Supreme Court of Canada
Berardinelli v. Ontario Housing Corp, [1979] 1 S.C.R.
275
Date: 1978-10-03
Carmen Berardinelli
(Plaintiff) Appellant;
and
Ontario Housing
Corporation and Her Majesty in Right of the Province of Ontario (Defendants) Respondents;
and
Paul Pickett, of
the City of Mississauga, Regional Municipality of Peel, carrying
on business as Paul Pickett Landscaping (Third Party) Respondent.
1978: February 23; 1978: October 3.
Present: Laskin C.J. and Martland, Spence,
Dickson, Beetz, Estey and Pratte JJ.
ON APPEAL FROM THE SUPREME COURT OF ONTARIO.
Limitation of actions—Public
authorities—Crown agency—Whether Ontario Housing Corporation exercising
statutory or public duty or authority—Whether Crown agency in all its
functions—The Public Authorities Protection Act, R.S.O. 1970, c. 374, s. 11 as
amended—The Crown Agency Act, R.S.O. 1970, c. 100, s. 2—The Housing Development
Act, R.S.O. 1970, c. 213, s. 6(2) as am. by 1974 (Ont.), c. 31 and 1976 (Ont.),
c. 44, s. 2.
Respondent, Ontario Housing Corporation, is
the owner of certain housing units in Toronto. Appellant, a tenant in one of these units, slipped on some ice or
snow while walking in a common area of the development and suffered injuries.
The Writ of Summons was issued more than six months after the date of the
accident and respondent contended that by reason of s. 11 of The Public
Authorities Protection Act, R.S.O. 1970, c. 374, as amended, the claim was
statute barred. This was raised as a point of law under Rule 124 of the Ontario
Rules. The Court of first instance concluded that as respondent is a Crown
agency within the meaning of The Crown Agency Act, R.S.O. 1970, c. 100,
it is a public authority and entitled to rely on s. 11 of The Public
Authorities Protection Act and consequently that the action was statute
barred. The Court of Appeal reached the same conclusion by another route
determining inter alia that, even if respondent was a Crown agency some
of its duties and authorities are of such a nature that in respect of their
exercise or discharge the Corporation is not entitled to invoke s. 11. It then
proceeded to the issue whether the alleged neglect or
[Page 276]
default of the Corporation was in the
exercise of any statutory or other public duty and concluded that the default
in removing the ice or snow was directly linked to the statutory function of
the Corporation.
Held (Martland
J. dissenting): The appeal should be allowed.
Per Laskin
C.J. and Spence, Dickson, Beetz, Estey and Pratte JJ.: The reference in
s. 11 to “any statutory or other public duty” applies to those aspects of
the statutory powers and duties which have a public aspect or connotation and
does not comprehend those other responsibilities which have a private executive
or private administrative application or are subordinate in nature. To read the
section otherwise would be to bring within the protective limitation of s. 11
every aspect of the powers enunciated in s. 6(2) of The Housing Development
Act, R.S.O. 1970, c. 213, as amended, including operational matters, however
insignificant, and would create different conditions of owner liability for two
apparently similar housing facilities. The effect of this construction is to
create the need to segregate actions and powers into two categories, those
entailing a public aspect or which are inherently of a public nature and those
managerial, internal or operational matters having a predominantly private
aspect. The removal of snow would therefore be a private and operational
matter, subordinate or incidental in character, which would not be covered by
the protective limitation of s. 11.
Per Martland
J., dissenting: While the Court of Appeal correctly held that the
Corporation fell within the class of legal persons entitled to protection by s.
11 the main argument here was in respect of the second question stated by
Howland J.A. i.e. whether the alleged neglect or default was in the
execution of any statutory or other public duty or authority? The test to be
applied should be that of Viscount Simon in Griffiths v. Smith, [1941] A.C.
170,—was the duty of removing ice from the common area of the Corporation’s
housing project an exercise of its function of managing that project?
Further there is no authority which supports
the proposition that the operational or mundane functions of management are
excluded from the protection afforded by $. 11. If the default alleged relates
to the function of management of the project then there is nothing to
[Page 277]
justify the suggestion that this is not a
default in the execution of authority within the meaning of s. 11.
[Bradford Corporation v. Myers, [1916] 1 A.C. 242; McGonegal et al. v. Gray et al., [1952]
2 S.C.R. 274; Griffiths v. Smith, [1941] A.C. 170; Edwards v.
Metropolitan Water Board, [1922] 1 K.B. 291; Clarke v .St. Helen’s
Borough Council (1916), 85 L.J.K.B. 17 referred to.]
APPEAL from a judgment of the Supreme Court
of Ontario
dismissing an appeal from a judgment of Henry J.
declaring that the six-month limitation period in The Public Authorities
Protection Act applied to the respondent, Ontario Housing Corporation.
