Date: 20101223
Docket: T-1162-09
Citation: 2010 FC 1330
Ottawa, Ontario, December 23,
2010
PRESENT: The Honourable Mr. Justice Near
BETWEEN:
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THE ATTORNEY GENERAL OF CANADA
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Applicant
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and
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UNITED STATES STEEL
CORPORATION AND U.S. STEEL CANADA INC.
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Respondents
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and
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LAKESIDE STEEL INC. AND
LAKESIDE STEEL CORP.
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Interveners
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and
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THE UNITED STEEL WORKERS AND
LOCAL 1005 AND LOCAL 8782 AND
JOHN PITTMAN AND GORD ROLLO
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Interveners
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REASONS FOR ORDER AND
ORDER
[1]
This
is a motion brought by the Respondents, United States Steel Corporation and
U.S. Steel Canada Inc. (US Steel) appealing the Order of Prothonotary
Martha Milczynski, issued September 23, 2009, (the Order) which granted intervener
status to Lakeside Steel Inc. and Lakeside Steel Corp. (Lakeside) and to the
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied
Industrial and Service Workers International Union (USW), Local 1005 of
the USW, Local 8782 of the USW, John Pittman on behalf of himself and all
affected members, and Gord Rollo on behalf of himself and all affected
members (collectively the Union Interveners and, together with Lakeside,
Interveners).
I. Background
A. Factual
Background
[2]
On
July 17, 2009 the Attorney General of Canada (AGC) commenced an application on
behalf of the Minister of Industry (the Minister) pursuant to section 40 of the
Investment Canada Act, R.S.C. 1985 c.28 (the Act). The AGC alleges that
US Steel has failed to comply with two written undertakings (the Undertakings)
made to the Minister in connection with US Steel’s acquisition of certain
assets of Stelco Inc. (the Canadian Business). The undertakings relate to the
annual level of steel production in US Steel’s Canadian Business (the output
undertaking) and aggregate employment levels at the Canadian Business (the
employment undertaking).
[3]
The
Application was commenced following the issuance of a Ministerial demand under
section 39 of the Act. The AGC is now seeking a monetary penalty as well as an
Order requiring the Respondents to comply with the undertakings. Consequently,
at issue in the Application is:
1) whether the
Minister was justified in sending a demand to US Steel under section 39 of the
Act;
2) whether US
Steel failed to comply with the demand; and
3) what
remedial order, in the Court’s opinion, is appropriate in the circumstances.
[4]
In
accordance with Rule 109 of the Federal Courts Rules (the Rules),
SOR/98-106, the Interveners sought and were granted, following the Order, leave
to intervene in the proceedings.
B. The
Order
[5]
Prothonotary
Milczynski was satisfied that Lakeside and the Union
Interveners met the test for intervener status under the Rules, and determined
that their submissions on remedies not sought by the Applicant would be of
assistance to the Court hearing the merits of the Application.
[6]
Prothonotary
Milczynski considered the relevant principles governing the exercise of the
Court’s discretion pursuant to Rule 109 as outlined in Canadian Union of
Public Employees (Airline Division) v Canadian Airlines International Ltd.(2000),
[2010] 1 FCR 226, 95 ACWS (3d) 249 (CUPE), and further noted that
she had to also consider whether the intervention would cause prejudice to the
parties.
[7]
She
concluded that it would be appropriate to allow the Interveners to present
arguments relating to the merit of remedies available under the Act other than
those sought by the Applicant, especially considering that this is the first
application being made under section 40 of the Act. Lakeside seeks to advance
an argument relating to the appropriateness of divesture of the Canadian
Business as a viable remedy. The Union Interveners submit that the Court,
empowered by subsection 40(2) of the Act to “make any order or orders as,
in its opinion the circumstances require,” ought to make an order seeking
compensation for each bargaining unit and the individuals affected by the
failure of US Steel to meet the production and employment level undertakings.
Neither of these remedies are being sought by the Applicant, and therefore, but
for the intervention of Lakeside and the Union
Interveners, these remedies would not be meaningfully before the Court.
