A-537-99
Canadian National Railway Company (Appellant)
v.
Mark Brocklehurst/Carol Syrnyk, Alison J. Burnham,
Tessa M. Chalmers, Rob Kerr, Peter & Margaret Krysmanski,
Mary Kay Martin, Peter D. Pellier
(Respondents)
A-729-99
Canadian National Railway Company (Appellant)
v.
Randy and Sue Taylor (Respondents)
A-741-99
Norfolk Southern Railway Company (Appellant)
v.
Randy and Sue Taylor (Respondents)
Indexed as: Canadian National Railway
Co.v. Brocklehurst
(C.A.)
Court of Appeal, Richard C.J., Décary and Sexton
JJ.A.--Ottawa, November 7 and December 7, 2000.
Transportation
-- Canadian Transportation Agency's jurisdiction -- Appeals
from Agency orders relating to complaints about noise from
railway yards -- Appeals allowed on ground Agency not having
jurisdiction to deal with such complaints -- Agency relying
on combined effect of 1996 Canada Transportation Act, ss. 37,
95 in asserting jurisdiction -- S. 37 giving Agency
jurisdiction over anything prohibited, sanctioned, required
under any Act administered in whole or part by Agency -- S.
95 enumerating "general powers" of railway company -- Neither
referring to nor giving any power to Agency -- When
Parliament intended to give Agency jurisdiction, did so
expressly -- Cannot assume absence of reference to Agency in
s. 95 not intended -- S. 95 not implicitly conferring some
jurisdiction on Agency -- Not conferring jurisdiction on
Agency with respect to noise complaints -- Agency arguing
shunting railway cars, idling locomotives necessary for
operation of railway, within s. 95(1)(e); s. 95(2) requiring
as little damage as possible; s. 26 giving Agency
jurisdiction to require railway companies to make as little
noise as possible -- Argument s. 95 enumerating all powers of
railway companies ignoring long history, evolution of
Canadian rail transportation legislation which distinguished
between provisions granting "general powers" for purpose of
constructing railway, those regulating day-to-day operations
-- Under new Act, Agency no longer exercising control over
day-to-day operations of railway companies, general powers of
railway companies no longer described in railway, special
acts, s. 95 couched in terms similar to predecessors --
Agency's role diminished -- Obligation to do as little damage
as possible related to "general powers" -- Powers enumerated
in s. 95(1)(a) to (d) relating to use of adjoining lands by
railway companies; not to use, enjoyment of those lands by
owners, occupiers -- Unnecessary if s. 95(1)(e) omnibus
provision encompassing all possible powers needed for
day-to-day activities of railway company -- S. 95(1) not
addressing liability of railway companies arising out of
day-to-day operations -- Noise complaints not relating to
exercise by appellants of general powers.
Railways
-- Appeals from Canadian Transportation Agency orders
relating to complaints by residents concerning noise from
railway yards -- Agency not having express, implied
jurisdiction to hear such complaints -- History, evolution of
Canadian rail transport legislation examined -- Distinction
between provisions granting "general powers" to railway
companies for purpose of constructing railway, those
regulating day-to-day operations -- Under 1996 Canada
Transportation Act, Agency no longer exercising control over
day-to-day operations of railway company, general powers of
railway companies no longer described in railway, special
acts, s. 95 couched in terms similar to predecessors --
Agency's role diminished -- S. 95 not addressing liabilities
of railway companies arising out of day-to-day operations --
Noise complaints not relating to exercise of general powers
-- Complainants could sue at common law for nuisance.
These were appeals from Canadian Transportation Agency
orders relating to complaints by residents concerning noise,
smoke and vibrations caused by shunting railway cars in
railway yards. Prior to the coming into force of the
Canada Transportation Act in 1996, where no lands had
been taken, a person could only advance a complaint about
railway smoke, noise or vibrations through a common law
action of nuisance. The Agency's predecessors therefore never
asserted jurisdiction over such complaints. In asserting
jurisdiction now, the Agency and the respondents relied on
the combined effect of sections 95 and 37 of the 1996 Act.
Section 37 permits the Agency to determine a complaint
concerning anything prohibited, sanctioned or required to be
done under any Act of Parliament that is administered in
whole or in part by the Agency. Subsection 95(1) permits a
railway company to exercise the powers enumerated therein,
including "anything else necessary for the construction or
operation of the railway" (paragraph 95(1)(e)).
Subsection 95(2) provides that the railway company shall do
as little damage as possible in the exercise of the powers.
Subsection 95(3) requires the railway company to restore as
nearly as possible to its former condition anything mentioned
in paragraph 95(1)(b) or (d) that it diverts or
alters. And subsection 95(4) requires a railway company to
pay compensation to a person who sustains loss or damage from
the exercise of the powers.
The issue was whether the Canadian Transportation Agency
had jurisdiction to deal with the complaints herein.
Held, the appeals should be allowed and the orders
appealed from quashed for lack of jurisdiction.
Per Décary J.A. (Richard C.J. and Sexton
J.A. concurring): Since the question addressed was one of
pure jurisdiction, no deference was owed to the view of the
Agency.
The Agency argued that whenever the Agency administers
part of an Act it is deemed to be administering the entire
Act, and is the appropriate authority unless the Act
expressly says otherwise. The 1996 Act does not confer on the
Agency the power to administer the whole Act. Section 95
defines the "general powers" which a railway company may
exercise, but neither refers to the Agency nor gives any
power to it. When Parliament intended to give the Agency
jurisdiction over parts of a statute, it did so expressly.