Appeal allowed, Martland J. dissenting.
J. Edgar Sexton, for the appellant.
Duncan Finlayson, Q.C., for the
respondents.
The judgment of Laskin C.J. and Spence, Dickson,
Beetz, Estey and Pratte JJ. was delivered by
ESTEY J.—This appeal comes to this Court from a
disposition by the Courts below of a point of law arising on the pleadings and
placed before the Courts in interlocutory proceedings under Rule 124 of the
Rules of the Supreme Court of Ontario. Rule 124 provides as follows:
Either party is entitled to raise by his
pleadings any point of law, and by consent of the parties or by leave of a
judge, the point of law may be set down for hearing at any time before the
trial, otherwise it shall be disposed of at the trial.
For the purposes of this motion the parties have
agreed that the facts are as pleaded in the Statement of Claim. These can be
simply stated. The respondent, the Ontario Housing Corporation being a
corporation without share capital established pursuant to The Ontario
Housing Corporation Act, 1964 (Ont.), c. 76, re-enacted as The Ontario
Housing Corporation Act, R.S.O. 1970, c. 317, is the owner of certain
housing units located in Napanee Court situated in the City of Toronto,
Province of Ontario and the appellant is a tenant occupying one of the housing
units. The appellant
[Page 278]
while walking on a common area in this
development slipped on some ice or accumulated snow and suffered injuries. The
Writ of Summons was issued by the appellant more than 6 months after the date
upon which the appellant suffered his injuries and the respondent takes the
position that by reason of s. 11 of The Public Authorities Protection Act,
R.S.O. 1970, c. 374, as amended by 1976 (Ont.), c. 19, the appellant’s claim
is statute barred, the limitation period therein being 6 months.
The respondent owns the housing units in
question pursuant to The Housing Development Act, R.S.O. 1970, c. 213,
as amended by 1974 (Ont.), c. 31, (and 1976 (Ont.), c. 44, s. 2) specifically
s. 6(2) thereof which provides as follows:
The Lieutenant Governor in Council may
constitute corporations with such powers and duties as are deemed expedient to
carry out any of the terms of any agreement made under subsection 1, or to
carry out any building development or housing project, including power to
plan, construct and manage any building development or housing project
undertaken under any such agreement or otherwise, and including power to
acquire and dispose of land in its own name. [Emphasis added]
It is convenient at this time to set out s. 11
of The Public Authorities Protection Act, supra:
No action, prosecution or other proceeding
lies or shall be instituted against any person for an act done in pursuance or
execution or intended execution of any statutory or other public duty or
authority, or in respect of any alleged neglect or default in the execution of
any such duty or authority, unless it is commenced within six months next after
the cause of action arose, or, in case of continuance of injury or damage,
within six months after the ceasing thereof.
The question of law put before the Court
pursuant to Rule 124 is set out in the Notice of Motion as follows:
…whether the Defendant, Ontario Housing
Corporation, is entitled to rely on s. 11 of The Public Authorities
Protection Act.
The Court of first instance concluded that as
the respondent is a “Crown agency” within the meaning of The Crown Agency
Act, R.S.O. 1970, c. 100, it therefore is a public authority and is en-
[Page 279]
titled to rely on s. 11 of The Public
Authorities Protection Act and consequently the appellant’s action was
statute barred. In the course of his judgment Henry J. stated:
The point is concluded by s. 2 of The
Crown Agency Act in providing that the corporation is for all its purposes
an agent of Her Majesty and its powers may be exercised only as an agent of Her
Majesty.
The Court of Appeal reached the same conclusion
by another route. In that Court it was determined unanimously that even if the
respondent is in law a Crown agency some of its duties and authorities are of
such a nature that in respect of their exercise or discharge the Corporation is
not entitled to invoke s. 11. Hence the Court of Appeal proceeded to what was
said to be a second issue, namely “whether the alleged neglect or default of
the Corporation was in the exercise of any statutory or other public duty”. The
Court then went on to reach the conclusion that:
Management of housing units necessarily
includes provision for the removal of ice and snow from the entrances and the
common areas. This is a normal function of property management… The default in
removing the ice or snow from the common areas was directly linked to the
statutory power of the Corporation in this connection. The appellant was one of
the members of the public for whose benefit the statutory authority in question
was to be exercised. It was not a subsidiary activity of a non-public nature.
Accordingly, s. 11 of the Act extended to this
situation and the limitation period having run, the appeal was dismissed.