[8]
Accordingly,
Prothonotary Milczynski limited the role of the Interveners to filing affidavit
evidence, to cross-examine, to participate in pre-hearing motions and to make
oral and written submissions in respect of their proposed remedies.
C. Legislative
Scheme
[9]
Rule
109 of the Rules gives the Court discretion to grant to non-parties leave to
intervene in a proceeding upon such terms as the Court finds appropriate if it
is satisfied that “participation will assist the determination of a factual or
legal issue related to the proceedings” (109(2)(b)).
[10]
The
purpose of the Investment Canada Act is set out in section 2:
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Purpose of Act
2. Recognizing that increased capital
and technology benefits Canada, and recognizing the importance of protecting
national security, the purposes of this Act are to provide for the review of
significant investments in Canada by non-Canadians in a manner that
encourages investment, economic growth and employment opportunities in Canada
and to provide for the review of investments in Canada by non-Canadians that
could be injurious to national security.
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Objet de la loi
2. Étant donné les avantages que retire
le Canada d’une augmentation du capital et de l’essor de la technologie et
compte tenu de l’importance de préserver la sécurité nationale, la présente
loi vise à instituer un mécanisme d’examen des investissements importants
effectués au Canada par des non-Canadiens de manière à encourager les
investissements au Canada et à contribuer à la croissance de l’économie et à
la création d’emplois, de même qu’un mécanisme d’examen des investissements
effectués au Canada par des non-Canadiens et susceptibles de porter atteinte
à la sécurité nationale.
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[11]
The
remedies available should a party fail to comply with a ministerial demand
under section 39, are described in section 40:
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Application
for court order
40.
(1) If a non-Canadian or any other person or entity fails to comply with a
demand under section 39, an application on behalf of the Minister may be made
to a superior court for an order under subsection (2) or (2.1).
Court
orders
(2) If, at the conclusion of the
hearing on an application referred to in subsection (1), the superior court
decides that the Minister was justified in sending a demand to the
non-Canadian or other person or entity under section 39 and that the
non-Canadian or other person or entity has failed to comply with the demand,
the court may make any order or orders as, in its opinion, the circumstances
require, including, without limiting the
generality
of the foregoing, an order
(a) directing the non-Canadian to
divest themselves of control of the Canadian business, or to divest
themselves of their investment in the entity, on any terms and conditions
that the court considers just and reasonable;
(b) enjoining the non-Canadian from
taking any action specified in the order in relation to the investment that
might prejudice the ability of a superior court, on a subsequent application
for an order under paragraph (a), to effectively accomplish the end of such
an order;
(c) directing the non-Canadian to
comply with a written undertaking given to Her Majesty in right of Canada in
relation to an investment that the Minister is satisfied or is deemed to be
satisfied is likely to be of net benefit to Canada;
(c.1) directing the non-Canadian to
comply with a written undertaking given to Her Majesty in right of Canada in
accordance with an order made under section 25.4;
(d) against the non-Canadian imposing a
penalty not exceeding ten thousand dollars for each day the non-Canadian is
in contravention of this Act or any provision thereof;
(e) directing the revocation, or
suspension for any period specified in the order, of any rights attached to
any voting interests acquired by the non-Canadian or of any right to control
any such rights;
(f) directing the disposition by any
non-Canadian of any voting interests acquired by the non-Canadian or of any
assets acquired by the non-Canadian that are or were used in carrying on a
Canadian business; or
(g) directing the non-Canadian or other
person or entity to provide information requested by the Minister or
Director.
Court
orders — person or entity
(2.1) If, at the conclusion of the
hearing on an application referred to in subsection (1), the superior court
decides that the Minister was justified in sending a demand to a person or an
entity under section 39 and that the person or entity has failed to comply
with it, the court may make any order or orders that, in its opinion, the
circumstances require, including, without limiting the generality of the
foregoing, an order against the person or entity imposing a penalty not
exceeding $10,000 for each day on which the person or entity is in
contravention of this Act or any of its provisions.
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Demande
d’ordonnance judiciaire
40.
