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 Director. Hence, the Director has a
substantial amount of control over prosecutions under the CA. He has even more
control over proceedings under Part VIII CA since, aside from exceptions of
limited scope in ss. 86, 99 and 106 CA, only the Director may bring a matter
before the Tribunal.
16 Coming to the core of this
case, when one considers the criminal part of the CA, it becomes clear that
Parliament had definite concerns about enforcement when enacting the CA. For
instance, in Part IV, entitled "Special Remedies", at ss. 33 and 34,
superior courts of criminal jurisdiction are given powers to issue interim
injunctions (the Federal [page407] Court is also given this power) and
prohibition orders to prevent violations of Part VI CA. These powers are
exceptional in the criminal law context. Given the nature of competition law
offences, which often involve continuous or continuing business practices, it
is quite understandable that Parliament may have wanted to expand the criminal
part of the CA beyond retribution in order to ensure the benefits of free
competition in the longer term.
17 The same concern for the
proper long-term functioning of the free market lay at the very heart of the
enactment of Part VIII in 1986. Civil remedies can be more finely attuned and
stand a better chance of leading to lasting compliance with the CA than criminal
convictions. Parliament, in order to provide for the supervision of the orders
of the Tribunal, has given the Tribunal at s. 106 CA a power to rescind or vary
its orders upon request from the Director or a person against whom the order
has been made. Yet Parliament has not included in the CA itself a mechanism to
ensure compliance with the orders of the Tribunal.
18 The respondent argues that s.
74 CA, which makes it an offence to contravene or fail to comply with an order
of the Tribunal, is functionally equivalent to a contempt power for breaches of
orders under Part VIII. I disagree. First of all, s. 74 CA, unlike ss. 33(7)
and 34(6) CA for interim injunctions and prohibition orders, aims at punishment
of breaches, and not at securing compliance. It provides for definite fine and
prison terms, and does not allow for the kind of flexibility available in
contempt proceedings. It is in essence retrospective, and not prospective.
Furthermore, a charge under s. 74 CA will be tried before a criminal court, and
not before the Tribunal. The expertise of the Tribunal is lost in proceedings
under s. 74 CA. If it is only possible to prove a breach of an order through a
process comparable in complexity to the issuance of the order, as is often the
case, some violations may well escape scrutiny and remedial [page408] action,
if the expertise of the Tribunal is not available at the enforcement stage.
Given the complexity of orders under Part VIII, monitoring their application
could not be made a completely separate process, before a court of general or
criminal jurisdiction, without a corresponding loss of effectiveness.
19 Moreover, a duality of
criminal and civil remedies against a breach of an order is found in other
areas, where criminal provisions similar to s. 74 CA protect the orders of an
inferior tribunal created by Parliament. Yet Parliament, in these other areas,
has also provided for the filing of their orders with the Federal Court to
ensure compliance (see the Broadcasting Act, S.C. 1991, c. 11, ss. 13 and 32,
and the Oil and Gas Production and Conservation Act, R.S.C., 1985, c. O-7, ss.
13 and 62). Section 74 CA is not an adequate substitute for contempt
proceedings for breaches of orders of the Tribunal.
20 This cursory examination of
the CA shows that Parliament intended the Tribunal to oversee Part VIII and
that Parliament was strongly concerned with long-term compliance with the CA,
in both its criminal and civil parts. The CA itself, however, does not make any
provision for the enforcement of the orders of the Tribunal through contempt or
similar proceedings.
C. Section 8 of the Competition
Tribunal Act
21 Section 8 CTA complements the
CA. The attention of this Court has been drawn to other federal statutes which
contain provisions similar in wording to parts of s. 8 CTA, in particular to s.
8(2) CTA. None of these provisions, however, is similar to the three
subsections of s. 8 CTA taken as a [page409] whole. Moreover, all of the
statutes in which these provisions are found offer schemes different from that
of the CA and CTA, inasmuch as the issue of enforcement through contempt
proceedings does not arise in any of them. Either they provide for a particular
enforcement mechanism, through filing of the Tribunal's order with the Federal
Court, or the relief granted by the Tribunal is self-executory in nature. In
other cases, the Tribunal only has powers of recommendation. Section 8 CTA is
thus unique, and it must be interpreted in light of its wording and its
context.
1. Section 8(1)
22 Section 8(1) CTA, the basis
of the Tribunal's jurisdiction, reads as follows:
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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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* * *
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8. (1) Le Tribunal entend les demandes qui
lui sont prййsentййes en application de la partie VIII de la Loi sur la
concurrence de mккme que toute question s'y rattachant. |
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The core of the Tribunal's jurisdiction
is the hearing and determination of Part VIII applications. When both 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. In English, the phrase "any matters
related thereto" may refer to the applications or to their hearing and
determination, though, to my mind, the latter reading is constrained and does
not reflect the natural meaning of the words, namely: "... hear and
determine all applications made under Part VIII of the Competition Act and hear
and determine all matters related to the applications". In French,
"s'y rattachant" can only refer to the noun "demandes", and
not to the verb [page410] "entend", or otherwise the clause would
read "toute question se rattachant aux auditions". Section 8(1) CTA
therefore confers on the Tribunal jurisdiction not only over the hearing and
determination of applications, but also over related matters. The jurisdiction
of the Tribunal does not terminate upon the determination of an application, as
the respondent argues, but it may encompass other matters related to the
application, such as the enforcement of an order made pursuant to the
application.
23 Beyond the natural
grammatical construction of s. 8(1) CTA, this interpretation is also supported
by other considerations. The respondent claimed that the phrase "any
matters related thereto" essentially added to the Tribunal's jurisdiction
various ancillary matters that may arise in the course of the hearing of an
application. Such an interpretation would, in my opinion, fail to give its full
meaning to s. 8(1) CTA. It is an established principle of common law, codified
to a certain extent in s. 31 of the Interpretation Act, R.S.C., 1985, c. I-21,
that "[t]he powers conferred by an enabling statute include not only such
as are expressly granted but also, by implication, all powers which are reasonably
necessary for the accomplishment of the object intended to be secured"
(Halsbury's Laws of England, vol. 44, 4th ed., para. 934, p. 586; see also
P.-A. Cффtйй, supra, at pp. 76-77). This principle has been recently applied in
Canada (Director of Investigation and Research under the Combines Investigation
Act) v. Newfoundland Telephone Co., [1987] 2 S.C.R. 466, and in a line of cases
from the Federal Court of Appeal, starting with Interprovincial Pipe Line Ltd.
v. National Energy Board, [1978] 1 F.C. 601 (C.A.). 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 may include for
[page411] instance the enforcement of the orders made under Part VIII.
2. Section 8(2)
24 While s. 8(1) CTA extends the
jurisdiction of the Tribunal to all matters related to applications under Part
VIII CA and gives jurisdictional foundation to the power of the Tribunal over
contempt for breaches of its orders, s. 8(2) CTA expressly confers upon it the
powers of a superior court with respect to the enforcement of its orders.
