Council. According to Mr. Quesnel, he then telephoned Mr. Leblanc, the General Manager of the Agency, and was advised that there was no point in pursuing an appeal; that the Agency would not "grant an appeal to anyone who had not been in production during the qualifying period". Subsequently, according to Mr. Leblanc, the solicitors for the applicants together with some of the applicants met with the executive members of the National Farm Products Council on August 4, 1983 to review the situation. The next day the executive committee of the Council met with the executive committee of the Agency and it was agreed that any individual applicant for interprovincial quota might apply to the Agency and request that a review of his application be undertaken. On August 9, 1983, Mr. J. Boynton, the Vice-Chair man of the National Farm Products Marketing
Council, wrote to the solicitors then representing the applicants, the letter reading in part as follows:
As agreed at the meeting with your clients on July 27, 1983, the Council Executive met on August 4, 1983, to review the current situation involving your principals in Eastern Ontario.
On August 5, 1983, the Council Executive met, in Toronto, with the Executive of the Canadian Chicken Marketing Agency and a representative of the Ontario Chicken Producers' Mar keting Board to discuss the concerns and the position of the Eastern Ontario producers you represent. At that meeting, the CCMA assured us that any individual applicant for interpro- vincial quota may apply to the Canadian Chicken Marketing Agency and request that a review of his application be undertaken.
On the basis of the above observation, we would suggest that you instruct your clients who may wish to do so, to write to the CCMA requesting such a review, at which time the applicant could present any additional information or evidence which he believes relevant to his case. The Agency will arrange such reviews promptly.
According to Mr. Leblanc the Agency has not since that time received any request, on an individual basis, from most of the applicants with respect to a review of the quota decisions as applied to them. Instead, the applicants Quesnel and Thiele met representatives of the Council on September 13, 1983 and made a request in writing in the form of a letter dated September 12 to the Canadian Chicken Marketing Agency, as follows:
The Eastern Ont. Chicken Farmers Ass. G.E.V.E.O. having been embroiled in a conflict with the Ont. Chicken Producers' Marketing Board, requests a hearing before your board, to investigate the amount of chicken produced in Eastern Ont., in the years of 1965-1978 and the failure of the O.C.P.M.B. to allot quota for our production.
For discussion, we would like to establish the production in the years preceding 1978.
Please advise us of date and time for this hearing. Attending this hearing would be the members of the executive of G.E.V.E.O.
The Agency has taken the position that it will not act on this request because it is not a request for a hearing on an individual basis of quota problems, is not directed to interprovincial trade and relates to production in the period 1965-1978 which is beyond the Agency's mandate. In October and December, 1983, the Agency did however review individual quota applications including, apparent ly, applications from one or two of the present applicants. As a result it made certain recommen-
dations to the Board for adjustments of quotas in respect of certain producers and these recommen dations were apparently adopted by the Board. The procedure followed for these "hearings" was that the Executive Committee of the Agency con sidered evidence produced at a review hearing before it and then made recommendations to the provincial Board.
The applicants complain that since July, 1983 they have been subjected to various forms of inter ference and harassment by the provincial Board and by La Fédération des producteurs de volailles du Québec (voLBEc). There is no significant evi dence that the respondent is involved directly in such alleged activities. As noted earlier, on Janu- ary 23, 1984 the applicants commenced action in the Supreme Court of Ontario against the provin cial Board, VOLBEC, and certain other producers claiming, inter alla, damages for such alleged activity. On April 25, 1984 they commenced this application in the Trial Division.
The applicants attack the actions of the respond ent on basically five grounds: (1) the Agency wrongly refused to entertain an appeal from the applicants; (2) Regulations 10 and 10.1 are invalid because not authorized by the Farm Products Marketing Agencies Act; (3) the Regulations are constitutionally invalid for conflict with paragraph 6(2)(b) of the Canadian Charter of Rights and Freedoms; (4) the Regulations are invalid because in conflict with section 7 of the Canadian Charter of Rights and Freedoms; and (5) the Regulations must be construed and applied consistently with paragraph 1(b) of the Canadian Bill of Rights [R.S.C. 1970, Appendix III]. I shall deal with each of these substantive issues and in connection with each consider what remedies, if any, are relevant and available.
