Date: 20080527
Docket: T-2167-06
Citation: 2008 FC 676
Ottawa, Ontario, May 27,
2008
PRESENT: The Honourable Mr. Justice Hughes
BETWEEN:
STANLEY COHEN
Applicant
and
ATTORNEY
GENERAL OF CANADA
Respondent
REASONS FOR JUDGMENT AND JUDGMENT
[1]
The
Applicant, Stanley Cohen is a lawyer who, during the period from 1985 to 1992
was engaged with the Law Reform Commission of Canada. That Commission wound up
in 1992 at which time the Applicant resumed employment with the Canadian
Department of Justice, where he remains to this day. The Applicant has sought
to purchase his period of service with the Commission for purposes of the Public
Service Superannuation Plan. The Applicant’s quest has been unsuccessful,
hence this judicial review. For the reasons that follow, I find that the
application is dismissed with costs.
FACTS
[2]
The
relevant facts are:
1. The Applicant
graduated from law school, was called to the bar in Manitoba and worked
there as a lawyer and taught law part-time until 1977.
2. In 1978-79,
the Applicant was a special advisor to the federal Department of Justice and in
1979 became a visiting professor at McGill Law School.
3. On September
1, 1980, the Applicant was engaged as a “contractor” with the Law Reform
Commission and worked full time in that position until December 31, 1981 at
which time he returned to McGill Law School as an Associate
Professor. He continued to provide advice to the Commission for a per diem
fee.
4. The Applicant
entered into two written contracts of engagement with the Commission, the first
dated 31 December 1981 for a term of one year expiring December 31, 1982 and the
second dated 30 September 1982, which terminated the first contract early. The
second was for a term from October 1, 1982 until September 30, 1983.
5. The first agreement
that of December 31, 1981, stated that the Applicant was to provide “advice and
consultation in matters related to research in law, and attendance at the
Commission’s premises”. A per diem fee of $250.00 was stipulated to a
maximum of $3,750.00 plus expenses. Paragraph 7 of the Agreement provided:
7. It is understood
and agreed that this Agreement is a contract for the performance of a service
and that the Consultant is engaged as an independent contractor and he is not,
nor shall he be deemed, an employee or servant of the Commission.
6. The second
agreement, that of September 30, 1982 was essentially identical. It provided
for a per diem rate of $250.00 but to a maximum of $6,250.00, plus
expenses. Clause 8 of that agreement contained wording identical to that of
Clause 7 (quoted above) of the first agreement.
7. The
Applicant, in paragraph 5 of his affidavit filed in these proceedings,
describes his position with the Commission in the period from 1981 to 1983 as “an
external consultant”. He does not seek to acquire pension benefits for
this period.
8. The Applicant
continued as a Professor at McGill Law School until August
1985.
9. In August
1985, the Applicant returned to the Law Reform Commission this time to work
full-time with the Commission. He was a member of the Commission’s senior
managerial ranks. He worked at their premises, supervised many staff members
and engaged external consultations. He remained in that position without
interruption until the Commission was wound up in 1992. The Applicant testifies
in paragraph 13 of his affidavit that he signed a number of written contracts
between himself and the Commission in respect of this period of engagement with
the Commission. His understanding, which is not contradicted by the
Respondent, was that the contracts would be renewable and that his tenure would
remain uninterrupted and indefinite. He testifies in his affidavit that the
contracts were different from those signed as of December 31, 1981 and
September 30, 1982, previously referred to, and different from that referred to
as Appendix “D” to the Treasury Board’s letter of November 9. 2006 to be
referred to later. Neither the Applicant nor the Respondent has been able to
furnish any of these written contracts in evidence. The Court was advised (as
is clearly apparent) that during the relevant period, the Applicant made no
payments related to pension benefits.
10. The Applicant was
re-employed by the federal Department of Justice on September 23, 1992 at which
time he made a request that he purchase for pension purposes, called the Public
Service Superannuation Plan, his period of service with the Law Reform
Commission. He was advised by the Supply and Services Canada Superannuation
Branch in a memorandum prepared on a standard form with handwritten insertions
dated January 11, 1993:
Period of pensionable
employment with Law Reform Contract Basis from 1981 to 1982
and with Law Reform from 1985 to 1992 is employment during
which the contributor was not subject to a pension plan. Ref.: clause 2(1) of
the P.S.S.A.
(handwritten insertions in
bold)
11. The Applicant did
nothing in response to this advice until 2001. In his affidavit the Applicant
says at paragraph 16:
I relied upon that advice and
took no further steps to purchase my Law Reform Commission service until 2001.
