Karen Lovell

The applicants sought to set aside a NAFTA Chapter 11 arbitral tribunal's damages award, arguing the tribunal exceeded its jurisdiction, breached procedural fairness, and rendered an award contrary to Canadian public policy.

The tribunal had previously found Canada breached its NAFTA obligations regarding an environmental assessment for a proposed quarry, but in the damages phase, awarded only $7 million USD for the lost opportunity of a fair assessment rather than the $440 million claimed for lost profits.

The Superior Court of Justice dismissed the application, finding the tribunal correctly applied the international law standard of proof, did not breach natural justice in its procedural rulings regarding expert reports, and rendered a decision that was not contrary to public policy.

The plaintiffs moved to remove the defendant's designated representative for examination for discovery, Peter Hill, due to an irreconcilable conflict of interest.

Hill had a lucrative consulting contract with one of the incumbent telecommunications providers whose conduct was central to the action, and his contract required him to prefer his client's interests.

The court found that Hill's contractual obligations and his evasive testimony during discovery demonstrated a preference for the incumbent's interests over his duties as a witness, rendering him a demonstrably unsatisfactory representative.

The motion was granted, and Hill was ordered to be replaced by Kelly Gillis or another suitable witness.

The applicant, the Attorney General of Canada, sought to set aside a NAFTA arbitral award that found Canada liable for breaching the prohibition on performance requirements under Article 1106.

Canada argued that the tribunal exceeded its jurisdiction by applying the wrong criteria to determine whether the impugned guidelines fell within Canada's reservation for subordinate measures under Article 1108.

The Superior Court of Justice dismissed the application, holding that the tribunal's interpretation of the NAFTA reservation provisions was a question of merits, not a true question of jurisdiction under Article 34(2)(a)(iii) of the Commercial Arbitration Code.

Following the release of the main appellate decisions, the successful parties made costs submissions.

Counsel subsequently agreed to the quantum of costs for all four appeals.

The Court of Appeal ordered costs on a partial indemnity scale to TeleZone Inc., G-Civil Inc., Fielding Chemical Technologies Inc., and Michiel McArthur in the agreed-upon amounts.

Four appeals were heard consecutively to determine whether the Ontario Superior Court has jurisdiction over claims for damages against the federal Crown, or whether such claims must be brought in the Federal Court pursuant to section 18 of the Federal Courts Act.

The Crown argued that the claims constituted collateral attacks on federal administrative decisions and required prior judicial review in the Federal Court.

The Court of Appeal held that the Superior Court retains concurrent jurisdiction over claims for damages in contract and tort against the Crown.

Section 18 of the Federal Courts Act grants exclusive jurisdiction to the Federal Court only for prerogative remedies and declaratory relief, not for damages.

The plaintiffs' appeals were allowed and the Crown's appeals were dismissed.

The plaintiff sought to examine the Honourable John Manley, a Member of Parliament, for discovery in a civil action.

The motion judge ordered the Member to attend no sooner than 15 days after the commencement of Parliament's summer recess, finding that parliamentary privilege against testifying only applied while Parliament was actually sitting and for 14 days after adjournment.

The Court of Appeal allowed the appeal, holding that the privilege of testimonial immunity extends throughout a parliamentary session, as well as 40 days before a session begins and 40 days after it ends.

The court concluded that any changes to this privilege must be enacted by Parliament, not the courts.