The issue raised in this appeal turns upon the
interpretation and interrelationship of s. 6(2) of The Housing Development
Act and s. 11 of The Public Authorities Protection Act. The
empowering provisions of s. 6(2) provide for the granting of “…such powers and
duties as are deemed expedient to…plan, construct and manage any building
development or housing project…”. These words would appear to be sufficiently
broad to include virtually the entire range of executive and administrative activities
in all of their operational facets and details in the establishment and
operation of a housing facility. This provision must then be read
[Page 280]
in the light of the expression in s. 11 of The
Public Authorities Protection Act”…an act done in…the execution…of any
statutory or other public duty or authority…” so as to determine whether the
protective net of s. 11 is thereby cast over the entire exercise of the power
and duty to “plan, construct and manage” under s. 6(2); or alternatively
extends only to those activities which have a public aspect as distinct from a
private connotation.
The Court is here confronted with at least two
possible, but quite different, interpretations of s. 11. The one would
impose on all actions involving the execution of the powers undertaken pursuant
to s. 6(2) of The Housing Development Act, however minor or miniscule,
the protection of the limitation period established by s. 11. The imposition of
this limitation period for this special class would have the direct result of
producing two categories of housing units in the community; the one operated by
persons having a statutory mandate to which a six month limitation period would
extend; and the other operated by a person without statutory authority to which
the general limitation period would apply. Of course both housing projects
would appear identical in fact to the attending public whose rights are
directly affected by the distinction.
The other interpretation of s. 11 open to the
Court would limit the imposition of the six months limitation period to those
aspects of the powers carried out under s. 6(2) having a public connotation and
impact in contrast to the great volume of such actions undertaken on a private
basis or with something less than a public connotation and impact.
Section 11, being a restrictive provision
wherein the rights of action of the citizen are necessarily circumscribed by
its terms, attracts a strict interpretation and any ambiguity found upon the
application of the proper principles of statutory interpretation should be
resolved in favour of the person whose right of action is being truncated.
There is little doubt about the presence of ambiguity and uncertainty of
meaning in the section. This provision is found in a provincial statute which
deals with a number of public officials
[Page 281]
including justices of the peace, constables,
bailiffs, provincial judges and persons responding to a mandamus or mandatory
order as well as other persons acting with reference to public order.
The section finds its origin in a statute of the
United Kingdom enacted in 1893 and which has been before the courts frequently
since that time (vide the Public Authorities Protection Act, 1893 (56
and 57 Vict. c. 61)). In the case of Bradford Corporation v. Myers, Lord Buckmaster L.C. in dealing with the
position of a municipal corporation acting negligently in the course of
delivering coke produced as a waste product in the course of the discharge of
its statutory duty to supply gas to the district, stated at p. 247:
In other words, it is not because the act
out of which an action arises is within their power that a public authority
enjoys the benefit of the statute. It is because the act is one which is either
an act in the direct execution of a statute, or in the discharge of a public
duty, or the exercise of a public authority. I regard these latter words as
meaning a duty owed to all the public alike or an authority exercised
impartially with regard to all the public. It assumes that there arc duties
and authorities which arc not public, and that in the exercise or discharge of
such duties or authorities this protection does not apply. [Emphasis
added.]
The Court proceeded to find that the municipal
corporation was not protected by the limitation period because in selling the
coke the corporation was not acting in the direct execution of the statute or
its public duty or public authority thereunder but rather in a secondary role.
It is interesting to note that the Court proceeded on the ground that the
section applied only to public authorities although in its terms (and in the
terms of s. 11 before this Court) the provision runs to the benefit of “any
person for an act done in pursuance or execution or intended execution of any
statutory or other public duty or authority…”. It may be that this restrictive
interpretation was placed upon the word “person” by reason of the title of the
statute. The Interpretation Act of Ontario (R.S.O. 1970, c. 225) defines “person” as follows:
30.28 “person” includes a corporation and
the heirs, executors, administrators or other legal representatives
[Page 282]
of a person to whom the context can apply
according to law;
Section 11 therefore would appear to extend to
persons corporate and unincorporate and in the case of the former whether established
as a Crown agency or otherwise. However this Court is not required to determine
the matter with finality since the respondent is clearly a Crown agency,
whatever relevance and bearing that fact may have on the considerations raised
by this appeal.
Section 11 was last before this Court in McGonegal
et al. v. Gray et al.,
wherein Rand J. on behalf of himself, Taschereau and Cartwright JJ. stated at
page 287:
It is pointed out by Buckmaster L.C. that
the language of the section implies that some authorized acts of public
authorities are not “public”, although I do not take that to mean that under no
circumstances could the entire authorized activities of a public authority be
wholly of a public nature.
In that case the issue was whether or not the Board
of School Trustees and the school teacher employed by them were protected by s.
11 and its limitation period in the case of a claim brought on behalf of a
twelve year old student injured in the course of lighting a gasoline stove on
the instructions of the teacher in order to warm up the teacher’s and perhaps
some students’ lunches.
In disposing of the issue and in finding that
the section did not apply Rand J. continued at p. 290:
But the act which resulted in the injury
was not one in the course of executing any direct public purpose for the
children: it had not yet reached any public aspect: it was a private act, under
a private authority.