The 1996 Act, the Railway Safety Act and the
Railway Relocation and Crossing Act were drafted with
such minute detail in so far as the jurisdiction of the
Agency is concerned that it cannot be assumed that the
absence of any reference to the Agency in section 95 was not
intended. Section 95 does not implicitly confer some
jurisdiction on the Agency.
But even if section 95 conferred some jurisdiction on the
Agency, it did not vest the Agency with jurisdiction over
noise complaints. The respondents and the Agency argued that
the general powers of a railway company are all enumerated in
subsection 95(1) and that, as shunting or idling railway cars
and locomotives are "necessary for the . . .
operation of the railway", such activities are captured by
paragraph 95(1)(e). As railway companies "shall do as
little damage as possible" pursuant to subsection 95(2),
making as little noise as possible becomes something that
they are required to do and the Agency has jurisdiction
pursuant to section 26 (the Agency may require a person to
refrain from doing any thing that the person is prohibited
from doing under any Act) to require railway companies to
make as little noise as possible. This argument ignores the
history and evolution of Canadian rail transportation
legislation when it suggests that section 95 contemplates all
the powers that are exercised by railway companies.
Throughout its long history, Canadian railway legislation has
distinguished between provisions granting "general powers" to
railway companies for the purpose of constructing a railway,
and provisions regulating the day-to-day operations of a
railway company. But under the new Act the Agency no longer
exercises control over the day-to-day operations of railway
companies, the general powers of railway companies are no
longer all described in railway acts or in special acts, and
section 95 is couched in terms similar to those of the
provisions it replaces. All these factors point to a
diminished role for the Agency. The obligation of a railway
company "to do as little damage as possible", to restore "as
nearly as possible" and to pay "compensation" has always been
and still is related to the exercise by a railway company of
its listed "general powers".
The suggested interpretation of paragraph 95(1)(e)
whereby "do anything else necessary for the construction or
operation of the railway" would encompass day-to-day
operations such as shunting of railway cars and idling of
locomotives, is contrary to the context of the legislation,
and to a literal interpretation of section 95. Paragraphs
(a), (b) and (d) refer only to works
done "across or along the railway" and paragraph (c)
refers only to water works "through or under land adjoining
the railway". In this context, "anything else necessary" in
paragraph 95(1)(e) refers to any other type of work
that needs to be done across, along, or under a railway to
enable the company to construct a railway and then be in a
physical position to operate it. The powers enumerated in
paragraphs 95(1)(a) to (d) relate to the use of
adjoining lands by railway companies; not to the use or
enjoyment of use of those lands by their owners or occupiers.
Paragraphs (a) to (d) would not be necessary if
paragraph (e) was an omnibus provision encompassing
all possible powers needed for the day-to-day activities of a
railway company. Subsection 95(1) is not intended to address
the issue of the liability of railway companies arising out
of their day-to-day operations. Complainants, such as the
respondents, still have to proceed by way of common law
actions for nuisance if they allege that a railway company is
causing excessive noise by its day-to-day operations.
Even if the Agency could entertain complaints relating to
the exercise by railway companies of their general powers
under section 95, the complaints at issue do not relate to
the exercise by the appellants of these powers. The Agency
had no jurisdiction to hear the complaints and to issue the
impugned orders.
statutes and regulations
judicially considered |
Canada
Business Corporations Act, R.S.C., 1985, c.
C-44. |
Canada
Transportation Act, S.C. 1996, c. 10, ss. 26, 37,
41, 90, 95, 98, 101, 102, 112, 117-125, 127-139,
140(2), 145(5), 156, 157, 159-172, 177-181. |
Municipal
Act, R.S.B.C. 1996, c. 323. |
National
Transportation Act, S.C. 1966-67, c. 69. |
National
Transportation Act, 1987, S.C. 1987, c. 34. |
Transport
Act, 1938 (The), S.C. 1938, c. 53. |
Railway
Act, R.S.C. 1906, c. 37, ss. 151, 154, 155. |
Railway
Act, R.S.C. 1927, c. 170, ss. 162, 163, 164, 287,
290. |
Railway
Act, R.S.C. 1952, c. 234, ss. 164, 165, 166, 290,
293. |
Railway
Act, R.S.C. 1970, c. R-2, ss. 102, 103, 104, 227,
230. |
Railway
Act, R.S.C., 1985, c. R-3, ss. 106, 107, 108, 230,
233. |
Railway
Act (The), S.C. 1888, c. 29, ss. 90, 91, 92,
214. |
Railway
Act (The), 1903, S.C. 1903, c. 58, ss. 25, 30, 118,
119, 120, 243, 307. |
Railway
Act, 1919 (The), S.C. 1919, c. 68, ss. 162, 163,
164, 287, 290, 293(1). |
Railway
Relocation and Crossing Act, R.S.C., 1985, c. R-4,
s. 3 (as am. by R.S.C., 1985 (3rd Supp.), c. 28, s.
359), 14 (as am. idem), 15 (as am.
idem). |
Railway
Safety Act, R.S.C., 1985 (4th Supp.), c. 32, ss. 3
(as am. by S.C. 1999, c. 9, s. 1), 16 (as am. by S.C.
