Monday, June 17, 2013

Amid the failure of the RCMP’s specialized corporate crime unit to notch a single major corporate criminal conviction, Canada’s largest securities regulator has forged ahead to create a serious offences unit of its own to handle complex criminal cases destined for the courts, the National Post has learned. Sources confirmed that the Ontario Securities Commission (OSC) has partnered principally with the Ontario Provincial Police (OPP), and is currently in discussions with Metro Toronto police and the RCMP, to establish a new unit that will investigate and prosecute boiler room operations, such as fraud and market manipulation and other illegal activities, many of which are associated with organized crime.

Amid the failure of the RCMP’s specialized corporate crime unit to notch a single major corporate criminal conviction, Canada’s largest securities regulator has forged ahead to create a serious offences unit of its own to handle complex criminal cases destined for the courts, the National Post has learned.
Sources confirmed that the Ontario Securities Commission (OSC) has partnered principally with the Ontario Provincial Police (OPP), and is currently in discussions with Metro Toronto police and the RCMP, to establish a new unit that will investigate and prosecute boiler room operations, such as fraud and market manipulation and other illegal activities, many of which are associated with organized crime.



The OSC has hived off a group of 20 staff members, many of these former police officers and ex-Crown prosecutors, to create the serious offences unit. This group, eight of which have received special constable status from the OPP, operates on a separate floor with a computer network walled off from the rest of the regulator’s staff to preserve the proper chain of command and evidence. The members, who just completed a weeklong training session, have assorted weapons in their arsenal to pursue miscreants, including the ability to employ search warrants, wiretapping and undercover surveillance, which are allowed by the Criminal Code as part of their work in conjunction with the police.
“We recognize the serious harm that those involved in securities fraud offences perpetrate against retail investors,” Tom Atkinson, director of enforcement at the OSC told the Post in an email. “As such, we’re focused on bringing more cases before the Ontario Court of Justice where sanctions, including fines and jail sentences, are expected to have a greater deterrent effect.”
Added a source familiar with the discussions, who asked not to be named: “There’s a perception that there are cases that are not being treated criminally and are not being handled criminally and this shows they are prepared to do it.”
The OSC, which has jurisdiction over the Toronto Stock Exchange and the TSX Venture Exchange, is the dominant securities watchdog in Canada and its decisions affect most of the country’s mutual funds, pension funds and brokerages. However, the OSC, like most of the other 12 provincial and territorial securities regulators, has long faced criticisms for its poor track record of enforcement, especially on major cases, such as insider trading.
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The creation of the RCMP’s Integrated Market Enforcement Teams (IMETs) a decade ago has done little to change that, especially in the wake of failed high-profile prosecutions against former executives of Nortel Networks Corp. and Royal Group Technologies Ltd. In fact, a U.S. academic described Canada as “a first-world country with second-world capital markets and third-world enforcement.”
In the unlikely event of a national securities regulator, and continued criticism about the lack of robust and timely enforcement, OSC chair and CEO Howard Wetston said recently the watchdog would “intensify its enforcement program and explore other ways to protect investors.” To that end, the OSC has been focusing on market manipulation and fraud. These types of fraudulent stock schemes may not be as high-profile, but they are among the most prevalent, causing significant damage to investors and compromising the reputation and integrity of Canada’s capital markets.
“We need to up our game in terms of deterrence. We don’t feel the administrative process is effective or appropriate in many of these cases,” said a securities official who asked not to be named.”
Traditionally, these stock fraud cases have been handled at tribunal hearings inside provincial securities regulators. However, the possible penalties are more lenient than those that can be imposed by a judge. As a result, the OSC is trying to move these cases into the courts where jail terms can be meted out.
“Part of the strategy is to put more people in jail,” said the source.
Mr. Atkinson said that there are plans to eventually create a specialized unit within the OSC to tackle insider trading, which has proven much harder to successfully prosecute. It has long been a private complaint of securities regulators across Canada that Crown attorneys and court judges do not take a severe enough view of corporate crime. The serious offences unit, in collaboration with various police forces, is an attempt to change that attitude.
“We want to leverage our expertise in the area of securities with law enforcement to ensure that criminal behaviour is dealt with in the appropriate criminal forum,” said Mr. Atkinson.
The move by the OSC comes at a time when the RCMP has created a financial crimes unit as part of a wider re-engineering of the national police force currently under way across the country. The newly constructed unit is comprised of the Commercial Crime unit, IMETs and the Proceeds of Crime unit, which mostly deals with drug-related offences. The RCMP already shares a joint intelligence unit at the OSC and those investigators will be folded into the OSC’s new serious crime unit.

Saturday, June 15, 2013

Creutzfeldt-Jakob Disease: Background Information




Creutzfeldt-Jakob Disease: Background Information








June 14, 2013



Q: What is CJD and how many cases are there in one year?




Creutzfeldt-Jakob Disease (CJD) is a rare prion disease that affects the central nervous system. The disease is always fatal, and there is no known treatment or prevention. There are two main forms of human prion disease, classical CJD and a newer form, called variant CJD (vCJD).




