Judgments

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Decision Content

T-1423-88
Sedpex, Inc. (Applicant) v.
Dennis M. Browne, Adjudicator appointed under section 61.5, Division V.7, Part III of the Canada Labour Code (Respondent)
and
John Devereaux (Respondent)
INDEXED AS: SEDPEX, INC. V. CANADA (ADJUDICATOR APPOINTED UNDER THE CANADA LABOUR CODE)
Trial Division, Strayer J.—St. John's, Newfound- land, November 8; Ottawa, November 18, 1988.
Judicial review — Prerogative writs — Prohibition — Availability of judicial review, in spite of privative clause, to examine labour adjudicator's preliminary decision as to own jurisdiction — Scope of judicial review in ':jurisdictional issue" cases.
Federal Court jurisdiction — Trial Division — Prohibition sought to prevent adjudicator under Canada Labour Code from hearing complaint of unjust dismissal based on argument adjudicator lacked jurisdiction — Matter properly before Trial Division as preliminary conclusions as to jurisdiction not "decision or order" within Federal Court Act s. 28.
Labour relations — Complaint of unjust dismissal — Prohibition sought to prevent adjudicator from hearing com plaint — Adjudicator's finding employee laid off not for lack of work but for incompetence justified by evidence.
The respondent, Devereaux, was an assistant driller on the applicant's offshore drilling rig operating off the coast of Newfoundland. In April 1986, his employment was terminated. Devereaux filed a complaint under section 61.5 of the Canada Labour Code, alleging unjust dismissal. Sedpex raised a prelim inary objection that the adjudicator appointed to hear the complaint lacked jurisdiction because the lay off was due to "lack of work" and the Code precluded consideration of a complaint in such cases. After hearing evidence on that point, the adjudicator found that the respondent's employment was not terminated due to lack of work and that the hearing could resume. Sedpex applied for prohibition to prevent the adjudica tor from hearing the complaint.
Held, the application should be dismissed.
The adjudicator's decision that he had jurisdiction was not a "decision or order" within the meaning of section 28 of the Federal Court Act. It was therefore appropriate to apply to the Trial Division for prohibition. With the help of a judicially expanded concept of jurisdictional error, it has long been established that, notwithstanding privative clauses such as those found in subsections 61.5(10) and (11) of the Code, if a tribunal has exceeded its jurisdiction, the judicial review of its decision is permissible on the jurisdictional issue.
While the reviewing court must satisfy itself that the decision of the tribunal as to its jurisdiction was correct both as to the law and the facts, a court should embark with some caution on assessment of the "correctness" of jurisdictional facts deter mined by a tribunal. A court should not, with respect to findings of facts, substitute its view for that of the tribunal unless it can be demonstrated to be manifestly wrong. In this case, the adjudicator made no error of law when he asked himself whether the actual operative and dominant reason for the termination of employment was "lack of work" and con cluded that the alleged reason of "lack of work" was a "sham". Nor was there any reviewable error of fact. It was open to the adjudicator on the basis of the evidence to conclude that the real reason for the dismissal was the company's belief that Devereaux was not competent to do the job or not as competent as another worker.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canada Labour Code, R.S.C. 1970, c. L-1, s. 61.5 (as enacted by S.C. 1977-78, c. 27, s. 21; 1980-81-82-83, c. 47, s. 27; 1984, c. 39, s. 11).
Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, ss. 18, 28.
CASES JUDICIALLY CONSIDERED
APPLIED:
Paul L'Anglais Inc. v. Canada Labour Relations Board, [1979] 2 F.C. 444 (C.A.); Canadian Human Rights Commission v. British American Bank Note Co., [1981] 1 F.C. 578 (C.A.); Attorney General of Canada v. Gauthier, [ 1980] 2 F.C. 393 (C.A.); Eskasoni School Board and Eskasoni Band Council v. Maclsaac et al. (1986), 69 N.R. 315 (F.C.A.); Jarvis v. Associated Medical Services Inc. et al., [1964] S.C.R. 497; Syndicat des employés de production du Québec et de l'Acadie v. Canada Labour Relations Board et al., [1984] 2 S.C.R. 412; Stein et al. v. "Kathy K" et al. The Ship, [1976] 2 S.C.R. 802; Koehring Canada Ltd. v. Owens-Illinois Inc. et al. (1980), 52 C.P.R. (2d) 1 (F.C.A.); Capitol Life Insurance Co. v. R., [1986] 2 F.C. 171 (C.A.); Jacmain v. Attorney General (Can.) et al., [1978] 2 S.C.R. 15.