In
his lawyer’s letter dated March 17, 2006 to Public Works it is stated:
It is clear that Mr. Cohen was
not properly advised in 1993 when he first enquired about purchasing this
service.
12. For motivations that are
not set out in the evidence the Applicant renewed his quest to purchase his
Commission service time for pension purposes in March 2001. In paragraph 17 of
his affidavit the Applicant says he diligently pursued this quest. A letter
from his lawyer to Public Works dated March 17, 2006, Mr. Cohen again made
enquires about his Law Commission service. He was again advised that purchase
of pension benefits was not possible.
13. Although not put in
evidence directly, there is mention in the Applicant’s lawyer’s letter of March
17, 2006 of an e-mail , the full text of which is not in evidence, from Linda
Belliveau of the Superannuation Directorate to the Applicant on January 6, 2003
stating:
Contract employment is not
countable for pension purposes under the Public Service Superannuation Act
(PSSA); however, if after reviewing the contract, it is determined that the
contract is a contract of service and an employer-employee relationship
existed, the service is no longer considered contract employment for PSSA
purposes but rather Public Service.
The
e-mail itself and any related correspondence is not in evidence.
14. As noted above, the
Applicant retained a lawyer, Mr. Brown, who was also his counsel at the hearing,
sometime in early 2006. His lawyer wrote to Public Works the letter of March
17, 2006 providing two Declarations. One was from Allen Linden, currently a
supernumerary judge of the Federal Court of Appeal and President of the Law
Reform Commission from 1983 to 1990, the other was from Gilles Létourneau, currently
a judge of the Federal Court of Appeal and Vice-President of the Law Reform
Commission from 1985 to 1990 and President from 1990 to 1992. Both
Declarations address the Applicant’s engagement and tenure with the Commission
describing him as having the position of Co-ordinator of the Commission’s
Criminal Procedure Project. He was described as an integral member of the
management team with supervisory responsibilities. Two points of particular
importance were made in similar wording in each Declaration:
·
While
Mr. Cohen’s engagement with the Commission was formalized by his entering into
a series of written contracts with the Commission it was on the understood (sic)
that these contracts would be renewable and, indicative of this arrangement,
Mr. Cohen’s tenure with the Commission was uninterrupted during the entire
period of my appointment to the Commission.
·
Mr.
Cohen was not regarded as a temporary employee; indeed it would have been
impossible for him to fulfill his duties and discharge his responsibilities with
the Commission on a temporary basis.
15. The Applicant’s lawyer’s
letter of March 17, 2006 ended with a paragraph stating:
I would like to ask you to
give this matter your early attention. If we have not heard from you by April
15, 2006, we will formally ask the President of the Treasury Board to consider
the matter. If necessary, we are prepared to pursue the matter in the Federal
Court.
16. The ensuing dialogue is
set out in another letter from the Applicant’s lawyer to Public Works dated
October 26, 2006, which letter requested a decision by November 30, 2006
failing which legal proceedings would be taken. The text of that letter says:
I wrote to you by letter dated
March 17, 2006, in connection with Mr. Cohen’s entitlement to purchase service
covering the period from August 1985, to September, 1992, when he was employed
by the Law Reform Commission of Canada.
On May 18, 2006, I provided
you with a copy of my letter of May 5, 2006, to the President of the Treasury
Board formally requesting a decision. I also provided you with a copy of
signed statements by two former Presidents of the Law Reform Commission setting
out the circumstances of Mr. Cohen’s employment with the Commission from 1985
to 1992.
On June 8, 2006, a letter from
you to Ms. D.M. Gushta of the Department of Justice was provided to Mr. Cohen.
That letter requested that Mr. Cohen submit all contracts for your review for
the 1985 to 1992 period and for an earlier period in 1978.
Mr. Cohen had made a search of
his files and papers and he is unable to find any agreements for the 1985 to
1992 period. He was able to locate two earlier agreements with the Law Reform
Commission, one dated December 31, 1981 [sic], and another dated September 30,
1982. Copies of both of these agreements are enclosed. Both of these
contracts were for a specified number of days over a period of several months.
At the times in question, Mr. Cohen was teaching at McGill. These arrangements
differed substantially from the working arrangements during the 1985 to 1992 period
when Mr. Cohen worked on a full-time continuous basis in Ottawa as Coordinator
of the Commission’s Criminal Procedure Project under the conditions described
in the statements from Mr. Linden and Mr. Letourneau.
Given the length of time that
has elapsed, I would appreciate receiving an early decision on the issue of Mr.
