Canada (Minister of National Revenue) v. Comeau's Sea Foods Ltd., 2002 FCA 516

Date: 20021219

Docket: A-414-01

Neutral citation:2002 FCA 516

CORAM:        STRAYER J.A.

SEXTON J.A.

EVANS J.A.

BETWEEN:

                                          THE MINISTER OF NATIONAL REVENUE

                                                                                                                                                       Applicant

                                                                                 and

                                                  COMEAU'S SEA FOODS LIMITED

                                                                                                                                                   Respondent

                                      Heard at Halifax, Nova Scotia, on December 19, 2002.

                          Judgment delivered at Halifax, Nova Scotia, on December 19, 2002.

REASONS FOR JUDGMENT BY: SEXTON J.A.                                                                                   

Date: 20021219

Docket: A-414-01

Neutral citation:2002 FCA 516

CORAM:        STRAYER J.A.

SEXTON J.A.

EVANS J.A.

BETWEEN:

                                          THE MINISTER OF NATIONAL REVENUE

      Applicant

                                                                                 and

                                                  COMEAU'S SEA FOODS LIMITED

   Respondent

                                                        REASONS FOR JUDGMENT

(Delivered from the bench at Halifax Nova Scotia

on December 19, 2002)

SEXTON J.A.

Introduction

[1]                 The Respondent Comeau's Sea Food Limited has a fish processing business and uses fish caught by its own vessels and others in its business.    The fishers who work on the Respondent's boats, supply some of their own minor equipment and such fishers must have a licence. Decisions as to how and where fishing will take place are influenced by the Department of Fisheries, the Respondent, and the fishers themselves.    The fishers are not paid salaries but rather share in the proceeds of each catch with the Respondent after deductions for expenses.

[2]                 The issue in this application is whether the fishers who work on the Respondent's boats are employed under a contract of service for purposes of the Canada Pension Plan and the Employment Insurance Act.

[3]                 The Tax Court Judge concluded the relationship between the fishers and the Respondent was one of a contract for services rather than a contract of service. He examined the relevant criteria set out in Wiebe Door Services Ltd vs MNR [1986] 2 C.T.C 200 (Fed.C.A.) which were generally approved by the Supreme Court of Canada in 671122 Ontario vs. Sagaz Industries Canada Inc [2001] 204 DLR (4^th) 542.

The criteria he examined included

1.                    Ownership of tools of the trade

2.                    Degree of control experienced by the employer

3.                    Chance of profit

4.                    Risk of loss

[4]         We are unable to conclude that the Tax Court Judge erred in his assessment and balancing of the various factors which have been recognized by the Courts.

[5]         The application for judicial review will be dismissed with costs.

                                                                        "J. Edgar Sexton"     

J.A

                                                    FEDERAL COURT OF APPEAL

                              NAMES OF COUNSEL AND SOLICITORS OF RECORD

DOCKET:                                             A-414-01

STYLE OF CAUSE:                           The Minister of National Revenue v.

Comeau's Sea Foods Limited

PLACE OF HEARING:                     Halifax, Nova Scotia

DATE OF HEARING:                       December 19, 2002

REASONS FOR JUDGMENT BY :    Sexton, J.A.

DATED:                                                December 19, 2002       

APPEARANCES:

PETER LESLIE

JOHN BODURTHA                                                                                                     FOR APPLICANT

RODERICK ROGERS                                                                                            FOR RESPONDENT

SOLICITORS OF RECORD:

MORRIS ROSENBERG, DEPUTY                                                                            FOR APPLICANT

ATTORNEY GENERAL OF CANADA                                                                                                    

HALIFAX, NS                                                                                                                                              

STEWART MCKELVEY STIRLING SCALES                                                   FOR RESPONDENT

HALIFAX, NS