Refusal of Agency to Entertain Appeal
The essential complaint of the applicants here is that the respondent has refused to hear their case.
While they concede that there is no statutory provision for such a hearing, they contend that it is the policy of the Board to hold such hearings and fairness requires that if such hearings are held for others they should be held for the applicants.
To the extent that this is a complaint that the respondent has refused to hold an individual hear ing with respect to any or each of the applicants, I have no hesitation in rejecting it. The letter from Mr. Boynton, the Vice-Chairman of the Council, to the applicants' solicitor of August 9, 1983 makes it clear on behalf of the Agency that the Agency is prepared to hear any such appeals. The applicants do not deny that this letter was written nor that it was received by their solicitor. There is no evidence to indicate that the Agency has subse quently declined the request of any individual applicant for a hearing.
I therefore do not need to consider whether in any event the respondent was obliged to hold such a hearing. It is clear that the respondent has no power to allot any individual quota or to change such allotment. By subsection 6(1) of the Schedule to the Proclamation, SOR/79-158, it is clear that the Agency can only establish a quota system by which quotas are allotted to producers by the provincial Commodity Board. There is no specific requirement for the Agency to hear appeals from Board decisions nor is there any power in the Agency to direct a Board to alter an allotment. At most, it can be said that an informal practice has developed whereby the Agency will hear represen tations and make suggestions or recommendations to a provincial Board. Conceivably, once having adopted such a practice it is incumbent on the Agency to make it available to all producers on the same basis, but the matter is not beyond dispute.
To the extent that this is a complaint—which it seems to be—that the Agency has not conducted a general inquiry into the production of chickens in Eastern Ontario, I can see no basis for a complaint of denial of fairness. It appears to me that this would be in the nature of a legislative process directed toward what the applicants really want which is a change in the Regulations. What the
applicants really complain of is that the amend ments in the form of section 10.1 and Schedule III of the Regulations were designed for the benefit of the Eastern Ontario Broiler Producers' Association and they seemingly want a hearing, as described in Mr. Quesnel's letter of September 12, 1983 to demonstrate that they are equally deserving of a regulation that would entitle them to quotas for interprovincial marketing. Such an investigation and a subsequent consideration and adoption of regulations would in my view constitute a legisla tive process. The end product would be regulations which would have a universal application across the country. It is only necessary to consider the process used with respect to the adoption of the amendments in 1982. Following representations from and discussions with the Eastern Ontario Broiler Producers' Association, the Agency carried out discussions with all the provincial signatories of the federal-provincial agreement of 1978 and eventually adopted the amendments which have universal application. A similar process would pre sumably be involved if further amendments were made to deal with the problem of the applicants. In my view, the requirements of fairness do not apply to an essentially legislative process: see Bates v. Lord Hailsham of St. Marylebone, [1972] 1 W.L.R. 1373 (Ch.D.), at page 1378; Attorney General of Canada v. Inuit Tapirisat of Canada et al., [1980] 2 S.C.R. 735, at pages 756-758; New Brunswick Broadcasting Co., Lim ited v. Canadian Radio-television and Telecom munications Commission, [1984] 2 F.C. 410 (C.A.). The essence of the applicants' complaint concerning refusal to hear an appeal is that of denial of fairness which I think is irrelevant in the circumstances. I therefore find no basis for an order against the respondent as to its procedure with respect to an "appeal".
