Public sector unions and individual employees brought constitutional challenges to two federal statutes enacted through omnibus budget legislation: the Expenditure Restraint Act and the Public Sector Equitable Compensation Act.
The applicants moved to sever the combined challenges or, alternatively, amend their applications to retain only the Expenditure Restraint Act challenge and pursue the pay equity challenge later.
The respondent opposed severance, arguing the evidence and pleadings were already intertwined.
The court held that although the Rules of Civil Procedure do not expressly provide for severance of an application, leave to amend under Rule 26.01 was appropriate because no non-compensable prejudice would result.
Leave was granted to amend the notices of application to proceed only with the Expenditure Restraint Act challenge, without prejudice to commencing fresh applications challenging the Public Sector Equitable Compensation Act.