Date: 20070821
Docket: A-52-06
Citation: 2007 FCA 268
CORAM: DESJARDINS
J.A.
PELLETIER
J.A.
MALONE J.A.
BETWEEN:
DR. SHIV CHOPRA
Appellant
and
ATTORNEY GENERAL OF CANADA
AND THE CANADIAN HUMAN RIGHTS COMMISSION
Respondents
REASONS FOR JUDGMENT
PELLETIER J.A.
Introduction
[1]
In
the fall of 1992, the appellant, Dr. Shiv Chopra, filed a complaint with the
Canadian Human Rights Commission (the Commission), alleging that his employer,
the Department of National Health and Welfare (the Employer), had discriminated
against him in the staffing of a management position. A tribunal appointed
under the Canadian Human Rights Act, R.S.C. 1985, c. H-5 (the Act)
eventually agreed with him and awarded him compensation for his resulting
losses. Dr. Chopra sought judicial review of that decision,
claiming that the Tribunal did not apply the correct legal principles in
determining the compensation to which he was entitled. Phelan J. dismissed his
application for judicial review, thus giving rise to this appeal.
The Facts
[2]
In
the fall of 1990, the position of Director of Bureau of Human Prescription Drugs,
Department of National Health and Welfare, became vacant. Dr. Chopra, a long
term employee, was interested in applying for the position and suggested to the
Employer that he be appointed to the position on an acting basis (the Acting
position). Since two other candidates were also interested in the position, Dr.
Chopra suggested that they all be rotated through the position. This suggestion
was rejected and management's preferred candidate was appointed to the position
on an acting basis. When it came time to fill the position on a full-time
permanent basis (the Indeterminate position), Dr. Chopra applied but was
screened out by the selection committee because he lacked recent management
experience. The incumbent in the Acting position was successful in the
competition for the Indeterminate position.
[3]
Dr.
Chopra complained to the Commission, which sent the matter to the Human Rights
Tribunal for adjudication. In a first decision, the Tribunal dismissed Dr.
Chopra's complaint: see Chopra v. Canada (Department
of National Health and Welfare), [1996] C.H.R.D. No. 3. This decision was
overturned by the Federal Court on the basis that the Tribunal ought to have
considered certain statistical evidence which it had excluded. The matter was
referred to the Tribunal for a new hearing: see Canada (Canadian Human
Rights Commission) v. Canada (Department of National
Health and Welfare) (re Chopra), [1998] F.C.J. No. 432, affirmed [1999]
F.C.J. No. 40. The matter was heard before a differently constituted Tribunal. The
new Tribunal split the hearing into a liability and a remedy phase. After an
exhaustive review of the evidence, including the statistical evidence, the
Tribunal concluded that Dr. Chopra was denied the opportunity to serve in the
Acting position as a result of discrimination on the basis of his national or
ethnic origin. No application for judicial review was taken from that decision.
In the remedy phase, the Tribunal awarded Dr. Chopra certain compensation but
limited that compensation on various grounds. That decision, the Remedy
decision, reported at [2004] C.H.R.D. No. 23 (Chopra v. Health Canada), was the
subject of an application for judicial review. The application judge dismissed Dr.
Chopra's application, for reasons to which we shall return, in a decision
reported as Chopra v. Canada (Attorney General), 2006 FC 9, [2006]
F.C.J. No. 33.
The Remedy Decision
[4]
The
substrate for this appeal is the Remedy decision. In it, the Tribunal began by
setting out the legal principles which it would apply in considering the
question of remedies. Relying on jurisprudence from this Court, in particular
the reasons of Marceau J.A. in Canada (Attorney General) v. Morgan (C.A.),
[1992] 2 F.C. 401 (Morgan), the Tribunal held that "a complainant
seeking a remedy with respect to a discriminatory denial of a higher employment
position need only present evidence of a serious possibility of success.":
(see Remedy decision, at para. 11). On the other hand, the amount of
compensation payable is a function of the probability of the complainant being
appointed to the position: see Remedy decision, at para. 33. Applying this principle
to the facts before it, the Tribunal concluded that there existed a mere but
serious possibility that Dr. Chopra would have been appointed to the
Acting position but for the Employer's discrimination. Given that Dr. Chopra
himself had suggested rotating the three candidates through the position on an
"acting" basis, the Tribunal concluded that sharing the position
between the three interested candidates would have been a reasonable alternative.
As a result, Dr. Chopra's compensation was set at wages and benefits for one
third of the period during which the position was filled on an acting basis,
namely 22 weeks.
[5]
The
Tribunal then considered whether Dr. Chopra was entitled to any compensation
with respect to the Indeterminate position. In its Liability decision, the
Tribunal found that the selection committee had legitimately screened Dr.
