Chrysler Canada Ltd. v. Canada
(Competition Tribunal), [1992] 2 S.C.R. 394
The Competition Tribunal Appellant
v.
Chrysler Canada Ltd. and
the Director of Investigation and
Research Respondents
and between
The Director of Investigation and
Research
and the Competition Tribunal Appellants
v.
Chrysler Canada Ltd. Respondent
Indexed as: Chrysler Canada Ltd. v.
Canada (Competition Tribunal)
File Nos.: 22151, 22152.
1992: January 31; 1992: June 25.
Present: La Forest, L'Heureux‑Dubé,
Sopinka, Gonthier, Cory, McLachlin and Stevenson* JJ.
on appeal from the federal court of
appeal
Contempt ‑‑
Competition Tribunal ‑‑ Jurisdiction ‑‑ Contempt ex
facie curiae ‑‑ Whether Competition Tribunal has jurisdiction over
civil contempt for breaches of its orders under Part VIII of Competition Act ‑‑
Meaning of "any matters related thereto" -- Competition Tribunal Act,
R.S.C., 1985, c. 19 (2nd Supp .), s. 8 .
The appellant
Competition Tribunal issued an order against Chrysler Canada Ltd. under
Part VIII of the Competition Act requiring it to resume the supply
of automotive parts to one of its customers. The Director of Investigation and
Research, having reason to believe that Chrysler was not complying with the
order, filed a motion with the Tribunal for an order directing Chrysler to show
cause why it should not be held in contempt of the Tribunal. At the hearing of
the motion, Chrysler objected to the Tribunal's jurisdiction. The Tribunal
ruled that it had jurisdiction to entertain proceedings for contempt of its
orders. The Federal Court of Appeal reversed the decision.
Held (McLachlin J. dissenting): The
appeals should be allowed.
Per La Forest, L'Heureux‑Dubé,
Sopinka, Gonthier and Cory JJ.: While at common law only superior courts have
the power to punish for contempt ex facie curiae, clear and unambiguous
statutory language can override the common law and confer ex facie
contempt powers on an inferior tribunal. Enactments which deprive superior
courts of their jurisdiction must be given a narrow construction, but barring
constitutional considerations, if a statute, read in context and given its
ordinary meaning, clearly confers upon an inferior tribunal a jurisdiction that
is enjoyed by the superior court at common law, while not depriving the
superior court of its jurisdiction, it should be given effect. The Competition
Tribunal, an inferior court of record, has jurisdiction over civil contempt for
breaches of its orders under Part VIII of the Competition Act .
Parliament intended the Tribunal to oversee Part VIII, the civil part, and
was strongly concerned with long‑term compliance with the Competition
Act , in both its criminal and civil parts, but the Act itself does not make
any provision for the enforcement of the Tribunal's orders through contempt or
similar proceedings. Section 8(1) of the Competition Tribunal Act
is the basis of the Tribunal's jurisdiction. It confers on the Tribunal
jurisdiction "to hear and determine all applications made under Part VIII
of the Competition Act and any matters related thereto". When the
English and French versions are read together, it becomes apparent that the
additional powers conferred by the phrase "any matters related
thereto"/"toute question s'y rattachant" pertain to the
applications, and not to the hearing and determination of the applications.
The Tribunal's jurisdiction does not terminate upon the determination of an
application, but may encompass other matters related to the application, such
as the enforcement of an order made pursuant to the application. Since the
Tribunal has jurisdiction to hear and determine Part VIII applications,
the common law would have conferred upon it jurisdiction over incidental and
ancillary matters arising in the course of the hearing and determination. No
need would arise to add the phrase "and any matters related thereto".
Since this phrase should be given some meaning, it should be taken as a grant
of jurisdiction over matters related to Part VIII applications, but
arising outside of the hearing and determination of these applications. These
matters may include the enforcement of the orders made under Part VIII.
Section 8(2)
of the Competition Tribunal Act confirms and consolidates the Tribunal's
jurisdiction. It expressly confers on the Tribunal the powers of a superior
court with respect to the enforcement of its orders, which include the power
over contempt for breaches of its orders. This conclusion is further supported
by s. 8(3) , which requires that the judicial member of the Tribunal concur
in a finding of contempt and in the consequences attached to this contempt by
the Tribunal. Inferior tribunals, whose members are seldom all lawyers or
judges, may generally find persons in contempt in facie and punish them
without the need for judicial endorsement. Section 8(3) , because of this
unique requirement, is indicative of the intention of Parliament to give the
Tribunal contempt powers going beyond those which an inferior tribunal would
ordinarily exercise.
Even if s. 96
of the Constitution Act, 1867 limited the powers of Parliament in the
same manner and to the same extent as it limits the powers of provincial
legislatures, it would have been respected in this case. The Tribunal's powers
should be characterized as jurisdiction over civil contempt for breaches of its
orders for purposes of the historical inquiry; contempt over breaches of a
tribunal's orders is a species of contempt ex facie curiae, and as such
fell within the purview of s. 96 courts at the time of Confederation. The
Tribunal also has a judicial function. With regard to institutional setting,
effective enforcement of orders made under the Competition Act ,
particularly Part VIII, is essential, to avoid seeing these orders
circumvented through elaborate relational arrangements which, although on the
surface innocuous, effectively create the same obstacles that the orders sought
to remove. Only a specialized tribunal such as the Tribunal can properly
ensure the enforcement of the orders it makes. Because of the institutional
setting, the jurisdiction conferred by s. 8 of the Competition Tribunal
Act upon the Tribunal with respect to civil contempt for breaches of its
orders would not infringe s. 96 of the Constitution Act, 1867 , in
the event it should apply to Parliament.
Per McLachlin J. (dissenting): The Court
of Appeal correctly concluded that Parliament did not confer jurisdiction over
contempt ex facie curiae on the Competition Tribunal. At common law an
"inferior court" is limited in its jurisdiction to the punishment of
contempt in facie curiae absent clear and express statutory language to
the contrary. By long tradition, exercise of the power to punish contempt
outside the presence of the court has been confined to superior courts, and
this restriction is sound, being grounded in significant policy
considerations. Parliament can expressly legislate to confer a general
contempt power on an inferior tribunal, subject to the constitutional issue.
There is a presumption, however, in construing statutes conferring powers on
inferior tribunals, that they will not be considered to possess the power of
contempt outside the presence of the court unless the language of Parliament is
clear and unequivocal. No such language is found in s. 8 of the Competition
Tribunal Act . This presumption does not apply only in cases where the
enactment extinguishes or diminishes the power of a superior court. Even if
the presumption does not apply, ss. 8 and 9 of the Competition Tribunal
Act , correctly construed, do not confer that power on the Tribunal. The
Tribunal's primary role in the legislative scheme is that of dispute
resolution; it has no general supervisory power, and the task of enforcement is
left to others. The scheme provides for enforcement by a variety of other
means; enforcement by contempt is unnecessary. The power of the Tribunal as
set out in s. 8 is confined to the resolution of disputes and making of
orders. The phrase in s. 8(1) "and any matters related thereto"
is most naturally construed as referring to interlocutory matters arising in
the course of an "application". Most of the powers referred to in
s. 8(2) relate to the conduct of the hearing: the phrase
"enforcement of its orders" can be entirely explained in the context
of interlocutory orders made in the course of the hearing, and the general
phrase "and other matters necessary or proper for the due exercise of its
jurisdiction" refers back to whatever jurisdiction the Tribunal is granted
by other provisions, primarily s. 8(1) . As for s. 8(3) , its
requirement that the judicial member of the Tribunal concur in any finding of
contempt is completely explicable by reference to the power of contempt in the
face of the court conferred by s. 8(1) and (2) and the judicial member's
exclusive jurisdiction over all questions of law. It is noted that clothing
the Tribunal with the power to commit for ex facie contempt leads to
difficult s. 96 issues.
Cases Cited
By Gonthier J.
Distinguished: Canadian Broadcasting Corp. v.
Quebec Police Commission, [1979] 2 S.C.R. 618; referred to: Chrysler
Canada Ltd. v. Director of Investigation and Research, Competition Act
(1991), 129 N.R. 77; Crevier v. Attorney General of Quebec, [1981] 2
S.C.R. 220; Canada (Director of Investigation and Research under the
Combines Investigation Act) v. Newfoundland Telephone Co., [1987] 2 S.C.R.
466; Interprovincial Pipe Line Ltd. v. National Energy Board, [1978] 1
F.C. 601; Re Residential Tenancies Act, 1979, [1981] 1 S.C.R. 714; Sobeys
Stores Ltd. v. Yeomans, [1989] 1 S.C.R. 238; Reference re Young
Offenders Act (P.E.I.), [1991] 1 S.C.R. 252; Nicholson v. Haldimand‑Norfolk
Regional Board of Commissioners of Police, [1979] 1 S.C.R. 311; American
Airlines, Inc. v. Canada (Competition Tribunal), [1989] 2 F.C. 88, aff'd
[1989] 1 S.C.R. 236.
By McLachlin J. (dissenting)
Canadian
Broadcasting Corp. v. Quebec Police Commission, [1979] 2 S.C.R. 618; Vachliotis v. Exodus
Link Corp. (1987), 23 C.P.C. (2d) 72; Re Residential Tenancies Act, 1979,
[1981] 1 S.C.R. 714; Reference re Young Offenders Act (P.E.I.), [1991] 1
S.C.R. 252; McEvoy v. Attorney General for New Brunswick, [1983] 1
S.C.R. 704; Sobeys Stores Ltd. v. Yeomans, [1989] 1 S.C.R. 238.
Statutes and Regulations Cited
Act
to establish the Competition Tribunal and to amend the Combines Investigation
Act and the Bank Act and other Acts in consequence thereof, R.S.C., 1985, c. 19 (2nd
Supp .).
Broadcasting
Act, S.C. 1991,
c. 11, ss. 13 , 32 .
Canadian
International Trade Tribunal Act, R.S.C., 1985, c. 47 (4th Supp .), s. 16 .
Combines
Investigation Act,
R.S.C. 1970, c. C‑23, s. 17.
Competition
Act, R.S.C., 1985,
c. C‑34 [am. c. 19 (2nd Supp.)], ss. 1.1 , 10 , 33 , 34 , 36 , 67 ,
73 , 74 , 75 , 86 , 99 , 106 .
Competition
Tribunal Act, R.S.C.,
1985, c. 19 (2nd Supp .), ss. 8 , 9(1) , 13 .
Constitution
Act, 1867,
ss. 96 to 101 .
Federal
Court Rules, C.R.C.
1978, c. 663, r. 1716.