(1) Une demande d’ordonnance judiciaire peut être présentée au nom du ministre
à une cour supérieure si le non-Canadien, la personne ou l’unité ne se
conforme pas à la mise en demeure reçue en application de l’article 39.
Ordonnance
judiciaire
(2) Après audition de la demande visée
au paragraphe (1), la cour supérieure qui décide que le ministre a agi à bon
droit et constate le défaut du non-Canadien, de la personne ou de l’unité
peut rendre l’ordonnance que justifient les circonstances; elle peut
notamment rendre une ou plusieurs des ordonnances suivantes :
a) ordonnance enjoignant au
non-Canadien de se départir soit du contrôle de l’entreprise canadienne, soit
de son investissement dans l’unité, selon les modalités que la cour estime
justes et raisonnables;
b) ordonnance enjoignant au
non-Canadien de ne pas prendre les mesures mentionnées dans l’ordonnance à
l’égard de l’investissement qui pourraient empêcher une cour supérieure, dans
le cadre d’une autre demande pour une ordonnance visée à l’alinéa a), de
rendre une ordonnance efficace;
c) ordonnance enjoignant au
non-Canadien de se conformer à l’engagement écrit envers Sa Majesté du chef
du Canada pris à l’égard d’un investissement au sujet duquel le ministre est
d’avis ou est réputé être d’avis qu’il sera vraisemblablement à l’avantage
net du Canada;
c.1) ordonnance enjoignant au
non-Canadien de se conformer à l’engagement écrit pris envers Sa Majesté du
chef du Canada conformément au décret pris en vertu de l’article 25.4;
d) ordonnance infligeant au
non-Canadien une pénalité maximale de dix mille dollars pour chacun des jours
au cours desquels se commet ou se continue la contravention;
e) ordonnance de révocation ou de
suspension, pour une période qu’elle précise, des droits afférents aux
intérêts avec droit de vote qu’a acquis le non-Canadien ou du droit de contrôle
de ces droits;
f) ordonnance enjoignant au
non-Canadien de se départir des intérêts avec droit de vote qu’il a acquis ou
des actifs qu’il a acquis et qui sont ou ont été utilisés dans l’exploitation
de l’entreprise canadienne;
g) ordonnance enjoignant au
non-Canadien, à la personne ou à l’unité de fournir les renseignements exigés
par le ministre ou le directeur.
Ordonnance judiciaire — personne ou unité
(2.1) Après audition de la demande
visée au paragraphe (1), la cour supérieure qui décide que le ministre a agi
à bon droit et constate le défaut de conformité peut rendre l’ordonnance que
justifient, à son avis, les circonstances, et notamment infliger à la
personne ou à l’unité en défaut une pénalité maximale de 10 000 $ pour chacun des jours au
cours desquels se commet ou se continue la contravention.
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II. Issues
[12]
The
issues raised in this appeal are:
(a) What
is the applicable standard of review of the Prothonotary’s decision?
(b) Is
there any basis upon which this Court can set aside the Prothonotary’s
decision?
III. Argument
and Analysis
A. Standard
of Review
[13]
As
set out in Canada v Aqua-Gem Investments Ltd., [1993] 2 FC 425 (CA),
[1993] FCJ No 103 and restated in Merck & Co. v Apotex Inc.,
2003 FCA 488, [2004] 2 FCR 459, at para 19, discretionary orders of prothonotaries
ought not be disturbed on appeal to a judge unless:
a) the questions raised in the
motion are vital to the final issue of the case, or
b) the orders are clearly wrong in the
sense that the exercise of discretion by the prothonotary was based upon a
wrong principle or upon a misapprehension of the facts.
[14]
If
the question is determined to be vital to the final issue, under the first
branch of the test, a de novo review is conducted and no deference is
shown to the prothonotary’s decision. However, if the matter is reviewed on the
second branch, the Court must determine that the Order was clearly wrong. This
is a deferential standard.
[15]
The
first question then, is whether, as the Respondents submit, the Order is vital
to the final issue of the case.