The Regulations are not Authorized by the Farm Products Marketing Agencies Act
I am going to proceed to consider the validity of the Regulations even though a declaration is not obtainable in these proceedings because I have come to the conclusion that in principle certiorari should be available to review delegated legislation for validity. While certiorari was at one time
confined in its use to the review of judicial and quasi-judicial decisions, it is now clear that it may be used to review administrative decisions as well: see Martineau v. Matsqui Institution Disciplinary Board (No. 2), [1980] 1 S.C.R. 602. It is true that in the Martineau decision there are suggestions in both the majority judgment by Pigeon J. (at page 634, quoting the judgment of Megarry J. in Bates, supra) and in the concurring minority judgment by Dickson J. [as he then was] (at page 628) that legislative processes may not be subject to judicial review. But it appears to me clear that, in the context, these should be taken to refer to an absence of procedural requirements of fairness in the legislative process (as noted above) resulting in a lack of ability in the courts to review legislative decisions on procedural grounds. Apart from these particular limitations on the grounds for granting certiorari where legislative functions are involved, I can see no reason for holding certiorari to be unavailable as a remedy where grounds are alleged that a court can normally entertain, such as lack of jurisdiction (statutory or constitutional) as con sidered below. In this regard I respectfully adopt the views of Dickson J. in Martineau, supra, at page 619:
When concerned with individual cases and aggrieved persons, there is the tendency to forget that one is dealing with public law remedies, which, when granted by the courts, not only set aright individual injustice, but also ensure that public bodies exercising powers affecting citizens heed the jurisdiction grant ed them. Certiorari stems from the assumption by the courts of supervisory powers over certain tribunals in order to assure the proper functioning of the machinery of government. To give a narrow or technical interpretation to "rights" in an individual sense is to misconceive the broader purpose of judicial review of administrative action. One should, I suggest, begin with the premise that any public body exercising power over subjects may be amenable to judicial supervision, the individual interest involved being but one factor to be considered in resolving the broad policy question of the nature of review appropriate for the particular administrative body.
See also Evans, de Smith's Judicial Review of Administrative Action (4th ed., 1980), at pages 72, 395.
The essential complaints of the applicants con cerning the Regulations, whether attacked on statutory or constitutional grounds, relate to sec tions 10 and 10.1, and Schedule III. These are quoted above. Suffice it to say that section 10 requires provincial Boards to grant interprovincial and export quotas to any producer to whom the Board had given an intraprovincial quota before the commencement of the marketing plan. Section 10.1 further requires the provincial Board to grant an interprovincial quota to any producer who did not previously have a quota but who was market ing chickens in interprovincial trade during the qualifying period. Schedule III defines qualifying period as being the year between December 28, 1977 and December 27, 1978 and requires the provincial Board to verify such information which the applicant must make available as is necessary for the Board to determine that the applicant was so marketing during the qualifying period.
The applicants contend that these Regulations are inconsistent with the statute. They point out that by section 22 of the Act the objects of an Agency are "to promote a strong, efficient and competitive production and marketing industry" and "to have due regard to the interests of pro ducers and consumers". Further they say that by the terms of the federal-provincial agreement, approved on the part of the Government of Canada by P.C. 1978-3967 dated December 28, 1978, the parties undertook to instruct their repre sentatives on various policies including a policy "to work towards minimizing quota values". They say that the system created or preserved by these Regulations eliminates competition for established producers, has little or no regard for efficiency or consumer interests, and has the effect of making quotas expensive commodities: a new producer can only acquire a quota by purchasing a property with respect to which a quota has been issued in the past, the purchase price strongly reflecting the value of the quota. They also contend that on the basis of general principles of law statutory powers to make regulations should not be exercised in a discriminatory way but in a reasonable way.
I doubt that inconsistency with a federal-provin cial agreement would in any event be a basis for attacking the validity of the Regulations.