Interpretation
Act, R.S.C., 1985,
c. I‑21, ss. 12 , 31 .
Official
Languages Act, R.S.C.
1970, c. O‑2. s. 8(2) (c).
Oil
and Gas Production and Conservation Act, R.S.C., 1985, c. O‑7, ss. 13 ,
62 .
Ontario
Supreme Court Rules Respecting Criminal Proceedings ‑‑ Part I, SI/85‑152, r. 2.
Public
Inquiry Commission Act,
R.S.Q. 1964, c. 11, ss. 7, 11, 12.
Rules
of Civil Procedure,
O. Reg. 560/84, rr. 13.01, 13.02.
Authors Cited
Beaupré,
Michael. Interpreting Bilingual Legislation, 2nd ed. Toronto:
Carswell, 1986.
Canada.
Economic Council of Canada. Interim Report on Competition Policy.
Ottawa: Queen's Printer, 1969.
Côté,
Pierre‑André. The Interpretation of Legislation in Canada, 2nd
ed. Cowansville: Éditions Yvon Blais Inc., 1992.
Halsbury's
Laws of England, vol.
44, 4th ed. London: Butterworths, 1983.
APPEALS from a
judgment of the Federal Court of Appeal, [1990] 2 F.C. 565, 111 N.R. 368, 31
C.P.R. (3d) 510, 48 B.L.R. 125, reversing a decision of the chairman of the
Competition Tribunal dismissing an objection to jurisdiction. Appeals allowed,
McLachlin J. dissenting.
C. Christopher
Johnston, Q.C.,
and Jane Graham, for the appellant Competition Tribunal.
Rory R. Edge and William J. Miller, for the
appellant Director of Investigation and Research.
Thomas A. McDougall, Q.C., and Richard A.
Wagner, for the respondent Chrysler Canada Ltd.
//Gonthier J.//
The judgment of La
Forest, L'Heureux-Dubé, Sopinka, Gonthier and Cory JJ. was delivered by
Gonthier
J. -- These appeals are
concerned with the jurisdiction of the Competition Tribunal (hereinafter the
Tribunal) to entertain proceedings for civil contempt of its orders under
Part VIII of the Competition Act, R.S.C., 1985, c. C-34 , as amended
by R.S.C., 1985, c. 19 (2nd Supp .) (hereinafter CA).
I -- Facts and Proceedings
On October 13,
1989, the Tribunal issued an order against the respondent under s. 75 CA,
requiring it to resume the supply of Chrysler automotive parts to one Richard
Brunet. This order was upheld by the Federal Court of Appeal on September 19,
1991: 129 N.R. 77.
On February 19,
1990, the Director of Investigation and Research (hereinafter "the
Director"), having reason to believe that the respondent was not complying
with the order, filed a motion with the Tribunal for an order directing the
respondent and others to appear before the Tribunal to show cause why they
should not be held in contempt of the Tribunal. At the hearing of the motion,
on February 20, 1990, the respondent objected to the jurisdiction of
the Tribunal. On the same day, the Tribunal ruled that it had jurisdiction to
entertain contempt proceedings. The respondent appealed from that decision.
On July 10, 1990, the Federal Court of Appeal unanimously reversed and denied
the jurisdiction of the Tribunal, for the reasons of Iacobucci C.J. (as he
then was). This Court granted leave to appeal this judgment on May 2, 1991.
II -- Relevant Statutory
Dispositions
Competition
Tribunal Act, R.S.C.,
1985, c. 19 (2nd Supp .), s. 8 (hereinafter CTA):
8.
(1) The Tribunal has
jurisdiction to hear and determine all applications made under Part VIII
of the Competition Act and any matters related thereto.
(2)
The Tribunal has, with respect to the attendance, swearing and examination of
witnesses, the production and inspection of documents, the enforcement of its
orders and other matters necessary or proper for the due exercise of its
jurisdiction, all such powers, rights and privileges as are vested in a
superior court of record.
(3)
No person shall be punished for contempt of the Tribunal unless a judicial
member is of the opinion that the finding of contempt and the punishment are
appropriate in the circumstances.
III -- Judgments Below
Competition Tribunal
Reed J. stated
that inferior tribunals do not have the power to punish for contempt committed
outside of their presence (contempt ex facie curiae), unless a statute
confers such a power on them. She found that s. 8 CTA did grant
such jurisdiction to the Tribunal, a conclusion that was further buttressed by
the nature of the competition scheme, especially the separation of
investigative and adjudicative powers between the Director and the Tribunal
respectively.
Federal Court of Appeal, [1990] 2 F.C. 565
Iacobucci C.J.
began with the same premise as Reed J., referring to Dickson J. (as
he then was) in Canadian Broadcasting Corp. v. Quebec Police Commission,
[1979] 2 S.C.R. 618 (hereinafter CBC), for the proposition that the
statutory grant must be clear and unambiguous. He examined the three
subsections of s. 8 CTA. He found that the words "hear and
determine" in s. 8(1) limited the jurisdiction of the Tribunal to the
issuance of the order determining the application under Part VIII CA.
The phrase "enforcement of its orders" in s. 8(2) was qualified
by the phrase "necessary or proper for the due exercise of its
jurisdiction" and therefore could not give the Tribunal a greater
jurisdiction than s. 8(1) outlines. Finally, s. 8(3) does not
indicate that it applies to anything more than contempt in the presence of the
Tribunal (in facie curiae). He concluded that the Tribunal did not have
any jurisdiction over contempt proceedings for breaches of its orders under
Part VIII CA.
IV -- Issue
As stated at the
outset of these reasons, the sole issue before the Court is whether the
Tribunal has jurisdiction over civil contempt for breaches of its orders under
Part VIII CA. The parties made numerous references to contempt ex
facie curiae in general, and I wish to underscore that the powers of the
Tribunal over contempt ex facie curiae as such are not at issue here.
This Court is only concerned with one species of ex facie contempt,
failure to comply with an order of the Tribunal.
V -- Analysis
It is not contested
by the parties, and the Court agrees, that the Tribunal is an inferior court of
record, as stated in s. 9(1) CTA.
A. The Common Law
This Court reviewed
the common law with respect to the contempt powers of inferior tribunals in CBC,
supra. There, the CBC had broadcast a photograph of a witness before
the Quebec Police Commission (hereinafter "the Commission"), despite
a publication ban from the Commission. The Commission ordered the CBC to
appear before it and show cause why it should not be held in contempt. The CBC
challenged the jurisdiction of the Commission. Various legislative grounds had
been advanced in support of the jurisdiction of the Commission, including
ss. 7, 11 and 12 of the Public Inquiry Commission Act, R.S.Q. 1964,
c. 11:
7.
A majority of the commissioners must attend and preside at the hearing of
witnesses, and they, or a majority of them, shall have, with respect to the
proceedings upon the hearing, all the powers of a judge of the Superior Court
in term.
11.
Any person refusing to be sworn when duly required, or omitting or refusing, without
just cause, sufficiently to answer any question that may be lawfully put to
him, or to render any testimony in virtue of this act, shall be deemed to be in
contempt of court and shall be punished accordingly.
...
12.
If any person refuse to produce, before the commissioners, any paper, book,
deed or writing in his possession or under his control which they deem
necessary to be produced, or if any person be guilty of contempt of the
commissioners or of their office, the commissioners may proceed for such
contempt in the same manner as any court or judge under like circumstances.
Articles 46 (general powers of courts
and judges) and 49 to 54 (contempt of court) of the Code of Civil Procedure
were also invoked.
For the majority of
the Court, Beetz J. first reviewed the common law. He concluded at
p. 638:
...
the Anglo-Canadian authorities on the power to punish for contempt committed ex
facie curiae have been firmly established for more than two hundred years.
According to these authorities, this power is enjoyed exclusively by the
superior courts.
Such
a rule is moreover justified in principle by the following considerations. The
power to punish for contempt committed ex facie is liable to result in
inquiries which may well involve a lower court in areas which are practically
impossible to define in terms of jurisdiction and completely foreign to its own
area of jurisdiction, which by definition is limited. Such an obstacle does
not arise in the case of a court like the Superior Court, which is a court of
original general jurisdiction (art. 31 C.C.P.) with a priori
jurisdiction, or courts sitting in appeal from decisions of the Superior Court,
which may in general render the decisions which the latter would have
rendered. Moreover, the power to punish a contempt committed ex facie
is necessarily bound up with the superintending and controlling power which
only a superior court may exercise over inferior courts. This controlling
power could become illusory if, in the case of a contempt committed ex facie,
an inferior court had the right to go beyond its own particular field. There
would also be the danger of conflict between the superior and inferior courts,
of the kind that formerly existed in England between the common law and equity
courts. Finally, the inferior courts are not without any means of ensuring
that their lawful orders are observed ... the superior courts may come to their
aid ...
Beetz J. went on to examine
whether any of the above enactments conferred a power over contempt ex facie
curiae on the Commission. He held that s. 7 of the Public Inquiry
Commission Act was limited to the examination of witnesses, and therefore
could not give the Commission more than the in facie contempt power it
already had. Similarly, ss. 11 and 12 could be read as concerning
contempt in facie curiae only. As for the articles of the Code of
Civil Procedure, art. 46 was suppletive in nature and arts. 49 to 54
merely codified the common law of contempt. In adopting this interpretation,
Beetz J. was guided by the principle of constitutionality of statutes: in
deciding as to the appropriate interpretation of a statute, one should prefer a
construction that conforms with the Constitution.
Beetz J. did
not enunciate any formal requirement with respect to the wording of a statutory
grant of ex facie contempt powers to an inferior court. In his analysis
of the Code of Civil Procedure, though, he wrote that "[w]hen the
legislator wishes to amend the common law, he does so by express
provision" (p. 644), referring to art. 51 C.C.P., which
reduced the discretion formerly enjoyed by courts of law as to punishment.
Dickson J., writing for himself and Martland J., held that statutory
language must be clear and unambiguous to override the common law and confer ex
facie contempt powers on an inferior tribunal. I fail to see much
difference between "express" and "clear and unambiguous".
Both opinions adopt in substance the same interpretation principle. The common
law may be modified through express statutory language, such as the grant of a
power in terms different from the common law.
