Indexed as: Chrysler Canada Ltd. v. Canada (Competition Tribunal) The
Competition Tribunal, appellant; v. Chrysler Canada Ltd. and the Director of
Investigation and Research, respondents. And between The Director of
Investigation and Research and the Competition Tribunal, appellants; v.
Chrysler Canada Ltd., respondent. [1992]
2 S.C.R. 394 [1992] S.C.J. No. 64 File Nos.: 22151, 22152. Supreme Court of
Canada 1992: January 31 / 1992: June 25. Present:
La Forest, L'Heureux-Dubйй,
Sopinka, Gonthier, Cory, McLachlin and Stevenson* JJ. ON APPEAL FROM THE
FEDERAL COURT OF APPEAL (93 paras.)
* Stevenson J. took no part in the
judgment.
Contempt
—— Competition Tribunal —— Jurisdiction —— Contempt ex facie curiae —— Whether
Competition Tribunal has jurisdiction over civil contempt for breaches of its
orders under Part VIII of Competition Act —— Meaning of "any matters
related thereto" —— Competition Tribunal Act, R.S.C., 1985, c. 19 (2nd
Supp.), s. 8.
The appellant Competition Tribunal issued
an order against Chrysler Canada Ltd. under Part VIII of the Competition Act
requiring it to resume the supply of automotive parts to one of its customers.
The Director of Investigation and Research, having reason to believe that
Chrysler was not complying with the order, filed a motion with the Tribunal for
an order directing Chrysler to show cause why it should not be held in contempt
of the Tribunal. At the hearing of the motion, Chrysler objected to the
Tribunal's jurisdiction. The Tribunal ruled that it had jurisdiction to
entertain proceedings for [page395] contempt of its orders. The Federal Court
of Appeal reversed the decision.
Held (McLachlin J. dissenting): The
appeals should be allowed.
Per La Forest, L'Heureux-Dubйй, Sopinka,
Gonthier and Cory JJ.: While at common law only superior courts have the power
to punish for contempt ex facie curiae, clear and unambiguous statutory
language can override the common law and confer ex facie contempt powers on an
inferior tribunal. Enactments which deprive superior courts of their
jurisdiction must be given a narrow construction, but barring constitutional
considerations, if a statute, read in context and given its ordinary meaning,
clearly confers upon an inferior tribunal a jurisdiction that is enjoyed by the
superior court at common law, while not depriving the superior court of its
jurisdiction, it should be given effect. The Competition Tribunal, an inferior
court of record, has jurisdiction over civil contempt for breaches of its
orders under Part VIII of the Competition Act. Parliament intended the Tribunal
to oversee Part VIII, the civil part, and was strongly concerned with long-term
compliance with the Competition Act, in both its criminal and civil parts, but
the Act itself does not make any provision for the enforcement of the
Tribunal's orders through contempt or similar proceedings. Section 8(1) of the
Competition Tribunal Act is the basis of the Tribunal's jurisdiction. It
confers on the Tribunal jurisdiction "to hear and determine all
applications made under Part VIII of the Competition Act and any matters
related thereto". When the English and French versions are read together,
it becomes apparent that the additional powers conferred by the phrase
"any matters related thereto"/"toute question s'y
rattachant" pertain to the applications, and not to the hearing and
determination of the applications. The Tribunal's jurisdiction does not
terminate upon the determination of an application, but may encompass other
matters related to the application, such as the enforcement of an order made
pursuant to the application. Since the Tribunal has jurisdiction to hear and determine
Part VIII applications, the common law would have conferred upon it
jurisdiction over incidental and ancillary matters arising in the course of the
hearing and determination. No need would arise to add the phrase "and any
matters related thereto". Since this phrase should be given some meaning,
it should be taken as a grant of jurisdiction over matters related to Part VIII
applications, but arising outside of the hearing and determination of these
applications. These matters [page396] may include the enforcement of the orders
made under Part VIII.