With respect to the other bases of attack, it is necessary that at this point I clarify what I think to be the proper interpretation of these Regula tions. In my view they do not represent a restric tion on the number or kinds of producers who may be given quotas by a provincial board. Rather, they guarantee that certain producers will be allot ted a quota in interprovincial, or interprovincial and export, trade. The applicants prefer this inter pretation and I think it is the correct one. Counsel for the respondent contended that the Regulations do restrict provincial boards to granting quotas only in those situations where the Regulations specifically require an allotment. As authority for this he relies on section 4 of the Regulations which provides in effect that no producer in a regulated area shall market chicken in interprovincial or export trade "unless a quota has been allotted to that producer by the Commodity Board of that province". In my view all this means is that a producer must obtain an allotment from the pro vincial Board even for marketing outside the prov ince. Were it not for this provision, it is doubtful that provincial law could so require because inter- provincial and export marketing is a matter for Parliament. Section 4 does not mean, in my view, that a producer must have a quota for intraprovin- cial marketing in order to obtain a quota for marketing outside the province. It is this interpre tation which counsel for the respondent seemed to be advocating. I reject this interpretation, and find that the provincial Board has general authority by virtue of the Canadian Chicken Marketing Agency Delegation of Quotas Order, SOR/79-535, section 3 of which authorizes the provincial Board
3. ... to allot, on behalf of the Agency, quotas in interpro- vincial and export trade to producers in the province and, for such purposes, to exercise all or any powers like the powers exercisable by such Commodity Board in relation to the mar keting of chicken locally within the province.
While clearly the provincial Board has to make allotments consistently with the Regulations of the Agency, in my view those Regulations do not preclude allotments for interprovincial and export trade beyond the ones required by sections 10 and 10.1.
On this interpretation, then, it is not possible to say that the Regulations are inconsistent with the statute, nor are they discriminatory or unreason able. It appears to me quite rational at the com mencement of a marketing plan which for the first time covers marketing in interprovincial and export trade to preserve the marketing rights of those who have demonstrated that they are gen uine and competent producers by having produced in the recent past. Such was the conclusion of the Divisional Court of Ontario in Re Bedesky et al. and Farm Products Marketing Board of Ontario et al. (1975), 8 O.R. (2d) 516, at pages 545-546, where the Ontario Chicken Marketing Plan was under consideration. I do not think it can be said that to guarantee an allotment for at least these producers is clearly contrary to the promotion of a "strong, efficient and competitive production and marketing industry" nor without "regard to the interests of producers and consumers" as required by section 22 of the Act. It has not been demon strated to me that such Regulations are intrinsical ly unreasonable. Nor are they discriminatory in the normal sense of that word. It is true that they distinguish between those who have produced before a certain date and/or have had a quota before a certain date, but that date is chosen by reference to the commencement of the new mar keting plan embracing interprovincial and export trade. There is thus a rational basis for it in terms of the legitimate purposes of the Regulations and therefore it cannot be said to be discriminatory.
In so finding, I must emphasize that I am only directing my attention to the actions of the respondent. In my view the Agency has left a considerable measure of discretion to the provin cial Board. It may well be open to demonstration in other proceedings against the Board that it has not exercised that discretion in a manner con-
sistent with the objects of the Act or in a manner which is reasonable or non-discriminatory. As determined at the outset, I have no authority to review the actions of the provincial Board, either directly or indirectly, by treating the Board as an agent of the respondent, a federal agency. In adopting the Regulations which it has, and then leaving the measure of discretion which it has to the provincial Board with respect to allotment of quotas for interprovincial and export marketing, the federal Agency has in my view acted reason ably and in a manner consistent with the objects of the Act and that is all I need determine here.
Had I found some defect in the Regulations based on inconsistency with, or lack of authority granted by, the Act, for the reasons stated above I believe that I could address such deficiencies through the issue of a writ of certiorari. As for other remedies, such questions could, of course have been addressed in an action for a declaration but the applicants have chosen not to proceed by way of action and have therefore forgone the right to a declaratory remedy. While they also seek injunctions to prevent the respondent from acting on the basis of the impugned Regulations, they have not demonstrated any action which the respondent itself is likely to take pursuant to these Regulations which would directly interfere with them. Therefore even if there were a substantive ground for an injunction, there was no basis for granting one against the respondent. The adminis tration of the scheme is in the hands of the provin cial Board and that Board is beyond my jurisdiction.