Chopra out of the competition for the Indeterminate position because he lacked
one of the necessary qualifications, recent management experience. In the
Remedy decision, the Tribunal noted that even if Dr. Chopra had possessed the
necessary recent management experience, he would not necessarily have been
selected for the Indeterminate position. One of the requirements for
appointment to the job was experience as a spokesperson for Health Canada. It was
unclear whether Dr. Chopra had this experience (Remedy decision, para. 26). Nonetheless,
the Tribunal concluded that had Dr. Chopra had the benefit of sixteen weeks in
the Acting Director position, there was a serious possibility that he would
have been successful in the competition for the Indeterminate position.
[6]
Having
reached that conclusion, the Tribunal then considered, for the purpose of
determining the quantum of the compensation to which he was entitled, the
probability that Dr. Chopra would have been awarded the Indeterminate
position. In addition to the issue of management experience and the question of
acting as a spokesman for the Employer, there was also uncertainty as to
whether he would have passed the second, more rigorous, assessment. For these
reasons, the Tribunal concluded that while there was a serious possibility that
Dr. Chopra would have been appointed to the position, the probability of his
appointment was sufficiently low that it reduced his compensation for wages and
benefits by two thirds of the amounts otherwise payable: see Remedy decision, at
para. 36.
[7]
The
Tribunal then turned its mind to the questions of foreseeability and mitigation.
It held that Dr. Chopra had not taken all reasonable measures to mitigate his
damages. For this reason, compensation was limited to a period of six years
following April 21, 1992, the date when the successful candidate was confirmed:
see Remedy decision, at para. 39 and 40.
[8]
Dr.
Chopra claimed that appointment to the Indeterminate position would have
allowed him to progress to other positions at the EX (Executive) level and that
the award for lost compensation should reflect this progression. The Tribunal
considered the expert evidence in support of Dr. Chopra' position
but concluded that the likelihood of appointment to other EX positions was
simply so remote as to be speculative. Promotions were not automatic and EX positions
were non-generic: see Remedy decision, at para. 46. The Tribunal concluded that
there was no serious possibility of appointment to any other EX-level position
at some time in Dr. Chopra's career on the basis of his limited (imputed)
service in the Acting position.
[9]
Dr.
Chopra also claimed that he should be immediately appointed to an EX-level
position. The Tribunal reasoned that having awarded Dr. Chopra compensation for
the loss associated with the Indeterminate position, he had been awarded full
compensation so that appointment to an EX position was not justified: see Remedy
decision, at para. 51.
[10]
With
respect to non-pecuniary damages, the Tribunal found that since the acts of
discrimination occurred prior to the 1998 amendments to the Act, when the
$5,000 maximum award for non-pecuniary damages for pain and suffering was
increased to $20,000, the $5,000 maximum applied. The Tribunal relied on Nkwazi
v. Canada (Correctional
Service),
[2001] C.H.R.D. No. 1, which held that the 1998 amendments did not have a
retrospective effect. Since the maximum of $5,000 was reserved for the most
extreme cases, the Tribunal awarded $3,500.
[11]
Finally,
with respect to interest on the lost wages, the Tribunal was of the view that,
despite the long delay between complaint and remedy, a result of the "sinuous
course" that Dr. Chopra's case took, the circumstances did not warrant a
departure from the norm. It awarded simple interest calculated at the rate
generally used in tribunal decisions rather than compound interest, such
interest to be calculated from October 1990. With respect to interest for
non-pecuniary damages, the Tribunal held the total could not exceed the $5,000
maximum under the Act as it stood prior to the 1998 amendments. The Tribunal
relied on Canada (Attorney
General) v. Hebert (1995) C.H.R.R. D/375, in coming to this
result.
Dr. Chopra's Application
for Judicial Review
[12]
Dr.
Chopra sought judicial review of the Remedy decision. In doing so, he relied
upon the following grounds of review, which he set out in his Notice of
Application:
a) the
Tribunal erred in law in its interpretation and application of the principles
of reasonable foreseeability and mitigation of damages. In particular, the
Tribunal erred in concluding that these principles would have the effect of
reducing the monetary award flowing from the denial to Dr. Chopra of an
appointment to an indeterminate EX-02 position;
b) the
Tribunal erred in law in not appointing Dr. Chopra to an EX-level position in
spite of the fact that the Tribunal had concluded that, but for the
discrimination, Dr. Chopra ought to have been appointed to the position of
Director, The Bureau of Human Prescription Drugs;
c) the
Tribunal erred in law in its interpretation of section 53 of the Canadian
Human Rights Act and, in particular, in concluding that the non-pecuniary
damages available to Dr. Chopra were limited to $5, 000;
d) the
Tribunal erred in concluding that only simple interest would be payable on the
monies owing.
The Standard of Review
[13]
Since
this is an appeal from the decision of a superior court sitting in judicial
review of an inferior tribunal, the standard of review is taught at paragraph
43 of the decision of the Supreme Court of Canada in Dr. Q v. College of
Physicians and Surgeons of British Columbia, 2003 SCC 19, [2003] 1 S.C.R.