Furthermore, when
dealing with common law rules on the jurisdiction of superior courts, it is
important to distinguish between enactments which deprive superior courts of
their jurisdiction, or privative clauses, and enactments which convey part of
the jurisdiction of superior courts to another tribunal, while not
extinguishing the jurisdiction of superior courts. In the former case, courts
have insisted on a narrow construction, since the citizen may be deprived of a
recourse to the superior court (see the line of cases culminating in Crevier
v. Attorney General of Quebec, [1981] 2 S.C.R. 220, where the rule of
strict interpretation is given constitutional significance). In the latter
case, I would think that there is little point in insisting upon precise
formulae to the extent that the intention of Parliament may be thwarted (see P.‑A. Côté,
The Interpretation of Legislation in Canada (2nd ed. 1992), at
pp. 420-21). Barring constitutional considerations, if a statute, read in
context and given its ordinary meaning, clearly confers upon an inferior
tribunal a jurisdiction that is enjoyed by the superior court at common law,
while not depriving the superior court of its jurisdiction, it should be given
effect.
B. The Functions of the
Competition Tribunal
The Tribunal was
created in 1986, in the wake of "Stage II" of competition law
reform. Part I of An Act to establish the Competition Tribunal and to
amend the Combines Investigation Act and the Bank Act and other Acts in
consequence thereof, R.S.C., 1985, c. 19 (2nd Supp .) (hereinafter the 1986
Act), became the CTA, and Part II made in-depth amendments to
the CA.
The 1986 Act
completed the broad division of the CA into two substantive parts, one
criminal (Part VI) and one civil/administrative in nature
(Part VIII), in accordance with proposals put forward as early as in 1969
by the Economic Council of Canada in its Interim Report on Competition
Policy. Jurisdiction over the criminal part lies with the courts
ordinarily dealing with criminal cases, as well as the Federal Court, Trial
Division (ss. 67, 73 CA). As for the civil part, Part VIII,
as its heading indicates, lists the matters reviewable by the Tribunal.
Section 8(1) CTA confirms the jurisdiction of the Tribunal over
Part VIII. The civil part of the CA therefore falls entirely under
the Tribunal's jurisdiction. It is readily apparent from the CA and the
CTA that Parliament created the Tribunal as a specialized body to deal
solely and exclusively with Part VIII CA, since it involves complex
issues of competition law, such as abuses of dominant position and mergers.
Moreover, the 1986
reform also concentrated the administration of the CA in the hands of
the Director of Investigation and Research. The Director is responsible for
the conduct of inquiries under the CA (s. 10 CA), and he
holds a number of powers in this respect. He may request the Attorney General
of Canada to consider a prosecution under Part VI CA. For all
intents and purposes, since competition matters generally require extensive
inquiry, prosecution will rarely be instigated without a request from the
Director. Hence, the Director has a substantial amount of control over
prosecutions under the CA. He has even more control over proceedings
under Part VIII CA since, aside from exceptions of limited scope in
ss. 86, 99 and 106 CA, only the Director may bring a matter before
the Tribunal.
Coming to the core
of this case, when one considers the criminal part of the CA, it becomes
clear that Parliament had definite concerns about enforcement when enacting the
CA. For instance, in Part IV, entitled "Special
Remedies", at ss. 33 and 34, superior courts of criminal jurisdiction
are given powers to issue interim injunctions (the Federal Court is also given
this power) and prohibition orders to prevent violations of Part VI CA.
These powers are exceptional in the criminal law context. Given the nature of
competition law offences, which often involve continuous or continuing business
practices, it is quite understandable that Parliament may have wanted to expand
the criminal part of the CA beyond retribution in order to ensure the
benefits of free competition in the longer term.
The same concern
for the proper long-term functioning of the free market lay at the very heart
of the enactment of Part VIII in 1986. Civil remedies can be more finely
attuned and stand a better chance of leading to lasting compliance with the CA
than criminal convictions. Parliament, in order to provide for the supervision
of the orders of the Tribunal, has given the Tribunal at s. 106 CA
a power to rescind or vary its orders upon request from the Director or a
person against whom the order has been made. Yet Parliament has not included
in the CA itself a mechanism to ensure compliance with the orders of the
Tribunal.
The respondent
argues that s. 74 CA, which makes it an offence to contravene or
fail to comply with an order of the Tribunal, is functionally equivalent to a
contempt power for breaches of orders under Part VIII. I disagree. First
of all, s. 74 CA, unlike ss. 33(7) and 34(6) CA for
interim injunctions and prohibition orders, aims at punishment of breaches, and
not at securing compliance. It provides for definite fine and prison terms,
and does not allow for the kind of flexibility available in contempt
proceedings. It is in essence retrospective, and not prospective.
Furthermore, a charge under s. 74 CA will be tried before a
criminal court, and not before the Tribunal. The expertise of the Tribunal is
lost in proceedings under s. 74 CA. If it is only possible to
prove a breach of an order through a process comparable in complexity to the
issuance of the order, as is often the case, some violations may well escape
scrutiny and remedial action, if the expertise of the Tribunal is not available
at the enforcement stage. Given the complexity of orders under Part VIII,
monitoring their application could not be made a completely separate process,
before a court of general or criminal jurisdiction, without a corresponding
loss of effectiveness.
Moreover, a duality
of criminal and civil remedies against a breach of an order is found in other
areas, where criminal provisions similar to s. 74 CA protect the
orders of an inferior tribunal created by Parliament. Yet Parliament, in these
other areas, has also provided for the filing of their orders with the Federal
Court to ensure compliance (see the Broadcasting Act, S.C. 1991, c. 11,
ss. 13 and 32 , and the Oil and Gas Production and Conservation Act,
R.S.C., 1985, c. O-7, ss. 13 and 62 ). Section 74 CA is not an
adequate substitute for contempt proceedings for breaches of orders of the
Tribunal.
This cursory
examination of the CA shows that Parliament intended the Tribunal to
oversee Part VIII and that Parliament was strongly concerned with
long-term compliance with the CA, in both its criminal and civil parts.
The CA itself, however, does not make any provision for the enforcement
of the orders of the Tribunal through contempt or similar proceedings.
C. Section 8 of the
Competition Tribunal Act
Section 8 CTA
complements the CA. The attention of this Court has been drawn to other
federal statutes which contain provisions similar in wording to parts of
s. 8 CTA, in particular to s. 8(2) CTA. None of these
provisions, however, is similar to the three subsections of s. 8 CTA
taken as a whole. Moreover, all of the statutes in which these provisions are
found offer schemes different from that of the CA and CTA,
inasmuch as the issue of enforcement through contempt proceedings does not
arise in any of them. Either they provide for a particular enforcement
mechanism, through filing of the Tribunal's order with the Federal Court, or
the relief granted by the Tribunal is self-executory in nature. In other
cases, the Tribunal only has powers of recommendation. Section 8 CTA
is thus unique, and it must be interpreted in light of its wording and its
context.
1. Section 8(1)
Section 8(1) CTA,
the basis of the Tribunal's jurisdiction, reads as follows:
8. (1) The Tribunal has jurisdiction to
hear and determine all applications made under Part VIII of the Competition
Act and any matters related thereto.
8. (1) Le Tribunal entend les demandes
qui lui sont présentées en application de la partie VIII de la Loi sur la
concurrence de même que toute question s'y rattachant.
The core of the Tribunal's
jurisdiction is the hearing and determination of Part VIII applications.
When both versions are read together, it becomes apparent that the additional
powers conferred by the phrase "any matters related
thereto"/"toute question s'y rattachant" pertain to the
applications, and not to the hearing and determination of the applications. In
English, the phrase "any matters related thereto" may refer to the
applications or to their hearing and determination, though, to my mind, the
latter reading is constrained and does not reflect the natural meaning of the
words, namely: "... hear and determine all applications made under Part
VIII of the Competition Act and hear and determine all matters related
to the applications". In French, "s'y rattachant" can only
refer to the noun "demandes", and not to the verb "entend",
or otherwise the clause would read "toute question se rattachant aux
auditions". Section 8(1) CTA therefore confers on the
Tribunal jurisdiction not only over the hearing and determination of
applications, but also over related matters. The jurisdiction of the Tribunal
does not terminate upon the determination of an application, as the respondent
argues, but it may encompass other matters related to the application, such as
the enforcement of an order made pursuant to the application.
Beyond the natural
grammatical construction of s. 8(1) CTA, this interpretation is
also supported by other considerations. The respondent claimed that the phrase
"any matters related thereto" essentially added to the Tribunal's
jurisdiction various ancillary matters that may arise in the course of the
hearing of an application. Such an interpretation would, in my opinion, fail
to give its full meaning to s. 8(1) CTA. It is an established
principle of common law, codified to a certain extent in s. 31 of the Interpretation
Act, R.S.C., 1985, c. I-21 , that "[t]he powers conferred by an
enabling statute include not only such as are expressly granted but also, by
implication, all powers which are reasonably necessary for the accomplishment
of the object intended to be secured" (Halsbury's Laws of England,
vol. 44, 4th ed., para. 934, p. 586; see also P.-A. Côté, supra, at
pp. 76-77). This principle has been recently applied in Canada
(Director of Investigation and Research under the Combines Investigation Act)
v. Newfoundland Telephone Co., [1987] 2 S.C.R. 466, and in a line of cases
from the Federal Court of Appeal, starting with Interprovincial Pipe Line
Ltd. v. National Energy Board, [1978] 1 F.C. 601 (C.A.). Since the
Tribunal has jurisdiction to hear and determine Part VIII applications, the
common law would have conferred upon it jurisdiction over incidental and
ancillary matters arising in the course of the hearing and determination. No
need would arise to add the phrase "and any matters related
thereto". Since this phrase should be given some meaning, it should be
taken as a grant of jurisdiction over matters related to Part VIII
applications, but arising outside of the hearing and determination of
these applications. These matters may include for instance the enforcement of
the orders made under Part VIII.
2. Section 8(2)
While s. 8(1) CTA
extends the jurisdiction of the Tribunal to all matters related to applications
under Part VIII CA and gives jurisdictional foundation to the power
of the Tribunal over contempt for breaches of its orders, s. 8(2) CTA
expressly confers upon it the powers of a superior court with respect to the
enforcement of its orders. Section 8(2) CTA displaces the common
law presumption. It reads as follows:
8. ...
(2)
The Tribunal has, with respect to the attendance, swearing and examination of
witnesses, the production and inspection of documents, the enforcement of its
orders and other matters necessary or proper for the due exercise of its
jurisdiction, all such powers, rights and privileges as are vested in a
superior court of record.
8. ...
(2)
Le Tribunal a, pour la comparution, la prestation de serment et
l'interrogatoire des témoins, ainsi que pour la production et l'examen des
pièces, l'exécution de ses ordonnances et toutes autres questions relevant de
sa compétence, les attributions d'une cour supérieure d'archives.