Cohen’s entitlement to purchase the 1985 to 1992 service.
If we do not have a response
by November 30, 2006, from Treasury Board (or from you as the authorized
delegate of Treasury Board), we will treat that as a decision denying
entitlement. In such case, it is Mr. Cohen’s intention to bring an application
under s. 18.1 of the Federal Court [sic] Act so that the question of his
entitlement can be resolved.
17. The Applicant received a
letter dated November 9, 2006 from Phil Charko of the Treasury Board of Canada
Secretariat stating that in respect of the period of time that the Applicant
was engaged with the Law Reform Commission such period was not countable for
pension purposes under the Public Service Superannuation Act (PSSA).
That letter stated:
Thank you
for your correspondence of November 6, 2006 regarding your client, Mr. Stanley
Cohen, and his desire to bring certain periods of time spent with the Law
Reform Commission of Canada, to his credit as pensionable service under the
Public Service Superannuation Act (PSSA). A review of Mr. Stanley Cohen’s file
has been completed and I would like to inform you of the results.
In your
letter dated March 17, 2006, you allege that Mr. Cohen had been appointed
pursuant to s. 7(1) of the Law Reform Commission Act, R.S.C. 1985, c. L-7,
which states: “A secretary of the Commission, and such other officers and
employees as are necessary for the proper conduct of the work of the Commission,
shall be appointed in accordance with the Public Service Employment Act.”
If Mr. Cohen
had been appointed pursuant to subsection 7(1), he would be deemed, as you
suggest, to be a person employed in the Public Service for the purpose of the
Public Service Superannuation Act (PSSA) pursuant to section 8 of the Law
Reform Commission Act.
A careful
review of the file revealed no evidence that supported your contention that Mr.
Cohen was appointed pursuant to subsection 7(1) of the Law Reform Commission
Act.
However, the
file review did reveal evidence suggesting that Mr. Cohen, was engaged pursuant
to subsection 7(2) of the Law Reform Commission Act, which states “The
Commission may engage on a temporary basis or for specific projects the
services of persons having technical or specialized knowledge of any matter
relating to the work of the Commission, to advise and assist the Commission in
the performance of its duties under this Act, and, with the approval of the
Minister, may fix and pay the remuneration and expenses of such persons.”
There are two
pieces of evidence referencing subsection 7(2), consisting of memoranda dated
May 20, 1980 and February 5, 1982.
The first
memorandum (Appendix A) seeks the approval of the Deputy Minister to engage the
services of Mr. Cohen from September 1, 1980 to August 31, 1982 to do research
in the field of criminal law. To help justify recommending remuneration of
$42,500 per annum, it advises that, if Mr. Cohen were an officer of the
Department of Justice, he, “…might well be paid $37000 per annum…”. The
memorandum continues, “It is customary to add 15% in the case of contract
personnel, and if 15% were added to the $37000 the result would be $42,550 per
annum.”
The second
(Appendix B) seeks to engage Mr. Cohen’s services for a maximum of 15 days
during the period January 1, 1982 to December 31, 1982 at the rate of $250 per
day and the usual expenses.
I attach
copies of the memoranda for your review. You will note that they both
specifically reference subsection 7(2) of the Act as the authority to engage
Mr. Cohen.
Although, the
two memoranda are not for the period your client wishes to elect for under the
PSSA – August 1985 to September 1992 – they indicate that his earliest
appointments as a contractor for the Law Reform Commission made under
subsection 7(2).
We also offer
other documents from those years suggesting he was an independent contractor.
These include a 1988 document listing Mr. Cohen as a Researcher with the
Commission (Appendix C), a copy of the standard contract offered to full-time
Researchers (Appendix D), and an organization chart (Appendix E) showing that
Researchers were contractors.
If you
consult the standard contract, you will notice that section 10 stipulates that
the Researchers were independent contractors and not employees of the
Commission. Since Mr. Cohen was a Researcher he would have been engaged under
the standard contract. Given his legal background, it is reasonable to expect
that he read the clause and understood its legal ramifications.
All of the
above suggests that Mr. Cohen was engaged by the Law Reform Commission under
subsection 7(2) as an independent contractor. I therefore cannot find that the
period of his engagement with the Commission is countable for pension purposes under
the PSSA.
If you are
able to demonstrate that he was engaged under contracts differing from the
standard contract, we would be happy to give further consideration to this
case.