226 (Dr. Q):
…The role of
the Court of Appeal was to determine whether the reviewing judge had chosen and
applied the correct standard of review, and in the event she had not, to assess
the administrative body's decision in light of the correct standard of review,
reasonableness. At this stage in the analysis, the Court of Appeal is dealing
with appellate review of a subordinate court, not judicial review of an
administrative decision. The question of the right standard to select and apply
is one of law and, therefore, must be answered correctly by a reviewing judge…
[14]
The
application judge dealt with the issue of standard of review as follows:
[38] As to
the determination of the applicable legal principles, while the Court is
sensitive to the fact that these principles arise in a human rights context,
rather than as a matter of general law, the determination is one of law; a
function generally left to courts. This is particularly the case here, where
the determination of the proper legal principles flows from the Court of Appeal's
decision Morgan, above. Therefore, the appropriate standard of
review on the applicable legal principles is that of correctness.
[39] With
respect to findings of fact, particularly where the decision-maker must base
part of the conclusions on his or her observations of the witnesses, the Court
should accord considerable deference to the Tribunal member consistent with the
Supreme Court's decision in Royal Oak Mines Inc. v. Canada (Labour Relations
Board), [1996] 1 S.C.R. 369 at 408. It is my conclusion that the standard
of review should be reasonableness simpliciter.
[40] As to
the standard of review on issues of mixed law and facts, which are essentially
the conclusionary aspect of the Tribunal's function, section 53(2) and (3) give
the Tribunal a broad discretion. In light of that discretion and the
predominantly fact-driven nature of the remedy phase, the appropriate standard
of review is likewise reasonableness simpliciter.
[15]
In
summary, the application judge found that the standard of correctness applied
to questions of law while the standard of reasonableness applied to questions
of mixed fact and law.
[16]
The
application judge did not distinguish between questions of general law which
the Tribunal dealt with in the course of its inquiry, and questions of law
arising from the Tribunal's interpretation of its home legislation. The Supreme
Court has not only drawn that distinction but it has also distinguished between
questions of general law, on the one hand, and questions of general law with
respect to which a tribunal has developed a particular expertise by reason of
the inter-relatedness of those questions with other questions lying at the
heart of the tribunal's expertise, on the other. The Supreme Court has found
that deference to tribunal decisions is appropriate where the tribunal is
interpreting questions of general law with which it has a particular expertise
as well as when the tribunal is interpreting its own statute: see Toronto
(City) v. Canadian Union of Pubic Employees (C.U.P.E.), Local 79, 2003 SCC
63, [2003] 3 S.C.R. 77, at paragraphs 70 to 75.
[17]
Consequently,
the application judge's finding that the standard of review for questions of
law was correctness was overly broad. The standard varies with the nature of
the legal question in issue. While the standard may be correctness, it need not
be so.
[18]
As
for findings of fact and findings of mixed fact and law, no objection was taken
to reasonableness as the appropriate standard of view. I will therefore approach
the case on that basis.
The Relevant Legislation
[19]
Before
venturing further into the application judge's reasons, it will be useful to
set out the relevant statutory provisions:
4. A discriminary practice,
as described in sections 5 to 14.1, may be the subject of a complaint under
Part III and anyone found to be engaging or to have engaged in a
discriminatory practice may be made subject to an order as provided in
sections 53 and 54.
. . .
7. It is a
discriminatory practice, directly or indirectly,
(a) to refuse to employ or continue to employ
any individual, or
(b) in the course of employment, to differentiate
adversely in relation to an employee,
on a
prohibited ground of discrimination.
. . .
40. (1) Subject to
subsections (5) and (7), any individual or group of individuals having
reasonable grounds for believing that a person is engaging or has engaged in
a discriminatory practice may file with the Commission a complaint in a form
acceptable to the Commission.
. . .
53. (2) If at the conclusion of the inquiry the member or
panel finds that the complaint is substantiated, the member or panel may,
subject to section 54, make an order against the person found to be engaging
or to have engaged in the discriminatory practice and include in the order
any of the following terms that the member or panel considers appropriate:
. . .
(b) that the person make available to the
victim of the discriminatory practice, on the first reasonable occasion, the
rights, opportunities or privileges that are being or were denied the victim
as a result of the practice;
(c) that the person compensate the victim for any
or all of the wages that the victim was deprived of and for any expenses
incurred by the victim as a result of the discriminatory practice;
…
(e) that the person compensate the victim, by an amount not
exceeding twenty thousand dollars, for any pain and suffering that the victim
experienced as a result of the discriminatory practice.
(3) In addition to any order under subsection (2), the
member or panel may order the person to pay such compensation not exceeding
twenty thousand dollars to the victim as the member or panel may determine if
the member or panel finds that the person is engaging or has engaged in the
discriminatory practice wilfully or recklessly.
(4) Subject to the rules made under section 48.9, an order to
pay compensation under this section may include an award of interest at a
rate and for a period that the member or panel considers appropriate.
|
4. Les actes
discriminatoires prévus aux articles 5 à 14.1 peuvent faire l'objet d'une
plainte en vertu de la partie III et toute personne reconnue coupable de ces
actes peut faire l'objet des ordonnances prévues aux articles 53 et 54.