[16]
The
test to determine if a question is “vital” is stringent. As Justice Robert
Décary explained in Merck & Co., above, at para 22:
The use of the word
"vital" is significant. It gives effect to the intention of
Parliament, […]
[…] that the office of
prothonotary is intended to promote "the efficient performance of the work
of the Court".
[17]
In
Aqua-Gem Investments Ltd, above, at para 97, Justice Mark R. MacGuigan described
questions that are vital as "questions vital to the final issue of the
case, i.e. to its final resolution".
[18]
The
Respondents argue that by permitting the Interveners to present evidence to the
Court regarding remedies not sought by the AGC, the nature of the section 40
proceeding risks being fundamentally altered from a bilateral legal proceeding
into an open-ended public policy debate. They further submit that allowing
affected stakeholders to seek personalized remedies upsets the legislative
scheme which permits only the Minister to choose the remedy for any alleged
non-compliance. In their view, the Interveners acting to enable the Court to
consider other remedies are vital to the outcome of the Application as a whole.
[19]
The
Interveners however, submit that the discretionary decision to grant intervener
status is not vital to the result of the case. The Interveners have been given
a circumscribed role, designed to assist the Court in evaluating factual and
legal issues relevant to determining the appropriate remedy.
[20]
Although
it is true that the presence of the Interveners might have an effect on the
ultimate outcome of the application, I cannot agree with the Respondents that
the decision to allow them to participate in a limited capacity in assisting
the Court think through the available remedial options is vital to the outcome
of the case as required by the test in Merck & Co., above.
[21]
As
the Union Interveners point out, whether the Order is vital to the final issue
of the case refers to the subject matter of the order issued by the
Prothonotary, not the effect of the Order (Society of Composers, Authors and
Music Publishers of Canada v Landmark Cinemas of Canada Ltd., 2004 FCA
57, 316 NR 387 at para 12).
[22]
Justice
Barbara Reed cited examples of vital issues in James River Corp. of Virginia
v Hallmark Cards, Inc.(1997), 72 CPR (3d) 157 (FCTD) stating at para 4:
Questions that are vital to
the final issues of a case are, for example, the entering of default judgment,
a decision not to allow an amendment to pleadings, a decision to add additional
defendants and thereby potentially reduce the liability of the existing
defendant, or a decision on a motion for dismissal for want of prosecution. […]
[23]
In
my view, the decision to grant the Interveners intervener status in the
application is not vital to the final issue, or the resolution of the case.
The Interveners are barred from making submissions on the merits of the case.
The Court still has to determine whether the Minister was justified in sending
the demand under section 39 and if so, whether the Respondents failed to
comply. If those questions are answered in the affirmative, as per subsection
40(2) of the Act, the Court may make any order as the circumstances require.
The Interveners were granted status because the Prothonotary determined that
their intervention would assist the Court to fulfill its role in determining
the appropriate remedy. That the Court might now be able to form a more complete
opinion on what the circumstances require does not change the substantive
rights of the parties.
B. The
Order is Not Clearly Wrong: it is Not Based on a Wrong Principle of Law, or
Upon a Misapprehension of the Facts
[24]
The
Respondents submit that the Order was clearly wrong and based on wrong
principles of law and a misapprehension of the facts. The Respondents allege
that although Prothonotary Milczynski used the proper test, she nonetheless
committed several errors when considering the motion to intervene against the
factors outlined in CUPE, above.
[25]
The
CUPE test consists of six criteria that help the Court determine if,
pursuant to Rule 109, granting a motion to intervene will “assist the
determination of a factual or legal issue related to the proceeding”. The Prothonotary
listed these criteria on page 3 of the Order:
(i) Is the proposed
intervener directly affected by the outcome?
(ii) Does there exist a justiciable
issue and a veritable public interest?
(iii) Is there an apparent lack of any
other reasonable or efficient means to submit the question of the Court?
(iv) Is the position of the proposed
intervener adequately defended by one of the parties to the case?
(v) Are the interests of justice better
served by the intervention of the proposed third party?