Section 8(2) CTA displaces the common law presumption. It reads as follows:
|
8. |
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... |
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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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* * *
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8. |
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... |
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(2) Le Tribunal a, pour la comparution,
la prestation de serment et l'interrogatoire des tййmoins, ainsi que pour la
production et l'examen des piииces, l'exййcution de ses ordonnances et toutes
autres questions relevant de sa compййtence, les attributions d'une cour
supййrieure d'archives. |
|
The position of the phrase
"other matters necessary or proper for the due exercise of its
jurisdiction"/"toutes autres questions relevant de sa compййtence"
in this paragraph leads to the conclusion that the enumerated powers come
within the jurisdiction of the Tribunal as well. Section 8(2) confirms and
consolidates the jurisdiction of the Tribunal. In the context of s. 8(2), the
words "enforcement of its orders" coupled with the phrase
"necessary or proper for the due exercise of its jurisdiction" cannot
be read otherwise than as a [page412] grant to the Tribunal of the powers of a
superior court of record with respect to the enforcement of its orders, which
includes the power over contempt for breaches of its orders.
3. Section 8(3)
25 This conclusion is further
supported by s. 8(3) CTA, 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. While s. 8(3) CTA makes express reference to
contempt, this reference as such is not indicative of the powers of the
Tribunal, since all inferior courts have power over contempt in facie. Section
8(3), though, is unique to the CTA. No other federal statute contains a similar
provision. 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 (this is implicit in CBC, supra). It would seem
somewhat incongruous that the Tribunal be subject to such a unique requirement
if it only had power over contempt in facie, like others. 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.
D. Conclusions on the
Interpretation of the CA and CTA
26 In summary, I find that s. 8
CTA, when given its normal meaning in the context of the CA and CTA, gives the
Tribunal power over contempt for breaches of its orders. No issue arises in
this case nor was raised as to criminal contempt. The governing statutes in
this case distinguish it from CBC, supra. There s. 12 of the Public Inquiry
Commission Act, the statutory provision purportedly conferring ex facie
contempt powers upon the Quebec Police Commission, only contained one [page413]
phrase that could extend to contempt ex facie ("contempt of the
commissioners or of their office"), and it was among a list of cases of
contempt in facie. Beetz J. concluded that this phrase did not extend to
contempt ex facie. Here, the issue is narrower: only the power over civil
contempt for breaches of orders is at stake. Moreover, the CA and CTA show that
Parliament directed its mind to the enforcement of the orders made under the
CA. Section 8 does not differentiate between types of orders, and neither does
it limit the meaning of "order" in the same fashion as former s. 17
of the Combines Investigation Act, R.S.C. 1970, c. C-23. Rather,
"order" is used by Parliament throughout Part VIII CA to designate
the decisions of the Competition Tribunal pursuant to applications under that
part. It is in my view incorrect and inappropriate to ignore the meaning given
by Parliament to "orders" of the Tribunal in the overall scheme of
the CA and CTA. The legislative scheme creates a need for the Tribunal to
address the enforcement of its orders. Section 8 CTA, as was expounded above,
sets out the jurisdiction and powers of the Tribunal in general terms, and its
normal meaning is broad and clear. It is an express statement that the powers
of the Tribunal include the contempt powers of a superior court for the
enforcement of its orders. These include orders under Part VIII CA, which are
central to its mandate.
27 On the level of principle,
while Beetz J. in CBC legitimately feared that the Quebec Police Commission
through a power over contempt ex facie might get involved "in areas which
are practically impossible to define in terms of jurisdiction and completely
foreign to its own area of jurisdiction" (p. 638) and encroach upon the
jurisdiction of superior courts, these obstacles do not arise here. The power
at issue here is narrower, and it can [page414] safely be left to the Tribunal
to deal with breaches of its dispositive orders, since they involve the
examination of issues analogous to those arising when the order was first
issued, and are similarly circumscribed. In terms of expertise, the Tribunal is
in fact better suited than a superior court to decide these matters. In
comparison, the Commission in CBC only enjoyed powers of inquiry. For the
Commission to rule on a contempt for breach of a non-publication order would
have involved, first of all, a decision as opposed to a recommendation, and
secondly, consideration of matters extraneous to the inquiry itself, i.e., the
publication of a photograph of a witness (see CBC, at pp. 640-41). The
Commission would have been outside of both its function and its field of
expertise.
28 Furthermore, while the
Commission's inquiry resulted from a particular mandate limited in time and
scope, here the Tribunal is given a broad role in the continuous operation of
the CA. The Tribunal has already made and will make numerous orders under Part
VIII CA. It is integrated within the federal court system, and its decisions
are subject to appeal as if they emanated from the Federal Court, Trial
Division (s. 13 CTA). It is not set apart or its decisions protected by any
privative clause. Even if the Tribunal exercises powers that at common law
belong to a superior court, it is still subject to full review by the Federal Court
of Appeal. The Tribunal has none of the characteristics that would inspire fear
for the integrity of the powers of superior courts.
E. Constitutional Considerations
29 Until it came to this Court,
this case had centred on interpretation. At the end of its factum, the
respondent briefly raises the constitutionality of s. 8 CTA, should it purport
to confer upon the Tribunal [page415] power over contempt for breaches of its
orders. Both parties addressed the issue more thoroughly in oral argument.
30 At the outset, the
applicability to Parliament of the case law of this Court regarding s. 96 of
the Constitution Act, 1867 comes into question. I will not rule on this point,
since I am of the opinion that, 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.
31 Re Residential Tenancies Act,
1979, [1981] 1 S.C.R. 714 (hereinafter Residential Tenancies), has established
a three-step analytic approach to s. 96 of the Constitution Act, 1867 problems.
This approach was further developed and refined in Sobeys Stores Ltd. v.
Yeomans, [1989] 1 S.C.R. 238 (hereinafter Sobeys), and in Reference re Young
Offenders Act (P.E.I.), [1991] 1 S.C.R. 252. In CBC, supra, although the
three-step analytic framework of Residential Tenancies had not yet been
articulated, this Court made in substance the same inquiry. For the majority,
Beetz J. held that the National Assembly could not validly confer upon the
Quebec Police Commission power over contempt ex facie curiae, since this came
within the jurisdiction of superior courts in 1867, and these powers were not
an integral part of the mandate of the Commission (at pp. 639-41).
1. Historical Inquiry
32 The parties have advanced two
different characterizations of the powers of the Tribunal for the purposes of
the historical inquiry. The appellants have characterized them as powers in
relation to competition law, while the respondent has narrowed them to powers
over contempt ex facie curiae. This type of conflict between a broader and a
narrower characterization is not atypical in s. 96 [page416] of the
Constitution Act, 1867 cases. Wilson J. discussed it in Sobeys, supra, at p.
254:
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Viewed against this background the first
step of the Residential Tenancies test, which is drawn from the
"inferior court" cases, represents a kind of threshold test, a
method of deciding whether, in a formal sense, s. 96 has been violated at
all. The second and third steps serve to validate some legislative schemes
despite the fact that they trench on the traditional jurisdiction of s. 96
courts. The purposes of s. 96 require a strict, that is to say a narrow,
approach to characterization at the first stage. Given what I have to say
below on concurrent superior/inferior court jurisdiction at Confederation,
any other approach would potentially open the door to large accretions of
jurisdiction and thereby defeat the purposes of the constitutional provision.