. . .
7. Constitue un acte
discriminatoire, s'il est fondé sur un motif de distinction illicite, le
fait, par des moyens directs ou indirects :
a) de refuser d'employer ou de continuer
d'employer un individu;
b)
de le défavoriser en cours d'emploi
. . .
40. (1) Sous réserve
des paragraphes (5) et (7), un individu ou un groupe d'individus ayant des
motifs raisonnables de croire qu'une personne a commis un acte
discriminatoire peut déposer une plainte devant la Commission en la forme
acceptable pour cette dernière.
. . .
53. (2) À l'issue de l'instruction, le
membre instructeur qui juge la plainte fondée, peut, sous réserve de l'article
54, ordonner, selon les circonstances, à la personne trouvée coupable d'un
acte discriminatoire :
. . .
b) d'accorder à la victime, dès que les
circonstances le permettent, les Droits, chances ou avantages dont l'acte l'a
privée;
c) d'indemniser la victime de la
totalité, ou de la fraction des pertes de salaire et des dépenses entraînées
par l'acte;
…
e) d'indemniser jusqu'à concurrence de 20
000 $ la victime qui a souffert un préjudice moral.
(3) Outre les pouvoirs que
lui confère le paragraphe (2), le membre instructeur peut ordonner à l'auteur
d'un acte discriminatoire de payer à la victime une indemnité maximale de 20
000 $, s'il en vient à la conclusion que l'acte a été délibéré ou
inconsidéré.
(4) Sous
réserve des règles visées à l'article 48.9, le membre instructeur peut
accorder des intérêts sur l'indemnité au taux et pour la période qu'il estime
justifiés.
|
[20]
At
the time of Dr. Chopra's complaint, section 53(2) was section 41(2), and
provided as follows:
41.
(2) If, at the conclusion of its inquiry, a Tribunal finds that
the complaint to which the inquiry relates is substantiated, subject to
subsection (4) and section 42, it may make an order against the person found
to be engaging or to have engaged in the discriminatory practice and include
in such order any of the following terms that it considers appropriate:
…
(b)
that such person make available to the victim of the discriminatory practice
on the first reasonable occasion such rights, opportunities or privileges as,
in the opinion of the Tribunal, are being or were denied the victim as a
result of the practice;
(c)
that such person compensate the victim, as the Tribunal may consider proper,
for any or all of the wages that the victim was deprived of and any expenses
incurred by the victim as a result of the discriminatory practice; and
.
. .
(3)
In addition to any order that the
Tribunal may make pursuant to subsection (2), if the Tribunal finds that
(a)
a person is engaging or has engaged in a discriminatory practice wilfully or
recklessly, or
(b)
the victim of the discriminatory practice has suffered in respect of feelings
or self-respect as a result of the practice,
the Tribunal may order
the person to pay such compensation to the victim, not exceeding five
thousand dollars, as the Tribunal may determine.
|
41.
(2) À l'issue de son enquête, le tribunal qui
juge la plainte fondée peut, sous réserve du paragraphe (4) et de
l'article 42, ordonner, selon les circonstances, à la personne trouvée
coupable d'un acte discriminatoire
…
b) d'accorder à la victime, à la première
occasion raisonnable, les droits, chances ou avantages dont, de l'avis du
tribunal, l'acte l'a privée;
c) d'indemniser la victime de la totalité,
ou de la fraction qu'il juge indiquée, des pertes de salaire et des dépenses
entraînées par l'acte; et
.
. .
(3)
Outre les pouvoirs que lui confère le paragraphe (2), le tribunal, ayant
conclu
a) que la personne a commis l'acte
discriminatoire de propos délibéré ou avec négligence, ou
b) que la victime a souffert un préjudice moral
par suite de l'acte discriminatoire,
peut ordonner à la
personne de payer à la victime une indemnité maximale de cinq mille dollars.
|
Summary and Analysis of
the Application Judge's Reasons
i) the Acting
position and the Indeterminate position
[21]
The
application judge began his analysis by reviewing the applicable legal
principles. He relied heavily upon this Court's decision in Morgan to
establish the principles applicable to the assessment of compensation in
discrimination in employment cases. Morgan is an unusual case in that it
contains three opinions which differ in important ways. The application judge
relied upon the following passages from the reasons given by Marceau J.A.:
…To establish
that real damage was actually suffered creating a right to compensation, it was
not required to prove that, without the discriminatory practice, the position
would certainly have been obtained. Indeed, to establish actual damage, one
does not require a probability. In my view, a mere possibility, provided it was
a serious one, is sufficient to prove its reality. But, to establish the extent
of that damage and evaluate the monetary compensation to which it could give
rise, I do not see how it would be possible to simply disregard evidence that
the job could have been denied in any event. The presence of such uncertainty
would prevent an assessment of the damages to the same amount as if no such
uncertainty existed. The amount would have had to be reduced to the extent of
such uncertainty.