The Court was divided four to three with the
dissent considering that s. 11 applied since the direction of the teacher
formed a part of the discharge of the duties imposed upon her under The
Public Schools Act, and hence the teacher
[Page 283]
was a public authority entitled to the same
protection as the Trustees.
It was mentioned earlier that s. 11 finds its
origin in the English Public Authorities Protection Act, 1893. There is,
however, a difference between s. 1 of the 1893 legislation and s. 11 in that s.
11 includes the word “other” immediately before the expression “public duty”.
In the English statute the inclusionary reference relates to “any statutory or
public duty or authority…” whereas in the Ontario section the key words are “any statutory or other public
duty or authority…”. [Emphasis added.] Adhering to the canon of statutory
interpretation requiring the attribution of meaning to all words used in the
statute if at all possible, one must assume that the insertion of the word
“other” was done with deliberate legislative intent. In my view the word
“other” as applied to public duty when that phrase appears in tandem with the
expression “any statutory…duty” clearly contemplates the existence of both
public statutory duties, and statutory duties without a public connotation, the
latter being outside s. 11. Indeed it would appear that Rand J. in the McGonegal
case, supra, recognized such a classification of functions when he
stated:
The distinction made in Myers which
confined the scope of the public service to those acts in direct performance of
it, as contrasted with those of a private interest although incidental to the
undertaking and authority as a whole, and in Clarke between primary and
direct public acts and those which are subordinate or incidental to them,
indicates the line of distinction for the purposes here.
It therefore follows that the reference in s. 11
to “any statutory or other public duty” applies in the context of s. 6(2) of The
Housing Development Act to those aspects of the statutory powers and duties
there established which have a public aspect or connotation, and does not
comprehend those planning, construction and managerial responsibilities (to
paraphrase s. 6(2)) which have a private executive or private
administrative application or are subordinate in nature. To read the section
otherwise would be to bring within the protective umbrella of the limitation
imposed by s. 11 every aspect of the powers enunciated in s. 6(2)
[Page 284]
including operational matters, however
insignificant in the spectrum of management activities for example, and would
as already mentioned create different conditions of owner liability for two
apparently similar housing facilities. Indeed, when urging such a reading of
the section, counsel for the respondent candidly admitted that such was the
result for which he was contending. When one interpretation can be placed upon
a statutory provision which would bring about a more workable and practical
result, such an interpretation should be preferred if the words invoked by the
Legislature can reasonably bear it; and this is particularly so where the
alternative interpretation will reduce the right of recovery of members of the
public who suffer loss or injury.
The United Kingdom statute without the
additional word “other” has been construed to the same end; that is to say
statutory duties have been segregated into two classes, one being inherently
public, the other having private connotations. The addition of the word “other”
to the statute in my view removes any doubt a court might have had in
construing the statute in this manner. Conditions in today’s community are of
course vastly different from conditions existing in 1893 when the Act was first
introduced. The interpretation I have adopted appears to be even more
appropriate in the light of these changes, reflecting the greatly amplified
role of the government and its agencies in the modern community, particularly
in the conduct of industrial and commercial operations formerly carried on
mainly by non-governmental entities.
The effect of construing s. 11 in this manner is
to segregate the actions which the respondent might undertake in the course of
exercising the powers and duties under s. 6(2) of its parent statute into two
categories, the one being those actions which entail a public aspect or are
inherently of a public nature and the other being a category of activities,
including managerial, which are more of an internal or operational nature
having a predominantly private aspect. The cases leave little doubt that
the segregation of statutory powers into public and private categories is not
an
[Page 285]
easy task (vide Griffiths v. Smith per
Lord Porter at p. 211; Bradford Corporation v. Myers, supra, per Lord
Buckmaster at p. 250). Difficult or not, the task before this Court is to find
the plain meaning of s. 11 in the light of the relationship of that statute
with The Housing Development Act and to determine into which category
the responsibilities herein in question must fall.
By the nature of the proceedings giving rise to
this appeal, we do not have the benefit of a full evidentiary description of
the actions taken by the respondent in the course of exercising its authority
and duty to manage the housing project in question. The agreed statement of
facts does, however, indicate that in connection with the operation of these
several housing units the respondent contracted with the third party for the
removal of snow from areas apparently under the control and certainly in the
ownership of the respondent. For the purposes of this motion, it was assumed
that the injury to the appellant was suffered by reason of the failure of the
respondent or the third party on behalf of the respondent to remove the ice and
snow from the area in question.