[Emphasis in original.] |
|
Wilson J. then defined the
jurisdiction given to the Nova Scotia Labour Standards Tribunal by s. 67A of
the Labour Standards Code, S.N.S. 1972, c. 10, as jurisdiction over unjust
dismissal, as opposed to employer/employee relations or labour standards.
33 I will follow this approach.
I am not unmindful that, in CBC, supra, Beetz J. faced the same problem to a
certain extent. He could proceed to his analysis on the basis either of the
Commission's power to prohibit publication or of its power over contempt ex
facie curiae. He chose the latter at p. 640, since it was more consistent with
the crux of the case. Similarly, here, a characterization of the impugned
powers as pertaining to competition law would mask in its generality the essence
of the case. Should the appellants' proposed characterization be retained, the
inquiry would really bear on the overall jurisdiction conferred upon the
Tribunal through Part VIII CA and s. 8 CTA. The jurisdiction of the Tribunal
over civil contempt for [page417] breaches of its orders, and not its overall
jurisdiction over Part VIII CA, is at issue here.
34 The appellants have also
submitted that such a characterization would place too much emphasis on the
remedial aspects of the Tribunal's jurisdiction over its substantive aspects,
contrary to the judgment of Wilson J. in Sobeys, supra, at p. 267. The
appellants may be right, had the characterization been "jurisdiction over
imprisonment" or "jurisdiction over fines". These focus unduly
on the remedy ordered by the Court and neglect the substantive grounds for
ordering it. As Wilson J. put it in Sobeys, supra, at p. 255, to retain them
"would be to freeze the jurisdiction of [s. 96] courts at 1867 by a
technical analysis of remedies". Characterization as "jurisdiction
over civil contempt for breaches of the tribunal's orders" corresponds to
the actual debate in this case while not falling into the trap of technical,
remedy-oriented analysis.
35 Contempt over breaches of a tribunal's
orders is a species of contempt ex facie curiae, and as such, following CBC,
supra, it fell within the purview of s. 96 courts at the time of Confederation.
I will therefore proceed to the second and third stages of the inquiry.
2. Judicial Function
36 In Residential Tenancies,
Dickson J., at p. 743, outlined the distinguishing features of a judicial
function:
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... the hallmark of a judicial power is
a lis between parties in which a tribunal is called upon to apply a
recognized body of rules in a manner consistent with fairness and
impartiality. The adjudication deals primarily with [page418] the rights of
the parties to the dispute, rather than considerations of the collective good
of the community as a whole. |
|
The appellants relied on this
passage in their submission that the Tribunal does not fulfil an adjudicative
function, as it really seeks to mediate the interests of the collectivity, in
ensuring the proper functioning of the economy according to a competitive
model, with the rights of the individual parties. Indeed the Director does not
represent before the Tribunal the interests of any particular party, but rather
the interests of the general public in the application of the CA and in the
furtherance of its policy objectives.
37 The Tribunal, however,
disposes of the applications under Part VIII CA in a judicial manner. One
should beware of trying to pigeonhole the role of the Tribunal within a
"judicial" or "administrative" model. This Court has since
long warned of the dangers of relying on too tight a dichotomy between these
models of decision (Nicholson v. Haldimand-Norfolk Regional Board of
Commissioners of Police, [1979] 1 S.C.R. 311, at p. 325). Nevertheless the
decisions of the Tribunal, if anything, come much closer to a judicial model
than to any other model. The Tribunal is presented with evidence in an
adversarial fashion, and it must decide in favour of the Director or in favour
of the defendant. The structure of the CA and CTA bears some similarities to
the structure of labour standards adjudication in Nova Scotia, examined in
Sobeys, supra, where Wilson J., at pp. 274-75, observed a separation of
"administrative" and "judicial" functions between a
director and a tribunal, respectively.
38 Courts which have addressed
this issue have found that the Tribunal proceeds judicially (see Iacobucci C.J.
(as he then was) in American Airlines, Inc. v. Canada (Competition Tribunal),
[1989] 2 F.C. 88 (C.A.), at pp. 97-98, aff'd [1989] 1 S.C.R. 236). I agree, and
my conclusion is further strengthened by the particular nature of contempt
proceedings, where of all matters within the [page419] Tribunal's jurisdiction
the debate will likely be the most adversarial.
3. Institutional Setting
39 A substantial portion of
these reasons has already been devoted to showing how the Tribunal is an
integral part of the framework created by the CA and CTA. Within this
framework, the Tribunal is the judicial authority in charge of the civil parts of
the CA. Furthermore, the CA and CTA show how Parliament specifically provided
for the enforcement of orders made under the CA. In the context of competition
law, particularly of Part VIII CA, where the subject-matter lies largely in the
realm of contractual relationships, effective enforcement of orders is
essential, for fear of 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 CTA upon the Tribunal with respect to civil contempt for breaches of its
orders would not infringe s. 96 of the Constitution Act, 1867, in the event it
should apply to Parliament.
VI -- Conclusion
40 I would allow both appeals.
The matter is referred back to the Tribunal for disposition on the merits.
The following are the reasons
delivered by
McLACHLIN J. (dissenting):——
Introduction
41 Having read the reasons of my
colleague Justice Gonthier, I find myself in respectful disagreement. My review
of the authorities leads me to the conclusion that the Court below correctly
concluded [page420] that Parliament did not confer jurisdiction over contempt
ex facie curiae on the Competition Tribunal.
42 These appeals are a simple
exercise in statutory interpretation; they are subject to and determined by the
principles governing the construction of federal statutes. The issue is not
whether the Court is of the opinion that the Competition Tribunal should be
given the power to punish as contempt a violation of a final order under Part
VIII of the Competition Act, R.S.C., 1985, c. C-34, nor whether extending this
power to the Tribunal would seriously undermine the exclusive jurisdiction
accorded superior courts by the common law. The issue is rather whether
Parliament, in constituting the Competition Tribunal an inferior court, has
clearly and expressly conferred on the Tribunal the power to punish contempt
not only in facie (in the face of the court) but ex facie curiae (outside the
presence of the court), a power traditionally reserved to the superior courts
of record.
43 I dissent from the judgment
of my colleague Gonthier J. for three fundamental reasons. First, I see no
justification for departing from the common law presumption that inferior
courts, absent clear and express legislation to the contrary, are strictly
limited in their jurisdiction to the punishment of contempt in the face of the
court. Application of this presumption to ambiguous legislation leads to the
conclusion that Parliament did not intend to confer upon the Tribunal the power
to punish for contempt outside the presence of the court, and indeed that
Parliament may have relied upon the presumption in drafting s. 8 of the
Competition Tribunal Act, R.S.C., 1985, c. 19 (2nd Supp.) (hereinafter the
"Act").
44 Second, and in the
alternative, my reading of the text of s. 8 of the Act leads me to conclude
that, quite apart from the presumption, the proper construction of the
legislation is that no general contempt power nor a specific power to enforce
final [page421] orders via contempt was conferred, as the court below held (per
Iacobucci C.J., as he then was).
45 Finally, adoption of Gonthier
J.'s reasons makes it necessary, in my view, to consider the constitutional
question of whether Parliament can confer on an inferior tribunal a power which
the Constitution arguably reserves to courts created under s. 96 of the Constitution
Act, 1867 -- a question on which the parties provided only cursory written and
oral submissions.
46 I proceed below to enunciate
more fully the basis of these three positions.