The position of the phrase "other
matters necessary or proper for the due exercise of its
jurisdiction"/"toutes autres questions relevant de sa
compétence" in this paragraph leads to the conclusion that the enumerated
powers come within the jurisdiction of the Tribunal as well. Section 8(2)
confirms and consolidates the jurisdiction of the Tribunal. In the context of
s. 8(2) , the words "enforcement of its orders" coupled with the
phrase "necessary or proper for the due exercise of its jurisdiction"
cannot be read otherwise than as a grant to the Tribunal of the powers of a
superior court of record with respect to the enforcement of its orders, which
includes the power over contempt for breaches of its orders.
3. Section 8(3)
This conclusion is
further supported by s. 8(3) CTA, which requires that the judicial
member of the Tribunal concur in a finding of contempt and in the consequences
attached to this contempt by the Tribunal. While s. 8(3) CTA makes
express reference to contempt, this reference as such is not indicative of the
powers of the Tribunal, since all inferior courts have power over contempt in
facie. Section 8(3), though, is unique to the CTA. No other
federal statute contains a similar provision. Inferior tribunals, whose
members are seldom all lawyers or judges, may generally find persons in
contempt in facie and punish them without the need for judicial
endorsement (this is implicit in CBC, supra). It would seem
somewhat incongruous that the Tribunal be subject to such a unique requirement
if it only had power over contempt in facie, like others.
Section 8(3), because of this unique requirement, is indicative of the
intention of Parliament to give the Tribunal contempt powers going beyond those
which an inferior tribunal would ordinarily exercise.
D. Conclusions on the
Interpretation of the CA and CTA
In summary, I find
that s. 8 CTA, when given its normal meaning in the context of the CA
and CTA, gives the Tribunal power over contempt for breaches of its
orders. No issue arises in this case nor was raised as to criminal contempt.
The governing statutes in this case distinguish it from CBC, supra.
There s. 12 of the Public Inquiry Commission Act, the statutory
provision purportedly conferring ex facie contempt powers upon the
Quebec Police Commission, only contained one phrase that could extend to
contempt ex facie ("contempt of the commissioners or of their
office"), and it was among a list of cases of contempt in facie.
Beetz J. concluded that this phrase did not extend to contempt ex facie.
Here, the issue is narrower: only the power over civil contempt for breaches of
orders is at stake. Moreover, the CA and CTA show that
Parliament directed its mind to the enforcement of the orders made under the CA.
Section 8 does not differentiate between types of orders, and neither does it
limit the meaning of "order" in the same fashion as former s. 17
of the Combines Investigation Act, R.S.C. 1970, c. C‑23. Rather,
"order" is used by Parliament throughout Part VIII CA to
designate the decisions of the Competition Tribunal pursuant to applications
under that part. It is in my view incorrect and inappropriate to ignore the
meaning given by Parliament to "orders" of the Tribunal in the
overall scheme of the CA and CTA. The legislative scheme creates
a need for the Tribunal to address the enforcement of its orders.
Section 8 CTA, as was expounded above, sets out the jurisdiction
and powers of the Tribunal in general terms, and its normal meaning is broad
and clear. It is an express statement that the powers of the Tribunal include
the contempt powers of a superior court for the enforcement of its orders.
These include orders under Part VIII CA, which are central to its
mandate.
On the level of
principle, while Beetz J. in CBC legitimately feared that the
Quebec Police Commission through a power over contempt ex facie might
get involved "in areas which are practically impossible to define in terms
of jurisdiction and completely foreign to its own area of jurisdiction"
(p. 638) and encroach upon the jurisdiction of superior courts, these
obstacles do not arise here. The power at issue here is narrower, and it can
safely be left to the Tribunal to deal with breaches of its dispositive orders,
since they involve the examination of issues analogous to those arising when
the order was first issued, and are similarly circumscribed. In terms of
expertise, the Tribunal is in fact better suited than a superior court to
decide these matters. In comparison, the Commission in CBC only enjoyed
powers of inquiry. For the Commission to rule on a contempt for breach of a
non-publication order would have involved, first of all, a decision as opposed
to a recommendation, and secondly, consideration of matters extraneous to the
inquiry itself, i.e., the publication of a photograph of a witness (see CBC,
at pp. 640-41). The Commission would have been outside of both its
function and its field of expertise.
Furthermore, while
the Commission's inquiry resulted from a particular mandate limited in time and
scope, here the Tribunal is given a broad role in the continuous operation of
the CA. The Tribunal has already made and will make numerous orders
under Part VIII CA. It is integrated within the federal court
system, and its decisions are subject to appeal as if they emanated from the
Federal Court, Trial Division (s. 13 CTA). It is not set apart or
its decisions protected by any privative clause. Even if the Tribunal exercises
powers that at common law belong to a superior court, it is still subject to
full review by the Federal Court of Appeal. The Tribunal has none of the
characteristics that would inspire fear for the integrity of the powers of
superior courts.
E. Constitutional Considerations
Until it came to
this Court, this case had centred on interpretation. At the end of its factum,
the respondent briefly raises the constitutionality of s. 8 CTA,
should it purport to confer upon the Tribunal power over contempt for breaches
of its orders. Both parties addressed the issue more thoroughly in oral
argument.
At the outset, the
applicability to Parliament of the case law of this Court regarding s. 96
of the Constitution Act, 1867 comes into question. I will not rule on
this point, since I am of the opinion that, even if s. 96 of the Constitution
Act, 1867 limited the powers of Parliament in the same manner and to the
same extent as it limits the powers of provincial legislatures, it would have
been respected in this case.
Re Residential
Tenancies Act, 1979,
[1981] 1 S.C.R. 714 (hereinafter Residential Tenancies), has established
a three-step analytic approach to s. 96 of the Constitution Act, 1867
problems. This approach was further developed and refined in Sobeys Stores
Ltd. v. Yeomans, [1989] 1 S.C.R. 238 (hereinafter Sobeys), and in Reference
re Young Offenders Act (P.E.I.), [1991] 1 S.C.R. 252. In CBC, supra,
although the three-step analytic framework of Residential Tenancies had
not yet been articulated, this Court made in substance the same inquiry. For
the majority, Beetz J. held that the National Assembly could not validly
confer upon the Quebec Police Commission power over contempt ex facie curiae,
since this came within the jurisdiction of superior courts in 1867, and these
powers were not an integral part of the mandate of the Commission (at
pp. 639-41).
1. Historical
Inquiry
The parties have
advanced two different characterizations of the powers of the Tribunal for the
purposes of the historical inquiry. The appellants have characterized them as
powers in relation to competition law, while the respondent has narrowed them
to powers over contempt ex facie curiae. This type of conflict between
a broader and a narrower characterization is not atypical in s. 96 of the Constitution
Act, 1867 cases. Wilson J. discussed it in Sobeys, supra,
at p. 254:
Viewed
against this background the first step of the Residential Tenancies
test, which is drawn from the "inferior court" cases, represents a
kind of threshold test, a method of deciding whether, in a formal sense,
s. 96 has been violated at all. The second and third steps serve to
validate some legislative schemes despite the fact that they trench on
the traditional jurisdiction of s. 96 courts. The purposes of s. 96
require a strict, that is to say a narrow, approach to characterization at the
first stage. Given what I have to say below on concurrent superior/inferior
court jurisdiction at Confederation, any other approach would potentially open
the door to large accretions of jurisdiction and thereby defeat the purposes of
the constitutional provision. [Emphasis in original.]
Wilson J. then defined the
jurisdiction given to the Nova Scotia Labour Standards Tribunal by s. 67A
of the Labour Standards Code, S.N.S. 1972, c. 10, as jurisdiction over
unjust dismissal, as opposed to employer/employee relations or labour
standards.
I will follow this
approach. I am not unmindful that, in CBC, supra, Beetz J.
faced the same problem to a certain extent. He could proceed to his analysis
on the basis either of the Commission's power to prohibit publication or of its
power over contempt ex facie curiae. He chose the latter at
p. 640, since it was more consistent with the crux of the case.
Similarly, here, a characterization of the impugned powers as pertaining to
competition law would mask in its generality the essence of the case. Should
the appellants' proposed characterization be retained, the inquiry would really
bear on the overall jurisdiction conferred upon the Tribunal through
Part VIII CA and s. 8 CTA. The jurisdiction of the
Tribunal over civil contempt for breaches of its orders, and not its overall
jurisdiction over Part VIII CA, is at issue here.
The appellants have
also submitted that such a characterization would place too much emphasis on
the remedial aspects of the Tribunal's jurisdiction over its substantive
aspects, contrary to the judgment of Wilson J. in Sobeys, supra,
at p. 267. The appellants may be right, had the characterization been
"jurisdiction over imprisonment" or "jurisdiction over
fines". These focus unduly on the remedy ordered by the Court and neglect
the substantive grounds for ordering it. As Wilson J. put it in Sobeys,
supra, at p. 255, to retain them "would be to freeze the
jurisdiction of [s. 96 ] courts at 1867 by a technical analysis of
remedies". Characterization as "jurisdiction over civil contempt for
breaches of the tribunal's orders" corresponds to the actual debate in
this case while not falling into the trap of technical, remedy-oriented
analysis.
Contempt over
breaches of a tribunal's orders is a species of contempt ex facie curiae,
and as such, following CBC, supra, it fell within the purview of
s. 96 courts at the time of Confederation. I will therefore proceed to
the second and third stages of the inquiry.
2. Judicial
Function
In Residential
Tenancies, Dickson J., at p. 743, outlined the distinguishing
features of a judicial function:
...
the hallmark of a judicial power is a lis between parties in which a
tribunal is called upon to apply a recognized body of rules in a manner
consistent with fairness and impartiality. The adjudication deals primarily
with the rights of the parties to the dispute, rather than considerations of
the collective good of the community as a whole.
The appellants relied on this passage
in their submission that the Tribunal does not fulfil an adjudicative function,
as it really seeks to mediate the interests of the collectivity, in ensuring
the proper functioning of the economy according to a competitive model, with
the rights of the individual parties. Indeed the Director does not represent
before the Tribunal the interests of any particular party, but rather the
interests of the general public in the application of the CA and in the
furtherance of its policy objectives.
The Tribunal,
however, disposes of the applications under Part VIII CA in a
judicial manner. One should beware of trying to pigeonhole the role of the
Tribunal within a "judicial" or "administrative" model.
This Court has since long warned of the dangers of relying on too tight a
dichotomy between these models of decision (Nicholson v. Haldimand-Norfolk
Regional Board of Commissioners of Police, [1979] 1 S.C.R. 311, at
p. 325). Nevertheless the decisions of the Tribunal, if anything, come
much closer to a judicial model than to any other model. The Tribunal is
presented with evidence in an adversarial fashion, and it must decide in favour
of the Director or in favour of the defendant. The structure of the CA
and CTA bears some similarities to the structure of labour standards
adjudication in Nova Scotia, examined in Sobeys, supra, where
Wilson J., at pp. 274-75, observed a separation of "administrative"
and "judicial" functions between a director and a tribunal,
respectively.