Classical CJD occurs in the general population at a rate of 1–2 cases per million people per year throughout the world. In Canada, between 30 and 50 cases of classical CJD are diagnosed each year.




Classical CJD is recognized to exist in three forms, sporadic, genetic and iatrogenic. Sporadic has an unknown cause, occurs unpredictably and accounts for over 90 per cent of Canadian CJD cases. Genetic CJD, is associated with a gene mutation and iatrogenic CJD is acquired from the accidental transmission of the disease through medical procedures.


Variant CJD has been linked to consumption of meat or meat products from cattle infected with bovine spongiform encephalopathy (BSE) or "mad-cow disease."


Q. What are the symptoms of CJD?


The first symptoms tend to be psychiatric in nature - anxiety, depression, withdrawal and behavioural changes as well as persistent pain and odd sensations in the face and limbs. After several weeks or months, more clear-cut neurological symptoms may set in, including:
Unsteadiness in walking, sudden jerking movements.
Progressive dementia.
Eventually, the patient loses the ability to move or speak, and will need 24-hour nursing care.


Death occurs around a year after the onset of symptoms.

For more information on CJD, visit http://www.healthlinkbc.ca/kb/content/nord/nord33.html

Friday, June 14, 2013

Fraser Health Statement on Creutzfeldt-Jakob Disease
























Fraser Health Statement on Creutzfeldt-Jakob Disease

























June 14, 2013










Dr. Paul Van Buynder, Chief Medical Health Officer has released the following statement to clarify reports about suspect cases of “human mad cow disease” in the Lower Mainland:







“I am concerned to see reports this evening in social and traditional media related to our investigation into a small number of possible cases of Creutzfeldt-Jakob disease (CJD). Media have reported that these cases are connected to Bovine Spongiform Encephalopathy – more commonly known as mad cow disease.







Fraser Health has investigated six possible cases of CJD over the past year. After a case review today we can say that one person has CJD and two others are very likely to have it. The other three cases are very unlikely to have CJD.







I want to be clear there is absolutely no evidence that these three confirmed or probable cases are linked to food consumption.







CJD is a neurological disorder reported an average of about 30 times a year in Canada. There are a handful of cases reported in B.C. each year and we expect around 2 cases in the Fraser region. While three in this time frame is one or two more than I expect, it is within statistical likelihood.







There is no outbreak and I want to reassure residents of the lower mainland that there is no risk to the public or to residents in our facilities.







These are classical cases of CJD. Tests conducted on these patients have ruled out variant CJD associated with disease in cattle. There has never been a home grown case of variant CJD in Canada so this is not surprising.







We have a strong public health surveillance system in B.C. and a review of the cases has not revealed any links between them which would suggest a common source of any kind. The patients investigated come from a number of different cities and settings.







Our sympathies are with the families of these cases of severe progressive disease."







Dr. Paul Van Buynder







Learn more about Creutzfeldt-Jakob Disease.





Wednesday, June 12, 2013

Ontario must crack “code of silence” among correctional officers involved in use of excessive force: Ombudsman (TORONTO – June 11, 2013) Ontario Ombudsman André Marin