(vi) Can the Court hear and decide the
cause on its merits without the proposed intervener?
[26]
As
the Prothonotary noted, the CUPE test is not conjunctive, all factors
need not be present in order for leave to be granted. Rather, the Court must
weigh the various interests involved. Additionally the Court has the inherent
authority to impose terms and conditions appropriate in the circumstances (Boutique
Jacob Inc. v Paintainer Ltd., 2006 FCA 426, 357 NR 384 at para 21).
[27]
The
Respondents submit that there are five reviewable errors:
(1) Prothonotary Milczynski considered
whether the Interveners were directly affected by the outcome of the
Application, but erred in law in confounding the legal and factual tests;
(2) Prothonotary
Milczynski failed to adequately consider the public interest in the proposed
intervention;
(3) Prothonotary
Milczynski failed to consider any of the other factors mandated by CUPE;
(4) Prothonotary
Milczynski failed to adequately consider prejudice to the Moving Parties in her
analysis of the “interests of justice” factor;
(5) Prothonotary
Milczynski erred in considering whether alleged failure to perform the
Undertakings would result in the absence of “net benefit” to Canada – an issue
not before her on the intervention motion, and one on which no evidence was
adduced.
[28]
Additionally,
the Respondents submit that the Prothonotary failed to consider all of the CUPE
factors, and if she had, she should have concluded that the Interveners satisfy
none of them.
[29]
I
will deal with each allegation in turn.
(1) The Prothonotary
Did Not Err in Law in Determining that the Interveners Have a Sufficient
Interest in the Outcome of the Application
[30]
The
Respondents submit that Prothonotary Milczynski, in finding that the Interveners
would be affected by the outcome of the Application, has confounded the concept
of being economically affected with that of being legally affected. The
Respondents argue that the only interest the Interveners have in the outcome of
the Application is economic or pecuniary in nature. The Interveners have no
contract or tort rights to exercise against the Respondents and as a result the
Respondents allege that in intervening they seek only to secure for themselves
benefits that are not the fruit of negotiation with the Respondents. No
existing legal rights of the Interveners will be affected by the outcome of the
Application.
[31]
While
it is true that the case law relied on by the Respondents requires would-be interveners
to show that they have a direct legal interest distinct from an economic
interest (Apotex Inc. v Canada (Attorney General), [1986] 2 FC 233,
[1986] FCJ No 159 (QL) at para 12 and Genencor International, Inc. v Canada
(Commissioner of Patents), 2007 FC 376, 55 CPR (4th) 395 at para 13),
these cases relate specifically to “meddling competitors” in the context of patent
litigation. In the present matter, given the uncontested impact that the
Respondents’ alleged failure to comply with the undertakings has on the
Interveners and the purpose with which they were granted intervener status, I
am persuaded by the Interveners’ arguments that they have a sufficient interest
in the proceedings to meet the test to intervene.
[32]
For
their part, the Union Interveners argue that interest in employment rights are
distinct from purely commercial or economic interests. Lakeside meanwhile
claims that the Respondents distort the CUPE test, and that the concept
of being “directly affected” as required should be interpreted broadly, keeping
in mind the objective of Rule 109.
[33]
The
Prothonotary found that the alleged failure of the Respondents to meet the
employment undertakings directly impacted the employees and retirees of the
Canadian business. Loss of union dues has also affected the bargaining agent’s
ability to represent their membership. Although, these interests are obviously
in a way economic, in the same case relied upon by the Respondents, Apotex [1986],
above, the Court conceded that cited caselaw involving would-be intervener
doctors who risked losing their employment had interests distinct from a
pharmaceutical company experiencing a reduction in profits. The latter is solely
an economic interest, while in the former situation, “from a practical point of
view, they have an intense and somewhat special interest in the outcome of
these proceedings” (see Apotex [1986], above at paras 10 and 12).
[34]
In
the case of Lakeside, the Prothonotary
found that as a customer of the Canadian Business Lakeside had been adversely
affected by the Respondents’ failure to meet the production levels undertaking.
More importantly, the Prothonotary found that Lakeside filed evidence on the
motion that established that divesture would be a viable option.