Courts which have
addressed this issue have found that the Tribunal proceeds judicially (see
Iacobucci C.J. (as he then was) in American Airlines, Inc. v. Canada
(Competition Tribunal), [1989] 2 F.C. 88 (C.A.), at pp. 97-98, aff'd
[1989] 1 S.C.R. 236). I agree, and my conclusion is further strengthened
by the particular nature of contempt proceedings, where of all matters within
the Tribunal's jurisdiction the debate will likely be the most adversarial.
3. Institutional
Setting
A substantial
portion of these reasons has already been devoted to showing how the Tribunal
is an integral part of the framework created by the CA and CTA.
Within this framework, the Tribunal is the judicial authority in charge of the
civil parts of the CA. Furthermore, the CA and CTA show
how Parliament specifically provided for the enforcement of orders made under
the CA. In the context of competition law, particularly of
Part VIII CA, where the subject-matter lies largely in the realm of
contractual relationships, effective enforcement of orders is essential, for
fear of seeing these orders circumvented through elaborate relational
arrangements which, although on the surface innocuous, effectively create the
same obstacles that the orders sought to remove. Only a specialized tribunal
such as the Tribunal can properly ensure the enforcement of the orders it
makes. Because of the institutional setting, the jurisdiction conferred by s. 8
CTA upon the Tribunal with respect to civil contempt for breaches of its
orders would not infringe s. 96 of the Constitution Act, 1867 , in
the event it should apply to Parliament.
VI -- Conclusion
I would allow both
appeals. The matter is referred back to the Tribunal for disposition on the
merits.
//McLachlin J.//
The following are
the reasons delivered by
McLachlin
J. (dissenting) --
Introduction
Having read the
reasons of my colleague Justice Gonthier, I find myself in respectful
disagreement. My review of the authorities leads me to the conclusion that the
Court below correctly concluded that Parliament did not confer jurisdiction
over contempt ex facie curiae on the Competition Tribunal.
These appeals are a
simple exercise in statutory interpretation; they are subject to and determined
by the principles governing the construction of federal statutes. The issue is
not whether the Court is of the opinion that the Competition Tribunal should
be given the power to punish as contempt a violation of a final order under
Part VIII of the Competition Act, R.S.C., 1985, c. C-34 , nor whether
extending this power to the Tribunal would seriously undermine the exclusive
jurisdiction accorded superior courts by the common law. The issue is rather
whether Parliament, in constituting the Competition Tribunal an inferior court,
has clearly and expressly conferred on the Tribunal the power to punish
contempt not only in facie (in the face of the court) but ex facie
curiae (outside the presence of the court), a power traditionally reserved
to the superior courts of record.
I dissent from the
judgment of my colleague Gonthier J. for three fundamental reasons. First, I
see no justification for departing from the common law presumption that
inferior courts, absent clear and express legislation to the contrary, are
strictly limited in their jurisdiction to the punishment of contempt in the
face of the court. Application of this presumption to ambiguous legislation
leads to the conclusion that Parliament did not intend to confer upon the
Tribunal the power to punish for contempt outside the presence of the court,
and indeed that Parliament may have relied upon the presumption in drafting s.
8 of the Competition Tribunal Act, R.S.C., 1985, c. 19 (2nd Supp .)
(hereinafter the "Act ").
Second, and in the
alternative, my reading of the text of s. 8 of the Act leads me to conclude
that, quite apart from the presumption, the proper construction of the
legislation is that no general contempt power nor a specific power to enforce
final orders via contempt was conferred, as the court below held (per
Iacobucci C.J., as he then was).
Finally, adoption
of Gonthier J.'s reasons makes it necessary, in my view, to consider the
constitutional question of whether Parliament can confer on an inferior
tribunal a power which the Constitution arguably reserves to courts created
under s. 96 of the Constitution Act, 1867 -- a question on which the
parties provided only cursory written and oral submissions.
I proceed below to
enunciate more fully the basis of these three positions.
Analysis
A. The Governing
Presumption
As Gonthier J.
acknowledges in his judgment, the common law is the source of the law of
contempt in every province of Canada; it therefore governs our determination of
these appeals. At common law an "inferior court" such as the
Competition Tribunal is limited in its jurisdiction to the punishment of contempt
in facie curiae absent clear and express statutory language to
the contrary. The appellants bear the burden of establishing that the Act runs
contrary to the common law. To succeed, the appellants must rebut this common
law presumption, not an easy task in any context.
By long tradition,
exercise of the power to punish for contempt of court has been confined to
superior courts. This Court visited this question in Canadian Broadcasting
Corp. v. Quebec Police Commission, [1979] 2 S.C.R. 618 (hereinafter CBC).
In a comprehensive and thorough judgment, Beetz J. for the majority reviewed
the history and policy of the rule which distinguished contempt in the face of
the court from contempt outside the presence of the court, confining the latter
to superior courts. From an historical perspective, he pronounced that at
common law, the power to conduct an inquiry into a contempt committed ex
facie curiae and to punish it "is enjoyed exclusively by the superior
courts". He elaborated (at pp. 627-28):
This
proposition derives from the apparently unanimous, longstanding and consistent
opinion of a great many judges and commentators. The opinions of the judges
are for the most part obiter, but the reason for this is that in English
and Canadian decisions of the last two hundred years, of which there have been
a great many concerning contempt of court, there is so far as I know virtually
no precedent in which a court of inferior jurisdiction has claimed the power to
punish for contempt committed ex facie, and I have found none in which
such a court has exercised it with the approval of a superior court. Superior
courts, on the other hand, have always claimed and exercised this power, as an
inherent power enjoyed by them exclusively. This consistency in usage is more
than just significant; it is decisive. Moreover, when the legislator dealt
with the question, he did so in terms which indicate that he recognized this
usage and intended to sanction it, or at least in terms that in no way
indicated his intention to alter it. Finally, the rule of exclusive
jurisdiction of the superior courts is justifiable in principle.
From the
perspective of policy, Beetz J. concluded (at p. 638):
Such
a rule is moreover justified in principle by the following considerations. The
power to punish for contempt committed ex facie is liable to result in
inquiries which may well involve a lower court in areas which are practically
impossible to define in terms of jurisdiction and completely foreign to its own
area of jurisdiction, which by definition is limited. Such an obstacle does
not arise in the case of a court like the Superior Court, which is a court of
original general jurisdiction (art. 31 C.C.P.) with a priori
jurisdiction, or courts sitting in appeal from decisions of the Superior Court,
which may in general render the decisions which the latter would have
rendered. Moreover, the power to punish a contempt committed ex facie
is necessarily bound up with the superintending and controlling power which only
a superior court may exercise over inferior courts. This controlling power
could become illusory if, in the case of a contempt committed ex facie,
an inferior court had the right to go beyond its own particular field. There
would also be the danger of conflict between the superior and inferior courts,
of the kind that formerly existed in England between the common law and equity
courts. Finally, the inferior courts are not without any means of ensuring
that their lawful orders are observed: as Dorion C.J. notes in Denis,
the superior courts may come to their aid; see also R. v. Davies (supra)
and Re Regina and Monette.
We arrive then at
this conclusion. At common law the power to inquire into and punish contempt
outside the presence of the court has been confined to superior courts. The
restriction is sound, grounded in significant policy considerations.
Parliament can expressly legislate to confer a general contempt power on an
inferior tribunal, subject to the constitutional issue which I will consider
later. But there is a presumption, in construing statutes conferring powers on
inferior tribunals, that they will not be considered to possess the power of
contempt outside the presence of the court unless the language of Parliament is
clear and unequivocal. Dickson J., in CBC, supra, put it this
way (at pp. 647-48):
It
is sufficient ... to state that the powers conferred upon the Police
Commission, given the general limitation at common law upon the contempt powers
of an inferior tribunal, must be strictly interpreted, and a strict
interpretation in this case leads inevitably to the conclusion that such power
was not invested in the Commission. There can be no doubt that the common
law draws a sharp line between the power to punish for contempt committed
outside the presence of the court, and the power to punish where the contempt
is committed in the face of the court. In the discussion following his fourth
proposition, Mr. Justice Beetz demonstrates that it is possible to read the
relevant statutory provisions affecting the Police Commission's contempt powers
in a manner which maintains the common law distinction. In the absence of
clear statutory language expressing an intention to confer broader contempt
powers upon the Commission, it must be presumed that the Legislature granted to
the Commission only those contempt powers ordinarily exercised by an inferior
tribunal. [Emphasis added.]
In short, it is not
enough that it is possible or even desirable that the inferior tribunal have
the power to punish for contempt outside the presence of the court. The
language must be clear. The courts must assume that Parliament was aware of
the well-recognized history of the presumption in drafting the provisions
empowering the inferior tribunal and accordingly, that if Parliament failed to
use language clearly conferring the general contempt power, it did not intend
to confer it. To presume otherwise invites mischievous interference by the
courts in the legislative function and heightens the potential for corruption
of Parliament's intent.
Viewed thus, these
appeals reduce to a single question: does the language in the legislation
empowering the Competition Tribunal clearly confer on the Tribunal the power to
condemn and punish contempt outside the Tribunal proceedings? The answer to
this question is negative, in my view. Indeed, I do not take my colleague
Gonthier J. to suggest that his interpretation of the legislation is the only
interpretation, but rather that it is the better interpretation. The Act
contains no phrase expressly conferring on the Tribunal the power to find and
punish contempt for acts outside the hearing process, and the language used is
entirely consistent with the Tribunal's contempt power being confined to
contempt in the context of Competition Tribunal hearings. One searches in vain
for the clear and unequivocal language required on the principles enunciated in
CBC, supra, to defeat the presumption against the conferral on an
inferior tribunal of the power to condemn and punish for contempt outside
the presence of the court.
Gonthier J. seeks
to avoid this result by finding that the presumption relied on by this Court in
CBC, supra, applies only in cases where the enactment
extinguishes or diminishes the power of a superior court. He states at p. 000
of his reasons:
...
when dealing with common law rules on the jurisdiction of superior courts, it
is important to distinguish between enactments which deprive superior courts of
their jurisdiction, or privative clauses, and enactments which convey part of
the jurisdiction of superior courts to another tribunal, while not
extinguishing the jurisdiction of superior courts. In the former case,
courts have insisted on a narrow construction, since the citizen may be
deprived of a recourse to the superior court (see the line of cases culminating
in Crevier v. Attorney General of Quebec, [1981] 2 S.C.R. 220, where the
rule of strict interpretation is given constitutional significance). In the
latter case, I would think that there is little point in insisting upon precise
formulae to the extent that the intention of Parliament may be thwarted
(see P.-A. Côté, The Interpretation of Legislation in Canada (2nd ed.