Ontario must crack “code of silence” among correctional officers 
involved in use of excessive force: Ombudsman 
(TORONTO – June 11, 2013) Ontario Ombudsman André Marin today called on the
Ministry of Community Safety and Correctional Services to crack the pervasive “code of
silence” under which some guards in the province’s correctional institutions use excessive
force against inmates and conspire to cover it up.
In The Code, his latest report, Mr. Marin details disturbing stories of some correctional
staff who committed “brazen acts of violence” against inmates, attempted to destroy and
falsify evidence, and intimidated colleagues who tried to report the perpetrators. He makes
45 recommendations to the government to end this “dysfunctional culture” and ensure such
incidents are properly investigated and disciplined. The Ministry has pledged to implement
the Ombudsman’s recommendations.
“It is important to remember that inmates, regardless of why they are incarcerated, are
human beings deserving of respect, dignity and humane treatment,” Mr. Marin states in
the report. He urges the Ministry to “focus on the malignant peer pressures that continue
to influence the attitudes and actions of some correctional officers” and act aggressively
to “eradicate the code of silence that threatens the security of inmates and staff alike.”
While noting that correctional institutions can often be overcrowded, understaffed and
under great stress and many correctional officers do their jobs well in difficult conditions,
the Ombudsman’s report reveals systemic problems in the Ministry’s own processes that
have allowed the “code of silence” to fester.
“Staff who breach this code become victims themselves,” Mr. Marin points out. “They
are labelled ‘rats,’ ostracized, treated as pariahs, subject to direct and covert harassment
and threats, and their personal safety is put in jeopardy.”
The investigation, conducted by the Special Ombudsman Response Team, stemmed from
a disturbing trend in complaints first identified by the Ombudsman’s Office in 2010 – to
which Mr. Marin said the Ministry was initially slow to respond. Since the
Ombudsman’s formal investigation was launched in August 2011, the Ministry has
strengthened policies to improve hiring and training practices and ensure more rigorous
investigation of allegations of use of force. But much more needs to be done, he says.
From January 2010 to January 2013, the Ministry confirmed excessive force in 26 of the
55 cases it investigated, the report says. Some 108 staff were disciplined; 31 of those
were fired – and of those, four face criminal charges and one has been convicted. 2
The Ombudsman’s investigators conducted more than 180 interviews with correctional
officers, their union representatives and managers, whistleblowers, inmates and Ministry
officials at all levels. They also visited correctional institutions around the province and
reviewed thousands of documents, photos and videos relating to incidents of use of force.
The 135-page report highlights the stories of nine inmates whose abuse by guards was
inadequately addressed, and one correctional officer who paid a steep price for reporting
assault by a fellow officer.
Mr. Marin’s 45 recommendations urge the Ministry to make it clear that the code of
silence will not be tolerated and those who adhere to it will risk discipline and dismissal.
They also call on the Ministry to:
• reduce opportunities for staff to collude to conceal unlawful force, tamper with
evidence, and intimidate witnesses;
• reinforce the integrity of investigations by restricting access to evidence and
preventing information from being shared;
• improve video surveillance in correctional facilities and the way video evidence is
preserved; and
• clarify authorized defensive techniques for correctional staff and ensure they are
properly trained in de-escalation of conflict and dealing with inmates with mental
illness and special needs.
The Ombudsman also notes that some correctional officers have been openly critical of
the investigation and the Ministry’s response to it so far, both in confidential interviews
and on social media. Some of their Twitter comments are included in the report,
decrying the “climate of distrust and animosity” in the system and the “incompetence of
[management],” and stating: “Overcrowding, etc. = violence.”
Since Mr. Marin’s appointment in 2005, SORT has conducted more than 30
investigations into broad systemic problems affecting millions of Ontarians. The
government has implemented almost all of his recommendations arising from these cases,
including improving newborn screening, increasing lottery security and overhauling the
property tax assessment system.
For the full report, backgrounders and video of the Ombudsman’s news conference, go to
www.ombudsman.on.ca
Aussi disponible en français

Monday, June 10, 2013

Leona Aglukkaq, Minister of Health, accompanied by the Honourable Minister Steven Blaney, Minister of Veterans Affairs and Minister for La Francophonie, announced the Harper Government has introduced the Respect for Communities Act, which would require any potential applications for supervised drug consumption sites in Canada to meet clear criteria before such applications can be considered.

"Our Government believes that creating a location for sanctioned use of drugs obtained from illicit sources has the potential for great harm in a community," said Minister Aglukkaq.  "Accordingly, we believe that the application process needs to be changed to create formal opportunities for local voices to be heard, and their views considered before an exemption would be considered."
"The illicit drugs covered by the Controlled Drugs and Substances Act pose serious risks to the health of Canadians," said Minister Blaney. "Substances obtained from illegal sources affect public safety and may fuel organized crime, and exemptions for illicit substances must be carefully assessed."
Supervised drug consumption sites require an exemption from Health Canada under Section 56 of the Controlled Drugs and Substances Act in order to legally operate.
This same section of the Act is used to give researchers permission to use controlled substances in scientific research like clinical trials, allow doctors to treat patients with methadone, make it possible for researchers to legally use controlled drugs to euthanize certain animals and allow law enforcement agencies to train police dogs to detect illicit drugs.
Currently, the same review process is in place for all these circumstances, meaning that Health Canada treats a law enforcement agency's application for the purposes of training police dogs in the same way that it would treat an application to open a site in which drug addicts would use street heroin.
The Respect for Communities Act would raise the bar for applications to establish supervised drug consumption sites that would allow for the use of what would otherwise be illegal drugs.  It will not affect any type of Section 56 exemptions for substances obtained from licit sources, which will follow the current process.
Under the proposed new system, applicants for supervised drug consumptions sites would need to provide information outlining the views of a number of stakeholders including:
  • Local law enforcement;
  • Municipal leaders;
  • Public health officials; and
  • Provincial and territorial ministers responsible for health, which would include documentation showing what treatment options are available for those dealing with addiction.
An applicant would also be required to provide documentation that shows the site's expected impact on crime rates, the public health reasons for needing such a site, and evidence that there are adequate resources to sustain the site's operations.
These criteria are consistent with those laid out by the Supreme Court of Canada (SCC) in its Next link will take you to another Web site 2011 ruling on Insite.
"Front-line law enforcement strongly believes that it is important for there to be a high threshold for applicants to meet before any supervised consumption site can be considered," said Tom Stamatakis, President of the Canadian Police Association. "While treating drug addiction is an important goal, my experience in Vancouver is that these sites also lead to an increase in criminal behaviour and disorder in the surrounding community and have a significant impact on police resources, and that's why it will be vital for the views of local police to be taken into account."
The proposed legislation also provides authority for the Minister of Health to publicly post a Notice of Application regarding proposed supervised drug consumption sites, and seek input directly from members of the general public.
Exemption applications for a supervised drug consumption site will continue to be assessed on a case-by-case basis, according to the factors outlined by the SCC.
These actions demonstrate how the Harper Government is acting to protect public health and maintain public safety in Canadian communities.