The powers and duties entrusted to the
respondent (and for the purposes of these two statutory provisions I equate
“powers” as the term is used in s. 6(2) of The Housing Development Act with
“authority” as it is employed in s. 11 of The Public Authorities Protection
Act), include the power “to plan, construct, and manage any building
development or housing project undertaken…”. It is trite that in this context
the terms “to plan, construct and manage” connote not only the overall right
and duty for example, to preserve the assets of the corporation and to take
such action from time to time as may be required to achieve the objective in
the public interest, but also the operational and more mundane functions of
management in its every detail, including the removal of garbage, cleaning of
windows, letting and reletting of units becoming vacant, the cutting of grass,
the financing and refinancing of mortgages registered against the units or some
of them, and numerous other aspects of management large and
[Page 286]
small. In the spectrum of the exercise of its
mandate under s. 6(2) the removal of snow by the respondent is a private and
operational matter in contrast to those burdens of planning, construction and
management of a housing complex which have a public character. It is something
done every winter by almost every householder in Canada.
The obligation of management to afford continuous
access to the premises during the winter is one which may be the subject of
subcontracting to others either as a term of a lease or as a term of an
independent contract. Management itself will, in a project of any scale,
commonly engage an employee, a third party subcontractor, or a tenant for the
discharge of this function which is primarily one whose performance is for the
private benefit of the occupiers of the premises. It incidentally, of course,
affects people having recourse to the premises as invitees, licensees, and
perhaps even trespassers. Certainly, the public generally through such
facilities as postal delivery, utility servicing, and the like, will to some
extent be affected by the discharge of the snow-removal burden. Nevertheless, it
is not one of the primary duties exercised in the public interest which quickly
comes to mind when one contemplates the range of activities involved in the
planning, construction and management of a housing complex located in
Metropolitan Toronto or its environs. It is not, in my view, a phase of
activity which has “a direct public purpose” or which has a “public aspect” in
the words of the majority of this Court in the McGonegal decision, supra.
It is predominantly in character a “subordinate” or “incidental” act or “of
a private interest” to refer again to the words of Rand J. in that case.
It therefore follows that the actions and
omissions of the respondent as they are said to have contributed to the
injuries of the appellant are not amongst those “statutory and other public
duties” which would be covered by the protective limitation period imposed by
s. 11.
For the purposes therefore of resolving the
motion brought by the appellant under Rule 124 of the Rules of Practice of the
Supreme Court of
[Page 287]
Ontario, I would answer
the question put in the Notice of Motion in the negative, namely that the
respondent is not entitled to rely on s. 11 of The Public Authorities
Protection Act. Nothing herein stated of course has any bearing or
reference upon the ultimate rights and obligations of the parties to this
litigation other than for the purpose of determining the answer to the specific
question raised.
I would therefore allow the appeal, but because
the parties have, by mutual agreement, sought to resolve the threshhold issue
of the appropriate limitation period by invoking Rule 124 and because these
preliminary proceedings will not determine the ultimate rights of the parties
on the claims raised in this litigation, I would dispose of the issue of costs
in the Court of first instance, the Court of appeal and in this Court as costs
to the plaintiff in the cause.
MARTLAND J. (dissenting)—On September 3,
1975, the appellant filed a statement of claim against the respondents, Ontario
Housing Corporation, hereinafter referred to as “the Corporation”, and Her
Majesty The Queen in Right of the Province of Ontario. The writ had been issued
in the same month. He alleged that the Corporation is established on behalf of
the respondent, Her Majesty The Queen in Right of the Province
of Ontario, and is an agent
thereof.
The claim is for damages for personal injuries.
The appellant alleged that he was the tenant of a housing unit at Napanee Court in Toronto, leased to him by the Corporation. He says that, on December 6,
1974, he slipped and fell on a patch of ice located on the common area of land,
owned and occupied by the Corporation, surrounding its housing unit located on Napanee Court. The claim is based upon the
alleged negligence of the respondents in respect of the maintenance of the area
under their care and custody.
The respondents, by their statement of defence, inter
alia, pleaded the provisions of s. 11 of The Public Authorities
Protection Act, R.S.O. 1970, c. 374. That section provided that:
11. No action, prosecution or other
proceeding lies or shall be instituted against any person for an act done in
pursuance or execution or intended execution of any
[Page 288]
statutory or other public duty or
authority, or in respect of any alleged neglect or default in the execution of
any such duty or authority, unless it is commenced within six months after the
act, neglect or default complained of, or, in case of continuance of injury or
damage, within six months after the ceasing thereof.
This action was commenced more than six months
after the alleged default occurred.
The appellant then applied, pursuant to Rule 124
of the Rules of the Supreme Court of Ontario, to determine, as a point of law,
whether the Corporation was entitled to rely upon that section. For the purposes
of the application only, the facts alleged in the statement of claim were
agreed upon. Both Courts below have held, though not for the same reasons, that
the Corporation was entitled to the protection of the six month limitation
period. The appellant, with leave, has appealed to this Court.