…
…I am afraid,
I say it with respect, that there exists some confusion between the right to
obtain reparation for a damage sustained and the assessment of that damage.
While the particular nature of the human rights legislation -- which has been
said to be so basic as to be near-constitutional and in no way an extension of
the law of tort (see e.g. Robichaud v. Brennan (sub nom. Robichaud
v. Canada (Treasury Board), [1987] 2 S.C.R. 84. at p. 89, and Bhadauria
v. Board of Governors of Seneca College (sub nom. Seneca College v. Bhadauria),
[1981] 2 S.C.R. 181) -- renders unjustifiable the importation of the limitations
to the right to obtain compensation applicable in tort law, the assessment of
the damages recoverable by a victim cannot be governed by different rules. In
both fields, the goal is exactly the same: make the victim whole for the damage
caused by the act source of liability. Any other goal would simply lead to an
unjust enrichment and a parallel unjust impoverishment. The principles
developed by the courts to achieve that goal in dealing with tort liability are
therefore necessarily applicable. It is well known that one of those principles
has been to exclude from the damages recoverable the consequences of the act
that were only indirect or too remote.
[Morgan, at para. 15 and 19.]
[22]
The
application judge took the following propositions from these passages:
- the
standard of proof to establish real loss (from discrimination) has been lowered
from the normal standard of probability to the criterion of a "mere but
serious possibility" that the individual would have obtained the position
(Reasons for Order, at para. 47).
- once the
existence of the loss is established, the evaluation of the extent of the loss
requires an assessment of "uncertainties, contingencies and likelihoods –
an exercise of foreseeability and remoteness (Reasons for Order, at para. 48).
[23]
The
application judge then applied these propositions to the Tribunal's treatment
of the staffing of both the Acting position and the Indeterminate position. In
the case of the Acting position, the application judge took no issue with the
finding that there was a serious possibility that Dr. Chopra would have been
awarded the position. He agreed with the Tribunal's reasoning that Dr. Chopra's
recovery should be limited to the time he would have served in the Acting
position if his suggestion had been accepted.
[24]
As
for the Indeterminate position, the application judge found reasonable the
Tribunal's conclusion that if Dr. Chopra been given the opportunity to serve in
the Acting position, there was a serious possibility that he would have been
appointed to the Indeterminate position. Citing Morgan and Canada
(Attorney General) v. McAlpine (C.A.), [1989] 3 F.C. 530 (McAlpine),
the application judge agreed that the Tribunal was entitled to consider the
uncertainty as to whether Dr. Chopra would have actually been awarded the
position in determining the amount of compensation payable. He declined to
interfere with the reduction of Dr. Chopra's compensation by 2/3 to reflect
that uncertainty.
[25]
The
application judge then considered the Tribunal's reduction in the period for
which compensation was payable. He noted the Tribunal's reference to the
foreseeable length of time during which the effects of discrimination could
extend, as well as the evidence of Dr. Chopra's failure to mitigate his loss. In
the end, he was not persuaded that the Tribunal's conclusions on this issue
were unreasonable.
[26]
In
his appeal to this Court, Dr. Chopra argued that the Tribunal erred in law in
importing tort law concepts into the determination of compensation payable
under the Act. In his view, the only factor relevant to the calculation of his
loss was proof of causation. Once it was shown that there was a nexus between
the discrimination and the loss, then the entire loss was payable without
regard to probabilities. Furthermore, to the extent that mitigation is to be
taken into account, the Tribunal erred in requiring him to show that he sought
to mitigate his loss rather than imposing on the Employer the burden of showing
that he had not.
[27]
The
issues raised on this aspect of the appeal have to do with the narrow question
of the use of certain loss-limiting concepts from the law of remedies in the
determination of compensation for victims of discrimination. Notwithstanding
the lack of a majority in Morgan on the "mere but serious possibility"
test, the application judge treated Marceau J.A.'s reasons as the current state
of the law on this issue. That position was not attacked in argument before us.
[28]
We
are only asked to decide if the Tribunal was entitled to take foreseeability
and mitigation into account so as to reduce the compensation which would
otherwise be payable to Dr. Chopra under the heading of "wages of which he
was deprived" as a result of the Employer's discriminatory practice. The
application judge proceeded on the basis that this question was settled by this
Court's decisions in McAlpine and Morgan. I am less certain that
this is so.
[29]
The
application of forseeability to losses arising from discriminatory practices
was first raised in this Court in McAlpine. After having decided that
the complainant was not entitled to compensation for lost unemployment
insurance benefits because the latter were not "wages" within the
meaning of the Act, the Court went on to consider an alternate ground of review.
Commenting on the application of "restituo in intergrum" as a
principle of compensation, the Court held that "the proper test must also
take into account remoteness or reasonable foreseeability whether the action is
one of contract or tort. Only such part of the actual loss resulting as is
reasonably foreseeable is recoverable.": see McAlpine, at para. 13.