Section 8(2) of the Competition Tribunal
Act confirms and consolidates the Tribunal's jurisdiction. It expressly confers
on the Tribunal the powers of a superior court with respect to the enforcement
of its orders, which include the power over contempt for breaches of its
orders. This conclusion is further supported by s. 8(3), which requires that
the judicial member of the Tribunal concur in a finding of contempt and in the
consequences attached to this contempt by the Tribunal. Inferior tribunals,
whose members are seldom all lawyers or judges, may generally find persons in
contempt in facie and punish them without the need for judicial endorsement.
Section 8(3), because of this unique requirement, is indicative of the
intention of Parliament to give the Tribunal contempt powers going beyond those
which an inferior tribunal would ordinarily exercise.
Even if s. 96 of the Constitution Act,
1867 limited the powers of Parliament in the same manner and to the same extent
as it limits the powers of provincial legislatures, it would have been
respected in this case. The Tribunal's powers should be characterized as
jurisdiction over civil contempt for breaches of its orders for purposes of the
historical inquiry; contempt over breaches of a tribunal's orders is a species
of contempt ex facie curiae, and as such fell within the purview of s. 96
courts at the time of Confederation. The Tribunal also has a judicial function.
With regard to institutional setting, effective enforcement of orders made
under the Competition Act, particularly Part VIII, is essential, to avoid
seeing these orders circumvented through elaborate relational arrangements
which, although on the surface innocuous, effectively create the same obstacles
that the orders sought to remove. Only a specialized tribunal such as the
Tribunal can properly ensure the enforcement of the orders it makes. Because of
the institutional setting, the jurisdiction conferred by s. 8 of the
Competition Tribunal Act upon the Tribunal with respect to civil contempt for
breaches of its orders would not [page397] infringe s. 96 of the Constitution
Act, 1867, in the event it should apply to Parliament.
Per McLachlin J. (dissenting): The Court
of Appeal correctly concluded that Parliament did not confer jurisdiction over
contempt ex facie curiae on the Competition Tribunal. At common law an
"inferior court" is limited in its jurisdiction to the punishment of contempt
in facie curiae absent clear and express statutory language to the contrary. By
long tradition, exercise of the power to punish contempt outside the presence
of the court has been confined to superior courts, and this restriction is
sound, being grounded in significant policy considerations. Parliament can
expressly legislate to confer a general contempt power on an inferior tribunal,
subject to the constitutional issue. There is a presumption, however, in
construing statutes conferring powers on inferior tribunals, that they will not
be considered to possess the power of contempt outside the presence of the
court unless the language of Parliament is clear and unequivocal. No such
language is found in s. 8 of the Competition Tribunal Act. This presumption does
not apply only in cases where the enactment extinguishes or diminishes the
power of a superior court. Even if the presumption does not apply, ss. 8 and 9
of the Competition Tribunal Act, correctly construed, do not confer that power
on the Tribunal. The Tribunal's primary role in the legislative scheme is that
of dispute resolution; it has no general supervisory power, and the task of
enforcement is left to others. The scheme provides for enforcement by a variety
of other means; enforcement by contempt is unnecessary. The power of the
Tribunal as set out in s. 8 is confined to the resolution of disputes and
making of orders. The phrase in s. 8(1) "and any matters related
thereto" is most naturally construed as referring to interlocutory matters
arising in the course of an "application". Most of the powers
referred to in s. 8(2) relate to the conduct of the hearing: the phrase
"enforcement of its orders" can be entirely explained in the context
of interlocutory orders made in the course of the hearing, and the general
phrase "and other matters necessary or proper for the due exercise of its
jurisdiction" refers back to whatever jurisdiction the Tribunal is granted
by other provisions, primarily s. 8(1). As for s. 8(3), its requirement that
the judicial member of the Tribunal concur in any finding of contempt is
completely explicable by reference to the power of contempt in the face of the
court conferred by s. 8(1) and (2) and the judicial member's exclusive
jurisdiction over all questions of law. It is noted that clothing the Tribunal
with the power [page398] to commit for ex facie contempt leads to difficult s.
96 issues.
Cases Cited
By Gonthier J.