REFERRED TO:
Anisminic, Ltd. v. The Foreign Compensation Commis sion, [1969] 1 All E.R. 208 (H.L.); Service Employees' International Union, Local No. 333 v. Nipawin District Staff Nurses Association et al., [1975] 1 S.C.R. 382; Segal v. City of Montreal, [1931] S.C.R. 460.
COUNSEL:
Evan J. Kipnis for applicant.
Nicholas P. A. Westera for respondent John
Devereaux.
SOLICITORS:
Chalker, Green and Rowe, St. John's, New- foundland, for applicant.
Stack, Westera, St. John's, Newfoundland, for respondent John Devereaux.
The following are the reasons for order ren dered in English by
STRAYER J.: Introduction
This is an application for a writ of prohibition to prevent Dennis M. Browne, an adjudicator appointed under section 61.5 [as enacted by S.C. 1977-78, c. 27, s. 21; 1980-81-82-83, c. 47, s. 27; 1984, c. 39, s. 11] of the Canada Labour Code,' from proceeding further with hearing the com plaint of John Devereaux that he was unjustly dismissed by the applicant Sedpex, Inc.
Background Facts
Mr. Devereaux was hired in March, 1983 as a derrickman on an offshore drilling rig, Sedco 710, operating off the coast of Newfoundland. He was originally hired by Sedco Inc., a sister corporation of Sedpex and his contract was transferred to Sedpex in May, 1983. He was promoted to the position of assistant driller on that rig on April 5, 1984. He was one of four assistant drillers employed on that rig. On any given shift there would be a driller and an assistant driller on duty with another similar team on board available to work alternate shifts. This would continue for three weeks and then those two teams would be replaced by two other teams who would in the
'R.S.C. 1970, c. L-1.
meantime have been onshore and off duty for three weeks.
Devereaux continued working as an assistant driller on this rig until February, 1986. While off duty and onshore he was involved on February 14, 1986 in an automobile accident which rendered him unfit to return to work at the time he was due back, namely on February 28, 1986. During Deve- reaux's absence Sedpex arranged for Alan Lange- vin, a driller on a rig operated by Sedco Forex (Sedpex's parent corporation) in the North Sea, to be transferred temporarily to Sedco 710 to work as an assistant driller in place of Devereaux. On April 7, 1986, Devereaux's doctor advised Sedpex that Devereaux would be fit to return to work on April 11, 1986. On April 9, 1986 Sedco 710 received instructions from Sedpex headquarters in the United States advising that the Sedco 703 drill rig in the North Sea from which Langevin had come was idle "with no near work prospects" so "that unit is no longer able to provide Allen [sic] a job". The telex went on to direct Sedco 710 to offer Langevin a permanent position on Sedco 710 if he was prepared to accept a reduction in status from driller to assistant driller. The telex further said:
To maintain 710 staffing levels within your authorized comple ment, this would require laying off one individual presently assigned to the rig, who should probably be your weakest assistant driller.
As a result Devereaux was advised orally on April 11th, and by letter on April 14th, that his service with Sedpex, Inc. was being terminated at once. Soon thereafter Devereaux filed a complaint under section 61.5 of the Canada Labour Code, alleging unjust dismissal. In October, 1986, the Minister of Labour appointed Dennis M. Browne to be an adjudicator to hear this complaint. The adjudica tion hearing commenced at St. John's, Newfound- land on August 13, 1987 and was continued on September 15, 1987. Sedpex raised a preliminary objection that the adjudicator was without juris diction to hear the matter because Devereaux had been "laid off because of lack of work" as referred to in paragraph 61.5(3)(a) of the Code, which
would preclude consideration of a complaint in such circumstances. The adjudicator heard the evidence of Joe Bryant, District Manager of Sedpex, Inc. for eastern Canada in April, 1986, who was examined and cross-examined before him. He also received a number of exhibits put in through Mr. Bryant. He delivered a written deci sion on January 20, 1988 dealing only with this preliminary issue. He concluded that Devereaux was not terminated due to lack of work and that therefore he was not precluded from hearing the complaint. He sought to continue the hearing of the complaint but Sedpex, Inc. brought these pro ceedings for prohibition to prevent him from doing so.