Saturday, June 8, 2013

The federal Conservative Party is denying the existence of a secret fund in the Prime Minister’s Office controlled exclusively by Stephen Harper’s chief of staff. The CBC reported Thursday that Harper's former chief of staff, Nigel Wright, had control of a secret fund when he cut the now infamous $90,000 cheque to disgraced Senator Mike Duffy to repay ineligible Senate expense claims he made.

The federal Conservative Party is denying the existence of a secret fund in the Prime Minister’s Office controlled exclusively by Stephen Harper’s chief of staff.
The CBC reported Thursday that Harper's former chief of staff, Nigel Wright, had control of a secret fund when he cut the now infamous $90,000 cheque to disgraced Senator Mike Duffy to repay ineligible Senate expense claims he made.
CBC News stands by the story.
The NDP on Friday wrote to Elections Canada asking for an investigation to determine whether the fund violates the Elections Act.

The report quoted sources saying the money in the fund comes from Conservative Party coffers, and at times has reached almost $1 million.
On Friday, the party issued a statement that said: "The CBC claimed there is a 'secret' Conservative Party fund run by the PMO. This is false."
But the party had no such denials on Tuesday when CBC sent Conservative spokesman Fred DeLorey an email asking for details about "the special discretionary CPC [Conservative Party of Canada] fund controlled by the PM's chief of staff."
CBC had already confirmed the existence of the fund from other sources, and the email clearly identified it as money used for partisan purposes.
The email asked DeLorey six specific questions about "the special discretionary CPC fund."
  • Why was this "special fund" necessary?
  • What was it used for during Wright's tenure?
  • Approximately how much money was allocated to it each year?
  • Are there any limitations on how these funds can be spent (or is it entirely the chief of staff's discretion)?
  • How are these funds accounted for?
And finally:
  • Is there any reason those funds could not have been used in the Duffy-Wright deal?
DeLorey’s entire response was two lines.
Conservative Party spokesman Fred DeLorey issued a statement Friday denying the existence of a secret fund controlled by the PM's chief of staff. (Twitter.com)
"The prime minister at times incurs expenses that are best paid by the party."
On the question of whether the fund could have been used in the Wright-Duffy deal, Delorey said: "No funds were used for that."
Similarly, there were no denials when CBC News sent an almost identical email to Harper's communications director, Andrew MacDougall.
"I'll have to refer you to the party," MacDougall responded.
Asked whether the special fund was in any way connected to the Duffy-Wright deal, MacDougall responded: "I can give you a clear, 'no.' The funds used were Mr. Wright's personal funds."
The party's denial two days after the exchange of emails makes a number of other claims not supported by fact.
For example: "The CBC claimed party funds are hidden from Elections Canada. This is false."
In fact, Elections Canada does not oversee any political party expenditures outside an election period.
The party's press release states that "The Conservative Party ensures that non-government activities undertaken by the prime minister are never billed to taxpayers.
"The CBC is being selective, failing to mention this is a standard practice for all political parties."
In fact, all the CBC reports – on TV, radio and online – made that point clear.

Friday, June 7, 2013

Parsons v. The Canadian Red Cross Society, 2013 ONSC 3053 (CanLII)

Parsons v. The Canadian Red Cross Society, 2013 ONSC 3053 (CanLII)

Date:2013-05-24
Docket: 98-CV-141369; 98-CV-146405
URL:http://canlii.ca/t/fxl8z
Citation:Parsons v. The Canadian Red Cross Society, 2013 ONSC 3053 (CanLII), <http://canlii.ca/t/fxl8z> retrieved on 2013-06-06
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CITATION:  Parsons v. The Canadian Red Cross Society, 2013 ONSC 3053
DATE: 20130524
COURT FILE NO.: 98-CV-141369
 
SUPERIOR COURT OF JUSTICE
Winkler C.J.O.
BETWEEN:
Dianna Louise Parsons, Michael Herbert Cruickshanks, David Tull, Martin Henry Griffen, Anna Kardish, Elsie Kotyk, Executrix of the Estate of Harry Kotyk, deceased and Elsie Kotyk, personally
Plaintiffs
and
The Canadian Red Cross Society, Her Majesty the Queen in Right of Ontario and the Attorney General of Canada
Defendants
 
and
Her Majesty the Queen in the Right of the Province of Alberta, Her Majesty the Queen in the Right of the Province of Saskatchewan, Her Majesty the Queen in the Right of the Province of Manitoba, Her Majesty the Queen in the Right of the Province of New Brunswick, Her Majesty the Queen in the Right of the Province of Prince Edward Island, Her Majesty the Queen in the Right of the Province of Nova Scotia, Her Majesty the Queen in the Right of the Province of Newfoundland, the Government of the Northwest Territories, the Government of Nunavut and the Government of the Yukon Territory
Interveners
 