1992), at pp. 420-21). Barring constitutional considerations, if a statute,
read in context and given its ordinary meaning, clearly confers upon an
inferior tribunal a jurisdiction that is enjoyed by the superior court at
common law, while not depriving the superior court of its jurisdiction, it
should be given effect. [Emphasis added.]
The restriction of
the presumption to legislation which deprives a superior tribunal of its
powers runs counter to the authorities and to the clear and historical policy
of the common law that quite apart from its effect on superior courts, the
power of contempt outside the presence of the court is one of such
importance to the liberty of the subject that it should be confined to superior
courts, absent clear language to the contrary. Indeed, none of the cases
reviewed in CBC, supra, involve taking away the power of a
superior court. In CBC itself, no power was taken from the superior
tribunal. The issue in such cases has never been the removal of powers of a
superior court, but rather the conferring of such powers on an inferior court
of record.
Gonthier J. also
suggests that CBC, supra, can be distinguished and the
presumption against conferring the power of contempt ex facie curiae
avoided by reason of the fact that the power here at issue is the narrow power
to enforce mandatory and prohibitive orders, made on a Part VIII hearing, by
contempt. This proposition is based on the language of s. 8(2) referring to
the "enforcement of orders". The argument is arguably at odds with
the acknowledgement elsewhere in his reasons that the governing section is s.
8(1), given that s. 8(2) is confined to jurisdiction otherwise established; and
with the broad interpretation he places on the power given to the Tribunal
under s. 8(1). Be that as it may, the fact remains that even on the narrower
interpretation of the power, what is at issue is the power of the Tribunal to
punish contempt outside the presence of the court. In short, narrowing the
issue does not avoid the presumption.
Having concluded
that CBC is distinguishable, Gonthier J. goes on to construe s. 8 as
though the presumption against an inferior tribunal possessing power to punish
for contempt outside the presence of the court did not apply. He finds the
section to be ambiguous, and goes on to choose the interpretation which best
`fits' the administrative framework within which the Tribunal functions, as he
perceives that framework.
My reflections lead
me to a different conclusion. Unable as I am to distinguish CBC from
this case, I see no way to avoid applying the presumption against conferring on
an inferior tribunal the power to punish contempt outside the presence of the
court here. This presumption, combined with the absence of language in the Act
clearly conferring such power on the Competition Tribunal, leads inescapably,
as I see it, to the conclusion that Parliament cannot be taken to have intended
to grant the Tribunal the power to enforce its final orders by punishing for
contempt.
B.Interpretation
of Section 8 , Competition Tribunal Act , Apart from the Presumption
Alternatively, if
the presumption against conferring on an inferior tribunal the power of
contempt outside the presence of the court did not apply, I would
nevertheless conclude that ss. 8 and 9 of the Act , correctly construed, do not
confer that power on the Competition Tribunal. I made the argument above that
the interpretation adopted by Gonthier J. is not the only plausible
interpretation and in the case of ambiguity, the common law presumption of
inferior court jurisdiction must govern; here I argue that the interpretation
adopted by the court below, per Iacobucci C.J., is to be preferred.
I turn first to the
policy and purpose behind Part VIII of the Competition Act in the
context of Parliament's scheme. Section 1.1 and Part VIII of the Competition
Act , read with s. 8 of the Competition Tribunal Act , make it clear
that the Tribunal's role is to act as an impartial adjudicative body. Its task
is to determine the absence or presence of a party's compliance with the
business norms set out in the Competition Act . Having found
non-compliance, the Tribunal is empowered to remedy the situation by issuance
of the mandatory and prohibitive orders authorized by Part VIII. At this
point, as far as the express legislative scheme goes, the formal role of the
Tribunal ends; the Tribunal has no general supervisory power. The task of
enforcement is left to others. Part VIII expressly provides two different
mechanisms by which the Tribunal's orders can be enforced: criminal prosecution
under s. 74 at the behest of the Attorney General; and a private civil action for
damages under s. 36 . Thus the primary role of the Tribunal in the scheme is
seen as that of dispute resolution, and the most natural reading of its
provisions is in this context.
Against this
background, I turn to the language which is said to confer on the Tribunal the
power to enforce its orders by the contempt outside the presence of the court.
For ease of reference I set out ss. 8 and 9(1) of the Act in their entirety:
8. (1) The Tribunal has jurisdiction to
hear and determine all applications made under Part VIII of the Competition
Act and any matters related thereto.
(2)
The Tribunal has, with respect to the attendance, swearing and examination of
witnesses, the production and inspection of documents, the enforcement of its
orders and other matters necessary or proper for the due exercise of its
jurisdiction, all such powers, rights and privileges as are vested in a
superior court of record.
(3)
No person shall be punished for contempt of the Tribunal unless a judicial
member is of the opinion that the finding of contempt and the punishment are
appropriate in the circumstances.
9. (1) The Tribunal is a court of
record and shall have an official seal which shall be judicially noticed.
The first thing to
note is that the power of the Tribunal is confined to applications for the
resolution of disputes under Part VIII of the Act , i.e. to the resolution of
disputes and making of orders, as opposed to their enforcement. The appellant
says that the phrase in s. 8(1) "and any matters related thereto"
extends these powers to enforcement of final orders outside the presence of the
court. But even if it were conceded that this is one way of reading
that phrase, it is not the only way. The phrase can quite naturally be
construed as relating to the application process, which goes no further than to
support the Tribunal's power over contempt in the face of the court. Given the
Tribunal's primary role of dispute resolution, the most natural construction of
the phrase "and any matters related thereto" is that it refers to
interlocutory matters arising in the course of an "application".
We come then to s.
8(2) , which gives the Tribunal the powers of a superior court with respect to
certain matters. Most of the powers referred to here ("the attendance,
swearing and examination of witnesses, the production and inspection of
documents") relate to the conduct of the hearing -- i.e. to the subject
matter of contempt in the face of the court. The appellant relies on
the phrase "enforcement of its orders". But that phrase can be
entirely explained in the context of interlocutory orders made in the course of
the hearing. The appellant also relies on the general phrase that follows:
"and other matters necessary or proper for the due exercise of its
jurisdiction", suggesting that this confers on the Tribunal a power of
contempt outside the presence of the court. But the words
"necessary or proper for the due exercise of its jurisdiction" merely
refer us back to whatever jurisdiction the Tribunal is granted by other
provisions, primarily s. 8(1). These words do not create new jurisdiction.
Thus we must ask, are there other provisions conferring a power to condemn and
punish for contempt outside the face of the court? This brings us back to s.
8(1), which, as we have seen, does not, whether read contextually or literally,
confer such powers.
As for s. 8(3), it
does not purport to deal with the power or jurisdiction of the Tribunal. Its
requirement that the judicial member of the Tribunal concur in any finding of
contempt, relied on by Gonthier J. as an indicator of an intention to confer broad
powers, is completely explicable by reference to the power of contempt in the
face of the court conferred by s. 8(1) and (2) and the exclusive jurisdiction
accorded judicial member(s) of a (Competition Tribunal) Panel over all questions
of law, of which contempt is but one.
In the end, having
regard to the role of the Tribunal in the scheme of the Act and the wording of
s. 8 , I find it impossible to fault the interpretation placed on the section by
the court below, [1990] 2 F.C. 565, per Iacobucci C.J., at pp. 570-72,
which I set out in full:
Proceedings
instituted to punish a party for its failure to obey an order previously made
by the Tribunal under Part VIII of the Competition Act are clearly not
applications under Part VIII of the Competition Act . Nor are they,
in my view, "matters related" to such applications or the hearing and
determination of such applications. The enforcement of an order is certainly a
matter related to that order; it is not, however, related to the application or
its hearing and determination that culminated in the making of that order.
Subsection 8(1) therefore does not define the jurisdiction of the Tribunal as
including the power to punish for failure to comply with the orders made under
Part VIII of the Competition Act .
Subsection
8(2) , at first sight, seems to give that power to the Tribunal since it grants
it all the powers that are vested in a superior court of record with respect
to, inter alia, "the enforcement of its orders". However,
these words must be read in their context. The phrase "the enforcement of
its orders" in the subsection is part of an enumeration of matters that
are said to be "necessary or proper for the due exercise of [the
Tribunal's] jurisdiction". The enforcement of a final order made under
Part VIII of the Competition Act cannot possibly be considered as
necessary or proper for the exercise of the Tribunal's jurisdiction as
described in subsection 8(1) . The expression "enforcement of its
orders" in subsection 8(2) , therefore, refers only to the enforcement of
the many orders that the Tribunal may make in order to ensure that the
applications made under Part VIII of the Competition Act are disposed of
in a fair and rational manner. The enforcement of these orders is certainly
necessary or proper for the due exercise of the Tribunal's jurisdiction.
Finally,
subsection 8(3) also does not help the respondent. Although it refers
expressly to the powers of the Tribunal to entertain contempt proceedings,
there is nothing in the subsection indicating that the extent of the contempt
power is not restricted to contempt in facie curiae. The subsection
shows, however, that the power to punish for contempt was clearly in the mind
of the draftsman of section 8 so that the failure to confer expressly the power
to punish for contempt ex facie cannot be attributed to an oversight.
[Emphasis added.]
The remaining
question is whether the arguments put forward by Gonthier J. prevail over this
interpretation. With the greatest respect, I cannot agree that they do.
Gonthier J.'s first
argument is based on the French version of s. 8(1). He argues that while the
English version of s. 8(1) may not clearly confer the power to commit and
punish for contempt outside the presence of the court, the French version
does. It reads:
8. (1) Le Tribunal entend les demandes
qui lui sont présentées en application de la partie VIII de la Loi sur la
concurrence de même que toute question s'y rattachant.
Gonthier J. argues that, although
"any matters related thereto" in the English text refers directly to
the "hearing and determination" of Part VIII applications, the French
equivalent, "toute question s'y rattachant", clearly pertains to the
word "demandes" (applications) and not to the word
"entend" (to hear). In essence, the French version of s. 8(1) states
that the Tribunal is to hear all applications or "demandes" presented
it under Part VIII, and any questions related to such applications. The
English version, using a different (potentially characterized as more complex
or legalistic) structure, sets out the Tribunal's jurisdiction as limited to hearing
and determining Part VIII applications, and any matters related to this
task.