[35]
Again,
considering the matter contextually, and keeping in mind the central purpose of
Rule 109, I am persuaded by Lakeside’s position that they
ought not to be denied intervener status simply because they are not pursuing a
contract or tort remedy against the Respondents.
[36]
Contrasting
Rule 109 with Rule 303(1) which requires that applicants name as respondents
every person who is “directly affected” by an application, Lakeside argues that
interveners cannot be held to as stringent a test as actual parties to an
application. I agree that one of the CUPE considerations, interpreted
narrowly, cannot and should not be used to undermine the intent of Rule 109.
(2) There
is a Justiciable Issue and Public Interest in Granting Intervener Status to Lakeside and the Union Interveners
[37]
Prothonotary
Milczynski found that the remedies under the Act are a justiciable issue and
that public interest would be served in ensuring that the Act is interpreted
and applied in a manner consistent with its stated purpose, which is to
encourage investment, economic growth and employment opportunities in Canada.
[38]
The
Respondents submit that the Prothonotary erred in failing to consider the
absence of a justiciable issue between the parties, in stating that the subject
matter of the Application is a matter of public interest even though public
interest is not a dispositive factor under the CUPE test, in failing to
recognize that the public interest aspect has been designated as the
responsibility of the Minister alone and in incorrectly using the term public
interest to refer to general public interest in the Application as opposed to
public interest in a particular intervener’s participation.
[39]
Again,
I find the arguments of the Interveners more persuasive on these points.
[40]
The
Respondents point to no case law to support their position. As Lakeside
submits, nothing in CUPE suggests that a justiciable issue has to exist
between the appellant and the interveners, nor is this reasoning supported by
the purpose Rule 109. Rather the Court’s ultimate obligation to fashion the
appropriate remedy is a justiciable issue.
[41]
The
Prothonotary never suggested that the public interest in ensuring that the Act
is applied consistently with its purpose was dispositive, rather it was one
consideration among many as required by CUPE.
[42]
The
argument that public interest is solely to be defended by the Minister is
absurd and countered by the wording of the statute. Subsection 40(2) of the
Act specifically requires the Court to make such “order or orders as, in its
opinion, the circumstances require”. I take Lakeside’s point that public
interest in the interpretation and application of the Act is analogous with
public interest in injunctions and stay proceedings, where the Court has
established that “the government does not have a monopoly on the public
interest” (RJR-MacDonald Inc. v Canada (Attorney General), [1994] 1 SCR
311, 111 DLR (4th) 385 at para 65). Similarly, in the present matter the
Minister cannot be said to be solely responsible for representing the entire landscape
of Canadian commerce.
[43]
As
found by the Prothonotary, both Interveners are particularly well-positioned to
advance specific arguments regarding appropriate remedial measures that would
be of interest to Canadian workers and Canadians involved in the Steel
industry.
[44]
In
Benoit v. Canada, 2001 FCA 71, 201 FTR 137 at para 18, the Federal Court
of Appeal stated:
[…] if in a case where important public
interest issues are raised, an intervener wishes to raise a related public
interest question which naturally arises out of the existing lis between the
parties, and which none of the other parties has raised, it is appropriate to
permit the intervention.
[45]
As
such, the Prothonotary was not clearly wrong in deciding that the remedy
ordered by the Court under the Act is a justiciable issue of public interest,
helpfully illuminated by the intervention of Lakeside and the
Union Interveners.
(3) The
Prothonotary Did Not Fail to Consider Any of the CUPE Factors
[46]
The
Respondents submit that the Prothonotary failed to consider the remaining
factors under CUPE.
[47]
In
fact, Prothonotary Milczynski listed the CUPE factors and then either
expressly or implicitly addressed them, as submitted by the Interveners.
However, as already discussed above, not all of the CUPE criteria need
to be met in order to grant intervener status (International Assn. of
Immigration Practitioners v Canada, 2004 FC 630, 130 ACWS
(3d) 1100 at para 20).