Proceeding under the Class Proceedings Act, 1992


 COURT FILE NO. 98-CV-146405
AND BETWEEN:
 
James Kreppner, Barry Isaac, Norman Landry, as Executor of the Estate of the late Serge Landry, Peter Felsing, Donald Milligan, Allan Gruhlke, Jim Love and Pauline Fournier as Executrix of the Estate of the late Pierre Fournier
 
Plaintiffs
and
 
The Canadian Red Cross Society, the Attorney General of Canada and Her Majesty the Queen in Right of Ontario
 
Defendants
and
Her Majesty the Queen in the Right of the Province of Alberta, Her Majesty the Queen in the Right of the Province of Saskatchewan, Her Majesty the Queen in the Right of the Province of Manitoba, Her Majesty the Queen in the Right of the Province of New Brunswick, Her Majesty the Queen in the Right of the Province of Prince Edward Island, Her Majesty the Queen in the Right of the Province of Nova Scotia, Her Majesty the Queen in the Right of the Province of Newfoundland, the Government of the Northwest Territories, the Government of Nunavut and the Government of the Yukon Territory
 
Interveners
Proceeding under the Class Proceedings Act, 1992
Harvey T. Strosberg, Q.C., and J.J. Camp, Q.C., for the plaintiffs/moving parties
M. Michele Smith and Joshua Hunter, for the responding party Attorney General of Ontario
Paul B. Vickery and Sheila J. Hepworth, for the responding party Attorney General of Canada
John E. Callaghan, for the responding party Fund Counsel for Ontario
H. Michael Rosenberg, for the interveners
Heard:  March 20, 2013
 
Winkler C.J.O.

A.           OVERVIEW

[1]      This motion for directions raises the question whether a judge of the Superior Court of Ontario may sit in another province to hear a motion concerning a pan-Canadian settlement agreement of related class actions certified in Ontario, British Columbia and Québec. The class actions were brought on behalf of people in all provinces and territories of Canada who were infected by Hepatitis C through the Canadian blood supply. The answer to this question affects the ability of three supervisory judges to sit together in one location to adjudicate common matters over which they have personal and subject-matter jurisdiction.
[2]      The Attorney General of Ontario (“AG Ontario”) contends that a judge of Ontario’s Superior Court of Justice lacks jurisdiction to hold a hearing concerning the settlement agreement in a location outside Ontario. AG Ontario does not take issue with the Superior Court’s personal and subject-matter jurisdiction over the proceeding. Nor is it raising a jurisdictional issue concerning the certification of an extra-provincial class; indeed, AG Ontario consented to the certification order. AG Ontario’s jurisdictional objection is solely concerned with the physical location of the hearing.
[3]      AG Ontario submits that if the court were to hold a hearing outside Ontario, any order the court made would be a nullity and could be set aside for want of jurisdiction on an appeal or in collateral proceedings. The position taken by AG Ontario thus requires this court to make a preliminary determination concerning its ability to conduct a hearing outside Ontario.
[4]      I conclude that a judge of the Superior Court of Justice in Ontario may preside over a hearing that is conducted outside Ontario where the Ontario court has personal and subject-matter jurisdiction over the parties and the issues in the proceeding. This jurisdiction is not lost simply because the court presides over a motion in a location that is outside the court’s regular territorial limits. Rather, the court’s inherent jurisdiction to control its own process empowers the court to consider if it should exercise its discretion to hold a hearing outside its home province having regard to whether sitting outside the court’s home province promotes the interests of justice in the particular case. I would exercise this discretion in the present case. My reasons follow.