1996, c. 10, s. 264; 1999, c. 9, s. 10), 24(2), 25(3)
(as am. idem, s. 20), 26 (as am. by S.C. 1996,
c. 10, s. 266). |
cases judicially
considered |
Metropolitan
Toronto (Municipality) v. Canadian National Railway
Co., [1998] 4 F.C. 506; (1998), 229 N.R. 386
(C.A.); Pushpanathan v. Canada (Minister of
Citizenship and Immigration), [1998] 1 S.C.R. 982;
(1998), 160 D.L.R. (4th) 193; 11 Admin. L.R. (3d) 1; 43
Imm. L.R. (2d) 117; 226 N.R. 201; Nanaimo (City) v.
Rascal Trucking Ltd., [2000] 1 S.C.R. 342; (2000),
183 D.L.R. (4th) 1; [2000] 6 W.W.R. 403; 132 B.C.A.C.
298; 76 B.C.L.R. (3d) 201; 9 M.P.L.R. (3d) 1; 251 N.R.
42. |
Ryan
v. Victoria (City), [1999] 1 S.C.R. 201; (1999),
168 D.L.R. (4th) 513; 117 B.C.A.C. 103; 50 M.P.L.R.
(2d) 1; 40 M.V.R. (3d) 1; 234 N.R. 201. |
Canadian
Pacific Ltd. v. Canada (National Transportation
Agency), [1992] 3 F.C. 145; (1992), 144 N.R. 235
(C.A.); Duthie v. Grand Trunk R.W. Co. No. 220
(1905), 4 C.R.C. 304 (Board of Railway Commissioners);
Holditch v. Canadian North. Ont. R. Co. (1916),
27 D.L.R. 14; [1916] 1 A.C. 536; 2 C.R.C. 101 (P.C.);
Powell v. Toronto, Hamilton and Buffalo R. W.
Co. (1898), 25 O.A.R. 209 (C.A.); Canadian
Pacific Railway Co. v. Albin (1919), 59 S.C.R. 151;
49 D.L.R. 618; [1919] 3 W.W.R. 873. |
House
of Commons Debates (26 March 1996). |
APPEALS from Canadian Transportation Agency orders
relating to noise, smoke and vibrations complaints on the
ground that the Agency lacked jurisdiction to deal with such
complaints under the Canada Transportation Act which
came into force into 1996. Appeals allowed.
William G. McMurray
for appellant in A-537-99 and A-729-99. |
Paul F. Monahan and
Ian C. Whan Tong for appellant in A-741-99. |
William V. Sasso and
Lloyd Lipsett for respondents in A-537-99. |
No one appearing for
respondents in A-729-99 and A-741-99. |
Ron Ashley and
Claude Delmar for intervener in A-537-99,
A-729-99 and A-741-99. |
Canadian National
Railways, Montréal, for appellant in
A-537-99 and A-729-99. |
Fasken Martineau
Dumoulin LLP, Toronto, for appellant in
A-741-99. |
McMillan Binch,
Toronto, for respondents in A-537-99. |
Canadian Transportation
Agency for intervener in A-537-99, A-729-99 and
A-741-99. |
The following are the reasons for judgment rendered in
English by
[1]Décary J.A.: The issue in these appeals is
whether, under the new Canada Transportation Act which
came into force in 1996 ( S.C. 1996, c. 10) (the 1996 Act),
the Canadian Transportation Agency (the Agency) has
jurisdiction to deal with complaints concerning noise, smoke
and vibrations resulting from duly authorized railway
operations. Other issues which pertain to the nature of
particular orders made by the Agency were raised in the event
the Agency was found by this Court to have jurisdiction. As I
have found that the Agency has no jurisdiction, I will not
deal with these other issues.
THE FACTS
[2]These three appeals have been heard together, as they
raise substantially the same legal questions. They relate to
two orders made by the Agency, the first one, on March 8,
1999 (order No. 1999-R-123, decision No. 87-R-1999, Court
file No. A-537-99) (the Oakville complaints), the second, on
July 6, 1999 (order No. 1999-R-308, decision No. 391-R-1999,
Court files Nos. A-729-99 and A-741-99) (the St. Thomas
complaint). Leave to appeal was given by the Court on July 6,
1999 and September 21, 1999, respectively. This set of
reasons will dispose of the three appeals and an original
will be filed in each of the three files.
[3]The Oakville complaints were filed by eight residents
living in the Eastlake community within blocks of the
Oakville Yard. The complaints refer to noise and smoke that
the Canadian National Railway Company (CN) is allegedly
causing by its shunting activities at the west end of the
four south tracks of CN's Yard. The complainants were
represented by counsel at the hearing of the appeal.
[4]The St. Thomas complaint was filed by Randy and
Sue Taylor regarding the noise, vibrations and diesel fumes
emanating from idling diesel locomotives of the Norfolk
Southern Railway Company stored in the CN St. Thomas
Yard, near the complainants' residence in St. Thomas.
These two complainants did not participate in the
appeals.
[5]Even though the complaints are with respect to noise,
smoke and vibrations, I shall deal with them collectively,
for ease of reference, as noise complaints.
THE CONTEXT
[6]The Agency appeared as a respondent as of right
pursuant to section 41 of the 1996 Act but its presentation
was limited to matters of jurisdiction as was decided by this
Court in Canadian Pacific Ltd. v. Canada (National
Transportation Agency), [1992] 3 F.C. 145 (C.A.).
