Greg Van Koughnett

The appellant provincial telephone utility appealed a decision holding that, although it was a federal undertaking, it was not immune from federal telecommunications regulation.

The Court held that the utility's participation in an integrated national telecommunications network, together with its interprovincial transmission activities and organizational arrangements, made it an interprovincial undertaking under s. 92(10)(a) of the Constitution Act, 1867.

The majority nevertheless concluded that, as an agent of the provincial Crown, it was protected by s. 16 of the Interpretation Act because the Railway Act did not clearly bind the Crown and the utility had not waived immunity through its conduct.

The appeal was allowed, with one judge dissenting on waiver.

The CRTC granted Bell Canada an interim rate increase in 1984, subject to review.

In 1986, after a final hearing, the CRTC determined that the interim rates had yielded excess revenues of $206 million and ordered Bell Canada to distribute this amount to customers via a one-time credit.

The Federal Court of Appeal quashed the order.

The Supreme Court of Canada allowed the CRTC's appeal, holding that the power to make interim orders under the Railway Act and National Transportation Act necessarily implies the power to review those rates retrospectively and to make remedial orders, such as a one-time credit, if the interim rates are found to be unjust or unreasonable.