18. It must be remembered
that the Applicant was not seeking pension benefits for the periods covered by
the contracts referred to in the memoranda discussed in the letter [at Appendices
A and B]. This fact is recognized in the November 9, 2006 letter. Further the
evidence of the Applicant but only submitted by way of affidavit to this Court,
not to Mr. Charko, is that the draft “standard contract” of Appendix D is not
representative of any written contact that the Applicant entered into with the
government. It seems that neither party can locate or produce any written
contract or contracts for the period from 1985 to 1992.
19. The Applicant by Notice
of Application filed December 8, 2006 sought judicial review of what is set out
in the letter of November 9, 2006.
ISSUES
[3]
There
are three issues for determination in this application:
1. Is the letter
of November 9, 2006 a “decision” that may be the subject of the judicial review
under section 18.1 of the Federal Courts Act, R.S.C. 1985, c. F-7. In
particular is the Applicant precluded from seeking judicial review having
regard to a memorandum dated January 11, 1993 stating that he was not subject
to a pension plan? (DELAY)
2. What is the
standard of review applicable if there is a “decision” to be reviewed?
(STANDARD OF REVIEW)
3. If the
Applicant is not barred from seeking judicial review, and the letter of
November 9, 2006 is a “decision” within the meaning of section 18.1 of the Federal
Courts Act, should that decision be set aside on judicial review? (MERITS)
ISSUE #1 - DELAY
[4]
Section
18.1(2) of the Federal Courts Act, R.S.C. 1985, c. F-7 provides that an
application of this kind must be brought within 30 days from the time that the
decision was first communicated to the party directly affected unless the Court
otherwise Orders. To recap briefly, the Applicant’s request to purchase pension
benefits was turned down in 1993, in 2001, in 2003 and finally on November 9,
2006. If November 9, 2006 is the operative date then this application has been
brought in a timely way. If the decision date is any of the earlier dates,
then the application is well out of time. No application has been made by the
Applicant for an extension of time to bring this application. He says the
operative date is November 9, 2006.
[5]
Respondent’s
counsel argues that the letters written by Applicant’s lawyer beginning in
March 17, 2006 are simply an attempt to resuscitate a matter that had
terminated several years earlier in an endeavour to provoke a response from the
government. Reliance is placed on the statement of McKeown J. of this Court in
Dhaliwal v. Canada (MCI), [1995] F.C.J. No. 982 at paragraph 2:
As Wetston J. said in Wong v.
The Minister of Citizenship and Immigration, May 5, 1995, Court File
IMM-1338-93 (F.C.T.D.) [Please see [1995] F.C.J. No. 685], counsel cannot
extend the date of decision by writing a letter with the intention of provoking
a reply.
[6]
Respondent’s
counsel says that the matter was decided in 1993 and apart from attempts in
2001 and 2003 which are poorly evidenced in the record, the matter was allowed
to rest. The 2006 letters were simply a bold attempt to provoke the government
into re-opening a dead file.
[7]
Applicant’s
counsel argues that there was nothing improper in making an attempt to have the
matter re-opened and, if the government did re-open the matter, which it
arguably did, then November 9, 2006 is the operative date. Reliance placed on
the decision of Noel J. of this Court in Dumbrava v. Canada (MCI), (1995),
101 F.T.R. 230 at paragraph 15:
15 I find this reasoning
compelling. Whenever a decision-maker who is empowered to do so agrees to
reconsider a decision on the basis of new facts, a fresh decision will result
whether or not the original decision is changed, varied or maintained.4
What is relevant is that there be a fresh exercise of discretion, and such will
always be the case when a decision-maker agrees to reconsider his or her
decision by reference to facts and submissions which were not on the record
when the original decision was reached.
[8]
I
am satisfied, in looking at the letter of November 9, 2006, that the
decision-maker did engage in a re-consideration of the matter. We do not know
what facts were before the decision-maker in 1993 or 2001 or 2003 but we do
know from the letter of November 9, 2006 that a “careful review of the file”
was undertaken. Reference was made to the contracts and a related memorandum,
of 1981 and 1982. New evidence in the form of Appendixes C, D and E is
referred to. Appendix C is a listing of persons engaged with the Commission,
Appendix D is said to be a “standard contract offered to full-time
researchers”, Appendix E is an organizational chart. The letter ends with
an invitation to the Applicant to submit evidence as to any different contracts
that may have existed. No reply of any kind was forthcoming. The application
for this judicial review was filed December 8, 2006.
[9]
Therefore,
I find that the letter of November 9, 2006 is the operative decision and that
this application was filed in a timely manner.