[7]Prior to the coming into force of the Act in 1996, it
was a well-settled rule that where no lands had been taken by
a railway company, a person injured by railway smoke, noise,
vibrations or other injurious effects, could not recover
compensation or other remedy under the relevant Railway Act
and could only advance a complaint through a common law
action of nuisance, if at all. (See Duthie v. Grand Trunk
R.W. Co. No. 220 (1905), 4 C.R.C. 304 (Board of Railway
Commissioners); Holditch v. Canadian North. Ont. R.
Co. (1916), 27 D.L.R. 14 (P.C.), per Lord Sumner,
at page 19; Powell v. Toronto, Hamilton and Buffalo
R. W. Co. (1898), 25 O.A.R. 209 (C.A.), per
Osler J.A., at page 215, Maclennan J.A., at page 218 and Moss
J.A., at page 220 and Canadian Pacific Railway Co. v.
Albin (1919), 59 S.C.R. 151, per Anglin J. at page
164 ff.)
[8]It comes as no surprise, therefore, that the Agency's
predecessors1 never asserted jurisdiction over
these types of complaints. For a better understanding of
their position, I think it will be helpful to quote large
extracts from the decision of the Board of Railway
Commissioners in Duthie, supra, at pages 311,
314, 315, 317:
The first points that arise relate to the jurisdiction and
powers of the Board. It is important that, as occasion
occurs, these should be carefully considered and defined in
order that they may be well understood and, if found
advisable, enlarged or diminished by Parliament. To assume
jurisdiction which we do not possess and to shirk the
exercise of that given us, would equally be breaches of
duty.
Occasionally one hears or reads references which suggest
that misconceptions prevail in this connection. Applications
or complaints are made to us which are apparently based upon
a hazy notion that the Board was created for the purpose of
adjudicating upon any claim against or dispute with a railway
company. For two reasons we are not to begin with the
assumption that such was the purpose for which this Board was
established: (1) The Board is purely a creature of
statute. The general principle applicable to such a body is
that its jurisdiction is only such as the statute gives by
its express terms or by necessary implication therefrom.
(2) Our constitution assigns to the Provincial
Legislatures the subjects of "property and civil rights in
the Province," and "the administration of justice in the
Province, including the constitution, maintenance and
organization of Provincial Courts, both of civil and criminal
jurisdiction, and including the procedure in civil matters in
those Courts." (See B.N.A. Act 1867, sec. 92, sub-secs. 13,
14). Corporations created by the Parliament of Canada are
ordinarily subject to the provincial laws relating to
property and civil rights, and, primâ
[sic ] facie, civil claims against them should
be prosecuted in the Provincial
Courts . . . .
. . .
Throughout the Act, the Board is authorized to make orders
of various kinds directing or requiring acts to be done, or
sanctioning, approving or prohibiting other acts. In other
cases the Act itself, or the Special Act incorporating the
company, or authorizing the construction of the particular
railway, requires or prohibits various acts. It is for the
purpose of enforcing and carrying out this legislation that
the Board is given the general jurisdiction defined by sec.
23. It is a statutory body, created to carry out the
legislation of Parliament dealing with railways and the
companies operating them. It is not created for the purpose
of enforcing the rights or duties which are imposed or
created by provincial laws, written or unwritten, or even by
any enactments of the Parliament of Canada except those
dealing with the particular subjects of legislation with
which the Railway Act deals. To enable the Board to
adjudicate upon a matter, the matter must be one as to which
the Board is, by some provision of the Railway Act or the
Special Act expressly empowered or directed to act, or it
must relate to some violation of the Railway Act or the
Special Act, or of some regulation, order or direction made
thereunder.
. . .
That is, the business of the Board is to enforce the
railway legislation of the Dominion Parliament, and, for that
purpose, to order the performance of some acts and to
prohibit others. It was not created to supplant, or even to
supplement, the Provincial Courts in the exercise of their
ordinary jurisdiction, but to exercise an entirely different
jurisdiction, though, perhaps, occasionally overlapping that
of the Provincial Courts.
. . .
A consideration of these statutes appears to shew that
there should be no primâ [sic]
facie presumption, arising from the creation of such a
tribunal, that it is intended to have the power to give every
kind of relief for violations of the Railway Acts; and the
English Act shew that the existence of such powers is not
necessarily to be inferred from the authority to "determine"
a complaint.
The subjects with which the Canadian Board has authority
to deal are much more numerous than those with which either
the English or the United States Commission can deal. It
would be absolutely impossible for this Board to entertain
and try any considerable number of the actions for damages
brought throughout Canada based upon alleged injuries arising
out of infractions of the Railway Act, and at the same time
discharge effectively the various duties otherwise assigned
to it by statute. It is probable that the framers of the Act
were fully sensible of this, and omitted, on that account,
the express authority to award damages given by the Imperial
Act. If any such authority to award damages should ever be
given to the Board, it should, in my opinion, be of a very
limited character and confined to matters similar to those
with which the Railway and Canal Commission in Great Britain
has to deal.
