Date: 20041115
Docket: A-21-04
Citation: 2004 FCA 383
Québec, Quebec, November 15, 2004
CORAM: LÉTOURNEAU J.A.
NOËL J.A.
NADON J.A.
BETWEEN:
JEAN-MICHEL TESSIER
Appellant
and
CANADA PORTS CORPORATION
Respondent
Hearing held at Québec, Quebec on November 15, 2004.
Judgment delivered from the bench at Québec, Quebec on November 15, 2004.
REASONS FOR JUDGMENT OF THE COURT: LÉTOURNEAU J.A.
Date: 20041115
Docket: A-21-04
Citation: 2004 FCA 383
Québec, Quebec, November 15, 2004
CORAM: LÉTOURNEAU J.A.
NOËL J.A.
NADON J.A.
BETWEEN:
JEAN-MICHEL TESSIER
Appellant
and
CANADA PORTS CORPORATION
Respondent
REASONS FOR JUDGMENT OF THE COURT
(Delivered from the bench at Québec, Quebec on November 15, 2004)
LÉTOURNEAU J.A.
[1] We consider that this appeal cannot succeed regardless of the classification of the payment of $366,243.12 made in favour of the appellant to buy back years of service, as that payment was not authorized.
[2] If it was remuneration, the payment had to be authorized by the Privy Council as indicated in the following resolution of the respondent's board of directors, dated March 22, 1995, and this was not the case:
On a motion duly made and adopted, it was
RESOLVED THAT
The Acting Chairman be authorized to pursue the overall compensation of the Canada Ports Corporation President and Chief Executive Officer and make appropriate recommendations for subsequent approval by Privy Council Office.
[3] Furthermore, if the payment was a benefit rather than remuneration, it had to be authorized by the respondent's board of directors under subsection 108(2) of the Financial Administration Act, R.S.C. 1985, c. F-11 (the Act):
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Remuneration
108. (1) The rate of any remuneration paid to a director, chairman or chief executive officer of a parent Crown corporation for his services in respect of that office and, in the case of a chairman or chief executive officer, any other office of the corporation or an affiliate thereof shall be fixed by the Governor in Council.
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Rémunération
108. (1) Le barème de rémunération des administrateurs, du président et du premier dirigeant d'une société d'État mère, au titre de ces fonctions et, dans le cas du président ou du premier dirigeant, d'autres fonctions auprès de la société ou d'une personne morale du même groupe, est fixé par le gouvernement en conseil.
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Other benefits
(2) Any benefits, other than remuneration, provided to a director, chairman or chief executive officer of a parent Crown corporation for his services in respect of that office and, in the case of a chairman or chief executive officer, any other office of the corporation or an affiliate thereof shall be fixed by the board of directors of the corporation in accordance with the regulations.
[Emphasis added.]
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Autres avantages
(2) Les autres avantages que reçoivent les administrateurs, le président et le premier dirigeant d'une société d'État mère, au titre de ces fonctions, et, dans le cas du président ou du premier dirigeant, d'autres fonctions auprès de la société ou d'une personne morale du même groupe, sont fixés par le conseil d'adminis-tration de la société en conformité avec les règlements.
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No resolution to this effect was entered in evidence.
[4] Moreover, the payment authorization issued by the acting chairperson on May 31, 1995, clearly exceeds the mandate conferred by the above-cited resolution of the board of directors, which was to examine the issue of buying back years of service and make a recommendation to the Privy Council.
[5] Finally, we see no merit in the appellant's argument that the lack of a payment authorization is not enforceable against him, since he was not a third party within the meaning of section 102 of the Act, and in any case he knew or should have known of the statutory and regulatory requirements applicable to such a payment.
[6] For these reasons, the appeal shall be dismissed with costs.
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"Gilles Létourneau"
J.A.
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Certified true translation
Kelley Harvey, BCL, LLB
FEDERAL COURT OF APPEAL
SOLICITORS OF RECORD
DOCKET: A-21-04
STYLE OF CAUSE: JEAN-MICHEL TESSIER v. CANADA PORTS CORPORATION
PLACE OF HEARING: QUÉBEC, QUEBEC
DATE OF HEARING: NOVEMBER 15, 2004
CORAM: LÉTOURNEAU J.A.
NOËL J.A.
NADON J.A.
REASONS FOR JUDGMENT LÉTOURNEAU J.A.
OF THE COURT BY:
DATE OF REASONS: NOVEMBER 15, 2004
APPEARANCES:
Louis Masson/André Joli-Coeur FOR THE APPELLANT
Patrick Vézina/Bernard Letarte FOR THE RESPONDENT
SOLICITORS OF RECORD:
Joli-Coeur, Lacasse, Geoffrion, Jetté, Saint-Pierre FOR THE APPELLANT
Québec, Quebec
Department of Justice Canada FOR THE RESPONDENT
Ottawa, Ontario
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