Analysis
A. The Governing Presumption
47 As Gonthier J. acknowledges
in his judgment, the common law is the source of the law of contempt in every
province of Canada; it therefore governs our determination of these appeals. At
common law an "inferior court" such as the Competition Tribunal is
limited in its jurisdiction to the punishment of contempt in facie curiae
absent clear and express statutory language to the contrary. The appellants
bear the burden of establishing that the Act runs contrary to the common law.
To succeed, the appellants must rebut this common law presumption, not an easy
task in any context.
48 By long tradition, exercise
of the power to punish for contempt of court has been confined to superior
courts. This Court visited this question in Canadian Broadcasting Corp. v.
Quebec Police Commission, [1979] 2 S.C.R. 618 (hereinafter CBC). In a
comprehensive and thorough judgment, Beetz J. for the majority reviewed the
history and policy of the rule which distinguished contempt in the face of the
court from contempt outside the presence of the court, confining the latter to
superior courts. From an historical perspective, he pronounced [page422] that
at common law, the power to conduct an inquiry into a contempt committed ex
facie curiae and to punish it "is enjoyed exclusively by the superior
courts". He elaborated (at pp. 627-28):
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This proposition derives from the
apparently unanimous, longstanding and consistent opinion of a great many
judges and commentators. The opinions of the judges are for the most part
obiter, but the reason for this is that in English and Canadian decisions of
the last two hundred years, of which there have been a great many concerning
contempt of court, there is so far as I know virtually no precedent in which
a court of inferior jurisdiction has claimed the power to punish for contempt
committed ex facie, and I have found none in which such a court has exercised
it with the approval of a superior court. Superior courts, on the other hand,
have always claimed and exercised this power, as an inherent power enjoyed by
them exclusively. This consistency in usage is more than just significant; it
is decisive. Moreover, when the legislator dealt with the question, he did so
in terms which indicate that he recognized this usage and intended to
sanction it, or at least in terms that in no way indicated his intention to
alter it. Finally, the rule of exclusive jurisdiction of the superior courts
is justifiable in principle. |
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49 From the perspective of
policy, Beetz J. concluded (at p. 638):
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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 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 [page423] 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: as Dorion C.J. notes in Denis, the superior courts may come to
their aid; see also R. v. Davies (supra) and Re Regina and Monette. |
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50 We arrive then at this
conclusion. At common law the power to inquire into and punish contempt outside
the presence of the court has been confined to superior courts. The restriction
is sound, grounded in significant policy considerations. Parliament can
expressly legislate to confer a general contempt power on an inferior tribunal,
subject to the constitutional issue which I will consider later. But there is a
presumption, 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. Dickson J., in CBC, supra, put it this way (at pp. 647-48):
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It is sufficient ... to state that the
powers conferred upon the Police Commission, given the general limitation at
common law upon the contempt powers of an inferior tribunal, must be strictly
interpreted, and a strict interpretation in this case leads inevitably to the
conclusion that such power was not invested in the Commission. There can be
no doubt that the common law draws a sharp line between the power to punish
for contempt committed outside the presence of the court, and the power to
punish where the contempt is committed in the face of the court. In the
discussion following his fourth proposition, Mr. Justice Beetz demonstrates
that it is possible to read the relevant statutory provisions affecting the
Police Commission's contempt powers in a manner which maintains the common law
distinction. In the absence of clear statutory language expressing an
intention to confer broader contempt powers upon the Commission, it must be
presumed that the Legislature granted to the Commission only those contempt
powers ordinarily exercised by an inferior tribunal. [Emphasis added.] |
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[page424] |
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51 In short, it is not enough
that it is possible or even desirable that the inferior tribunal have the power
to punish for contempt outside the presence of the court. The language must be
clear. The courts must assume that Parliament was aware of the well-recognized
history of the presumption in drafting the provisions empowering the inferior
tribunal and accordingly, that if Parliament failed to use language clearly
conferring the general contempt power, it did not intend to confer it. To
presume otherwise invites mischievous interference by the courts in the
legislative function and heightens the potential for corruption of Parliament's
intent.
52 Viewed thus, these appeals
reduce to a single question: does the language in the legislation empowering
the Competition Tribunal clearly confer on the Tribunal the power to condemn
and punish contempt outside the Tribunal proceedings? The answer to this
question is negative, in my view. Indeed, I do not take my colleague Gonthier
J. to suggest that his interpretation of the legislation is the only
interpretation, but rather that it is the better interpretation. The Act
contains no phrase expressly conferring on the Tribunal the power to find and
punish contempt for acts outside the hearing process, and the language used is
entirely consistent with the Tribunal's contempt power being confined to
contempt in the context of Competition Tribunal hearings. One searches in vain
for the clear and unequivocal language required on the principles enunciated in
CBC, supra, to defeat the presumption against the conferral on an inferior
tribunal of the power to condemn and punish for contempt outside the presence
of the court.
53 Gonthier J. seeks to avoid
this result by finding that the presumption relied on by this Court in CBC,
supra, applies only in cases where the enactment extinguishes or diminishes the
power of a superior court. He states at p. 405 of his reasons:
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... when dealing with common law rules
on the jurisdiction of superior courts, it is important to distinguish
between enactments which deprive superior courts of [page425] 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.
[Emphasis added.] |
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54 The restriction of the
presumption to legislation which deprives a superior tribunal of its powers
runs counter to the authorities and to the clear and historical policy of the
common law that quite apart from its effect on superior courts, the power of
contempt outside the presence of the court is one of such importance to the
liberty of the subject that it should be confined to superior courts, absent
clear language to the contrary. Indeed, none of the cases reviewed in CBC,
supra, involve taking away the power of a superior court. In CBC itself, no
power was taken from the superior tribunal. The issue in such cases has never
been the removal of powers of a superior court, but rather the conferring of
such powers on an inferior court of record.
55 Gonthier J. also suggests
that CBC, supra, can be distinguished and the presumption against conferring
the power of contempt ex facie curiae avoided by reason of the fact that the power
here at issue is the narrow power to enforce mandatory and prohibitive orders,
made on a Part VIII hearing, by contempt. This proposition is based on the
language of s. 8(2) referring to the "enforcement of [page426]
orders". The argument is arguably at odds with the acknowledgement
elsewhere in his reasons that the governing section is s. 8(1), given that s.
8(2) is confined to jurisdiction otherwise established; and with the broad
interpretation he places on the power given to the Tribunal under s. 8(1). Be
that as it may, the fact remains that even on the narrower interpretation of
the power, what is at issue is the power of the Tribunal to punish contempt
outside the presence of the court. In short, narrowing the issue does not avoid
the presumption.
56 Having concluded that CBC is
distinguishable, Gonthier J. goes on to construe s. 8 as though the presumption
against an inferior tribunal possessing power to punish for contempt outside
the presence of the court did not apply. He finds the section to be ambiguous,
and goes on to choose the interpretation which best 'fits' the administrative
framework within which the Tribunal functions, as he perceives that framework.
57 My reflections lead me to a
different conclusion. Unable as I am to distinguish CBC from this case, I see
no way to avoid applying the presumption against conferring on an inferior
tribunal the power to punish contempt outside the presence of the court here.