B.           FACTUAL BACKGROUND

[5]      Concurrent class proceedings were certified in Ontario, British Columbia and Québec on behalf of individuals who were infected with Hepatitis C by the Canadian blood supply between January 1, 1986 and July 1, 1990. The British Columbia and Québec class actions included residents of those provinces who received Hepatitis-C positive blood or blood products in those provinces between January 1, 1986 and July 1, 1990. The Ontario class actions included all other persons who received Hepatitis-C positive blood or blood products in Canada during that period.
[6]      The certified class proceedings culminated in a national settlement agreement dated June 15, 1999, whereby the Governments of Canada, all ten provinces and all three territories, agreed to be bound by its terms upon the agreement receiving court approval. The governments of the provinces and territories other than British Columbia and Québec moved to be included as defendants in the Ontario actions if the settlement agreement were approved by the Ontario court.
[7]      Settlement approval motions were brought before the supervisory judges of the class actions in Ontario, British Columbia and Québec. In 1999, each of the courts approved the settlement agreement: see Parsons v. Canadian Red Cross Society (1999), 40 C.P.C. (4th) 151 (S.C.) (approved on September 22, 1999 by Winkler J.); Endean v. Canadian Red Cross Society 1999 CanLII 6357 (BC SC), (1999), 68 B.C.L.R. (3d) 350 (S.C.) (approved on October 1, 1999 by Smith J.); Honhon c. Canada (Procureur général), [1999] J.Q. no 4370 (S.C.) (approved on September 21, 1999 by Morneau J.).
[8]      The settlement agreement established a fund of $1.118 billion from which eligible claimants may receive compensation depending on the severity of their illness. Class members across Canada received notice of the settlement and a small number of people chose to opt out. Over 13,000 class members from every province and territory within Canada have participated in and benefitted from the national settlement.  Approximately 5,200 of the class members are residents of Ontario. As well there are over 3,200 class members who are residents of provinces and territories other than British Columbia and Québec who are members of the Ontario class and fall under the jurisdiction of the Ontario court.
[9]      Pursuant to the settlement agreement, a court-appointed Administrator is charged with the role of reviewing and deciding claims and giving notice of its decision to claimants. Claimants have the right to refer the Administrator’s decision in respect of a claim to a court-appointed arbitrator or referee. These references and arbitrations are heard in the province or territory where the claimant resides. When a claimant proceeds by way of arbitration, there is no appeal. When a claimant proceeds by way of a reference, the claimant may seek a confirmation review. This review is conducted by the court having jurisdiction over the class action in which the claimant is a class member. The Ontario court has jurisdiction over reviews of referee decisions sought by members of the Ontario class, whether or not they reside in Ontario.
[10]   The settlement agreement assigns a supervisory role over implementing and enforcing its provisions to the Superior Courts of British Columbia, Ontario and Québec. More specifically, the settlement agreement provides:
The Courts will issue judgments or orders in such form as is necessary to implement and enforce the provisions of this Agreement and will supervise the ongoing performance of this Agreement including the Plans [for distributing the settlement funds] and the Funding Agreement.
The settlement agreement specifies that any such judgment or order of the courts takes effect “only upon the date when the last judgment or order of the Courts becomes final without any material differences in the three judgments or orders.”
[11]   The settlement agreement empowered the courts to appoint a Joint Committee, which is charged with the duty of establishing protocols (which must be approved by the courts) for the Administrator, Referees and Arbitrators in administering the agreement. The Joint Committee consists of four counsel who represented the class action plaintiffs in Ontario, British Columbia and Québec.
[12]   On August 13, 2012, class counsel filed motions before the supervisory judges from Ontario, British Columbia and Québec for approval of a proposed protocol extending the June 30, 2010 deadline in the settlement agreement for filing first claims for benefits from the settlement funds. These motions were opposed by all defendants.
[13]   Class counsel, in consultation with the court monitor, proposed that the most efficient and effective procedure for adjudicating the motions would be to have the three supervisory judges sit together in one location so that they would hear the same submissions and be better positioned to reach concurrent orders without material differences, as required by the settlement agreement. The location of Edmonton, Alberta was chosen for purposes of efficiency and cost effectiveness. The three supervisory judges, Chief Justices of their respective courts,[1] were scheduled to be in Edmonton for the week of September 17, 2012 for a meeting of the Canadian Judicial Council. The motion was thus made returnable on September 18, 2012, in Edmonton.
[14]   Prior to the hearing, AG Ontario objected to the Ontario supervisory judge sitting outside the territorial boundaries of the province of Ontario. AG Ontario threatened to bring a motion challenging the court’s jurisdiction. Accordingly, the motion was adjourned.
[15]   The supervisory judges understood that AG Ontario was prepared to file a formal motion raising this jurisdictional issue. However, AG Ontario failed to proceed with such a motion. As a result, members of the Joint Committee responded by bringing this motion for directions. Class counsel deemed it was important to have the jurisdictional question resolved because it will be a recurring issue in implementing the settlement agreement. Similar motions for directions were brought by class counsel in British Columbia and Québec.

C.           positions of the parties

[16]   AG Ontario contends that the Superior Court of Justice has no jurisdiction, either at common law or by statute, to hear a contested motion while sitting outside Ontario. AG Ontario submits an Ontario court should not sit outside Ontario in the absence of a comprehensive legislative scheme allowing it to do so. AG Ontario instead proposes that a joint hearing be held by way of videoconference, with the Ontario, British Columbia and Québec courts holding hearings in their respective provinces.
[17]   In contrast, Ontario Class Counsel, the Attorney General of Canada, and Fund Counsel for Ontario agree that a judge of the Superior Court of Justice of this province can render an enforceable judgment concerning the settlement agreement even if sitting outside the judge’s ordinary territorial limits.
[18]   The interveners – the Attorneys General of the provinces other than Ontario, British Columbia and Québec, and the territorial governments – took no position on the motion.