Distinguished:
Canadian Broadcasting Corp. v. Quebec Police Commission, [1979] 2 S.C.R. 618; referred to: Chrysler Canada
Ltd. v. Director of Investigation and Research, Competition Act (1991), 129
N.R. 77; Crevier v. Attorney General of Quebec, [1981] 2 S.C.R. 220; Canada
(Director of Investigation and Research under the Combines Investigation Act)
v. Newfoundland Telephone Co., [1987] 2 S.C.R. 466; Interprovincial Pipe Line
Ltd. v. National Energy Board, [1978] 1 F.C. 601; Re Residential Tenancies Act,
1979, [1981] 1 S.C.R. 714; Sobeys Stores Ltd. v. Yeomans, [1989] 1 S.C.R. 238;
Reference re Young Offenders Act (P.E.I.), [1991] 1 S.C.R. 252; Nicholson v.
Haldimand-Norfolk Regional Board of Commissioners of Police, [1979] 1 S.C.R.
311; American Airlines, Inc. v. Canada (Competition Tribunal), [1989] 2 F.C. 88,
aff'd [1989] 1 S.C.R. 236.
By McLachlin J. (dissenting)
Canadian Broadcasting Corp. v.
Quebec Police Commission, [1979] 2 S.C.R. 618; Vachliotis v. Exodus Link Corp.
(1987), 23 C.P.C. (2d) 72; Re Residential Tenancies Act, 1979, [1981] 1 S.C.R.
714; Reference re Young Offenders Act (P.E.I.), [1991] 1 S.C.R. 252; McEvoy v.
Attorney General for New Brunswick, [1983] 1 S.C.R. 704; Sobeys Stores Ltd. v.
Yeomans, [1989] 1 S.C.R. 238.
Statutes and Regulations Cited
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Act to establish the Competition
Tribunal and to amend the Combines Investigation Act and the Bank Act and
other Acts in consequence thereof, R.S.C., 1985, c. 19 (2nd
Supp.).Broadcasting Act, S.C. 1991, c. 11, ss. 13, 32.Canadian International
Trade Tribunal Act, R.S.C., 1985, c. 47 (4th Supp.), s. 16.Combines
Investigation Act, R.S.C. 1970, c. C-23, s. 17. |
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[page399] |
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Competition Act, R.S.C., 1985, c. C-34
[am. c. 19 (2nd Supp.)], ss. 1.1, 10, 33, 34, 36, 67, 73, 74, 75, 86, 99,
106.Competition Tribunal Act, R.S.C., 1985, c. 19 (2nd Supp.), ss. 8, 9(1),
13.Constitution Act, 1867, ss. 96 to 101.Federal Court Rules, C.R.C. 1978, c.
663, r. 1716.Interpretation Act, R.S.C., 1985, c. I-21, ss. 12, 31.Official
Languages Act, R.S.C. 1970, c. O-2. s. 8(2)(c).Oil and Gas Production and
Conservation Act, R.S.C., 1985, c. O-7, ss. 13, 62.Ontario Supreme Court
Rules Respecting Criminal Proceedings -- Part I, SI/85-152, r. 2.Public
Inquiry Commission Act, R.S.Q. 1964, c. 11, ss. 7, 11, 12.Rules of Civil
Procedure, O. Reg. 560/84, rr. 13.01, 13.02. |
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Authors Cited
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Beauprйй, Michael. Interpreting
Bilingual Legislation, 2nd ed. Toronto: Carswell, 1986.Canada. Economic
Council of Canada. Interim Report on Competition Policy. Ottawa: Queen's
Printer, 1969.Cффtйй, Pierre-Andrйй. The Interpretation of Legislation in
Canada, 2nd ed. Cowansville: ЙЙditions Yvon Blais Inc., 1992.Halsbury's Laws
of England, vol. 44, 4th ed. London: |
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Butterworths, 1983.
APPEALS from a judgment of the
Federal Court of Appeal, [1990] 2 F.C. 565, 111 N.R. 368, 31 C.P.R. (3d) 510,
48 B.L.R. 125, reversing a decision of the chairman of the Competition Tribunal
dismissing an objection to jurisdiction. Appeals allowed, McLachlin J.
dissenting.