This presumption, combined with the absence of language in the Act clearly
conferring such power on the Competition Tribunal, leads inescapably, as I see
it, to the conclusion that Parliament cannot be taken to have intended to grant
the Tribunal the power to enforce its final orders by punishing for contempt.
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B. |
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Interpretation of Section 8, Competition
Tribunal Act, Apart from the Presumption |
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58 Alternatively, if the
presumption against conferring on an inferior tribunal the power of contempt
[page427] outside the presence of the court did not apply, I would nevertheless
conclude that ss. 8 and 9 of the Act, correctly construed, do not confer that
power on the Competition Tribunal. I made the argument above that the interpretation
adopted by Gonthier J. is not the only plausible interpretation and in the case
of ambiguity, the common law presumption of inferior court jurisdiction must
govern; here I argue that the interpretation adopted by the court below, per
Iacobucci C.J., is to be preferred.
59 I turn first to the policy
and purpose behind Part VIII of the Competition Act in the context of
Parliament's scheme. Section 1.1 and Part VIII of the Competition Act, read
with s. 8 of the Competition Tribunal Act, make it clear that the Tribunal's
role is to act as an impartial adjudicative body. Its task is to determine the
absence or presence of a party's compliance with the business norms set out in
the Competition Act. Having found non-compliance, the Tribunal is empowered to
remedy the situation by issuance of the mandatory and prohibitive orders
authorized by Part VIII. At this point, as far as the express legislative
scheme goes, the formal role of the Tribunal ends; the Tribunal has no general
supervisory power. The task of enforcement is left to others. Part VIII
expressly provides two different mechanisms by which the Tribunal's orders can
be enforced: criminal prosecution under s. 74 at the behest of the Attorney
General; and a private civil action for damages under s. 36. Thus the primary
role of the Tribunal in the scheme is seen as that of dispute resolution, and
the most natural reading of its provisions is in this context.
60 Against this background, I
turn to the language which is said to confer on the Tribunal the power to
enforce its orders by the contempt outside the presence of the court. For ease
of reference I set out ss. 8 and 9(1) of the Act in their entirety:
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[page428] |
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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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9. (1) The Tribunal is a court of record
and shall have an official seal which shall be judicially noticed. |
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61 The first thing to note is
that the power of the Tribunal is confined to applications for the resolution
of disputes under Part VIII of the Act, i.e. to the resolution of disputes and
making of orders, as opposed to their enforcement. The appellant says that the
phrase in s. 8(1) "and any matters related thereto" extends these
powers to enforcement of final orders outside the presence of the court. But
even if it were conceded that this is one way of reading that phrase, it is not
the only way. The phrase can quite naturally be construed as relating to the
application process, which goes no further than to support the Tribunal's power
over contempt in the face of the court. Given the Tribunal's primary role of
dispute resolution, the most natural construction of the phrase "and any
matters related thereto" is that it refers to interlocutory matters
arising in the course of an "application".
62 We come then to s. 8(2),
which gives the Tribunal the powers of a superior court with respect to certain
matters. Most of the powers referred to here ("the attendance, swearing
and examination of witnesses, the production and inspection of documents")
relate to the conduct of the hearing -- i.e. to the subject matter of contempt
in the face of the court. The appellant relies on the phrase "enforcement
of its orders". But that phrase can be entirely explained in the context
of interlocutory orders [page429] made in the course of the hearing. The
appellant also relies on the general phrase that follows: "and other
matters necessary or proper for the due exercise of its jurisdiction",
suggesting that this confers on the Tribunal a power of contempt outside the
presence of the court. But the words "necessary or proper for the due
exercise of its jurisdiction" merely refer us back to whatever
jurisdiction the Tribunal is granted by other provisions, primarily s. 8(1).
These words do not create new jurisdiction. Thus we must ask, are there other
provisions conferring a power to condemn and punish for contempt outside the
face of the court? This brings us back to s. 8(1), which, as we have seen, does
not, whether read contextually or literally, confer such powers.
63 As for s. 8(3), it does not
purport to deal with the power or jurisdiction of the Tribunal. Its requirement
that the judicial member of the Tribunal concur in any finding of contempt,
relied on by Gonthier J. as an indicator of an intention to confer broad
powers, 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 exclusive jurisdiction
accorded judicial member(s) of a (Competition Tribunal) Panel over all
questions of law, of which contempt is but one.
64 In the end, having regard to
the role of the Tribunal in the scheme of the Act and the wording of s. 8, I
find it impossible to fault the interpretation placed on the section by the
court below, [1990] 2 F.C. 565, per Iacobucci C.J., at pp. 570-72, which I set
out in full:
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Proceedings instituted to punish a party
for its failure to obey an order previously made by the Tribunal under Part
VIII of the Competition Act are clearly not applications under Part VIII of
the Competition Act. Nor are they, in my view, "matters related" to
such applications or the hearing and determination of such applications. The
enforcement of an order is certainly a matter related to that order; it is
not, however, related to the application [page430] or its hearing and
determination that culminated in the making of that order. Subsection 8(1)
therefore does not define the jurisdiction of the Tribunal as including the
power to punish for failure to comply with the orders made under Part VIII of
the Competition Act. |
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Subsection 8(2), at first sight, seems
to give that power to the Tribunal since it grants it all the powers that are
vested in a superior court of record with respect to, inter alia, "the
enforcement of its orders". However, these words must be read in their
context. The phrase "the enforcement of its orders" in the
subsection is part of an enumeration of matters that are said to be "necessary
or proper for the due exercise of [the Tribunal's] jurisdiction". The
enforcement of a final order made under Part VIII of the Competition Act
cannot possibly be considered as necessary or proper for the exercise of the
Tribunal's jurisdiction as described in subsection 8(1). The expression
"enforcement of its orders" in subsection 8(2), therefore, refers
only to the enforcement of the many orders that the Tribunal may make in
order to ensure that the applications made under Part VIII of the Competition
Act are disposed of in a fair and rational manner. The enforcement of these
orders is certainly necessary or proper for the due exercise of the
Tribunal's jurisdiction. |
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Finally, subsection 8(3) also does not
help the respondent. Although it refers expressly to the powers of the
Tribunal to entertain contempt proceedings, there is nothing in the
subsection indicating that the extent of the contempt power is not restricted
to contempt in facie curiae. The subsection shows, however, that the power to
punish for contempt was clearly in the mind of the draftsman of section 8 so
that the failure to confer expressly the power to punish for contempt ex
facie cannot be attributed to an oversight. [Emphasis added.] |
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65 The remaining question is
whether the arguments put forward by Gonthier J. prevail over this
interpretation. With the greatest respect, I cannot agree that they do.
66 Gonthier J.'s first argument
is based on the French version of s. 8(1). He argues that while the English
version of s. 8(1) may not clearly confer the power to commit and punish for
contempt [page431] outside the presence of the court, the French version does.
It reads:
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8. (1) Le Tribunal entend les demandes
qui lui sont prййsentййes en application de la partie VIII de la Loi sur la
concurrence de mккme que toute question s'y rattachant. |
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Gonthier J. argues that, although
"any matters related thereto" in the English text refers directly to
the "hearing and determination" of Part VIII applications, the French
equivalent, "toute question s'y rattachant", clearly pertains to the
word "demandes" (applications) and not to the word "entend"
(to hear). In essence, the French version of s. 8(1) states that the Tribunal
is to hear all applications or "demandes" presented it under Part
VIII, and any questions related to such applications. The English version,
using a different (potentially characterized as more complex or legalistic)
structure, sets out the Tribunal's jurisdiction as limited to hearing and
determining Part VIII applications, and any matters related to this task.