Validity of Regulations in Relation to Charter, Paragraph 6(2) (b)
Section 6 of the Charter provides as follows:
6. (1) Every citizen of Canada has the right to enter, remain in and leave Canada.
(2) Every citizen of Canada and every person who has the status of a permanent resident of Canada has the right
(a) to move to and take up residence in any province; and
(b) to pursue the gaining of a livelihood in any province.
(3) The rights specified in subsection (2) are subject to
(a) any laws or practices of general application in force in a province other than those that discriminate among persons
primarily on the basis of province of present or previous residence; and
(b) any laws providing for reasonable residency requirements as a qualification for the receipt of publicly provided social services.
(4) Subsections (2) and (3) do not preclude any law, pro gram or activity that has as its object the amelioration in a province of conditions of individuals in that province who are socially or economically disadvantaged if the rate of employ ment in that province is below the rate of employment in Canada.
It is necessary to see the paragraph in question in this context.
The applicants argue, with some force, that they are being denied the right to gain a livelihood in Quebec by selling their chickens there. They con tend that the right protected under paragraph 6(2)(b) does not require, for its enjoyment, that one move to the province where one wishes to make a livelihood. They contend further that, as the Charter equally binds both federal and provin cial authorities it matters not whether one or the other or both are responsible for bringing about this effect: in any case, it is an effect proscribed by the Charter.
The most authoritative decision to date on this paragraph is that of the Supreme Court of Canada in the Law Society of Upper Canada v. Skapinker, [1984] 1 S.C.R. 357. That case involved, inter alia, a person who was not a Canadian citizen but who had met all other requirements for member ship in the Ontario Bar except that of citizenship. He sought a declaration that the citizenship requirement for bar admission was inconsistent with paragraph 6(2)(b) of the Charter because it had the effect of denying him the right to pursue the gaining of a livelihood in Ontario even though he was admitted for permanent residence. By the time the matter reached the Supreme Court one Richardson, a U.S. citizen also otherwise qualified for admission to the Bar, joined the case as an intervenor. The Supreme Court came to the con clusion that paragraph 6(2)(b) does not create an independent right to gain a livelihood in one's own province independent of some element of interpro- vincial movement. At page 382 of the judgment, Mr. Justice Estey on behalf of the Court stated as follows:
I conclude, for these reasons, that para. (b) of subs. (2) of s. 6 does not establish a separate and distinct right to work divorced from the mobility provisions in which it is found. The two rights (in para. (a) and in para. (b)) both relate to movement into another province, either for the taking up of residence, or to work without establishing residence.
As in that case there was no extraprovincial ele ment involved, the paragraph was held not to apply to the situation so as to prevent the Province of Ontario from requiring Canadian citizenship for persons joining the Law Society of Upper Canada.
While very relevant, the Skapinker case does not precisely cover the present situation where, it is said, producers resident in Ontario are prevented from gaining a livelihood in Quebec through sell ing chickens there, even though they may never have occasion to go there to carry on business in that Province. There is clearly an extraprovincial element involved in such a situation but it is not clear whether, to be consistent with the judgment of the Supreme Court in Skapinker, paragraph 6(2)(b) can be applied to protect those who simply wish to sell their products in another province without physically going there. Counsel for the respondent pointed out the anomaly that would exist if this paragraph does cover the present situa tion, as it would guarantee the right of a natural person to sell across a provincial boundary but would not protect the corporation doing so as it only applies to citizens and permanent residents, neither of which designation is appropriate for a corporation. There is the further question as to whether section 6 was ever intended to guarantee free movement of goods between provinces, this being a matter hotly contested in constitutional discussions of recent years but without any appar ent consensus being reached.