I have difficulty
seeing how this advances the matter. The reference in the French text of s.
8(1) to "demande", or application, is not necessarily broader than
"hearing and determining". The argument begs the question of what
is meant by "demande". If "demande" is read as referring
to the dispute resolution procedure, as Iacobucci C.J. read it, the
"application" process does not extend to the enforcement of the final
order, with the result that the French wording, like the English, fails to
support the intention to confer the power of contempt outside the presence of
the court.
Moreover, when
faced with an English version that clearly limits the Tribunal's jurisdiction
to matters relating to the "hearing and determination" of an
application and a French version that provides jurisdiction over all questions
related to the "application", the principles of statutory
interpretation demand that the Court accord the section an interpretation in
which both versions are consistent or have a shared meaning. In his
comprehensive treatise on statutory interpretation entitled The
Interpretation of Legislation in Canada (2nd ed. 1992), Prof. P.-A. Côté
sets out the governing rules for bilingual statutes at pp. 275-76):
According
to the principle of internal coherence of the statute, its various parts are
construed so as to eliminate contradictions. This applies particularly when
two versions of the same enactment seem contradictory. The authorities are
unequivocal in declaring that because the two versions are both official,
reconciliation must be attempted:
In
the case of ambiguity, where there is any possibility to reconcile the two, one
must be interpreted by the other.
In
practice, this involves finding a shared or common meaning in the two
enactments. Three possibilities may arise. The versions may be
irreconcilable, in which case other principles of interpretation are
immediately brought to bear. In Klippert v. The Queen, the
phrase "person who ... has shown a failure to control his sexual
impulses" appeared in French as "personne ... qui ... a manifesté une
impuissance à maîtriser ses impulsions sexuelles ...". The two
versions were manifestly irreconcilable; the court favoured the English one
after studying the provision's history.
The
second possibility involves one version that is itself ambiguous, while the
other is plain and unequivocal. A priori, the latter is preferred. For
example, in Tupper v. The Queen, section 295(1) of the Criminal
Code referred, in English, to "any instrument for house-breaking".
The expression was ambiguous, and could mean an instrument capable of being
used as well as one intended to be used for house-breaking. If the
second meaning were adopted, the prosecution would be required to prove not
only that an instrument could be used but that in the circumstances it had been
destined for that purpose. The Supreme Court of Canada resolved the issue by
citing the French version, which it felt clarified the section: "un
instrument pouvant servir aux effractions de maison". The wider meaning
was chosen.
In
such situations, the shared meaning is that of the version which is not
ambiguous. There is a third possibility: one version may have a broader
meaning than another, in which case the shared meaning is the more narrow of
the two.
The
French "tramway" was used to clarify the meaning of the more general
English "railway" in Toronto Railway Co. v. The Queen.
In R. v. Dubois, "chantier public" restricted the
meaning of the more general term "public works". The adjective
"mentioned" had its scope limited by "énumérés" in Pollack
Ltée v. Comité paritaire du commerce de détail. And in Pfizer
v. Deputy Minister of National Revenue and Gravel v. City of
St-Léonard, Justice Pigeon preferred the more restrictive of the two
meanings, which in both cases was derived from the French version.
In this case, we
are faced on the one hand with an English version which by reference to
"hearing and determining" the applications clearly and expressly
limits the Tribunal's jurisdiction; and on the other hand with a French version
which is at best ambiguous. To give the two versions a commonality of meaning
and make them consistent, the Court must interpret the section as limiting the
Tribunal's jurisdiction to any matters related to the hearing and determination
of applications brought under Part VIII of the Competition Act
Reference may also
be had to former s. 8(2)(c) of the Official Languages Act, R.S.C.
1970, c. O-2:
(c)
where a concept, matter or thing in its expression in one version of the
enactment is incompatible with the legal system or institutions of a part of
Canada in which the enactment is intended to apply but in its expression in the
other version of the enactment is compatible therewith, a reference in the
enactment to the concept, matter or thing shall, as the enactment applies to that
part of Canada, be construed as a reference to the concept, matter or thing in
its expression in that version of the enactment that it is compatible
therewith;
Although repealed, the principle of
statutory interpretation upon which this provision was based is maintained
within the common law, providing some assistance to the Court in these
appeals. The principle is simple: where one version of a provision accords
with the accepted principles of the governing legal system, e.g. in a part of
the country or in this case the whole country, and the other version may be
read either to contradict such principle(s) or to accord with such
principle(s), the provision should be given an interpretation which best
protects the continuing integrity of the principle(s) at issue. A strong
presumption exists "that ambiguity should not be resolved in a manner that
would substantially alter an institution or fundamental principle of the common
law or `droit commun'": see M. Beaupré, Interpreting Bilingual
Legislation (2nd ed. 1986), at p. 37. It follows that in so far as a
discrepancy exists between the French and English versions of s. 8(1), it
should be resolved in accordance with the time-honoured presumption in Canada
that an inferior court lacks the jurisdiction to punish contempt ex facie
curiae. As pointed out by Iacobucci C.J., where it is clear the
legislature actually had in mind the contempt power and may be assumed to have
knowledge of the limited jurisdiction of an inferior court of record, the Court
is bound to construe the statute so that it is consistent with the governing
legal system's fundamental principles.
Gonthier J. raises
a second argument in support of his interpretation of s. 8(1). He argues that
unless the phrase "and any matters related thereto"/"toute
question s'y rattachant" is interpreted as conferring the power of
contempt outside the presence of the court, it is redundant. With great
respect, I cannot accept that it follows from the general rule that all parts
of an enactment should if possible be given meaning (Interpretation Act,
R.S.C., 1985, c. I-21, s. 31 ) that the courts are free to confer on an inferior
tribunal a new power which Parliament has failed to mention. The precept that
redundant interpretation should be avoided does not extend so as to give the
courts a mandate to create new powers simply to avoid redundancy. Moreover,
one must approach such general phrases against the background that they are
commonly used in many statutes, not to confer unmentioned powers, but to ensure
that the powers clearly given be exercised without undue restraint. It is
true, as Gonthier J. points out, that ancillary powers can be inferred and need
not be set out. Yet the reality is that statutes commonly do set them out, if
only in the hope of avoiding arguments seeking to unduly restrict the effective
exercise of expressly conferred powers. Many statutes conferring powers on
inferior tribunals use such language. For example, the Canadian International
Trade Tribunal ("CITT") by s. 16 of the Canadian International
Trade Tribunal Act, R.S.C., 1985, c. 47 (4th Supp .), is given jurisdiction
to: "(c) hear, determine and deal with all appeals that, pursuant
to any other Act of Parliament or regulations thereunder, may be made to the
Tribunal, and all matters related thereto". Are we to infer in
each case that Parliament intended to confer the historically anomalous power
of contempt ex facie curiae on each of these tribunals in order to give
some meaning to the statute? I think not. Given the relatively common use of
phrases like "and all [or any] matters related thereto" in
legislative drafting, I do not find this argument persuasive.
With respect to s.
8(2), Gonthier J. relies heavily on inclusion of the phrase "enforcement
of [the Tribunal's] orders". However, as seen above, given the emphasis
in s. 8(2) on the evidence-gathering powers of the Tribunal, it is equally if
not more plausible to interpret this phrase as referring to interlocutory
orders made in the course of the hearing, an interpretation which fits with the
traditional distinction between the power of contempt in the face of the court,
frequently accorded to inferior tribunals, and the quite different power to
punish for contempt outside the presence of the court, seldom accorded to
inferior tribunals.
With respect to s.
8(3), Gonthier J. acknowledges that taken alone, the reference to contempt is
not indicative of the extent of the powers of the Tribunal. For him, the
determinative factor is s. 8(3)'s requirement that a finding of contempt and
choice of punishment be approved by a judicial member of the Panel.
This requirement is said to evidence an intention to accord the Tribunal
contempt powers going beyond those which an inferior tribunal would ordinarily
exercise.
The short answer to
this argument is that the approval by a judicial member of the Tribunal is
equally compatible with the view that the Tribunal's contempt power is confined
to contempt in the face of the court as with the view that it extends to
contempt outside the presence of the court. The narrower interpretation,
although less invasive than the broader, nevertheless involves questions of law
which may affect the liberty of the subject. In these circumstances, it makes
sense to require approval of the judicial member even on the narrower version,
particularly where such judicial member(s) has been granted exclusive
jurisdiction over all questions of law arising in a Part VIII
application. I do not take my learned colleague to suggest that Parliament included
judicial officers in the Tribunal primarily to supervise its exercise of a
`special' power over contempt ex facie. Thus, it is quite possible,
indeed probable, that reference to such officers in s. 8(3) has no bearing on
the question of Parliament's intention. The decision by Parliament to confer
this power exclusively upon the "judicial" member(s) of a given Panel
may reflect its concern with the danger of providing non-judicial personnel
with the power to punish contempt in the face of the court where
unnecessary.
Gonthier J. argues
that the effective functioning of the legislative scheme requires that the
Tribunal be accorded the power to condemn and punish, as contempt, the
violation of its final orders outside the presence of the court. In his view,
the regulatory scheme embodied in the Competition Act and the Competition
Tribunal Act demands that the Tribunal have jurisdiction to enforce its
orders via contempt in order to give effect to the legislation's objectives.
In the words of s. 12 of the Interpretation Act , referred to by Gonthier
J., the Court should accord the Act a remedial interpretation that "best
ensures the attainment of its [the statute's] objects." Parliament, it is
argued, must have intended that the Tribunal's Part VIII orders be effective.
The assumption is
that absent a power in the Tribunal to punish contempt of its Part VIII
orders, such orders are ineffective, i.e. there are no other means to secure
compliance. In my opinion, this assumption is unwarranted. The Act provides a
variety of remedies for the enforcement of the Tribunal's Part VIII orders.
Section 74 makes it
an offence to fail to comply with the order of the Tribunal. The Attorney
General of Canada is empowered, under ss. 73 and 74 of the Competition Act ,
to enforce the Tribunal's Part VIII orders; she may prosecute the violation of
an order, seeking the imposition of sanctions (penal and monetary) in a
provincial superior court, or she may seek such sanctions in the Federal Court,
Trial Division, on consent.