Howland J.A., who delivered the unanimous
judgment of the Court of Appeal, said:
There are two issues requiring
consideration in this appeal:
(a) does the Corporation fall within the
class of persons entitled to protection by s. 11 of The Public Authorities
Protection Act?;
(b) was the alleged neglect or default in
the execution of any statutory or other public duty or authority?
Section 11 of The Public Authorities
Protection Act was added to the Act in 1911 by 1 Geo. V, c. 22, s. 13(1).
Previously the statute offered protection primarily to justices of the peace
and constables. Despite the broad language of s. 11, it would seem to be
clearly settled that the words “any person” in s. 11 only apply to public authorities.
As Kerwin J. pointed out in McGonegal et al. v. Gray et al., [1952] 2
S.C.R. 274 at p. 282 in considering s. 11:
“The Ontario section is in substance the same as s. 1 of the British Public
Authorities Protection Act, 1893, which has been considered in numerous cases
in England, Scotland and Ireland. . . . The House of Lords noticed some of them in Bradford
Corporation v. Myers, [1916] 1 A.C. 242, where it was finally decided that
the word ‘person’ must be limited so as to apply only to public authorities.”
[Page 289]
In answer to the first question, the Court of
Appeal held that the Corporation fell within the class of persons entitled to
protection by s. 11. I agree with the reasons given for reaching that
conclusion.
The main argument in this Court was in respect
of the second question stated by Howland J.A. The appellant’s submission is
that not every action of a public authority is within the ambit of the Act and
that it is only when acting in pursuance of a public duty or authority that a
public body is given protection under the Act. Acts of the public authority of
a private nature, simply incidental to the direct performance of its main
objects, are, it is contended, not protected, and, as the clearing of snow from
its common area was not a duty specifically imposed on the Corporation, such
activity is merely incidental to the performance of its objects.
The Corporation refers to s. 6(2) of The
Housing Development Act, R.S.O. 1970, c. 213, which provides as follows:
6. (2) The Lieutenant Governor in Council
may constitute corporations with such powers and duties as are deemed expedient
to carry out any of the terms of any agreement made under subsection 1 or to
carry out any housing project, including power to plan, construct and manage
any housing project undertaken under any such agreement or otherwise, and
including power to acquire and dispose of land in its own name.
Subsection (1) of s. 6 empowers the Crown in
right of Ontario to make agreements with the Crown in right of Canada
respecting joint projects as contemplated in the National Housing Act, 1954,
S.C. 1953-54, c. 23. The Corporation contends that the removal of ice and snow
from sidewalks and common areas surrounding the subject premises is a function
of property and building management in the interests of the public at large,
pursuant to the statutory power or authority conferred upon the Corporation.
The appellant, in support of his submission,
relies upon the judgment of the House of Lords in
[Page 290]
Bradford Corporation v. Myers.
In that case, the defendants, a municipal corporation, were authorized by Act
of Parliament to carry on the undertaking of a gas company and were bound to
supply gas to the inhabitants of the district, and they were also empowered to
sell the coke produced in the manufacture of the gas. The defendants contracted
to sell and deliver a ton of coke to the plaintiff, and by the negligence of
their agent the coke was shot through the plaintiff’s shop window. More than
six months afterwards the plaintiff commenced an action of negligence against
the defendants. The defendants pleaded s. 1 of the Public Authorities
Protection Act, 1893, as a bar to the action.
The material portion of s. 1 provided:
Where after the commencement of this Act
any action, prosecution, or other proceeding is commenced in the United Kingdom
against any person for any act done in pursuance, or execution, or intended
execution of any Act of Parliament, or of any public duty or authority, or in
respect of any alleged neglect or default in the execution of any such Act,
duty, or authority, the following provisions shall have effect:
(a) The action, prosecution, or proceeding
shall not lie or be instituted unless it is commenced within six months next
after the act, neglect, or default complained of, or, in case of a continuance
of injury or damage, within six months next after the ceasing thereof:
These words are substantially the same as those
contained in s. 11 of the Ontario Act. I do not see any significance, in
respect of their interpretation, in the fact that the English Act refers to
“any Act of Parliament, or of any public duty or authority”, while the
Ontario Act speaks of “any statutory or other public duty or authority”.
[The emphasis is mine.] Both of these Acts contemplate the execution of a
public duty or authority as well as the execution of a statute. The word
“other” in the Ontario Act merely emphasizes this.
It was held that the act complained of was not
done in the direct execution of a statute or in the
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discharge of a public duty or the exercise of a
public authority and so the Public Authorities Protection Act, 1893 (U.K.), afforded no defence to the action.
The appellant relied upon the words of Lord
Buckmaster, L.C., at p. 247:
In other words, it is not because the act
out of which an action arises is within their power that a public authority
enjoy the benefit of the statute. It is because the act is one which is either
an act in the direct execution of a statute, or in the discharge of a public
duty, or the exercise of a public authority. I regard these latter words as
meaning a duty owed to all the public alike or an authority exercised
impartially with regard to all the public. It assumes that there are duties and
authorities which are not public, and that in the exercise or discharge of such
duties or authorities this protection does not apply.