[48]
Failing
to expressly consider each factor is not an error of law. I am of the view
that considering the circumstances, the nature of the order made and the
evidence before the Prothonotary, the Order reasonably demonstrates the manner
in which the Prothonotary exercised her discretion (Anchor Brewing Co. v Sleeman
Brewing & Malting Co., 2001 FCT 1066, 15 CPR (4th) 63 at paras 31-34).
[49]
Considering
each CUPE factor individually (except the first two, which were
discussed above), I cannot say that the Prothonotary was clearly wrong in her
analysis, or based any of her findings on a misapprehension of the facts or a
wrong principle of law:
(iii) Is
there an apparent lack of any other reasonable or efficient means to submit the
question of the Court?
[50]
Prothonotary
Milczynski was quite obviously referring to the point the Respondents allege
she ignored, considering whether there are other means to submit the issues to
the Court, when she stated:
I am satisfied that on this
first application under section 40 of the Investment Canada Act, it
would be of assistance to the hearing judge to consider the evidence and
argument relating to these possible remedies and that without the
interveners, would not otherwise be before the Court in an effective or
meaningful way.
[Emphasis added]
[51]
This
is not a baseless assumption. As the Union Interveners submit, they have no
standing in any other forum to raise the interests and concerns of the Canadian
Business’ employees regarding the effects of the Respondents’ alleged failure
to comply with the undertakings, and consequently, what the remedy should be.
[52]
The
Prothonotary clearly did not overlook this consideration, nor can I say that
she based her conclusion on any kind of misapprehension.
(iv) Is
the position of the proposed intervener adequately defended by one of the
parties to the case?
[53]
As
the Respondents submit, the positions of the AGC and Interveners diverge on the
question of remedy. The Respondents argue that by granting the Interveners
leave to present evidence on the remedy, they are usurping the authority of the
Minister and using the proceedings to obtain in personam remedies to
which they are not legally entitled.
[54]
The
Interveners, for their part, argue that they advance a unique perspective on
the interpretation and application of the Act, insofar as the remedies
available but not sought by the Minister.
[55]
As
Lakeside submits, the thrust of the Respondents’ argument rests on a
misunderstanding of the legislative scheme – it is not the AGC’s election that
determines the scope of remedies to be ordered by the Court should the merits
of the Application be proven. As subsection 40(2) makes clear, it is for the
Court to make any Order that it considers the circumstances to require.
[56]
The
Interveners were granted leave to intervene in a limited capacity in order to
help the Court determine the viability and appropriateness of various remedial
options. Although the Union Interveners may support the AGC’s position on the
merits of the test under section 40, this is irrelevant as they have been limited
to making submissions only on the remedy aspect of the Application. It is in
this aspect that Lakeside’s position on the divesture remedy and the
Union Intervener’s position on compensation to be awarded to affected
bargaining units are not being advanced by the AGC.
[57]
As
such, I cannot say that Prothonotary Milczynski ignored or was clearly wrong in
her consideration of this component of the CUPE test.
(v) Are
the interests of justice better served by the intervention of the proposed
third party?
[58]
The
Respondents submit that the Prothonotary failed to consider this component, and
if she had she would have determined that it is not in the interests of justice
to grant intervener status and as a result undermine: the Minister’s ability to
choose the remedy; the Respondents’ ability to defend themselves against
potentially heavy monetary fines; and the Court’s interest in efficient
adjudication.
[59]
With
respect, these submissions only amount to a disagreement with the
Prothonotary’s conclusion that allowing the Interveners to provide input would
ultimately be helpful to the Court. To my mind it is clear that the
Prothonotary implicitly considered this factor in holding that it would be of
assistance to the hearing judge on this first application under section 40 of
the Act to hear evidence relating to the possible remedies (that would not be
before the Court were it not for the presence of the Interveners).
[60]
Although
the Respondents wish to paint an application under the Act as a bilateral
process, the purpose of the Act suggests that its enforcement requires engaging
a broader public perspective. As Lakeside submits, if the Interveners were
truly usurping the role of the Minister, surely he would have objected on the
motion to intervene. The Interveners have an interest in the outcome of the
proceedings and they have been granted status to intervene in the most
efficient and helpful way by the Prothonotary.