ISSUE #2 – STANDARD OF
REVIEW
[10]
Since
Dunsmuir v. New Brunswick, 2008 SCC 9, there has
been a necessity to take a fresh approach to the issue as to what standard of
review is applicable to any particular decision under review. The decision of
the majority of the Supreme Court at paragraph 45 states that there are now
only two standards of review, reasonableness and correctness:
45 We therefore conclude that the two variants of
reasonableness review should be collapsed into a single form of
"reasonableness" review. The result is a system of judicial review
comprising two standards correctness and reasonableness. But the revised system
cannot be expected to be simpler and more workable unless the concepts it
employs are clearly defined.
[11]
As
to “reasonableness” the majority in Dunsmuir at paragraph 47 said that
it is a deferential standard and that tribunals must be afforded a range of
acceptable and rational solutions:
47 Reasonableness is a deferential standard
animated by the principle that underlies the development of the two previous
standards of reasonableness: certain questions that come before administrative
tribunals do not lend themselves to one specific, particular result. Instead,
they may give rise to a number of possible, reasonable conclusions. Tribunals
have a margin of appreciation within the range of acceptable and rational
solutions. A court conducting a review for reasonableness inquires into the
qualities that make a decision reasonable, referring both to the process of
articulating the reasons and to outcomes. In judicial review, reasonableness is
concerned mostly with the existence of justification, transparency and
intelligibility within the decision-making process. But it is also concerned
with whether the decision falls within a range of possible, acceptable outcomes
which are defensible in respect of the facts and law.
[12]
Further
light as to “reasonableness” can be derived from the more recent
decision of the Supreme Court in Lake v. Canada (Minister of
Justice),
2008 SCC 23. The unanimous decision of the Court was delivered by LeBel J. At
paragraph 41 he says that a Court must determine if the decision falls within a
range of reasonable outcomes:
41 Reasonableness does not
require blind submission to the Minister's assessment; however, the standard
does entail more than one possible conclusion. The reviewing court's role is
not to re-assess the relevant factors and substitute its own view. Rather, the
court must determine whether the Minister's decision falls within a range of
reasonable outcomes. To apply this standard in the extradition context, a court
must ask whether the Minister considered the relevant facts and reached a
defensible conclusion based on those facts. I agree with Laskin J.A. that the
Minister must, in reaching his decision, apply the correct legal test. The
Minister's conclusion will not be rational or defensible if he has failed to
carry out the proper analysis. If, however, the Minister has identified the
proper test, the conclusion he has reached in applying that test should be
upheld by a reviewing court unless it is unreasonable. This approach does not
minimize the protection afforded by the Charter. It merely reflects the fact that in the
extradition context, the proper assessments under ss. 6(1) and 7 involve
primarily fact-based balancing tests. Given the Minister's expertise and his
obligation to ensure that Canada complies with its international commitments, he is
in the best position to determine whether the factors weigh in favour of or
against extradition.
[13]
As
to “correctness”, the majority in Dunmuir at paragraph 50 stated that
this standard must be maintained in respect of jurisdictional questions and
some other questions of law:
50 As important as it is that
courts have a proper understanding of reasonableness review as a deferential
standard, it is also without question that the standard of correctness must be
maintained in respect of jurisdictional and some other questions of law. This
promotes just decisions and avoids inconsistent and unauthorized application of
law. When applying the correctness standard, a reviewing court will not show
deference to the decision maker's reasoning process; it will rather undertake
its own analysis of the question. The analysis will bring the court to decide
whether it agrees with the determination of the decision maker; if not, the
court will substitute its own view and provide the correct answer. From the
outset, the court must ask whether the tribunal's decision was correct.
[14]
In
determining the appropriate standard of review, the majority in Dunsmuir
at paragraphs 51 to 65 gave guidance which is best summarized at paragraphs 55
and 56 and 62 to 64:
55 A
consideration of the following factors will lead to the conclusion that the
decision maker should be given deference and a reasonableness test applied:
·
A privative clause: this is a statutory direction from
Parliament or a legislature indicating the need for deference.
·
A discrete and special administrative regime in which the
decision maker has special expertise (labour relations for instance).
·
The nature of the question of law. A question of law that
is of "central importance to the legal system ... and outside the ...
specialized area of expertise" of the administrative decision maker will
always attract a correctness standard (Toronto
(City) v. C.U.P.E., at para. 62). On the other hand, a question
of law that does not rise to this level may be compatible with a reasonableness
standard where the two above factors so indicate.
56 If
these factors, considered together, point to a standard of reasonableness, the
decision maker's decision must be approached with deference in the sense of
respect discussed earlier in these reasons. There is nothing unprincipled in
the fact that some questions of law will be decided on the basis of
reasonableness. It simply means giving the adjudicator's decision appropriate
deference in deciding whether a decision should be upheld, bearing in mind the
factors indicated.