D.           ANALYSIS

(1)         Nature of the jurisdictional issue

[19]   Jurisdiction is a term that encompasses several concepts. As noted in R. v. Pilarinos, 2001 BCSC 1690 (CanLII), 2001 BCSC 1690, [2001] B.C.T.C. 1690, at para. 19: “Jurisdiction can be, amongst other things, exclusive, concurrent, original, in personam, in rem, and territorial.”
[20]   The only issue raised by AG Ontario concerns the judge’s physical location when hearing a matter. AG Ontario does not suggest that sitting outside Ontario would infringe upon the subject matter or personal jurisdiction of the Alberta Court of Queen’s Bench. Rather, the parties accept that the Superior Court of Justice in Ontario has jurisdiction over the subject matter in the proceeding and has personal jurisdiction over the parties.

(2)         Is there any constitutional or statutory prohibition preventing the Superior Court of Justice from holding a hearing outside Ontario?

(a)   Historical jurisdiction of the English courts to sit outside England
[21]   AG Ontario’s primary argument is that because, at common law, English courts could not hold hearings outside England, and because there is no explicit statutory provision authorizing Ontario superior courts to hold hearings outside Ontario, the Superior Court cannot hold hearings outside Ontario. In support of this position, AG Ontario cites s. 11(2) of the Courts of Justice Act, R.S.O. 1990, c. C.43, which provides that the Superior Court of Justice possesses all the jurisdiction, power and authority historically exercised by courts of common law and equity in England and Ontario.
[22]   AG Ontario made detailed submissions concerning the historical common law restrictions preventing English courts from sitting outside England going back to the Magna Carta. In my view, the restrictions that exist in England are not determinative of the jurisdiction issue in the present case.
[23]   The Supreme Court of Canada’s decision in Morguard Investments v. Savoie, 1990 CanLII 29 (SCC), [1990] 3 S.C.R. 1077, is, by analogy, instructive in this case.  Writing for the unanimous court, La Forest J. observed, at p. 1098, that there is no comparison between the interprovincial relationships of today and the relationships between foreign countries in the 19th century. La Forest J. spoke of the need to shape common law rules in a way that accommodates modern commercial and societal realities:
The world has changed since the above rules [concerning when English courts will enforce a foreign judgment] were developed in 19th century England. Modern means of travel and communications have made many of these 19th century concerns appear parochial. The business community operates in a world economy and we correctly speak of a world community even in the face of decentralized political and legal power. Accommodating the flow of wealth, skills and people across state lines has now become imperative. Under these circumstances, our approach to the recognition and enforcement of foreign judgments would appear ripe for reappraisal. 
[24]   Moreover, the restrictive English common law rules regarding the recognition and enforcement of foreign judgments “fly in the face of the obvious intention of the Constitution to create a single country”: Morguard, at p. 1099. Unlike England, this country’s constitutional underpinnings are intended to ensure the mobility of Canadians across provincial lines. La Forest J. elaborated on why Canadian constitutional and sub-constitutional arrangements and practices warrant shaping the rules of comity between provinces to conform to the federal structure of the Constitution, at pp. 1099-1100:
The Canadian judicial structure is so arranged that any concerns about differential quality of justice among the provinces can have no real foundation. All superior court judges – who also have superintending control over other provincial courts and tribunals – are appointed and paid by the federal authorities. … Any danger resulting from unfair procedure is further avoided by sub-constitutional factors, such as for example the fact that Canadian lawyers adhere to the same code of ethics throughout Canada.
[25]   For the same reasons that the rigid English common law requirements for enforcing foreign judgments are not suited to modern commercial realities or the Canadian constitutional landscape, English common law prohibiting English courts from sitting outside England should not be applied to prohibit the superior courts of this country from sitting outside their home provinces when it would be in the interests of justice to do so. The English common law rule precluding English courts from sitting outside England is not suited to modern realities of increasingly complex litigation involving parties and subject matters that transcend provincial borders. Moreover, there is a significant difference between an English court sitting outside England and a provincial superior court sitting elsewhere in Canada. The latter situation does not engage any issue of sovereignty among foreign states.
(b) Is there any domestic authority precluding Ontario courts from holding hearings outside Ontario?
[26]   AG Ontario further submits that Ontario courts historically could not hold hearings outside Ontario. However, it did not point to any constitutional or statutory limitation on the geographical location where the provincial superior courts may sit in order to adjudicate on the issues raised in a proceeding.
[27]   Professor Janet Walker observes in her article, “Are National Class Actions Constitutional? – A Reply to Hogg and McKee” (2010) 48 Osgoode Hall L.J. 95, at pp. 105-108, that there is no provision in the Constitution Act, 1867 (U.K.), 30 & 31 Vict., c.3., that addresses or could be said to confine the superior courts’ jurisdiction to adjudicate within territorial boundaries. Equally, there is no provision of the Constitution that speaks to the physical location where the superior courts must sit.