Legislative Framework
Section 61.5 was inserted in the Code to provide, in effect, a grievance procedure for federally- regulated employees not protected by collective bargaining agreements, allowing them to file com plaints with respect to unjust dismissal. Where such a complaint is filed and the matter is not otherwise settled the Minister can appoint an Adjudicator. If the Adjudicator after holding a hearing concludes that the person was unjustly dismissed he can order compensation or reinstate ment of that person or some other appropriate remedy. Subsection 61.5(14) specifically provides that no civil remedy which an employee may have against his employer is suspended or affected by this section. The most relevant subsections for the purposes of the present proceeding are the following:
61.5...
(3) No complaint shall be considered by an adjudicator under subsection (8) in respect of a person where
(a) the person has been laid off because of lack of work or because of the discontinuance of a function; or
(b) a procedure for redress has been provided elsewhere in or under this or any other Act of Parliament.
(7) An adjudicator to whom a complaint has been referred under subsection (6)
(a) shall consider the complaint within such time as the Governor in Council may by regulation prescribe;
(b) shall determine his own procedure, but shall give full opportunity to the parties to the complaint to present evi dence and make submissions to him and shall consider the information relating to the complaint referred to him under subsection (6); and
(c) has, in relation to any complaint before him, the powers conferred on the Canada Labour Relations Board, in relation to any proceeding before the Board, by paragraphs 118(a), (b) and (c).
(8) An adjudicator to whom a complaint has been referred under subsection (6) shall consider whether the dismissal of the person who made the complaint was unjust and shall render a decision thereon and send a copy of the decision with the reasons therefor to each party and to the Minister.
(10) Every order of an adjudicator appointed under subsec tion (6) is final and shall not be questioned or reviewed in any court.
(11) No order shall be made, process entered or proceeding taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise, to question, review, prohibit or restrain an adjudicator in any of his proceedings under this section.
Scope and Criteria for Judicial Review Herein
It should first be noted that this is an applica tion to the Trial Division for prohibition under section 18 of the Federal Court Act [R.S.C. 1970 (2nd Supp.), c. 10] and not an application to the Federal Court of Appeal for judicial review under section 28 of that Act. It appears to me that the application is properly made to this Division. The conclusion reached by the adjudicator that he had jurisdiction was not a "decision or order" as referred to in subsection 28(1) of the Federal Court Act. It was not a final decision but only a preliminary assumption upon which the adjudica tor would proceed to a determination of the com plaint before him. Such preliminary conclusions as to jurisdiction have been held not to be "decisions"
at a11. 2 When a final determination of a complaint has been made by an adjudicator that determina
tion then becomes subject to review under section 28 3
It is also important to note the privative clauses, subsections 61.5 (10) and (11) quoted above. While subsection 61.5(10) might in any event be irrele vant as no "order" has been made by the adjudica tor, subsection 61.5 (11) which purports to pre clude any court process "to ... prohibit or restrain an adjudicator in any of his proceedings" might be thought to apply. However, it has long been estab lished that, notwithstanding such privative clauses, if a tribunal has exceeded its jurisdiction then judicial review of its decision is permissible on the jurisdictional issue. 4 Further, the courts have greatly expanded the concept of jurisdictional error to include decisions made in bad faith, deci sions made on irrelevant material, decisions made without regard to relevant material, misinterpreta tions of statutes, and breaches of natural justice.'
Where a court thus has to determine a tribunal acted within its jurisdiction it has been held that scrutiny must be beyond the mere determination that the tribunal's decision was not patently unrea sonable. As stated by Beetz J. in Syndicat des employés de production du Québec et de l'Acadie v. Canada Labour Relations Board et a1.: 6
2 See e.g., Paul L'Anglais Inc. v. Canada Labour Relations Board, [1979] 2 F.C. 444 (C.A.); Canadian Human Rights Commission v. British American Bank Note Co., [1981] 1 F.C. 578 (C.A.).