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C. Christopher Johnston, Q.C., and Jane
Graham, for the appellant, the Competition Tribunal.Rory R. Edge and William
J. Miller, for the appellant, the Director of Investigation and
Research.Thomas A. McDougall, Q.C., and Richard A. Wagner, for the respondent,
the Chrysler Canada Ltd. |
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Solicitors for the appellant, the
Competition Tribunal: |
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Johnston & Buchan, Ottawa.Solicitor
for the appellant, the Director of Investigation and Research: The Deputy
Attorney General of Canada, Ottawa.Solicitors for the respondent, Chrysler
Canada Ltd.: |
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Perley-Robertson, Panet, Hill &
McDougall, Ottawa. |
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[page400] |
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The judgment of La Forest,
L'Heureux-Dubйй, Sopinka, Gonthier and Cory JJ. was delivered by
1 GONTHIER J.:—— These appeals
are concerned with the jurisdiction of the Competition Tribunal (hereinafter
the Tribunal) to entertain proceedings for civil contempt of its orders under
Part VIII of the Competition Act, R.S.C., 1985, c. C-34, as amended by R.S.C.,
1985, c. 19 (2nd Supp.) (hereinafter CA).
I -- Facts and Proceedings
2 On October 13, 1989, the
Tribunal issued an order against the respondent under s. 75 CA, requiring it to
resume the supply of Chrysler automotive parts to one Richard Brunet. This
order was upheld by the Federal Court of Appeal on September 19, 1991: 129 N.R.
77.
3 On February 19, 1990, the
Director of Investigation and Research (hereinafter "the Director"),
having reason to believe that the respondent was not complying with the order,
filed a motion with the Tribunal for an order directing the respondent and
others to appear before the Tribunal to show cause why they should not be held
in contempt of the Tribunal. At the hearing of the motion, on February 20,
1990, the respondent objected to the jurisdiction of the Tribunal. On the same
day, the Tribunal ruled that it had jurisdiction to entertain contempt
proceedings. The respondent appealed from that decision. On July 10, 1990, the
Federal Court of Appeal unanimously reversed and denied the jurisdiction of the
Tribunal, for the reasons of Iacobucci C.J. (as he then was). This Court
granted leave to appeal this judgment on May 2, 1991.
II -- Relevant Statutory Dispositions
4 Competition Tribunal Act,
R.S.C., 1985, c. 19 (2nd Supp.), s. 8 (hereinafter CTA):
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[page401] |
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8. (1) The Tribunal has jurisdiction to
hear and determine all applications made under Part VIII of the Competition
Act and any matters related thereto. |
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(2) The Tribunal has, with respect to
the attendance, swearing and examination of witnesses, the production and
inspection of documents, the enforcement of its orders and other matters
necessary or proper for the due exercise of its jurisdiction, all such
powers, rights and privileges as are vested in a superior court of record. |
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(3) No person shall be punished for
contempt of the Tribunal unless a judicial member is of the opinion that the
finding of contempt and the punishment are appropriate in the circumstances. |
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III -- Judgments Below
Competition Tribunal
5 Reed J. stated that inferior
tribunals do not have the power to punish for contempt committed outside of
their presence (contempt ex facie curiae), unless a statute confers such a
power on them. She found that s. 8 CTA did grant such jurisdiction to the
Tribunal, a conclusion that was further buttressed by the nature of the
competition scheme, especially the separation of investigative and adjudicative
powers between the Director and the Tribunal respectively.
Federal Court of Appeal, [1990] 2
F.C. 565
6 Iacobucci C.J. began with the
same premise as Reed J., referring to Dickson J. (as he then was) in Canadian
Broadcasting Corp. v. Quebec Police Commission, [1979] 2 S.C.R. 618
(hereinafter CBC), for the proposition that the statutory grant must be clear
and unambiguous. He examined the three subsections of s. 8 CTA. He found that
the words "hear and determine" in s. 8(1) limited the jurisdiction of
the Tribunal to the issuance of the order determining the application under
Part VIII CA. The phrase "enforcement of its orders" in s. 8(2) was
qualified by the phrase "necessary or proper for the due exercise of its
jurisdiction" and therefore could not give the Tribunal a greater
jurisdiction than s. 8(1) outlines. Finally, s. 8(3) does not indicate that it
applies to anything more than contempt in the presence of the Tribunal (in
[page402] facie curiae). He concluded that the Tribunal did not have any
jurisdiction over contempt proceedings for breaches of its orders under Part
VIII CA.