I think I need not decide the matter simply on the language of paragraph 6(2)(b), however. It appears to me that under paragraph 6(3)(a), re strictions may be imposed on the right set out in paragraph 6(2)(b), by laws of general application so long as said laws do not discriminate "among persons primarily on the basis of province of present or previous residence". It appears to me that the marketing laws in question here are laws of general application. With specific reference to the quota system, they do not discriminate against
anyone on the basis of his province of present or previous residence. To the extent that in the present situation they prevent anyone who was not engaged in interprovincial marketing, or did not have an intraprovincial quota, immediately prior to December 28, 1978, they restrict equally per sons not so qualified whether they are or were residents of Ontario. It appears, for example, that all or most of the present applicants are and have been for a long time residents of Ontario. Nor can it be said that the applicants are barred from selling in Quebec simply because they are residents of Ontario. Rather, it is because they do not have any interprovincial quota and those quotas have been issued without any particular reference to the residence of the producer. I therefore conclude that there is no conflict with section 6 of the Charter.
Again, of course, certiorari might have been available as a remedy if substantive grounds had been established for its grant. This Charter issue might also have been addressed through a declara- tory action but the applicants have not resorted to an action. An injunction would not be appropriate against the respondent because there is no proof that it is taking steps to enforce these Regulations nor, as far as I can see, could it do so.
Validity of Regulations as Regards Section 7 of the Charter
Section 7 of the Charter provides as follows:
7. Everyone has the right to life, liberty and security of the person and the right not to be deprived thereof except in accordance with the principles of fundamental justice.
First, the applicants contend that the "liberty" referred to includes freedom of contract which, they say, has been denied to them by the impugned Regulations. In support of this proposition they refer to a number of decisions of the United States Supreme Court, mostly in relation to the guaran tee in the Fourteenth Amendment of the U.S. Constitution that no State shall "deprive any person of life, liberty, or property, without due process of law".
First, it should be observed that the trend in the jurisprudence of the United States Supreme Court for at least the last forty years has been unfavour able to absolute freedom of contract, as such, as a form of "liberty" under the Fourteenth Amend ment. Moreover, "liberty" is there referred to in association with the term "due process". It is necessary to consider the Canadian provision on its own terms.
I respectfully agree with the judgment of Pratte J. in R. v. Operation Dismantle Inc., [1983] 1 F.C. 745 (C.A.), at page 752 where he held that the phrase "liberty and security of the person" must be read as a whole as referring to freedom from arbitrary arrest or detention, and with the judg ment of Cattanach J. in deMercado v. The Queen et al. (judgment dated March 19, 1984, Federal Court, Trial Division, T-2588-83, not yet reported) where, at pages 12-13, he follows the judgment of Pratte J. Further, I have held elsewhere and remain of the view that there are no substantive rights guaranteed by section 7. Rather, its purpose is to provide procedural protection with respect to the manner of denial of those rights. See Latham v. Solicitor General of Canada, [1984] 2 F.C. 734 (T.D.).
The applicants contend however that even if section 7 provides only procedural, and not sub stantive, protection there has been a denial here of fundamental justice. They have not explained the nature of that denial, other than that arising out of the supposed refusal of the Agency to entertain an appeal with respect to their quotas. I have dealt with this matter earlier and for the same reasons that I have found no denial of fairness I would conclude that there has been no denial of "funda- mental justice".
Closely associated with this argument based on section 7 was the contention by the applicants that the common law has always jealously guarded freedom of contract and freedom to engage in a trade. They seek to elevate this common law approach into a right which they then say is recognized by section 26 of the Charter which provides as follows:
26. The guarantee in this Charter of certain rights and freedoms shall not be construed as denying the existence of any other rights or freedoms that exist in Canada.
In my view the common law approach has never been that statutes or regulations interfering with these freedoms were invalid. Rather such freedoms have been, in areas not regulated by statute, recog nized to the extent that the courts would not uphold certain kinds of contracts unduly interfer ing with them. In areas regulated by legislation, there no doubt has been a tendency to construe strictly statutes interfering with freedom of con tract or freedom to engage in trade. But the "common law principles" can be put no higher than that and they certainly acquire no more content by the inclusion of section 26 in the Charter.