[9]What is there, then, in the 1996 Act, that has
triggered the Agency's sudden interest in complaints over
which it had admittedly no jurisdiction until then? I will
say at the outset that it would be a strange twist of events
if a statute adopted at a time when deregulation,
particularly in regard to day-to-day affairs of railway
companies, was the goal of the Government, had vested the
Agency, for the first time in history, with jurisdiction over
complaints of that sort. To quote from the speech made in the
House of Commons by the Honourable David Anderson, Minister
of Transport, when moving for the third reading of Bill C-14
(which eventually became the Canada Transportation Act
of 1996) (House of Commons Debates (26 March 1996), at
page 1212):
To sum up, the objectives for rail which the bill meets
successfully are: to promote the long term viability of
railways; to foster the creation of short lines; to preserve
key shipper rights; to preserve rail service to communities
to the extent possible; and to reduce the regulatory burden
on railways. It has been an enormous undertaking.
In easing the regulatory burden that had been placed on
rail in the past, over 1,000 pages in various statutes have
been reduced to just 100. In doing so the bill lifts
regulatory intrusions into the railways' day to day business
affairs. Most important, the bill streamlines the rail line
rationalization process. This is the most effective
legislative means of bolstering the railway's efforts to cut
costs.
THE STANDARD OF REVIEW
[10]A word, first, on the applicable standard of review of
the impugned decisions of the Agency. The test has been set
out by Strayer J.A. in Metropolitan Toronto
(Municipality) v. Canadian National Railway Co., [1998] 4
F.C. 506 (C.A.), at page 516:
. . . the standard of review is correctness,
with some deference owed to this expert tribunal on legal
questions other than those of a jurisdictional nature.
That no deference is to be shown to a tribunal with
respect to its decision on a question of jurisdiction, has
been confirmed by Bastarache J. in Pushpanathan v. Canada
(Minister of Citizenship and Immigration), [1998] 1
S.C.R. 982, at page 1005, paragraph 28.
[11]The question addressed herein being one of pure
jurisdiction, no deference is owed to the view of the
Agency.
THE RELEVANT LEGISLATIVE PROVISIONS
[12]In support of the Agency's jurisdiction, the
respondents and the Agency rely essentially on what they say
is the combined effect of sections 95 and 37 of the 1996 Act.
Here is the text of these provisions as well as the text of
some of the other provisions I shall be referring to in the
course of my reasons:
PART I
ADMINISTRATION
Canadian Transportation
Agency
. . .
Powers of Agency
. . .
26. The Agency may require a person to do or
refrain from doing any thing that the person is or may be
required to do or is prohibited from doing under any Act of
Parliament that is administered in whole or in part by the
Agency.
27. (1) On an application made to the Agency, the
Agency may grant the whole or part of the application, or may
make any order or grant any further or other relief that to
the Agency seems just and proper.
. . .
Inquiries
37. The Agency may inquire into, hear and determine
a complaint concerning any act, matter or thing prohibited,
sanctioned or required to be done under any Act of Parliament
that is administered in whole or in part by the Agency.
. . .
PART III
RAILWAY TRANSPORTATION
. . .
Division II
Construction and Operation of
Railways
. . .
General Powers of Railway
Companies
95. (1) Subject to the provisions of this Part and
any other Act of Parliament, a railway company may exercise
the following powers for the purpose of constructing or
operating its railway:
(a) make or
construct tunnels, embankments, aqueducts, bridges,
roads, conduits, drains, piers, arches, cuttings and
fences across or along a railway, watercourse, canal or
road that adjoins or intersects the railway; |
(b) divert or alter
the course of a watercourse or road, or raise or lower
it, in order to carry it more conveniently across or
along the railway; |
(c) make drains or
conduits into, through or under land adjoining the
railway for the purpose of conveying water from or to
the railway; |
(d) divert or alter
the position of a water pipe, gas pipe, sewer or drain,
or telegraph, telephone or electric line, wire or pole
across or along the railway; and |
(e) do anything else
necessary for the construction or operation of the
railway. |
(2) The railway company shall do as little damage as
possible in the exercise of the powers.
(3) If the railway company diverts or alters anything
mentioned in paragraph (1)(b) or (d), the
company shall restore it as nearly as possible to its former
condition, or shall put it in a condition that does not
substantially impair its usefulness.
(4) The railway company shall pay compensation to a person
who sustains actual loss or damage from the exercise of the
powers and the compensation must equal the amount of the loss
or damage that the company would be liable to pay the person
if the powers had not been conferred by statute.
WHETHER THE AGENCY ADMINISTERS SECTION 95
[13]The Agency interprets sections 26 and 37 to mean that
once the Agency administers part of an Act of Parliament, it
is deemed to be administering the whole of the Act and is
therefore the appropriate authority unless the Act expressly
says otherwise. I do not agree with that interpretation. The
two sections, in my view, give jurisdiction to the Agency
either with respect to the whole of a statute should the
Agency be generally mandated by the statute to administer it,
or with respect to parts of a statute should the Agency be
specifically mandated by the statute to administer parts only
of the statute.
[14]The 1996 Act contains no provision conferring upon the
Agency the power, duty or function of administering the whole
Act. It is indeed noteworthy that neither section 26 nor
section 37 refer expressly to the very statute in which they
are found. The statute, however, contains numerous provisions
that confer upon the Agency jurisdiction with respect to the
administration of specific parts of the Act. Unless section
95 is one such provision, the Agency has no jurisdiction with
respect to that section.