…
62 In
summary, the process of judicial review involves two steps. First, courts
ascertain whether the jurisprudence has already determined in a satisfactory
manner the degree of defence to be accorded with regard to a particular
category of question. Second, where the first inquiry proves unfruitful, courts
must proceed to an analysis of the factors making it possible to identify the
proper standard of review.
63 The
existing approach to determining the appropriate standard of review has
commonly been referred to as "pragmatic and functional". That name is
unimportant. Reviewing courts must not get fixated on the label at the expense
of a proper understanding of what the inquiry actually entails. Because the
phrase "pragmatic and functional approach" may have misguided courts
in the past, we prefer to refer simply to the "standard of review
analysis" in the future.
64 The
analysis must be contextual. As mentioned above, it is dependent on the
application of a number of relevant factors, including: (1) the presence or
absence of a privative clause; (2) the purpose of the tribunal as determined by
interpretation of enabling legislation; (3) the nature of the question at
issue, and; (4) the expertise of the tribunal. In many cases, it will not be
necessary to consider all of the factors, as some of them may be determinative
in the application of the reasonableness standard in a specific case.
[15]
In
the case at hand, the decision of November 9, 2006 involved an analysis of
evidence as to the nature of the engagement of the Applicant with the Law
Reform Commission and applying those facts to the Law Reform Commission Act,
R.S.C. c. 23 (1st Supp.); the Public Service Employment Act,
R.S., c. P-32, and the Public Service Staff Relations Act, R.S. c.
P-35. It is a question of mixed fact and law.
[16]
There
is no privative clause in any relevant statute. No particular expertise as to
the decision-maker is in evidence although it can be inferred that he has some
expertise in the matter. There is no formal “court-like” structure, the
decision making process is more of an administrative one in its nature.
Respondent’s counsel refers to three decisions of this Court which, in more or
less analogous circumstances, a standard or review was determined.
[17]
In
Estwick v. Canada (Attorney General), 2007 FC 894 a decision of an
adjucator acting pursuant to the Public Service Staff Relations Act, supra
was afforded a standard of patent unreasonableness by Justice Heneghan of this
Court at paragraph 80. This decision preceded that of Dunsmuir, supra.
[18]
In
Public Service Alliance of Canada v. Canada
(Attorney General), 2008 FC 474, Deputy Justice Frenette of
this Court, at paragraphs 17 and 18, afforded a decision of a Policy Officer
acting under the Public Service Superannuation Act, supra a
standard of correctness as to decisions solely related to questions of law,
and, in respect of questions of mixed fact and law, a standard of reasonableness.
[19]
In
Burley v. Canada (Attorney General), 2008 FC 525, Justice Dawson of this
Court had under consideration a decision of an Assistant Deputy Minister in
request of the employment or not of a person undergoing language training
having regard to the Public Services Superannuation Act, supra.
At paragraphs 21 to 26, Justice Dawson considered the issue of standard of
review and determined that it did not need to be determined since the decision
withstood scrutiny even under the less deferential standard of correctness.
[20]
Having
regard to all of the foregoing, I find that the appropriate standard of review
in respect of the decision at issue here is that of reasonableness. The
question for determination was one of mixed fact and law made in circumstances
where some expertise has been brought to bear.
ISSUE #3 - MERITS
[21]
On
its merits, therefore, was the decision of November 9, 2006 “reasonable”?
[22]
The
decision-maker, Mr. Charko had before him evidence which consisted of:
·
contracts
between the Applicant and the government in 1981 and 1982 which clearly
described the Applicant as an independent contractor, not a consultant, and
memoranda (Appendix A and B) referring to these contracts. The decision-maker
in the letter of November 9, 2006 acknowledges that these contracts did not cover
the period of concern but stated that they indicate that the contract
engagement of the Applicant in that period was under section 7(2) of the Law
Reform Commission Act, supra (to be discussed more fully later).
·
a
listing of persons engaged by the Commission (Appendix C) which in 1988 listed
the Applicant as one of the “Researchers of the LRCC”
·
an
organizational chart (Appendix E) listing various positions within the
Commission including that of Researchers indicating that, unlike other
positions, Researchers have no internal classification alpha-numeric
designation assigned to them
·
a
copy of a “standard contract” (Appendix D) offered to Researchers. The
decision-maker makes the inference that, since the Applicant was a Researcher,
this represents the operative contract. The letter of November 9, 2006 ends
with the clear undertaking that if the Applicant could demonstrate that he was
engaged under contracts differing from the standard contract, the matter would
be given further consideration.