(vi) Can
the Court hear and decide the cause on its merits without the proposed
intervener?
[61]
The
Respondents submit that the statutory scheme envisions that the Court would be
in a position to decide the merits of the application without the assistance of
the Interveners, and therefore should seek to avoid the delay and expense
inherent in permitting the intervention.
[62]
The
Union Interveners submit that the Court should not attempt to fashion a remedy
without hearing their submissions, as they are in a position to offer unique
and particularly helpful evidence regarding the employment undertakings and what
remedy might adequately address this issue.
[63]
Likewise,
Lakeside argues that
its presence will be helpful in adducing evidence and argument in support of
the divestiture remedy. For this proposition Lakeside relies on United
Grain Growers Limited v Commissioner of Competition, 2005 Comp Trib 36, a
decision of Justice Sandra J. Simpson, sitting as the judicial member of
the Competition Tribunal. Justice Simpson granted intervener status to Mission, a
prospective buyer, reasoning that they had “a unique perspective on the alleged
change of circumstances which lie at the heart of the Application”.
[64]
Realistically,
the Court could hear and decide the Application on the merits without the
interveners. However, the Court would have much less information and would
have a more difficult time fashioning the appropriate remedy. Prothonotary
Milczynski considered the purpose of Rule 109, and governed the use of her
discretion under that Rule with a consideration of the CUPE factors. I
cannot agree with the Respondents that she either ignored or wrongly applied
any of the six factors. Rather it appears obvious to me, that she engaged in a
balancing exercise and the conclusion that the Interveners would be of
assistance to the Court weighed more heavily in the end.
(4) Prothonotary
Milczynski Did Properly Consider Prejudice to the Respondents
[65]
I
find no merit in the Respondents’ submission that the Prothonotary neglected to
properly consider the issue of prejudice to the Respondents. At the outset of
the Order, the Prothonotary listed it as a necessary consideration and then, on
page 9 of the Order went on to find that the Respondents’ concern about
“multiple prosecutors” was unfounded. The Prothonotary found that the
Respondents would not experience undue prejudice as a result of the Interveners’
participation as potential delays and complexities could be managed through the
case management process.
[66]
The
Union Interveners take the position, and I accept it as correct, that although
the Respondents may now face a more challenging legal argument, this does not
by itself constitute prejudice. As held in Abbott v Canada, [2000] 3 FC
482, 186 FTR 269 at para 21, having to deal with more complex issues and
different viewpoints may represent an additional challenge for the Respondents
and a little more expense, but it is not in itself prejudice.
(5) Prothonotary
Milczynski Stated a Conclusion That Does Not Undermine the Rest of Her Reasons
[67]
The
Respondents take issue with the Prothonotary’s comment on page 9 that, without
the undertakings, there would have been no net benefit to Canada resulting
from the sale of the Canadian Business. The Respondents submit that this issue
was not before the Court, and there was no evidence upon which to base this
statement and that it was therefore an error to make this comment.
[68]
I
read the comment of the Prothonotary, in the context of the entire paragraph in
which it is found, as an effort to rebuff the Respondents’ position that the
application is a bilateral dispute between the Respondents and the Minister.
The Prothonotary is not making a conclusion regarding the matter that will be
before the hearing judge, but is explaining why the application is of interest
to the public.
[69]
The
Respondents make one last argument that the Act does not contemplate granting a
remedy to a third party. Prothonotary Milczynski acknowledged that this
jurisdictional issue could not be determined on the motion and would need to be
addressed at a later date.
[70]
Accordingly,
the Respondents are still not able to show that the Prothonotary’s decision was
clearly wrong in any respect.
V. Conclusion
[71]
In
consideration of the above conclusions, I dismiss this appeal.
ORDER
THIS COURT
ORDERS that US Steel’s motion appealing the
decision of the Prothonotary’s Order dated September 23, 2009 is dismissed with
costs to the Interveners.
“ D.
G. Near ”