[15]Section 95 defines the "general powers" which a
railway company may exercise for the purpose of constructing
or operating its railway. It makes no reference to the
Agency. It gives no power to the Agency. When Parliament
intended to give the Agency jurisdiction over parts of a
statute, it did so in express terms.2 And when it
intended to give the Agency a role in the determination of
some form of compensation, it also did it
expressly.3
[16]Indeed, in the present case, the Agency acknowledges
that it has no jurisdiction to determine the compensation to
be paid under subsection 95(4), presumably for the very
reason that it has never had it in the past and that the 1996
Act does not expressly give it to the Agency. Yet it argues
that it has jurisdiction with respect to subsections 95(1),
(2) and (3). I have difficulty understanding the Agency's
position that subsection 95(4) is severable from the whole
section and that the silence of Parliament with respect to
the jurisdiction of the Agency is of significance when
subsection 95(4) is at issue, but of no significance when the
rest of the section is at issue.
[17]The 1996 Act, the Railway Safety Act,
supra, and the Railway Relocation and Crossing
Act, supra, were drafted with such minute details
in so far as the jurisdiction of the Agency is concerned,
that one cannot assume that the absence of any reference to
the Agency in section 95 was not intended. It is simply not
possible, in the context of the relevant statutes, to
interpret section 95 as being a provision implicitly
conferring some jurisdiction upon the Agency.
WHETHER SECTION 95 CONFERS JURISDICTION WITH RESPECT TO
NOISE COMPLAINTS
[18]In the event the above conclusion is incorrect and
that the Agency is vested with some jurisdiction under
section 95, it remains to be seen whether the section can be
interpreted in such a way as to vest the Agency with
jurisdiction over complaints of the type at issue.
[19]The respondents and the Agency essentially argue that
the general powers of a railway company are all enumerated in
subsection 95(1) and that even though there is no specific
mention of a power to make noise, shunting or idling railway
cars and locomotives are a fundamental aspect of railway
operations and cannot be performed without making noise. As
the argument goes, shunting or idling are "necessary for the
. . . operation of the railway" and therefore are
captured by paragraph 95(1)(e). As railway companies
"shall do as little damage as possible" pursuant to
subsection 95(2) when making noise in their operations,
making as little noise as possible becomes something railway
companies are required to do under the 1996 Act and the
Agency has jurisdiction pursuant to section 26 to require
railway companies to make as little noise as possible.
[20]The argument ignores the history and the evolution of
Canadian legislation in the area of rail transportation when
it suggests that section 95 now contemplates all the powers
that are exercised by railway companies and that it now
permits noise complaints with respect to day-to-day
operations of railway companies.
[21]Throughout the long history of Canadian railway
legislation, a distinction has been made between provisions
granting "general powers" to railway companies for the
purpose of constructing a railway, and provisions regulating
the day-to-day operations of a railway company when
exercising its powers.
[22]The "general powers" that are of interest in these
appeals were found in sections 90, 91 and 92 of The
Railway Act, S.C. 1888, c. 29. They were continued in
sections 118, 119 and 120 of The Railway Act, 1903; in
sections 151, 154 and 155 of the Railway Act, R.S.C.
1906, c. 37; in sections 162, 163 and 164 of The Railway
Act, 1919, S.C. 1919, c. 68 and of the Railway
Act, R.S.C. 1927, c. 170; in sections 164, 165 and 166 of
the Railway Act, R.S.C. 1952, c. 234; in sections 102,
103 and 104 of the Railway Act, R.S.C. 1970, c. R-2
and finally, in sections 106, 107 and 108 of the Railway
Act, R.S.C., 1985, c. R-3. The provisions remained
substantially the same throughout the years.
[23]The provisions dealing with day-to-day operations have
been present since 1919, in the form in which they appear in
chapter R-3 of the Revised Statutes of 1985 even though some
of them may be traced back to section 214 of The Railway
Act of 1888 and to sections 25 and 30, and 243 and 307,
respectively, of The Railway Act, 1903 and of chapter
37 of the Revised Statutes of 1906. Beginning with The
Railway Act, 1919, the provisions appear in a section of
the Act dealing with "Operation and Equipment" which
comprises section 287, under the title "Order and Regulations
of Board", and section 290, under the title "By-Laws, Rules
and Regulations of Company". These sections made their way,
unchanged, to the 1985 consolidation, as sections 287 and 290
of chapter 170 of the Revised Statutes of 1927, sections 290
and 293 of chapter 234 of the Revised Statutes of 1952,
section 227 and 230 of chapter R-2 of the Revised Statutes of
1970 and finally, as sections 230 and 233 of chapter R-3 of
the Revised Statutes of 1985.
[24]Dealing first with the day-to-day operations of
railway companies, they were subject, as I have indicated, to
two different sets of provisions. On the one hand, a
provision (section 287 in The Railway Act, 1919) gave
the Board of Railway Commissioners the power to make orders
and regulations with respect to 12 items, including the rate
of speed at which trains could be run in a city, the use of a
whistle within any city, the coupling of cars, the number of
employees, the hours of duty. The last item is worth quoting
at length:
287. (1) . . .
(l) generally providing for the protection
of property, and the protection, safety, accommodation
and comfort of the public, and of the employees of the
company, in the running and operating of trains and the
speed thereof, or the use of engines, by the company or
on or in connection with the railway. |
[25]On the other hand, a section (section 290 in The
Railway Act, 1919) gave the railway company, "subject to
the provisions and restrictions in this and in the Special
Act contained, and subject to any orders or regulations of
the Board", the power to make by-laws, rules and regulations
respecting eight items, including the mode by which, and the
speed at which any rolling stock was to be moved, the
schedule of trains, the smoking of tobacco and the commission
of any nuisance in or upon trains, stations, or other
premises occupied by the company and "the due management of
the affairs of the company". Subsection 293(1) required the
company to submit these by-laws, rules and regulations,
"except such as relate to tolls and such as are of a private
or domestic nature and do not affect the public generally",
to the Governor in Council for approval.