3 See e.g., Attorney General of Canada v. Gauthier, [ 1980] 2 F.C. 393 (C.A.); Eskasoni School Board and Eskasoni Band Council v. MacIsaac et al. (1986), 69 N.R. 315 (F.C.A.).
4 See e.g., Jarvis v. Associated Medical Services Inc. et al., [1964] S.C.R. 497.
5 See e.g., Anisminic, Ltd. v. The Foreign Compensation Commission, [1969] 1 All E.R. 208 (H.L.); Service Employees' International Union, Local No. 333 v. Nipawin District Staff Nurses Association et al., [1975] 1 S.C.R. 382, at p. 389.
6 [1984] 2 S.C.R. 412, at pp. 441-442.
Once a question is classified as one of jurisdiction, and has been the subject of a decision by an administrative tribunal, the superior court exercising the superintending and reforming power over that tribunal cannot, without itself refusing to exercise its own jurisdiction, refrain from ruling on the correct ness of that decision, or rule on it by means of an approximate criterion.
This is why the superior courts which exercise the power of judicial review do not and may not use the rule of the patently unreasonable error once they have classified an error as jurisdictional.
In theory, this means that the reviewing court must satisfy itself that the decision of the tribunal as to its jurisdiction was correct both as to the law and the facts. One must, of course, recognize that "correctness" is a relative, not an absolute, term. Questions of law are always open to debate, but we accept as the "correct" determination of law that which is, in our legal system, the most authorita tive. Thus for both functional and doctrinal rea sons courts are viewed as being the most authorita tive in determining what is the law. It follows that a judicial opinion, perhaps clarified and sanctified by the appeal process, is deemed to be the "cor- rect" view of what the law is for purposes of determining the jurisdiction of the tribunal.
With respect to the "correctness" of facts, how ever, it must be recognized that neither a tribunal nor a court ever can be said to have pronounced incontestably the correct version of past events. Those events can never be reproduced. What fact- determination bodies produce, instead are findings of fact which must stand in place of the facts themselves. Depending on the processes involved in reaching them, such findings may to a greater or lesser degree correspond to what actually hap pened. It is pushing judicial self-esteem beyond the bounds of decency to assume that courts will always be in a better position to make such find ings. The legal system recognizes that some proce dures and institutions are more likely to produce accurate findings of fact than are others. Thus for example appellate courts normally defer to the factual findings of trial courts, particularly where there are issues of credibility which are thought to be better assessed by the judge who hears and sees the witness, unless such findings of fact are "clear-
ly wrong".' Further, it has been said that even where there are no such issues of credibility
An appellate court is not, however, even in that circumstances, entitled to substitute its views for those of the Trial Judge simply because it would have concluded differently; the appel late court must conclude that he was wrong. 8
It will be noted that appellate courts take this cautious approach, even though they typically have before them a complete transcript of the evidence taken before the trial court.
This suggests that a court should embark with some caution on assessing the "correctness" of jurisdictional facts determined by a tribunal. This is particularly true where, as in the present case, I do not have before me a transcript of the oral evidence taken before the adjudicator, nor as far as I can see do I have any new evidence before me that was not before the adjudicator. Indeed, the only evidence before me consists of two affidavits sworn by employees of the applicant which briefly describe the evidence that was put before the adjudicator much more fully and by viva voce evidence. Dickson J. stated it thus in Jacmain v. Attorney General (Can). et al. 9
The intractable difficulty is this. It is hard to conceive that a legislature would create a tribunal with a limited jurisdiction and yet bestow on such tribunal an unlimited power to deter mine the extent of its jurisdiction. On the other hand, if the correctness of every detail upon which the jurisdiction of the tribunal depends is to be subject to re-trial in the Courts and
7 See e.g., Stein et al. v. "Kathy K" et al. The Ship, [1976] 2 S.C.R. 802, at p. 806; Koehring Canada Ltd. v. Owens-Illinois Inc. et al. (1980), 52 C.P.R. (2d) 1, at p. 21 (F.C.A.).