[30]
This
view was questioned by MacGuigan J.A. in Morgan who wrote:
The notion of placing a
cap on
the amount to be awarded for lost wages based on a principle of reasonable
foreseeability is one that, to my mind, cannot be deduced from McAlpine…
This Court
held that what are now paragraphs 53(2)(b), (c) and (d) of the Act did not
permit or allow an award of compensation for foregone unemployment insurance
benefits. That decision was the only one necessary for the disposition of the
case, but the Court went on in obiter dicta to endorse the principle of
reasonable foreseeability [Note: Reasonable foreseeability might be said to be
the common-law principle whether the act was classified as being of contract or
of tort: see Asamera Oil Corporation Ltd. v. Sea Oil & General
Corporation et al., [1979] 1 S.C.R. 633, at pp. 645 ff. Estey J.
concludes, at p. 673, that "the same principles of remoteness will apply
to the claims made whether they sound in tort or in contract".]. However,
in my opinion, the Court applied that principle only to the kind of damages
claimed: in other words, that it was not reasonably foreseeable by an employer
that such an act of discrimination would lead to a loss of unemployment
insurance benefits.
[Parenthetical
comment in original.]
[31]
In
his reasons in Morgan, Marceau J.A. agreed that there should be a limit
placed on the liability for consequences flowing from a discriminatory practice
but was disinclined to use reasonable foreseeability for that purpose, as the
latter appeared to him to be more appropriate to contractual losses. Mahoney
J.A. referred to this issue only obliquely. After saying that he agreed with
his colleagues that there must be a causal connection between the
discriminatory practice and the amount of wages lost as a result, he went on to
say that the time during which a causal connection exists is a matter to be
determined in the circumstances of each case, thus suggesting causation-over-time
as the limiting factor.
[32]
If
one were pressed to identify, in law school fashion, the ratio decidendi
of Morgan on this issue, it seems to me that the most that could be said
is that the three members of the Court agreed on the need for a limit on
liability for the consequences flowing from a discriminatory practice, but the
nature of that limit was uncertain. The members of the Court agreed that there
must be causal connection between the discriminatory practice and the losses,
but they did not agree as to whether foreseeability cut off liability for
events past a certain point in time or past a certain event in the chain of
causation.
As
a result, Morgan is not authority for the proposition that forseeability
applies to limit the extent of loss recoverable, as opposed to the kind
of loss recoverable.
[33]
At
common law, only those kinds of damages which are the reasonably foreseeable
consequences of a wrongful act are recoverable as damages. Heads of damages
which are not reasonably foreseeable are not recoverable.
[34]
This
issue was examined in Cotic v. Gray (1981), 33 O.R. (2d) 356, a decision
of the Court of Appeal for Ontario at paragraph 76:
76 …The judgment of the Privy Council
in The "Wagon Mound" No. 1, supra, overruled Polemis,
supra, and made the requirement of reasonable foreseeability applicable
to the damage suffered as well as to the duty owed. In other words, the damage
suffered must be reasonably foreseeable. Hughes v. Lord Advocate, supra,
modified this requirement so that it is not necessary that the wrongdoer
foresee the precise kind of damage or injury. The damage or injury is not too
remote if it is of a type or kind which was reasonably foreseeable or in the
words of Dickson J. in R. v. Cote, [1976] 1 S.C.R. 595 at p. 604,
51 D.L.R. (3d) 224 at p. 252, 3 N.R. 341 sub nom. Kalogeropoulos
and Millette v. Cote, Minister of Highways and Ontario Provincial Police Force:
It is not
necessary that one foresee the "precise concatenation of events"; it
is enough to fix liability if one can foresee in a general way the class or
character of injury which occurred…
[35]
In
the context of compensation for losses suffered as a result of a discriminatory
practice, the question of foreseeability does not arise for the simple reason
that Parliament has set out the kind of losses which are recoverable. Paragraph
53(2)(c) of the Act provides that a Tribunal may make an order that the
wrong-doer pay compensation for wages lost, and expenses incurred, as a result
of the discriminatory practice.
[36]
Human
rights legislation does not create a common law cause of action (see Seneca
College of Applied Arts and Technology v. Bhadauria, [1981] 2 S.C.R. 181,
at p. 195). If one can only seek a remedy for a discriminatory practice from a
tribunal appointed under the Act, then it follows that the complainant is
limited to the remedies which the tribunal has the power to grant. It is not
open to the complainant to seek to improve upon this by invoking "restituo
in integrum".
[37]
The
fact that foreseeability is not an appropriate device for limiting the losses
for which a complainant may be compensated does not mean that there should be
no limit on the liability for compensation. The first limit is that recognized
by all members of the Court in Morgan, that is, there must be a causal
link between the discriminatory practice and the loss claimed. The second limit
is recognized in the Act itself, namely, the discretion given to the Tribunal
to make an order for compensation for any or all of wages lost as
a result of the discriminatory practice. This discretion must be exercised on a
principled basis.