[26]These two sets of provisions remained virtually
unchanged from their introduction in The Railway Act,
1919 up to their inclusion as chapter R-3 in the 1985
consolidation. They now have either disappeared from the
legislation or been captured by the Railway Safety Act
of 1988, the Canada Transportation Act of 1996 and the
Railway Relocation and Crossing Act, R.S.C., 1985, c.
R-4. It is fair to say, without going into any further
details, that essentially, the power of control which the
Board and then the Commission exercised over the day-to-day
operations of railway companies was in part simply abolished
and in part transferred to the Minister of Transport, to be
exercised by him with very little intervention by the
Agency.
[27]It is interesting to note that in a recent amendment
to the Railway Safety Act, S.C. 1999, c. 9, section 1,
a new section 3 appeared, which describes the objectives of
the Act as follows:
OBJECTIVES
3. The objectives of this Act are to
(a) promote and
provide for the safety of the public and personnel,
and the protection of property and the
environment, in the operation of railways: |
(b) encourage the
collaboration and participation of interested parties
in improving railway safety; |
(c) recognize the
responsibility of railway companies in ensuring the
safety of their operations; and |
(d) facilitate a
modern, flexible and efficient regulatory scheme that
will ensure the continuing enhancement of railway
safety. [My emphasis.] |
[28]Dealing now with the "general powers", I cannot see
how section 95 can be interpreted in such a way as to vest
the Agency with a jurisdiction over noise complaints, when
under the new Act the Agency no longer exercises control over
the day-to-day operations of railway companies, when the
general powers of railway companies are no longer all
described in railway acts or in special acts and when the
section is couched in terms remarkably similar to those of
the provisions it replaces. All these factors point to a
diminished, rather than to an increased role for the
Agency.
[29]Under the earlier legislation, as I have explained,
the exercise of the "general powers" was subject to the
control of the Board of Railway Commissioners in matters
pertaining to day-to-day operations. With the advent of
deregulation, the control, if any, over these operations was
generally transferred to the Minister of Transport.
[30]The earlier list of "general powers" was intended to
describe, subject to other powers conferred by the Railway
Act and the relevant Special Act, all the powers that
could be exercised by a railway company. The same cannot of
course be said of the list contained in section 95, which is
subject to the provisions of "any other Act of Parliament".
It is apparent, when one examines the list of "general
powers" enumerated in subsection 95(1) of the 1996 Act, that
it is an abbreviated and modernized list of the powers
described in the earlier legislation. A new, shortened list
was rendered necessary if only to take into account the fact
that the general powers of railway companies were no longer
to be found in railway acts or in special acts, but were to
be found from now on in such diverse statutes as the
Canada Business Corporations Act, R.S.C., 1985, c.
C-44, the Railway Safety Act, the Railway
Relocation and Crossing Act, or the Canada
Transportation Act. The heading "general powers" is the
source of much of the confusion; it is clearly inadequate to
describe the specific powers which are now enumerated in
section 95.
[31]To illustrate the remarkable continuity in the
language used by Parliament otherwise than in the list of
powers, there is no better way but to reproduce from The
Railway Act of 1888 parts of section 90 (which listed 17
"general powers") as well as the totality of sections 91 and
92:
GENERAL POWERS.
90. The company may, subject to the provisions in
this and the special Act contained:--
(a.) Enter into and
upon any lands of Her Majesty without previous license
therefor, or into and upon the lands of any person
whomsoever, lying in the intended route or line of the
railway . . . . |
. . .
(d.) Make, carry or
place the railway across or upon the lands of any
person on the located line of the
railway . . . . |
(e.) Fell or remove
any trees which stand within six rods from either side
of the railway . . . . |
. . .
(g.) Make or
construct in, upon, across, under or over any railway,
tramway, river, stream, watercourse, canal or highway
which it intersects or touches, temporary or permanent
inclined planes, tunnels, embankments, aqueducts,
bridges, roads, ways, passages, conduits, drains,
piers, arches, cuttings and fences; |
(h.) Divert or
alter, as well temporarily as permanently, the course
of any such river . . . . |
. . .
(q.) Do all other
acts necessary for making, maintaining, altering or
repairing, and using the railway. |
91. The company shall restore as nearly as possible
to its former state any river, stream, watercourse, highway,
water-pipe, gas-pipe, sewer or drain, or any telegraph,
telephone or electric light wire or pole which it diverts or
alters, or it shall put the same in such a state as not
materially to impair its usefulness.
92. The company shall, in the exercise of the
powers by this or the special Act granted, do as little
damage as possible, and shall make full compensation, in the
manner herein and in the special Act provided, to all parties
interested, for all damage by them sustained by reason of the
exercise of such powers.