8 Capitol Life Insurance Co. v. R., [1986] 2 F.C. 171, at p. 177 (C.A.).
9 [1978] 2 S.C.R. 15, at p. 29. While this statement was made in the context of a dissenting judgment with which Laskin C.J. and Spence J. concurred, the same principle was in effect endorsed by Pigeon J. on behalf of himself and Beetz J., ibid at p. 42. See also Segal v. City of Montreal, [1931] S.C.R. 460, at p. 473.
the opinion of a judge substituted for that of the tribunal, then the special experience and knowledge of the members of such a tribunal and the advantage they have of hearing and seeing the witnesses may be lost. The power to review jurisdictional questions provides the Courts with a useful tool to ensure that tribunals deal with the type of issues which the Legislature intended. It enables the Courts to check unlawful attempts at usurpation of power. But the Courts, in my opinion, should exercise restraint in declaring a tribunal to be without jurisdic tion when it has reached its decision honestly and fairly and with due regard to the material before it. The Court should allow some latitude in its surveillance of jurisdictional findings. It should ask whether there is substantial evidence for decisions of fact and a rational basis for decisions of law, or mixed decisions of fact and law. The error must be manifest. The role of the Court is one of review, not trial de novo.
Consistently with this approach, I believe that it would be inconsistent witl1. the purposes of section 61.5 if the Trial Division of this Court were to make de novo and routine factual determinations for the purposes of paragraph 61.5(3)(a) as to whether a person has been laid off because of lack of work, prior to the adjudicator having the oppor tunity to hear all the evidence and make a final decision which can be reviewed by the Federal Court of Appeal under section 28.
I therefore conclude from the foregoing that paragraph 61.5(3)(a) does involve a question of jurisdiction and that I can review the conclusions of the adjudicator for the purpose of determining whether he has jurisdiction to proceed with the complaint. In doing so it is open to me to form my own opinions as to the relevant questions of law but that with respect to his findings of fact I should not substitute my own view for his unless his can be demonstrated to be manifestly wrong. 10
Conclusions
The most relevant portion of the adjudicator's findings with respect to whether Mr. Devereaux was dismissed because of lack of work, and there fore whether the adjudicator had jurisdiction to proceed with hearing the complaint, was as follows:
In this instance, the Complainant was dismissed from his permanent employment as an Assistant Driller because the Respondent preferred to hire on a permanent basis the
10 Ibid.
employee who had been replacing the Complainant while the latter was on sick leave. The Employer witness did make reference to a slow down in the North Sea operation which may have resulted in a lack of work but there was no evidence whatsoever of a slow down or lack of work in the offshore area in which the Sedco 710 was operating at the time this com plaint was made. There is no evidence that other employees on the Sedco 710 were affected in any way by the slow down in the North Sea operation. The only employee who appears to have been affected by a lay-off seems to have been the Complainant. The scenario that the Employer presents of having five Assist ant Drillers for four positions was essentially the Employer's own creation. Thus, there was no lack of work per se on the Sedco 710 based on legitimate considerations. To this end, I find that the termination of the Complainant based on lack of work was, in fact, a sham. If the Respondent were to succeed in these circumstances, the recourse offered employees through Division V.7, Part III of the Canada Labour Code could be reduced to a nullity.
I find based upon the evidence that the Complainant was not terminated due to lack of work but because the Respondent preferred to retain the Complainant's replacement when the Complainant returned from sick leave. The Respondent has not discharged its burden of satisfying this adjudicator that there was a lack of work ...
The applicant contends that these findings involved errors of fact and law. I do not agree.
With respect to a possible error of law, it appears to me that the adjudicator has properly interpreted paragraph 61.5(3)(a). It is implicit in his conclusions that a person should not be con sidered to have been "laid-off because of lack of work" unless that was the real, essential, operative reason for the termination of his employment. It is obvious that employees' jobs are frequently ter minated for a combination of reasons. That does not mean that because one factor in dismissal is. the fact that there is another person available to do the job, the termination is automatically due to "lack of work". Nor does it mean that because the employer says that he no longer needs the employee in question the termination of employ ment must automatically be regarded as due to "lack of work". Difficult as it may be in some cases, the question which the statute requires to be answered, in my view, is as to whether the actual operative and dominant reason for the termination was "lack of work". I am satisfied that that is the question which the adjudicator put to himself in
this case when he concluded that the alleged reason of "lack of work" was a "sham".