67 I have difficulty seeing how
this advances the matter. The reference in the French text of s. 8(1) to
"demande", or application, is not necessarily broader than
"hearing and determining". The argument begs the question of what is
meant by "demande". If "demande" is read as referring to
the dispute resolution procedure, as Iacobucci C.J. read it, the
"application" process does not extend to the enforcement of the final
order, with the result that the French wording, like the English, fails to support
the intention to confer the power of contempt outside the presence of the
court.
68 Moreover, when faced with an
English version that clearly limits the Tribunal's jurisdiction to matters
relating to the "hearing and determination" of an application and a
French version that provides jurisdiction over all questions related to the
"application", the principles of statutory interpretation demand that
the Court accord the section an [page432] interpretation in which both versions
are consistent or have a shared meaning. In his comprehensive treatise on
statutory interpretation entitled The Interpretation of Legislation in Canada
(2nd ed. 1992), Prof. P.-A. Cффtйй sets out the governing rules for bilingual
statutes at pp. 275-76):
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According to the principle of internal
coherence of the statute, its various parts are construed so as to eliminate
contradictions. This applies particularly when two versions of the same
enactment seem contradictory. The authorities are unequivocal in declaring
that because the two versions are both official, reconciliation must be
attempted: |
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In the case of ambiguity, where there is
any possibility to reconcile the two, one must be interpreted by the other. |
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In practice, this involves finding a
shared or common meaning in the two enactments. Three possibilities may
arise. The versions may be irreconcilable, in which case other principles of
interpretation are immediately brought to bear. In Klippert v. The Queen, the
phrase "person who ... has shown a failure to control his sexual impulses"
appeared in French as "personne ... qui ... a manifestйй une impuissance
аа maооtriser ses impulsions sexuelles ...". The two versions were
manifestly irreconcilable; the court favoured the English one after studying
the provision's history. |
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The second possibility involves one
version that is itself ambiguous, while the other is plain and unequivocal. A
priori, the latter is preferred. For example, in Tupper v. The Queen, section
295(1) of the Criminal Code referred, in English, to "any instrument for
house-breaking". The expression was ambiguous, and could mean an
instrument capable of being used as well as one intended to be used for
house-breaking. If the second meaning were adopted, the prosecution would be
required to prove not only that an instrument could be used but that in the
circumstances it had been destined for that purpose. The Supreme Court of
Canada resolved the issue by citing the French version, which it felt
clarified [page433] the section: "un instrument pouvant servir aux
effractions de maison". The wider meaning was chosen. |
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In such situations, the shared meaning
is that of the version which is not ambiguous. There is a third possibility:
one version may have a broader meaning than another, in which case the shared
meaning is the more narrow of the two. |
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The French "tramway" was used
to clarify the meaning of the more general English "railway" in
Toronto Railway Co. v. The Queen. In R. v. Dubois, "chantier
public" restricted the meaning of the more general term "public
works". The adjective "mentioned" had its scope limited by
"ййnumййrййs" in Pollack Ltййe v. Comitйй paritaire du commerce de
dййtail. And in Pfizer v. Deputy Minister of National Revenue and Gravel v.
City of St-Lййonard, Justice Pigeon preferred the more restrictive of the two
meanings, which in both cases was derived from the French version. |
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69 In this case, we are faced on
the one hand with an English version which by reference to "hearing and
determining" the applications clearly and expressly limits the Tribunal's
jurisdiction; and on the other hand with a French version which is at best
ambiguous. To give the two versions a commonality of meaning and make them
consistent, the Court must interpret the section as limiting the Tribunal's
jurisdiction to any matters related to the hearing and determination of
applications brought under Part VIII of the Competition Act
70 Reference may also be had to
former s. 8(2)(c) of the Official Languages Act, R.S.C. 1970, c. O-2:
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(c) |
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where a concept, matter or thing in its
expression in one version of the enactment is incompatible with the legal
system or institutions of a part of Canada in which the enactment is intended
to apply but in its expression in the other version of the enactment is
compatible therewith, a reference in the enactment to the concept, matter or
thing shall, as the enactment applies to that part of Canada, be construed as
a reference to the concept, matter or thing in its expression in that version
of the enactment that it is compatible therewith; |
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[page434] |
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Although repealed, the principle of
statutory interpretation upon which this provision was based is maintained
within the common law, providing some assistance to the Court in these appeals.
The principle is simple: where one version of a provision accords with the
accepted principles of the governing legal system, e.g. in a part of the
country or in this case the whole country, and the other version may be read
either to contradict such principle(s) or to accord with such principle(s), the
provision should be given an interpretation which best protects the continuing
integrity of the principle(s) at issue. A strong presumption exists "that
ambiguity should not be resolved in a manner that would substantially alter an
institution or fundamental principle of the common law or 'droit commun'":
see M. Beauprйй, Interpreting Bilingual Legislation (2nd ed. 1986), at p. 37.
It follows that in so far as a discrepancy exists between the French and
English versions of s. 8(1), it should be resolved in accordance with the
time-honoured presumption in Canada that an inferior court lacks the
jurisdiction to punish contempt ex facie curiae. As pointed out by Iacobucci
C.J., where it is clear the legislature actually had in mind the contempt power
and may be assumed to have knowledge of the limited jurisdiction of an inferior
court of record, the Court is bound to construe the statute so that it is
consistent with the governing legal system's fundamental principles.
71 Gonthier J. raises a second
argument in support of his interpretation of s. 8(1). He argues that unless the
phrase "and any matters related thereto"/"toute question s'y
rattachant" is interpreted as conferring the power of contempt outside the
presence of the court, it is redundant. With great respect, I cannot accept
that it follows from the general rule that all parts of an enactment should if
possible be given meaning (Interpretation Act, R.S.C., 1985, c. I-21, s. 31)
that the courts are free to confer on an inferior tribunal a new power which
Parliament has failed to mention. The precept that redundant interpretation
should be [page435] avoided does not extend so as to give the courts a mandate
to create new powers simply to avoid redundancy. Moreover, one must approach
such general phrases against the background that they are commonly used in many
statutes, not to confer unmentioned powers, but to ensure that the powers
clearly given be exercised without undue restraint. It is true, as Gonthier J.
points out, that ancillary powers can be inferred and need not be set out. Yet
the reality is that statutes commonly do set them out, if only in the hope of
avoiding arguments seeking to unduly restrict the effective exercise of
expressly conferred powers. Many statutes conferring powers on inferior
tribunals use such language. For example, the Canadian International Trade
Tribunal ("CITT") by s. 16 of the Canadian International Trade
Tribunal Act, R.S.C., 1985, c. 47 (4th Supp.), is given jurisdiction to:
"(c) hear, determine and deal with all appeals that, pursuant to any other
Act of Parliament or regulations thereunder, may be made to the Tribunal, and
all matters related thereto". Are we to infer in each case that Parliament
intended to confer the historically anomalous power of contempt ex facie curiae
on each of these tribunals in order to give some meaning to the statute? I
think not. Given the relatively common use of phrases like "and all [or
any] matters related thereto" in legislative drafting, I do not find this argument
persuasive.
