Rachel Doran

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.

Applicants in two related constitutional applications sought procedural relief to separate challenges to two different federal statutes enacted within the same budget legislation: the Expenditure Restraint Act and the Public Sector Equitable Compensation Act.

They requested severance of the combined challenges or, alternatively, leave to amend the applications to pursue only the wage restraint challenge while preserving the right to challenge the pay equity legislation later.

The court held that although the Rules of Civil Procedure contain no explicit severance mechanism for applications, the requested relief could be granted through amendment principles under Rule 26.01 where no non-compensable prejudice arises.

The court granted leave to amend the notices of application to retain only the Expenditure Restraint Act challenge and permitted the applicants to commence a future application concerning the Public Sector Equitable Compensation Act.

No costs were awarded, and the parties were encouraged to seek case management.