Nor can I find any reviewable error of fact committed by the adjudicator. As noted earlier, I am limited in the extent to which I can substitute my view of the facts for that of the adjudicator. He heard the only witness to be called as yet, Mr. Bryant, who was District Manager of Sedpex, Inc. during the period in question. The adjudicator heard the examination and cross-examination of Mr. Bryant, and his explanations with respect to the exhibits. I have heard none of these nor do I have a transcript of his evidence. I am unable to say that the adjudicator had no evidence or no substantial evidence upon which he could conclude that the reason for the termination of Devereaux's employment was the preference of Sedpex, Inc. to employ Langevin instead. The adjudicator correct ly held—and the applicant does not dispute this— that the burden was on Sedpex, Inc. to show that the reason for the lay-off was lack of work. It was certainly open to the adjudicator to find that this. burden of proof had not been met. Throwing seri ous doubt on any such contention by the employer were several documents put into evidence by the employer itself demonstrating that the employer for some time had serious doubts as to Devereaux's competence to be an assistant Driller. There were unfavourable evaluations on him as assistant Drill- er as early as May, 1985 and a memorandum at about that time from the drilling superintendent to Mr. Bryant saying in part concerning Mr. Devereaux,
1 think we should start looking at replacing him as asst Driller soon.
A note sent to him on November 10, 1985 from another drilling superintendent advised Mr. Deve- reaux that:
This is your final warning, any further incidents will lead to dismissal!
These were followed by other negative comments on the file by his supervisor, and a personnel evaluation of March 3, 1986 of over fifty
employees on the Sedco 710 drill rig of which Devereaux received the lowest rating. Further, the evidence showed that after Devereaux's automo bile accident Mr. Langevin was brought in on a temporary basis and he was not offered a perma nent position on Sedco 710 until the company had been advised by Devereaux's doctor that Deve- reaux could return to work. It was at that point that Langevin was offered a permanent position. Once Langevin accepted this position the result was that if Devereaux returned there would be five assistant drillers to occupy four positions. At that point Devereaux was terminated. It was certainly open to the adjudicator on the basis of this evi dence to conclude that the real, operative, reason for Devereaux's dismissal was the company's belief that he was not competent to do the job or not as competent as Langevin.
It is precisely that belief which can be explored if the adjudicator continues with the hearing. In declining to reject the conclusion of the adjudica tor that Devereaux's dismissal was not due to lack of work and in holding that the adjudicator has jurisdiction to hear the complaint, I am of course in no way prejudging the result of the hearing by the adjudicator on the merits. Counsel for the applicant, in his thorough and lucid argument, referred me to several decisions of adjudicators which had favoured employers. Some stress was placed on "management rights" to determine who shall work and who shall not. I do not question the right of management to dismiss for just cause and it remains open to the applicant here to challenge Devereaux's complaint that his dismissal was unjust. But I am not prepared to prohibit the adjudicator from addressing that question because I do not believe the applicant has demonstrated that the adjudicator has, in assuming jurisdiction, committed any reviewable error of law or of fact.
The application will therefore be dismissed. The respondent requested that, if I dismissed the application, I order costs against the applicant on
a solicitor and client basis. Counsel based this request on the insubstantiality of the applicant's case. Normally costs should not be awarded on a solicitor and client basis just because of the lack of merits in the case of the losing party, but instead because of the manner in which the proceedings have been conducted. I can find nothing reprehen sible in the way the applicant has conducted its case. It is regrettable for the due administration of section 61.5 that these proceedings will have delayed the adjudicator for a year or so in dealing with the merits. But this was a recourse which the applicant was legally entitled to pursue because of the supervisory role courts have assured for them selves in matters of jurisdiction. I therefore award costs against the applicant, but only on a party and party basis.
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