The
Applicant does not appear, from the evidence, to have responded to the
invitation to distinguish his circumstances from those of the “standard
contract”. Instead this application was commenced. In his affidavit filed
in this application the Applicant says, at paragraph 13, that he signed a
number of written contracts, none of which can be found, but they were
different from the “standard contract” and from the 1981 and 1982 contracts.
This evidence, however, was not before the decision-maker, notwithstanding the
invitation to comment upon the very point. We are left to puzzle why no
further discussion with the decision-maker was entered into raising the point
now sought to be determined by the Court for the first time. Evidence of this
kind cannot now be received (Kante v. Canada (MPSEP), 2007 FC 109 at
paras. 9 and 10). A determination of the “reasonableness” of the
decision must be made on the basis of the evidence before the decision-maker.
·
declarations
from each of Linden and
Létourneau, aforesaid, which describe the Applicant as an integral member of
the Commission’s management team working on a full-time basis and clearly not a
temporary employee.
The
decision-maker does not mention those declarations although the evidence indicates
that they were clearly before him at the time. The declarations clearly
evidence the nature of the Applicant’s engagement in a full-time exclusive
capacity and not in a capacity that would normally be associated with that of a
contract researcher.
Failure to
mention those declarations and how they influenced the decision expressed in
the letter of November 9, 2006 does give rise to concern as to the thoroughness
of the decision-making process. However, the letter of November 9, 2006 does
end with the invitation to the Applicant to make further submissions and here
was an opportunity to emphasize these declarations and how they would enlighten
the view of the nature of the relationship.
[23]
The
decision-maker had to make a determination in applying the evidence to the
legal framework as set out in sections 7 and 8 of the Law Reform Commission
Act, supra which state:
7.
(1) A secretary of the Commission, and such other officers and employers as
are necessary for the proper conduct of the work of the Commission, shall be
appointed in accordance with the Public Service Employment Act.
(2)
The Commission may engage on a temporary basis or for specific projects the
services of persons having technical or specialized knowledge of any matter
relating to the work of the Commission, to advise and assist the Commission
in the performance of its duties under this Act, and, with the approval of
the Minister, may fix and pay the remuneration and expenses of such persons.
8.
Except in the case of a member of the Commission in receipt of a salary under
the Judges Act, or unless in the case of any other member of the Commission,
the Governor in Counsel otherwise directs, the members of the Commission and
the persons appointed under subsection 7(1) shall be deemed to be persons
employed in the Public Service for the purposes of the Public Service
Superannuation Act and to be employed in the public service of Canada for the
purposes of the Government Employees Compensation Act and any regulations
made under section 9 of the Aeronautics Act
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7.
(1) Le secrétaire de la Commission et les autres fonctionnaires et employés
nécessaires à la bonne marche des travaux de la Commission sont nommés
conformément à la Loi sur l’emploi dans la fonction publique.
(2)
La Commission peut, à titre provisoire ou pour des projets déterminés,
retenir les services de personnes possédant des connaissances techniques ou
spécialisées sur toute question relative à ses travaux, pour la conseiller et
l’aider à remplir les fonctions qui lui attribue la présente loi, et, avec
l’approbation du ministre, elle peut fixer et payer la rémunération et les
frais de ces personnes.
8.
Les membres de la Commission dont le traitement n’est pas régi par la Loi sur
les juges ou qui n’ont pas fait l’objet d’une décision contraire du gouverneur
en conseil, ainsi que les personnes nommées conformément au paragraphe 7(1),
sont réputés faire partie de la fonction publique pour l’application de la
Loi sur la pension de la fonction publique, et de l’administration publique
fédérale pour l’application de la Loi sur l’indemnisation des agents de
l’État et des règlements pris en vertu de l’article 9 de la loi sur
l’aéronautique.
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[24]
Applicant’s
counsel argues that a proper interpretation of these sections is to read them in
their entire context. As instructed by the Supreme Court in Rizzo &
Rizzo Shoes Ltd., [1998] 1 S.C.R. 27 at paragraph 21, these provisions are
to be read in accordance with the object and intention of Parliament. Thus,
Applicant’s counsel argues results in a construction whereby Parliament
intended that persons, other than temporary workers or those engaged on
specific projects as defined in subsection 7(2), engaged by the Law Reform
Commission, are to be afforded pension benefits under the Public Service
Superannuation Act. Thus, it is argued, with the specific exemption of
subsection 7(2) all others engaged by the Law Reform Commission are entitled to
pension benefits.