IV -- Issue
7 As stated at the outset of
these reasons, the sole issue before the Court is whether the Tribunal has
jurisdiction over civil contempt for breaches of its orders under Part VIII CA.
The parties made numerous references to contempt ex facie curiae in general,
and I wish to underscore that the powers of the Tribunal over contempt ex facie
curiae as such are not at issue here. This Court is only concerned with one
species of ex facie contempt, failure to comply with an order of the Tribunal.
V -- Analysis
8 It is not contested by the
parties, and the Court agrees, that the Tribunal is an inferior court of
record, as stated in s. 9(1) CTA.
A. The Common Law
9 This Court reviewed the common
law with respect to the contempt powers of inferior tribunals in CBC, supra.
There, the CBC had broadcast a photograph of a witness before the Quebec Police
Commission (hereinafter "the Commission"), despite a publication ban
from the Commission. The Commission ordered the CBC to appear before it and
show cause why it should not be held in contempt. The CBC challenged the
jurisdiction of the Commission. Various legislative grounds had been advanced
in support of the jurisdiction of the Commission, including ss. 7, 11 and 12 of
the Public Inquiry Commission Act, R.S.Q. 1964, c. 11:
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[page403] |
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7. A majority of the commissioners must
attend and preside at the hearing of witnesses, and they, or a majority of
them, shall have, with respect to the proceedings upon the hearing, all the
powers of a judge of the Superior Court in term. |
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11. Any person refusing to be sworn when
duly required, or omitting or refusing, without just cause, sufficiently to
answer any question that may be lawfully put to him, or to render any
testimony in virtue of this act, shall be deemed to be in contempt of court
and shall be punished accordingly. |
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...
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12. If any person refuse to produce,
before the commissioners, any paper, book, deed or writing in his possession
or under his control which they deem necessary to be produced, or if any
person be guilty of contempt of the commissioners or of their office, the
commissioners may proceed for such contempt in the same manner as any court
or judge under like circumstances. |
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Articles 46 (general powers of
courts and judges) and 49 to 54 (contempt of court) of the Code of Civil
Procedure were also invoked.
10 For the majority of the
Court, Beetz J. first reviewed the common law. He concluded at p. 638:
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... the Anglo-Canadian authorities on
the power to punish for contempt committed ex facie curiae have been firmly
established for more than two hundred years. According to these authorities,
this power is enjoyed exclusively by the superior courts. |
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Such a rule is moreover justified in
principle by the following considerations. The power to punish for contempt
committed ex facie is liable to result in inquiries which may well involve a
lower court in areas which are practically impossible to define in terms of
jurisdiction and completely foreign to its own area of jurisdiction, which by
definition is limited. Such an obstacle does not arise in the case of a court
like the Superior Court, which is a court of original general jurisdiction
(art. 31 C.C.P.) with a priori jurisdiction, or courts sitting in appeal from
decisions of the Superior Court, which may in general render the decisions
which the latter would have rendered. Moreover, the power to punish a
contempt committed ex facie is necessarily bound up with the superintending
and controlling power which only a superior court may exercise over inferior
courts. This [page404] controlling power could become illusory if, in the
case of a contempt committed ex facie, an inferior court had the right to go
beyond its own particular field. There would also be the danger of conflict
between the superior and inferior courts, of the kind that formerly existed
in England between the common law and equity courts. Finally, the inferior
courts are not without any means of ensuring that their lawful orders are
observed ... the superior courts may come to their aid ... |
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Beetz J. went on to examine whether
any of the above enactments conferred a power over contempt ex facie curiae on
the Commission. He held that s. 7 of the Public Inquiry Commission Act was
limited to the examination of witnesses, and therefore could not give the
Commission more than the in facie contempt power it already had. Similarly, ss.