[38]
In
this case, the Tribunal appears to have conflated foreseeablity and mitigation:
There is another factor
to be considered
as well. As noted by the Federal Court of Appeal in McAlpine, supra,
at paragraph 13, only such loss as is reasonably foreseeable is recoverable.
The victim of discrimination must therefore demonstrate that he has taken
reasonable steps to mitigate his loss (see Morgan, supra at para.
14). For instance, in the present case, the Complainant must show that he took
steps to improve his chances of successfully competing for an EX-level position
and that he applied for such positions when the opportunity arose.
[Remedy
decision, at para. 37.]
[39]
Dr. Chopra
argues that tort principles, including mitigation, do not apply to compensation
awarded under the Act. As noted above, the kinds of losses which are
recoverable are defined in the legislation, thus making reference to
foreseeability unnecessary. Limitations on the extent of recoverable losses do
not arise as a matter of law from the application of tort principles, a
conclusion which, it seems to me, is the necessary corollary of the principle
that human rights legislation does not create a statutory cause of action.
Consequently, I would agree with Dr. Chopra that there is no legal requirement
that the doctrine of mitigation be invoked to limit his recovery.
[40]
That said,
the discretion given to the Tribunal to award any or all of the losses suffered
leaves it open to the Tribunal to impose a limit on losses caused by the
discriminatory practice. A tribunal may well find that the principles
underlying the doctrine of mitigation of losses in other contexts apply equally
in the context of claims for lost wages under the Act. Society has an interest
in promoting economic efficiency by requiring those who have suffered a loss to
take steps to minimize that loss as it is not in the public interest to allow
some members of society to maximize their loss at the expense of others, even
if those others are the authors of the loss: see British Columbia v.
Canadian Forest Products Ltd., 2004 SCC 38, [2004] 2 S.C.R. 74 at para.
184. Thus while a tribunal is not bound to apply the doctrine of mitigation, it
is not prohibited from doing so in the exercise of its discretion to determine the
amounts payable to a complainant.
[41]
Dr. Chopra
argues that if those principles are to be applied, then the Tribunal
incorrectly placed the onus on him to prove it. The
following passage is illustrative, in Dr. Chopra's view, of the Tribunal's
error:"…the Complainant must show that he took steps to improve his
chances of successfully competing for an EX-level position and that he applied
for such positions where the opportunity arose.": see Remedy decision, at
para. 37.
[42]
The question
of onus is, with respect, a red herring. Where the evidentiary record allows
the Tribunal to draw conclusions of fact which are supported by the evidence,
the question of who had the onus of proving a given fact is immaterial. The question
of onus only arises when it is necessary to decide who should bear the
consequence of a gap in the evidentiary record such that the trier of fact cannot
make a particular finding. "Onus has no role to play when all the evidence
is in the record": see Michaels v. Red Deer College, [1976] 2
S.C.R. 324 per de Grandpré J.
[43]
In
the result, there is no reason to interfere with the application judge's
disposition of this aspect of the case. While there may have been some
confusion as to the role of forseeability in the awarding of compensation,
there was no error in the application judge's deferral to the Tribunal's
exercise of its discretion in limiting the compensation payable to Dr. Chopra
on the basis of his failure to take steps to mitigate the loss of wages which
he claimed to have suffered, or on the basis of the Tribunal's assessment of
the extent of Dr. Chopra's loss flowing from the Indeterminate position.
ii) Instatement
of Indeterminate Position
[44]
Dr.
Chopra claims that the Tribunal erred in not appointing him to the
Indeterminate position, given its conclusion that but for the discrimination,
he would have been appointed to that post. In his submission, "the
Tribunal's conclusion that a mere but serious possibility existed that [he]
would have won the indeterminate Director's competition but for the [Employer's]
discriminatory practice requires an order of instatement." It will be
recalled that the Tribunal decided that the compensation which it awarded to Dr.
Chopra amounted to full compensation and that, as a result, no order of
instatement was required. The application judge approved of this reasoning.
[45]
In
my view, the premise underlying Dr. Chopra's argument is flawed. The Tribunal
did not decide that but for the discrimination practiced against him, Dr.
Chopra would have been awarded the Indeterminate position. In fact, if one
considers the reduction in compensation which it imposed on Dr. Chopra, it
appears clear that the Tribunal was of the view that there was only one chance
in three that Dr. Chopra would actually have been appointed to the
Indeterminate position. The more likely possibility was that Dr. Chopra would
not have been awarded the Indeterminate position.
[46]
In
those circumstances, Dr. Chopra was compensated for what he lost, the
opportunity to compete for the Indeterminate position on a non-discriminatory
basis. Whether in light of McAlpine, this amounts to wages within the
meaning of paragraph 53(2)(c) is another question, a question which is
not before us. Having been compensated for the loss of the ability to compete
on a fair basis, it would be double compensation to then award him the position
itself.