[25]
Applicant’s
counsel argues that the words “…shall be appointed in accordance with the
Public Service Employment Act” are to be read in context of section 7(2)
which “…deems persons to be employed” and thus does not require the
rigours of an actual “appointment”. Alternatively, Applicant’s counsel
argues that the requirement to “appoint” a person is a duty that falls
on the Commission and failure to do so does not affect the status of the
Applicant as a person defined in subsection 7(1).
[26]
Respondent’s
counsel argues that subsection 7(1) does require a person to be “appointed
in accordance with the Public Service Employment Act” with all that this
entails such as contesting for the position, appeals and so forth. Counsel
argues that unless a person is so “appointed”, that person, by default,
falls under subsection 7(2) and therefore is not offered pension benefits.
Several other federal statutes with like provisions are referenced. None seem
to have been judicially considered.
[27]
The
wording of sections 7(1) and (2) and 8 of the Law Reform Commission Act,
supra are not happily worded. It seems to leave a “one or the other”
option in interpretation, the Applicant’s view or the Respondent’s view. These
provisions do not appear to offer an alternative or middle ground. The most
authoritative decision is the decision of the Supreme Court in Canada (Attorney
General) v. Public Service Alliance of Canada, [1991] 1 S.C.R.
614 (sometimes referred to as “Econosult”) which in the majority
decision given by Sopinka J. adopted at paragraph 26 the summary of Marceau J.A.
of the Federal Court of Appeal:
26 In
short, the situation is aptly summed up by Marceau J.A. speaking for the
majority of the Court of Appeal when he states (à la p. 643):
There
is quite simply no place in this legal structure for a public servant (that is,
an employee of Her Majesty, a member of the Public Service) without a position
created by the Treasury Board and without an appointment made by the Public
Service Commission.
[28]
Applicant’s
counsel, while acknowledging that they were distinguished and to some extent
overruled in Econosult, cites earlier decisions of the Supreme Court in Canada
(Attorney General) v. Brault, [1987] 2 S.C.R. 489 and Doré v. Canada,
[1987] 2 S.C.R. 503, and argues that those two earlier decisions illustrates
that a contextual analysis of the relevant statutes is required in each
circumstance in order to arrive at the correct interpretation.
[29]
Here
we are faced with two differing interpretations of the statute, sections 7(1),
7(2) and of 8 of the Law Reform Commission Act. If this were a pure
question of law, the Court would have to arrive at one interpretation that was
correct. However, the issue is not a pure question of law but a question of
mixed fact and law, in respect of which, given the evidence before the decision
maker, the Court must determine whether the decision arrived at was “reasonable”.
By “reasonable” it is meant is the decision within the range of
decisions that could reasonably be made in the circumstances of this case. I
find that it is. Given the evidence before the decision-maker and
notwithstanding the lack of mention of the two declarations, it was reasonable
to make a determination that the circumstances of the Applicant best fit within
what is contemplated by section 7(2) of the Law Reform Commission Act, supra.
[30]
Having
so decided, I must add that were I to have approached this review on the basis
of correctness, I would have preferred the Applicant’s counsel’s interpretation
of sections 7(1), 7(2) and 8 of the Law Reform Commission Act. That
view is more in accord with the spirit of the legislation which appears to be
intended to provide all but those rendering specific limited services to the
Commission with the same pension benefits as if they had been appointed to the
public service. I would have viewed the “deeming” provisions of section
8 to inform the “appointed” provisions of section 7(1) such that any
person not clearly within section 7(2) is “deemed” to have been “appointed”
within the meaning of section 7(1).
[31]
Dunsmuir followed by Lake as recently
decided by the Supreme Court of Canada does more than just collapse three
standards of review, patent unreasonableness, reasonableness and correctness
into two, reasonableness and correctness, but also directs a Court of review to
consider whether the decision under review is within a “range of reasonable
decisions”. Thus, if the decision is within the “range” even if the
Court would not have made the same decision, that decision cannot be set
aside. This is the case here.
SUMMARY AND COSTS
[32]
In
summary:
1. The relevant
decision is that of November 9, 2006 and this application was made in a timely
manner
2. The standard
of review to be applied is that of reasonableness;
3. The decision
of November 9, 2006 was reasonable.
[33]
As
a result, the application is dismissed with costs. The parties are agreed that
the level of costs should be the usual level, middle of Column III.
JUDGMENT
For the Reasons given:
THE COURT ORDERS THAT:
1.
The
application is dismissed;
2.
The
Respondent’s is entitled to costs to be assessed at the middle of Column III.
"Roger
T. Hughes"