11 and 12 could be read as concerning contempt in facie curiae only. As for the
articles of the Code of Civil Procedure, art. 46 was suppletive in nature and
arts. 49 to 54 merely codified the common law of contempt. In adopting this
interpretation, Beetz J. was guided by the principle of constitutionality of
statutes: in deciding as to the appropriate interpretation of a statute, one
should prefer a construction that conforms with the Constitution.
11 Beetz J. did not enunciate
any formal requirement with respect to the wording of a statutory grant of ex
facie contempt powers to an inferior court. In his analysis of the Code of
Civil Procedure, though, he wrote that "[w]hen the legislator wishes to
amend the common law, he does so by express provision" (p. 644), referring
to art. 51 C.C.P., which reduced the discretion formerly enjoyed by courts of
law as to punishment. Dickson J., writing for himself and Martland J., held
that statutory language must be clear and unambiguous to override the common
law and confer ex facie contempt powers on an inferior tribunal. I fail to see
much difference between "express" and "clear and
unambiguous". Both opinions adopt in substance the same interpretation principle.
The common law may be modified through express statutory language, such as the
[page405] grant of a power in terms different from the common law.
12 Furthermore, when dealing
with common law rules on the jurisdiction of superior courts, it is important
to distinguish between enactments which deprive superior courts of their
jurisdiction, or privative clauses, and enactments which convey part of the
jurisdiction of superior courts to another tribunal, while not extinguishing
the jurisdiction of superior courts. In the former case, courts have insisted
on a narrow construction, since the citizen may be deprived of a recourse to
the superior court (see the line of cases culminating in Crevier v. Attorney
General of Quebec, [1981] 2 S.C.R. 220, where the rule of strict interpretation
is given constitutional significance). In the latter case, I would think that
there is little point in insisting upon precise formulae to the extent that the
intention of Parliament may be thwarted (see P.-A. Cффtйй, The Interpretation
of Legislation in Canada (2nd ed. 1992), at pp. 420-21). Barring constitutional
considerations, if a statute, read in context and given its ordinary meaning,
clearly confers upon an inferior tribunal a jurisdiction that is enjoyed by the
superior court at common law, while not depriving the superior court of its
jurisdiction, it should be given effect.
B. The Functions of the Competition
Tribunal
13 The Tribunal was created in
1986, in the wake of "Stage II" of competition law reform. Part I of
An Act to establish the Competition Tribunal and to amend the Combines
Investigation Act and the Bank Act and other Acts in consequence thereof,
R.S.C., 1985, c. 19 (2nd Supp.) (hereinafter the 1986 Act), became the CTA, and
Part II made in-depth amendments to the CA.
14 The 1986 Act completed the
broad division of the CA into two substantive parts, one criminal (Part VI) and
one civil/administrative in nature [page406] (Part VIII), in accordance with
proposals put forward as early as in 1969 by the Economic Council of Canada in
its Interim Report on Competition Policy. Jurisdiction over the criminal part lies
with the courts ordinarily dealing with criminal cases, as well as the Federal
Court, Trial Division (ss. 67, 73 CA). As for the civil part, Part VIII, as its
heading indicates, lists the matters reviewable by the Tribunal. Section 8(1)
CTA confirms the jurisdiction of the Tribunal over Part VIII. The civil part of
the CA therefore falls entirely under the Tribunal's jurisdiction. It is
readily apparent from the CA and the CTA that Parliament created the Tribunal
as a specialized body to deal solely and exclusively with Part VIII CA, since
it involves complex issues of competition law, such as abuses of dominant
position and mergers.
15 Moreover, the 1986 reform also concentrated the administration of the CA in the hands of the Director of Investigation and Research. The Director is responsible for the conduct of inquiries under the CA (s. 10 CA), and he holds a number of powers in this respect. He may request the Attorney General of Canada to consider a prosecution under Part VI CA. For all intents and purposes, since competition matters generally require extensive inquiry, prosecution will rarely be instigated without a request from the D