For the reasons which I outlined in the previous section dealing with paragraph 6(2)(b) of the Charter, it appears to me that, if I am in error with respect to the non-applicability of section 7 of the Charter, certiorari could be available but the other requested remedies would not be.
Need to Construe and Apply the Regulations Con sistently with the Canadian Bill of Rights, Para graph 1(b)
This paragraph of the Canadian Bill of Rights provides as follows:
1. It is hereby recognized and declared that in Canada there have existed and shall continue to exist without discrimination by reason of race, national origin, colour, religion or sex, the following human rights and fundamental freedoms, namely,
(b) the right of the individual to equality before the law and the protection of the law;
The applicants complain that they have been treat ed differently from the way in which the members of the Eastern Ontario Broiler Producers' Associa tion were treated. By this presumably they mean that the Regulations were amended in a way which enabled the other producers to obtain quotas whereas they have not been amended to enable the applicants to do so.
Given the very narrow construction applied to this paragraph by many courts, including the Supreme Court of Canada, I believe that at best it
can be said that a statute or regulation would be inconsistent with paragraph 1(b) of the Canadian Bill of Rights only if it creates distinctions be tween different classes of individuals which have no rational relationship to some valid legislative purpose. See, e.g., MacKay v. The Queen, [ 1980] 2 S.C.R. 370, at pages 390-391. As I have explained earlier in relation to the proposition that the Regulations in question here were not author ized by the statute, it appears to me that the Regulations adopted by the Agency, guaranteeing quota allotments for interprovincial or export mar keting to those in the business of production before December 28, 1978 (the date of the inception of the marketing plan under the federal law), are reasonable in the circumstances and have a ration al relationship to the launching of the marketing plan. I also emphasized there that the Regulations passed by the Agency do not require the exclusion of other persons from receiving allotments and if such persons as the applicants have been excluded that is the responsibility of the provincial Board which is not and cannot be a party in this Court. I am not at liberty to review its actions to determine if they are consistent with the Canadian Bill of Rights even though, arguably, in exercising powers under the Farm Products Marketing Agencies Act the Board will be obliged to observe the require ments of the Canadian Bill of Rights.
Should I be in error in finding that there is no inconsistency between the Regulations and the Canadian Bill of Rights, it is not clear that certio- rari could be used here against the Agency to correct the situation. Certiorari may not be an appropriate remedy because all that is required is a particular interpretation of the Regulations—an interpretation which in the view of the applicants would accord with the requirements of paragraph 1(b) of the Canadian Bill of Rights—and not a quashing of those Regulations. Also, for reasons previously stated, the declaration is not available in these proceedings and an injunction would not be available against the respondent because it is not taking, nor is it about to take, and administra tive action under the Regulations vis-à-vis the applicants.
Conclusions
The possible scope of action left open to me was narrowed or rendered uncertain by the fact that these proceedings were not commenced as an action and therefore a declaratory order was not available; and further by my conclusion that, because of constitutional constraints and the statu tory limitations imposed by section 2 of the Feder al Court Act, I could give no remedy which would amount to judicial review of the actions of a Board created under provincial law even if it were exer cising powers under federal laws. The only form of remedy that appears to me to be potentially appli cable is certiorari vis-à-vis the respondent Agency to review its decisions including legislative decisions.
Within these constraints, it is my conclusion that there is no basis for holding wrong or invalid decisions of the respondent Agency with respect to the "appeal" sought by the applicants nor with respect to the Canadian Chicken Marketing Quota Regulations adopted by it.
I therefore dismiss the application with costs, without prejudice to the right of the applicants to seek by way of an action a declaration similar to that sought by this motion.
ORDER
It is hereby ordered that this application be dismissed with costs.
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