[32]As can be readily seen, the obligation of a railway
company "to do as little damage as possible", to restore "as
nearly as possible" and to pay "compensation" has always
been, and still is, related to the exercise by a railway
company of its listed "general powers". The only substantial
change brought in 1996 with respect to that obligation has to
do with compensation. Until then, compensation was to be "in
the manner herein and in the special Act provided", the
"herein" referring to the relevant Railway Act. It is
precisely that "manner" of compensation which was said by the
Privy Council in Holditch, supra, not to
include claims in respect of noise. In the 1996 Act,
reference is no longer made to the "manner" of compensation
and there are no longer any provisions dealing with that
"manner". As I have noted earlier, the Agency does not
suggest that it has jurisdiction to determine the
compensation referred to in subsection 95(4).
[33]The Agency and the respondents have put much emphasis
on the wording of paragraph 95(1)(e), "do anything
else necessary for the construction or operation of the
railway", which, they argue, encompasses day-to-day
operations such as shunting activities and idling of
locomotives.
[34]This suggested interpretation runs contrary to the
whole context of the legislation which I have just described.
Furthermore, it runs contrary to a literal interpretation of
the section.
[35]Paragraphs (a), (b), and (d)
refer only to works done "across or along the railway" and
paragraph (c) refers only to water works "through or
under land adjoining the railway". In this context one cannot
interpret the words "anything else necessary" in paragraph
(e) otherwise than referring to any other type of work
that needs to be done across, or along, or under a railway to
enable the company to construct a railway and then to be in a
physical position to operate it. These four powers relate to
the use of adjoining lands by railway companies; they do not
relate to the use or the enjoyment of use of those lands by
their owners or occupiers. One wonders why subsection 95(1)
would enumerate four specific powers in (a),
(b), (c), and (d) if in any event,
(e) was an omnibus provision encompassing all possible
powers needed for the day-to-day activities of a railway
company.
[36]This case is in my view quite similar to that of
Nanaimo (City) v. Rascal Trucking Ltd., [2000] 1
S.C.R. 342 (at paragraph 21), where Major J. resorted to the
"ejusdem generis" or limited class rule to interpret
the words "or other matter or thing" in the Municipal
Act of British Columbia [R.S.B.C. 1996, c. 323]:
It is my opinion that the legislature, by including the
phrase "or other matter or thing", did not intend to expand
the scope of s. 936 to allow municipalities to declare almost
anything to be a nuisance. I accept the respondent's
submission that to construe that phrase as creating a third
class of potential nuisance would effectively negate the
purpose of including rather specific preceding language.
[37]Clearly, subsection 95(1) is no more intended than its
predecessors were, to address the issue of the liability of
railway companies arising out of their day-to-day operations.
Complainants such as the respondents still have to go through
common law actions of nuisance if they allege that a railway
company is making too much noise in its day-to-day
operations. In that regard, the recent decision of the
Supreme Court of Canada in Ryan v. Victoria (City),
[1999] 1 S.C.R. 201, at page 236 is an interesting
illustration of the use in common law of the concept of
"public nuisance" as applied to activities of railway
companies.
[38]In the end, I reach the conclusion that even if the
Agency could entertain complaints relating to the exercise by
railway companies of their "general powers" under section 95,
the complaints at issue do not relate to the exercise by the
appellants of these powers. The Agency had no jurisdiction to
hear the complaints and to issue the impugned orders.
DISPOSITION
[39]The appeals should be allowed and the orders of the
Canadian Transportation Agency Nos. 1999-R-123 and 1999-R-308
should be quashed for lack of jurisdiction. There should be
no order as to costs.
Richard C.J.: I agree.
Sexton J.A.: I agree.
1 These predecessors are: the Board of
Railway Commissioners for Canada established by The
Railway Act, 1903, S.C. 1903, c. 58 and continued under
the name of the Board of Transport Commissioners for Canada
by The Transport Act, 1938, S.C. 1938, c. 53; the
Canadian Transport Commission established by the National
Transportation Act, S.C. 1966-67, c. 69; and the National
Transportation Agency established by the National
Transportation Act, 1987, S.C. 1987, c. 34 and continued
under the name of the Canadian Transportation Agency by the
Canada Transportation Act of 1996, S.C. 1996, c.
10.
2 See, in the 1996 Act, ss. 90 (issuance
of certificate of fitness), 98 (construction of railway
line), 101 (road and utility crossings), 102 (private
crossings), 112 (rates and conditions of service), 117 to 120
(some limited powers with respect to tariffs), 121 to 125
(joint rates), 127 and 128 (interswitching), 129 to 136
(competitive line rates), 137 (limiting carriers' liability),
138 and 139 (running rights and joint track usage), 140(2)
(determination of a yard track for purposes of transfer and
discontinuation), 156 (accounting), 157 (determination of
costs), 159 to 169 (final offer arbitration), 170 to 172
(transportation of persons with disabilities), 177 to 181
(administrative monetary penalties). See, also, s. 3 of the
Railway Relocation and Crossing Act, R.S.C., 1985, c.
R-4, as am. by R.S.C., 1985 (3rd Supp.), c. 28, s. 359 (joint
urban development and transportation plans).
3 See ss. 101(4), 138(3), 145(5) of the
1996 Act, ss. 16 [as am. by S.C. 1996, c. 10, s. 264; 1999,
c. 9, s. 10], 24(2), 25(3) [as am. idem, s. 20] and 26
[as am. by S.C. 1996, c. 10, s. 266] of the Railway Safety
Act, R.S.C., 1985 (4th Supp.), c. 32 and ss. 14 [as am.
by R.S.C., 1985 (3rd Supp.), c. 28, s. 359] and 15 [as am.
idem] of the Railway Relocation and Crossing
Act, supra.