[47]
The
application judge clearly recognized the nature of Dr. Chopra's claim under
this heading:
66 The essence of the Applicant's
submission is that he should receive the position about which he had a mere
possibility of obtaining. In that regard, having lost the opportunity to
compete for an EX position, he seeks to obtain more than he lost.
[48]
The
Tribunal did not err in its assessment nor did the application judge in his
review of the Tribunal's decision.
iii) Pain and
Suffering
[49]
In
the interval between the discriminatory practice giving rise to Dr. Chopra's
right to compensation and the rendering of the award in his favour, the Act was
amended to increase the amount payable by way of compensation for pain and
suffering (formerly in respect of feelings of self-respect) from $5,000 to
$20,000. The Tribunal relied upon prior jurisprudence, specifically the
decision of the Tribunal in Nkwazi v. Canada (Correctional
Service) No. 3) (2001), 39 C.H.R.R. D./237 (Can. Trib.) (Nkwazi), in
coming to the conclusion that the increase in the limit payable in respect of
pain and suffering did not have retrospective effect and so, did not apply to
discriminatory practices which occurred prior to the amendment to the
legislation. The Tribunal then considered Dr. Chopra's evidence as to the
psychological toll exacted by the discriminatory practice to which he was
subjected and, with the upper limit of $5,000 in mind, awarded him $3,500 for
pain and suffering.
[50]
The
issue of the retrospective application of the Act to Dr. Chopra's situation is
a matter of the interpretation of the amendment to the Act to determine if
Parliament intended it to apply to discriminatory practices which occurred
prior to the amendment. This is a matter of the interpretation of the Tribunal's
own statute, albeit an amendment to that statute, which is in the area within
which deference is accorded to the Tribunal's treatment of legal questions. The
Tribunal relied upon prior tribunal jurisprudence to conclude that the
amendments did not have retrospective application. That jurisprudence, Nkwazi,
includes a careful review of the law relating to retrospective application of
legislation. The issue is not whether that analysis was right or wrong but
whether it was reasonable, a question to which the answer is an unqualified "Yes".
The application judge applied the standard of correctness to this question but
declined to intervene as he was of the view that the Tribunal had reached the
correct conclusion. While I am of the view that the application judge chose the
wrong standard of review, I agree that no intervention is required.
iv) Interest
[51]
The
Tribunal rejected Dr. Chopra's claim that interest should be awarded on the
basis of the rates established in accordance with the Ontario Courts of
Justice Act, R.S.O. 1990, c. C. 43, since the conduct giving rise to the
claim occurred in Ontario. It did so because there was no evidence before it to
show that awarding interest on the basis of the Canada Savings Bond rates, or
other rates set by the Bank of Canada, would not result in full compensation e.g.
were these rates below the rate of inflation? In the end, the Tribunal awarded
interest at the Bank Rate (Monthly series) as set by the Bank of Canada, in
accordance with the usual practice of federal human rights tribunals.
[52]
The
Tribunal also rejected Dr. Chopra's claim for compound interest on the basis
that there was no evidence that it was required to cover the loss.
[53]
Finally,
the Tribunal capped interest payments at $5,000 in reliance upon the decision
of the Federal Court in Canada (Attorney General) v. Hebert (1996), 122
F.T.R. 274, at para.22, where Gibson J. considered himself to be bound by the
comments of MacGuigan J.A. in Morgan to the effect that since the power
to award interest under the Act, prior to its amendment, was implicit in the
power to award compensation for loss and hurt feelings to a limit of $5,000,
the award, including interest, could not exceed the $5,000 cap.
[54]
The
application judge applied the standard of correctness to the Tribunal's reasons
and concluded that, since the amendments to the Act did not have retrospective
effect, the $5,000 cap continued to apply to awards for hurt feelings and
interest.
[55]
While
I am of the view that the standard of review is reasonableness, since the
Tribunal is dealing with a provision of its own legislation, I find nothing
unreasonable in the Tribunal's conclusion so that, like the application judge,
I would not intervene.
Conclusion
[56]
In
the end result, applying the analysis taught by the Supreme Court in Dr. Q,
I find that there is no basis for this Court's intervention. With the exception
of questions of law, the application judge correctly identified the standard of
review applicable to his review of the Tribunal's decision and applied it
properly. As for questions of law, I would grant the Tribunal more deference on
those questions of law with which it is most intimately familiar. Applying that
standard, I find no reason for intervention in any aspect of the Tribunal's
decision. To the extent that the Tribunal's use of foreseeability to limit Dr.
Chopra's remedies was attacked, I am of the view that the effective limiting
factor was Dr. Chopra's failure to mitigate. The Tribunal's use of that device
to limit recovery cannot be attacked as unreasonable.
[57]
As
for the other issues raised by Dr. Chopra, like the application judge, I can
see no basis for intervention by this Court. I would therefore dismiss the appeal
with costs.
"J.D.
Denis Pelletier"
"I
agree
Alice Desjardins J.A."
"I
agree
B. Malone J.A."