Lord Buckmaster went on to add:
This distinction is well illustrated by the
present case. It may be conceded that the local authority were bound properly
to dispose of their residual products; but there was no obligation upon them to
dispose by sale, though this was the most obvious and ordinary way. Still less
was there any duty to dispose of them to the respondent. No member of the
public could have complained if the respondent had not been supplied; nor had
any member of the public the right to require the local authority to contract
with him.
The act complained of arose because one of
the servants of the appellants, acting in the course of an errand on which they
had power to send him, but on which they were not bound in the execution of any
Act or in the discharge of any public duty or authority to send him, in breach
of his common law duty to his fellow citizens, caused damage by his personal
negligence.
In Edwards v. Metropolitan Water Board, the Court of Appeal had to deal with the
application of the Public Authorities Protection Act, 1893, to a case in
which the plaintiff had been injured by a lorry used by the defendant to convey
pipes from a central depot to a district depot and to bring back empty casks
and drums, which had contained oil, from the district depot to the central
depot. The
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plaintiff was injured while the truck was on its
return journey. The defendant was under a statutory duty to supply water to the
inhabitants of a certain area. It had a number of pumping, filtering and
storage depots which had to be supplied with materials for the repair and
extension of its pipeline system. Main pipes had to be replaced from time to
time when the pipes burst.
The Court held that the defendant could rely
upon the Public Authorities Protection Act, 1893. The plaintiff had
relied upon Bradford Corporation v. Myers. Bankes L.J., in the following
passage dealt with this submission:
The question in this case is whether the
act of sending this lorry on its journey was an act done in pursuance or
execution or intended execution of the statutes which impose upon the
respondents their duties, or in execution of a public duty. The main duty of
the respondents is to supply water for the public living and carrying on
business within their area; but there are many duties incidental to that main
duty, and one of these is a duty to keep and maintain their pipes in proper
working condition. Consider the various operations necessary to the direct
execution of their main duty. A trench must be cut in order to lay a main pipe.
In order to lay a new pipe or repair an old one, a man must carry a pipe some
short distance, perhaps from a stack of pipes, in order to place it in position.
By some means pipes must be conveyed from the manufactory, or from the
respondents’ stock, to the point where they are required. No one could deny
that each of these operations is in direct execution of the respondents’
statutory duty. If a pipe bursts which must be replaced immediately, and a
lorry is sent hurriedly from Battersea with a single pipe, it is not disputed
that it would be sent in direct execution of the respondents’ duty. Then if
they in the exercise of a reasonable and prudent discretion think it necessary
to keep a store of pipes at each of their depots, is not the vehicle which
conveys the pipes to the stores to replenish the stock sent in exercise of the
respondents’ statutory duty? In my opinion it is impossible to distinguish between
sending a vehicle expressly to take a pipe to a place where a main pipe has
burst, and sending a vehicle with a number of pipes to replenish a store so
that main pipes which have burst may be immediately or quickly repaired.
Therefore in my opinion the learned judge was justified upon the materials
before him in arriving at his conclusion.
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Mr. Shakespeare contended that if in Bradford
Corporation v. Myers ([1916] 1 A.C. 242) the corporation had been moving
coke from their gas works in order to get rid of it, and so remove an
impediment in the way of executing their statutory duty of supplying gas, the
decision of the House of Lords must still have been for the plaintiff. There I
join issue. In my view if the corporation had been moving the coke in order to
clear their gas works that they might better fulfil their statutory duty the
decision of the House of Lords would have been the other way. The basis of the
decision was that the plaintiff had entered into a contract with the
corporation for the supply of coke and that the damage was done in the course
of supplying coke under that contract. The House of Lords drew a distinction
between damage done in the direct execution of a public duty or power and
damage done in acting on a mere permission or licence to do an act which the
public have no right to demand under statutory authority; and they applied the
expression “direct” to distinguish between supplying gas, which the corporation
was bound to do, and making a contract for the sale of coke which the
corporation might, but need not make.
Scrutton L.J., at p. 306, said:
If I am asked whether a lorry conveying
pipes and stores to a district depot and removing empty receptacles from a
district depot, or even returning empty, is being employed in the direct
execution of the respondents’ statutory duty, I say, having carefully read Bradford
Corporation v. Myers, that it clearly is. I cannot distinguish between
conveying pipes for repairs and oil for pumping-engines; or between conveying
full drums of oil to a store and removing empty drums from a store. Each of
these acts seems to be a direct execution of the respondents’ duty; because in
my view the direct execution of the duty includes all incidental acts
reasonably necessary for the execution of the duty. This view is not
inconsistent with Bradford Corporation v. Myers, and is in accordance
with several decisions in the Court of Appeal cited in Myers’s Case and
not disapproved by the House of Lords in that case.