72 With respect to s. 8(2),
Gonthier J. relies heavily on inclusion of the phrase "enforcement of [the
Tribunal's] orders". However, as seen above, given the emphasis in s. 8(2)
on the evidence-gathering powers of the Tribunal, it is equally if not more
plausible to interpret this phrase as referring to interlocutory orders made in
the course of the hearing, an interpretation which fits with the traditional
distinction between the power of contempt in the face of the court, frequently
accorded to inferior tribunals, and the quite different power to [page436]
punish for contempt outside the presence of the court, seldom accorded to
inferior tribunals.
73 With respect to s. 8(3),
Gonthier J. acknowledges that taken alone, the reference to contempt is not
indicative of the extent of the powers of the Tribunal. For him, the
determinative factor is s. 8(3)'s requirement that a finding of contempt and
choice of punishment be approved by a judicial member of the Panel. This
requirement is said to evidence an intention to accord the Tribunal contempt
powers going beyond those which an inferior tribunal would ordinarily exercise.
74 The short answer to this
argument is that the approval by a judicial member of the Tribunal is equally
compatible with the view that the Tribunal's contempt power is confined to
contempt in the face of the court as with the view that it extends to contempt
outside the presence of the court. The narrower interpretation, although less
invasive than the broader, nevertheless involves questions of law which may
affect the liberty of the subject. In these circumstances, it makes sense to
require approval of the judicial member even on the narrower version,
particularly where such judicial member(s) has been granted exclusive
jurisdiction over all questions of law arising in a Part VIII application. I do
not take my learned colleague to suggest that Parliament included judicial
officers in the Tribunal primarily to supervise its exercise of a 'special'
power over contempt ex facie. Thus, it is quite possible, indeed probable, that
reference to such officers in s. 8(3) has no bearing on the question of
Parliament's intention. The decision by Parliament to confer this power
exclusively upon the "judicial" member(s) of a given Panel may
reflect its concern with the danger of providing non-judicial personnel with
the power to punish contempt in the face of the court where unnecessary.
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[page437] |
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75 Gonthier J. argues that the
effective functioning of the legislative scheme requires that the Tribunal be
accorded the power to condemn and punish, as contempt, the violation of its
final orders outside the presence of the court. In his view, the regulatory
scheme embodied in the Competition Act and the Competition Tribunal Act demands
that the Tribunal have jurisdiction to enforce its orders via contempt in order
to give effect to the legislation's objectives. In the words of s. 12 of the
Interpretation Act, referred to by Gonthier J., the Court should accord the Act
a remedial interpretation that "best ensures the attainment of its [the
statute's] objects." Parliament, it is argued, must have intended that the
Tribunal's Part VIII orders be effective.
76 The assumption is that absent
a power in the Tribunal to punish contempt of its Part VIII orders, such orders
are ineffective, i.e. there are no other means to secure compliance. In my
opinion, this assumption is unwarranted. The Act provides a variety of remedies
for the enforcement of the Tribunal's Part VIII orders.
77 Section 74 makes it an
offence to fail to comply with the order of the Tribunal. The Attorney General
of Canada is empowered, under ss. 73 and 74 of the Competition Act, to enforce
the Tribunal's Part VIII orders; she may prosecute the violation of an order,
seeking the imposition of sanctions (penal and monetary) in a provincial
superior court, or she may seek such sanctions in the Federal Court, Trial
Division, on consent.
78 Gonthier J. argues that this
provision differs from enforcement by means of the ex facie contempt power, in
that it provides for definite fines and prison terms and lacks the flexibility
of the power of contempt outside the court. Be that as it may, it does not
support the assumption that without the power of contempt outside the court,
the Tribunal will be disadvantaged. In fact it has at its disposal statutory
quasi-criminal remedies remarkably [page438] similar to, although perhaps more
restricted than, the contempt power traditionally confined to superior courts.
It does not follow from the fact that Parliament has chosen to circumscribe the
means of criminal enforcement at the Tribunal's disposal that the Tribunal
should be accorded the broader common law power of contempt ex facie. On the
contrary, I would think the inference should be the opposite, namely that
Parliament considered the matter, and gave the Tribunal the means to ensure, in
a quasi-criminal context, the power of enforcement of its final orders that
Parliament thought it should possess. I do not share Gonthier J.'s view that
these provisions are directed at punishment rather than "securing
compliance" (p. 407), nor understand how, if this were the case, it would
distinguish the quasi-criminal remedies of the Act from contempt outside the
presence of the court. In either case, enforcement and punishment are
inextricably intertwined.
79 In addition to these
quasi-criminal remedies, the Act provides that a private party may sue the
offending party for damages suffered as a result of the violation of the
Tribunal's order, pursuant to s. 36 of the Competition Act. Indeed, s. 36(2)
provides that a finding of non-compliance in another proceeding, e.g. brought
by the Attorney General of Canada under s. 74, is sufficient proof of the
defendant's non-compliance with the Tribunal's order; thus, only the
complainant's damages remain to be assessed.
80 In extending the power to
punish the violation of a Part VIII order to the Tribunal as well as in answer
to the above options, Gonthier J. relies, inter alia, on the absence of an
express provision for the enforcement of these orders by the Federal Court, a
provision present in other Acts to which he refers us (see p. 408). I fail to
see how the absence of an express provision for filing the Tribunal's Part VIII
orders with the Federal Court, [page439] or any other superior court, is either
determinative or relevant to the question under consideration. First,
Parliament may be assumed to know of the residual jurisdiction of the superior
courts, which arguably permits enforcement through the courts by way of
contempt: CBC, supra, at pp. 636 and 638, per Beetz J. Second, it is equally
persuasive to argue that this so-called "lacuna" in the legislation
indicates Parliament's intention that the Tribunal's orders be enforced only
through the means provided in ss. 73 and 74 and s. 36 of the Competition Act.
Such a lacuna does not, in my respectful opinion, evidence an intent to confer
upon the Tribunal jurisdiction over contempt ex facie.
81 I note, in addition, that
express provision for filing appears in a number of regulatory schemes but does
not appear in others. A comparative examination of the tribunals (and their
enabling legislation) expressly directed to a superior court for the
enforcement of their orders with those tribunals which are not so directed
evidences no pattern of subject matter (e.g. degree of national importance) nor
adjudicative structure which would lend support to the argument that Parliament
intended that some tribunals have resort to superior courts to enforce their
orders while others are empowered to enforce their orders via a power over
contempt ex facie. Absent convincing evidence that the failure to expressly
include this common law right (to seek enforcement from a superior court)
indicates a legislative intent to accord a tribunal certain special powers, I
am of the opinion that Parliament did not intend that the Competition Tribunal
exercise jurisdiction over contempt ex facie.
82 Gonthier J. also argues that,
given the complexity inherent in monitoring and enforcing Part VIII orders, the
methods expressly chosen by Parliament [page440] to enforce its policies
(criminal and civil enforcement, outlined above) lead to a "corresponding
loss of effectiveness", i.e. the expertise of the Tribunal is lost. I make
three points in response.