Gonthier J. argues
that this provision differs from enforcement by means of the ex facie
contempt power, in that it provides for definite fines and prison terms and
lacks the flexibility of the power of contempt outside the court. Be that as
it may, it does not support the assumption that without the power of contempt
outside the court, the Tribunal will be disadvantaged. In fact it has at its
disposal statutory quasi-criminal remedies remarkably similar to, although
perhaps more restricted than, the contempt power traditionally confined to
superior courts. It does not follow from the fact that Parliament has chosen
to circumscribe the means of criminal enforcement at the Tribunal's disposal
that the Tribunal should be accorded the broader common law power of contempt ex
facie. On the contrary, I would think the inference should be the
opposite, namely that Parliament considered the matter, and gave the Tribunal
the means to ensure, in a quasi-criminal context, the power of enforcement of
its final orders that Parliament thought it should possess. I do not share
Gonthier J.'s view that these provisions are directed at punishment rather than
"securing compliance" (p. 000), nor understand how, if this were the
case, it would distinguish the quasi-criminal remedies of the Act from contempt
outside the presence of the court. In either case, enforcement and punishment
are inextricably intertwined.
In addition to
these quasi-criminal remedies, the Act provides that a private party may sue
the offending party for damages suffered as a result of the violation of the
Tribunal's order, pursuant to s. 36 of the Competition Act . Indeed, s.
36(2) provides that a finding of non-compliance in another proceeding, e.g.
brought by the Attorney General of Canada under s. 74 , is sufficient proof of
the defendant's non-compliance with the Tribunal's order; thus, only the
complainant's damages remain to be assessed.
In extending the
power to punish the violation of a Part VIII order to the Tribunal as well as
in answer to the above options, Gonthier J. relies, inter alia, on the
absence of an express provision for the enforcement of these orders by the
Federal Court, a provision present in other Acts to which he refers us (see p.
000). I fail to see how the absence of an express provision for filing the
Tribunal's Part VIII orders with the Federal Court, or any other superior
court, is either determinative or relevant to the question under
consideration. First, Parliament may be assumed to know of the residual
jurisdiction of the superior courts, which arguably permits enforcement through
the courts by way of contempt: CBC, supra, at pp. 636 and 638, per
Beetz J. Second, it is equally persuasive to argue that this so-called
"lacuna" in the legislation indicates Parliament's intention that the
Tribunal's orders be enforced only through the means provided in ss. 73 and 74
and s. 36 of the Competition Act . Such a lacuna does not, in my
respectful opinion, evidence an intent to confer upon the Tribunal jurisdiction
over contempt ex facie.
I note, in
addition, that express provision for filing appears in a number of regulatory
schemes but does not appear in others. A comparative examination of the
tribunals (and their enabling legislation) expressly directed to a superior
court for the enforcement of their orders with those tribunals which are not so
directed evidences no pattern of subject matter (e.g. degree of national
importance) nor adjudicative structure which would lend support to the argument
that Parliament intended that some tribunals have resort to superior courts to
enforce their orders while others are empowered to enforce their orders via a
power over contempt ex facie. Absent convincing evidence that the
failure to expressly include this common law right (to seek enforcement
from a superior court) indicates a legislative intent to accord a tribunal
certain special powers, I am of the opinion that Parliament did not intend that
the Competition Tribunal exercise jurisdiction over contempt ex facie.
Gonthier J. also
argues that, given the complexity inherent in monitoring and enforcing Part
VIII orders, the methods expressly chosen by Parliament to enforce its policies
(criminal and civil enforcement, outlined above) lead to a "corresponding
loss of effectiveness", i.e. the expertise of the Tribunal is lost. I
make three points in response.
First, if the
methods of enforcement which Parliament has chosen are defective, it is for
Parliament and not the courts to rectify them.
Second, no evidence
was placed before the Court which established either the complexity or
non-complexity of orders typically made by the Tribunal under Part VIII, or the
alleged "loss of effectiveness" of the Tribunal. The actual order at
issue in this case was simple and easily enforced: Chrysler Canada Ltd. was
ordered to sell its parts to Mr. Richard Brunet on trade terms `usual and
customary' to its relationship with Mr. Brunet. The Tribunal, in its
determination of the application, may define such "terms"; quick
reference could be had to such definition by a superior court seeking to
enforce the Tribunal's order. There is no suggestion that the particular expertise
of the Tribunal was required for its enforcement, nor any evidence that the
powers of enforcement expressly set out in the Act were inadequate to the task.
Third, the Act ,
while not (theoretically) conferring on the Tribunal the power to initiate
proceedings for the enforcement of its final orders, permits access to the
Tribunal's expertise in the process of enforcement. In a criminal proceeding
under s. 74 , the prosecutorial arm of the government may utilize the Tribunal's
expertise to assist the court. In a contempt proceeding before a superior
court, if it is the Director who is seeking enforcement of a Part VIII order,
the Director may, as the Attorney General of Canada may with s. 74 , use the
Tribunal's expertise. If the Tribunal brings the contempt motion, the Tribunal
itself may provide assistance to the court as a party. Finally, the Tribunal
may be able to seek and obtain the status of an intervener in the criminal
proceedings under s. 74 (by application, for example, of r. 2 of the Ontario
Supreme Court Rules Respecting Criminal Proceedings -- Part I,
SI/85-152); on a motion for contempt to a superior court; or on a civil action
under s. 36 . For example, if the prosecution, action or motion is before the
Ontario Court, General Division, a motion for leave to intervene simpliciter
may be made under r. 13.01 or the Tribunal may seek leave to intervene as a
"friend of the court" under r. 13.02, Rules of Civil Procedure,
O. Reg. 560/84. See, for example, Vachliotis v. Exodus Link Corp.
(1987), 23 C.P.C. (2d) 72 (Ont. Master) in which the city of Toronto was
granted intervener status where the interpretation of one of its zoning by-laws
was at issue. Similarly, leave to intervene in the Federal Court may be
available to a party such as the Tribunal under r. 1716 of the Federal Court
Rules, C.R.C. 1978, c. 663. Given these options, it is clear that the
Tribunal's expertise would not necessarily `go to waste' in the absence of
power to directly enforce its final orders via a power over contempt ex
facie.
In summary, I
remain unpersuaded that the arguments advanced in support of the proposition
that s. 8 confers on the Tribunal the power to convict and punish for contempt
outside the presence of the Tribunal establish that the interpretation of the
Court below was wrong. On the contrary, the wording of s. 8 and the role of
the Tribunal in the statutory scheme support the conclusion that Parliament did
not intend to confer on the Tribunal the power to enforce its final orders by
the general power to find and punish contempt outside its presence.
C. Section
96 of the Constitution Act, 1867
The respondent
correctly noted in its factum that the Court, should it choose to allow the
appeals, would be called upon to determine whether Parliament is
constitutionally empowered to enact s. 8 of the Competition Act . In
other words, the Court must ensure that Parliament has the competence, under
ss. 96 to 101 of the Constitution Act, 1867 , to confer superior court
powers upon administrative appointees.
Neither of the
appellants addressed this question in their written materials; the respondent
makes only cursory reference to it in its factum. Nor did the Trial Division
or the Court of Appeal below address this issue. This Court heard only brief and
generalized oral submissions on it. The dearth of materials before the Court
on such an important constitutional issue, coupled with the conclusion at which
I have arrived on the main issue in these appeals, dictate a cautious approach,
following the lead of Dickson J. in CBC, supra. My remarks are
accordingly brief.
Gonthier J. avoids
the difficult s. 96 issue by using a more generous application of the third
branch of the test set out by this Court in Re Residential Tenancies Act,
1979, [1981] 1 S.C.R. 714, than I would be inclined to adopt. In that case
this Court held that s. 96 constitutes no bar to vesting s. 96 judicial powers
in an inferior tribunal provided three tests were met: (1) the power in
question is broadly conformable to the powers of s. 96 courts at the time of
Confederation; (2) the power is a "judicial power"; and (3) the power
is "necessarily incidental" to the achievement of a broader policy
objective by the government: see Reference re Young Offenders Act (P.E.I.),
[1991] 1 S.C.R. 252, at pp. 276-77. In essence, provinces are empowered to
vest ancillary judicial powers formerly exercised by s. 96 courts (exclusively)
so long as the judicial or quasi-judicial function bestowed is a necessary part
of an otherwise valid administrative structure. Accepting, as my learned
colleague does, that the power to punish for contempt outside the presence of
the court is a s. 96 judicial power, the question is whether the grant of the
power is "necessarily incidental" or "essential" to the
functioning of the Tribunal. Gonthier J. so finds, concluding that
"[o]nly a specialized tribunal such as the Tribunal can properly ensure
the enforcement of the orders it makes" (p. 000).
In my view, the
record does not support such a broad and categorical conclusion. As already
noted, the Act provides a variety of methods of enforcing the final orders of
the Tribunal: see supra at pp. 000-00. There is no evidence before us
supporting the proposition that these methods are inadequate, much less that
supplementing them with the power to punish for contempt outside the presence
of the court is essential or necessarily incidental to the Tribunal's
functioning. Nor has Parliament clearly said the power is necessary; the
language relied on for the power is at best ambiguous and stands in sharp
contrast to the express language in which the other methods of enforcement
envisaged by Parliament are set out.
If the case cannot
be brought within the Residential Tenancies analysis, the s. 96 question
of whether empowering federally appointed members of the Competition Tribunal
with jurisdiction to punish contempt outside the presence of the court must be
met directly. This casts us into new waters, for the most part uncharted.
None of the
governing authorities are particularly helpful. Neither Re Residential
Tenancies Act, 1979, supra; McEvoy v. Attorney General for New
Brunswick, [1983] 1 S.C.R. 704; Sobeys Stores Ltd. v. Yeomans,
[1989] 1 S.C.R. 238, nor Reference re Young Offenders Act (P.E.I.), supra,
assess whether the focus of ss. 96 to 101 is the protection of the federal
executive's exclusive right to control and supervise persons exercising the
"core jurisdiction" of a superior court of record, or whether
the focus of ss. 96 to 101 is the broader principle that statutory bodies, both
provincial and federal, should not be allowed to usurp the
"judicial" function reserved to those (special) bodies accorded the
general jurisdiction of a superior court of record. The absence of a focused
argument, coupled with the absence of judicial consideration of this issue in
the courts below as well as in the authorities cited supra, militates
against any pronouncement by the Court on this question of fundamental
constitutional significance. Fortunately, my conclusion on the primary ground
of appeal herein provides me with the option of waiting for another day to
address this important issue. In the circumstances, I believe it wise to
exercise this option.
Disposition
I would dismiss the
appeals and affirm the decision of the Court below.
Appeals allowed, McLachlin
J. dissenting.
Solicitors for the
appellant Competition Tribunal: Johnston & Buchan, Ottawa.
Solicitor for the
appellant Director of Investigation and Research: The Deputy Attorney General
of Canada, Ottawa.
Solicitors for the
respondent Chrysler Canada Ltd.: Perley‑Robertson, Panet, Hill &
McDougall, Ottawa.