The application of the same Act was again
considered by the House of Lords in Griffiths v. Smith. The managers of a non-provided public
elementary school, a statutory body created by the
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Education Acts, issued invitations to, among
others, the appellant to attend an exhibition on the school premises of work
done by the pupils, one of whom was the appellant’s son. While this display was
in progress the floor of the room collapsed and the appellant suffered severe
injuries in respect of which she sued the managers.
It was held that the managers were a public
authority and that the authorization of the display on the school premises was
an exercise by the managers of their functions as such. The neglect of the
managers in respect of the floor was a neglect in the exercise of their statutory
duty.
Viscount Simon, L.C., stated what he considered
to be the true test to determine whether a public authority is entitled to rely
upon the Public Authorities Protection Act, 1893, and, in so doing, he
made reference to the Myers case. At p. 179 he said:
Lastly, was the action of the managers in
authorizing the invitations to this school‑display an act done in the
execution of their statutory duty or authority? It was strenuously contended
for the appellants that this action was “voluntary” in the sense in which the
sale of coke in the Bradford Corporation case ([1916] 1 A.C. 242) was
voluntary. It is true that St. Clement’s school could have been carried on
without arranging to hold this display. But that is not the true test. The real
question is whether the managers, in authorizing the issue of invitations to
the display on the school premises after school hours, should be regarded as
exercising their function of managing the school. To apply the distinction
indicated by the Master of the Rolls, was the managers’ action “something
incidental to, part of, the process of carrying on” their statutory duty? Both
the trial judge and the Court of Appeal took the view that in this matter the
managers were doing an act which formed part of the operation of carrying on a
public elementary school.
This Court dealt with the same issue on an
appeal from the Court of Appeal for Ontario involving s. 11. The case is McGonegal et al. v. Gray et al. The facts of this case were as follows. The
appellant trustees by virtue of The Public Schools Act (Ont.) conducted
a public school at
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which the respondent Charles Gray, a 12-year-old
boy, was a pupil and the appellant McGonegal was a teacher. For the purpose of
heating soup, the boy was instructed by the teacher to light a gasoline stove,
the property of the appellant trustees. In attempting to do so he was severely
burned.
The majority of the seven man Court held that
the trustees could not invoke the protection of s. 11. Taschereau, Rand and
Cartwright JJ., were of the opinion that the act which caused the injury was
not one in the course of exercising any direct public purpose for the children.
It was an authorized act in a private aspect and therefore the Act did not
apply. Reference was made to the Griffiths case, the Myers case and Clarke
v. St. Helen’s Borough Council.
Rinfret C.J., Kerwin and Estey JJ., were all of
the view that the case was within the decision in the Griffiths case. The soup was to be used by some of the children and the use of
the stove, provided by the trustees, for the purpose of heating soup provided
by them to be partaken of by the children, as well as by the teachers, was an
act in the intended execution of their statutory duty, which included, as well
as teaching, attention to the health and comfort of the pupils.
Locke J., while holding that s. 11 did not
apply, did so only because he interpreted the facts as showing that the teacher
intended the soup to be heated for her own use and not for the children. Had it
not been for this conclusion, he clearly indicates that he would have held that
s. 11 would apply. He said, at p. 297:
If in fact the teacher had intended to
prepare a meal for the children, in accordance with the practice that had been
followed during the previous winter on the instructions and with the approval
of the trustees, I think s. 11 would bar the action. It is not, however, in the
view that I take of this matter, necessary to decide the point.
In my opinion, the test to be applied in the
present case is the same as that stated by Lord
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Simon, L.C., in the Griffiths case. Was the duty of removing ice from
the common area of the Corporation’s housing project an exercise of its
function of managing that project? In my opinion it was. The appellant’s claim
alleges negligence in the maintenance of the area under the Corporation’s care
and custody. Subsection 6(2) of The Housing Development Act empowered
the Corporation to “manage any housing project”. Maintenance of the housing
project was a part of that management and, consequently, default in the
execution of that authority falls within s. 11.
I find no authority which supports the
proposition that the operational or mundane functions of management are
excluded from the protection afforded by s. 11. If the default alleged relates
to the function of management of the project, then, in my opinion, there is
nothing to justify the suggestion that this is not a default in the execution
of authority within the meaning of s. 11.
I would dimiss the appeal with costs.
Appeal allowed with costs, MARTLAND J.
dissenting.
Solicitors for the appellant: Holden,
Murdoch, Walton, Finlay, Robinson, Toronto.
Solicitors for the defendants,
respondents: Kingsmill, Jennings, Toronto.
Solicitors for the third party,
respondent: Borden & Elliot, Toronto.