83 First, if the methods of
enforcement which Parliament has chosen are defective, it is for Parliament and
not the courts to rectify them.
84 Second, no evidence was
placed before the Court which established either the complexity or
non-complexity of orders typically made by the Tribunal under Part VIII, or the
alleged "loss of effectiveness" of the Tribunal. The actual order at
issue in this case was simple and easily enforced: Chrysler Canada Ltd. was
ordered to sell its parts to Mr. Richard Brunet on trade terms 'usual and
customary' to its relationship with Mr. Brunet. The Tribunal, in its
determination of the application, may define such "terms"; quick
reference could be had to such definition by a superior court seeking to enforce
the Tribunal's order. There is no suggestion that the particular expertise of
the Tribunal was required for its enforcement, nor any evidence that the powers
of enforcement expressly set out in the Act were inadequate to the task.
85 Third, the Act, while not
(theoretically) conferring on the Tribunal the power to initiate proceedings
for the enforcement of its final orders, permits access to the Tribunal's
expertise in the process of enforcement. In a criminal proceeding under s. 74, the
prosecutorial arm of the government may utilize the Tribunal's expertise to
assist the court. In a contempt proceeding before a superior court, if it is
the Director who is seeking enforcement of a Part VIII order, the Director may,
as the Attorney General of Canada may with s. 74, use the Tribunal's expertise.
If the Tribunal brings the contempt motion, the Tribunal itself may provide
assistance to the court as a party. Finally, the Tribunal may be able to seek
and obtain the status of an intervener in the criminal proceedings under s. 74
(by application, for example, of r. 2 of the Ontario Supreme [page441] Court
Rules Respecting Criminal Proceedings -- Part I, SI/85-152); on a motion for
contempt to a superior court; or on a civil action under s. 36. For example, if
the prosecution, action or motion is before the Ontario Court, General
Division, a motion for leave to intervene simpliciter may be made under r.
13.01 or the Tribunal may seek leave to intervene as a "friend of the
court" under r. 13.02, Rules of Civil Procedure, O. Reg. 560/84. See, for
example, Vachliotis v. Exodus Link Corp. (1987), 23 C.P.C. (2d) 72 (Ont.
Master) in which the city of Toronto was granted intervener status where the
interpretation of one of its zoning by-laws was at issue. Similarly, leave to
intervene in the Federal Court may be available to a party such as the Tribunal
under r. 1716 of the Federal Court Rules, C.R.C. 1978, c. 663. Given these
options, it is clear that the Tribunal's expertise would not necessarily 'go to
waste' in the absence of power to directly enforce its final orders via a power
over contempt ex facie.
86 In summary, I remain
unpersuaded that the arguments advanced in support of the proposition that s. 8
confers on the Tribunal the power to convict and punish for contempt outside
the presence of the Tribunal establish that the interpretation of the Court
below was wrong. On the contrary, the wording of s. 8 and the role of the
Tribunal in the statutory scheme support the conclusion that Parliament did not
intend to confer on the Tribunal the power to enforce its final orders by the
general power to find and punish contempt outside its presence.
C. Section 96 of the Constitution
Act, 1867
87 The respondent correctly
noted in its factum that the Court, should it choose to allow the appeals,
would be called upon to determine whether Parliament is constitutionally
empowered to enact s. 8 of the Competition Act. In other words, the Court [page442]
must ensure that Parliament has the competence, under ss. 96 to 101 of the
Constitution Act, 1867, to confer superior court powers upon administrative
appointees.
88 Neither of the appellants
addressed this question in their written materials; the respondent makes only
cursory reference to it in its factum. Nor did the Trial Division or the Court
of Appeal below address this issue. This Court heard only brief and generalized
oral submissions on it. The dearth of materials before the Court on such an
important constitutional issue, coupled with the conclusion at which I have
arrived on the main issue in these appeals, dictate a cautious approach,
following the lead of Dickson J. in CBC, supra. My remarks are accordingly
brief.
89 Gonthier J. avoids the
difficult s. 96 issue by using a more generous application of the third branch
of the test set out by this Court in Re Residential Tenancies Act, 1979, [1981]
1 S.C.R. 714, than I would be inclined to adopt. In that case this Court held
that s. 96 constitutes no bar to vesting s. 96 judicial powers in an inferior
tribunal provided three tests were met: (1) the power in question is broadly
conformable to the powers of s. 96 courts at the time of Confederation; (2) the
power is a "judicial power"; and (3) the power is "necessarily
incidental" to the achievement of a broader policy objective by the
government: see Reference re Young Offenders Act (P.E.I.), [1991] 1 S.C.R. 252,
at pp. 276-77. In essence, provinces are empowered to vest ancillary judicial
powers formerly exercised by s. 96 courts (exclusively) so long as the judicial
or quasi-judicial function bestowed is a necessary part of an otherwise valid
administrative structure. Accepting, as my learned colleague does, that the
power to punish for contempt outside the presence of the court is a s. 96
judicial power, the question is whether the grant of the power is
"necessarily incidental" or "essential" to the functioning
of the Tribunal. Gonthier J. so finds, concluding that "[o]nly a
specialized tribunal [page443] such as the Tribunal can properly ensure the
enforcement of the orders it makes" (p. 419).
90 In my view, the record does
not support such a broad and categorical conclusion. As already noted, the Act
provides a variety of methods of enforcing the final orders of the Tribunal:
see supra at pp. 437-38. There is no evidence before us supporting the
proposition that these methods are inadequate, much less that supplementing
them with the power to punish for contempt outside the presence of the court is
essential or necessarily incidental to the Tribunal's functioning. Nor has
Parliament clearly said the power is necessary; the language relied on for the
power is at best ambiguous and stands in sharp contrast to the express language
in which the other methods of enforcement envisaged by Parliament are set out.
91 If the case cannot be brought
within the Residential Tenancies analysis, the s. 96 question of whether empowering
federally appointed members of the Competition Tribunal with jurisdiction to
punish contempt outside the presence of the court must be met directly. This
casts us into new waters, for the most part uncharted.
92 None of the governing
authorities are particularly helpful. Neither Re Residential Tenancies Act,
1979, supra; McEvoy v. Attorney General for New Brunswick, [1983] 1 S.C.R. 704;
Sobeys Stores Ltd. v. Yeomans, [1989] 1 S.C.R. 238, nor Reference re Young
Offenders Act (P.E.I.), supra, assess whether the focus of ss. 96 to 101 is the
protection of the federal executive's exclusive right to control and supervise
persons exercising the "core jurisdiction" of a superior court of
record, or whether the focus of ss. 96 to 101 is the broader principle that
statutory bodies, both provincial and federal, [page444] should not be allowed
to usurp the "judicial" function reserved to those (special) bodies
accorded the general jurisdiction of a superior court of record. The absence of
a focused argument, coupled with the absence of judicial consideration of this
issue in the courts below as well as in the authorities cited supra, militates
against any pronouncement by the Court on this question of fundamental
constitutional significance. Fortunately, my conclusion on the primary ground
of appeal herein provides me with the option of waiting for another day to
address this important issue. In the circumstances, I believe it wise to
exercise this option.
Disposition
93 I would dismiss the appeals
and affirm the decision of the Court below.