[28]   As for the alleged statutory limitation on the location where the Superior Court of Justice may conduct hearings, Ontario notes that the various incarnations of the Judicature Act from 1881 until 1984 permitted judges of the High Court of Justice to “sit and act, at any time and at any place, for the transaction of any part of the business of the courts” (emphasis added). I fail to see how this wording can be taken as revealing a legislative intention to limit the court’s ability to hold hearings outside Ontario.
[29]   The only common law authority referred to by AG Ontario that even speaks to the issue of a superior court judge sitting outside provincial boundaries is Ewachniuk v. Law Society of British Columbia 1998 CanLII 6469 (BC CA), (1998), 156 D.L.R. (4th) 1 (C.A.). However, the question of the ability of a superior court judge to sit outside the province was not directly before the court in Ewachniuk. Rather, the central question was whether a discipline panel of the Law Society of British Columbia had statutory authority to hold part of a hearing in the United States. 
[30]   A majority of the British Columbia Court of Appeal (per Rowles J.A., Finch J.A. concurring in the result, Goldie J.A. dissenting) held that a discipline panel does not have statutory authority to sit outside British Columbia. In reaching this conclusion, Rowles J.A. stated, at para. 31, that “the jurisdiction of the superior courts of the provinces is determined internally by the Constitution and externally by the boundaries of the provinces” and that superior courts of the provinces “do not sit outside their boundaries.” However, this particular observation was not necessary for the decision and was not mentioned in the concurring reasons.
[31]   In Ewachniuk, the British Columbia Court of Appeal had to determine the powers of a statutory tribunal, the authority of which is limited by statute. The conclusion that a particular tribunal created by a provincial legislature has no power to sit outside the boundaries of that province is not determinative of where a court of inherent jurisdiction may sit. In any event, Rowles J.A. was not considering the context of a joint hearing conducted by superior courts of three different provinces determining an issue related to the implementation of a pan-Canadian settlement agreement. 
[32]   Thus, AG Ontario was unable to provide any constitutional, statutory or binding common law authority for the position that a provincial superior court that otherwise has jurisdiction over the subject matter and the parties to the proceeding is precluded from conducting a hearing in a location outside the province. I turn now to the common law authority, which, in my view, supports a conclusion that provincial superior courts have discretion to sit outside their home province as a function of their inherent jurisdiction to control their own process.
(c) Jurisdiction of the superior courts to fully control their own process
[33]   The Supreme Court of Canada in MacMillan Bloedel Ltd. v. Simpson, 1995 CanLII 57 (SCC), [1995] 4 S.C.R. 725, confirmed, at para. 15, that the inherent jurisdiction of the superior courts includes the power of the courts to fully control their own process:
The superior courts have a core or inherent jurisdiction which is integral to their operations.  The jurisdiction which forms this core cannot be removed from the superior courts by either level of government, without amending the Constitution.  Without this core jurisdiction, s. 96 could not be said either to ensure uniformity in the judicial system throughout the country or to protect the independence of the judiciary.  Furthermore, the power of superior courts to fully control their own process is, in our system where the superior court of general jurisdiction is central, essential to the maintenance of the rule of law itself.
[34]   Lamer C.J., writing for the majority, referred, at para. 33, to the article by Keith Mason, “The Inherent Jurisdiction of the Court” (1983), 57 A.L.J. 449, in which he identified the following four functions of inherent jurisdiction: (i) ensuring convenience and fairness in legal proceedings; (ii) preventing steps being taken that would render judicial proceedings inefficacious; (iii) preventing abuse of process; and (iv) acting in aid of superior courts and in aid or control of inferior courts and tribunals. 
[35]   There is no need for comprehensive legislation empowering a judge of the superior court to implement procedures that are intended to address these four functions of inherent jurisdiction. Indeed, the courts are obliged to fill the void by exercising their inherent power to settle the rules of practice and procedure as to disputes. McLachlin C.J., writing for a unanimous Supreme Court in Western Canadian Shopping Centres Inc. v. Dutton, 2001 SCC 46 (CanLII), 2001 SCC 46, [2001] 2 S.C.R. 534, at para. 34, spoke of the superior courts’ inherent power to fill any procedural void that has been left by the legislature:
Absent comprehensive legislation, the courts must fill the void under their inherent power to settle the rules of practice and procedure as to disputes brought before them. However desirable comprehensive legislation on class action practice may be, if such legislation has not been enacted, the courts must determine the availability of the class action and the mechanics of class action practice. [Citations omitted.]  
[36]   McLachlin C.J. was prepared to read into the rules of civil procedure of a province that had no class proceedings legislation what amounted in essence to a class proceeding provision. The Supreme Court filled a void where the nature of the dispute before the court required a process permitting aggregate litigation. It seems to me that, in doing so, the Supreme Court provided guidance in the present context.
[37]   In fact, the courts have previously filled the procedural void left by the legislature when it comes to administering the settlement of an inter-provincial class action. In Fontaine v. Canada (Attorney General), the judges of the superior courts of Ontario, British Columbia, Québec, Alberta and Saskatchewan sat together in Calgary, Alberta in March 2007 to hear a motion for approval concerning the Indian Residential Schools class action settlement. The superior courts of Manitoba, Yukon, Northwest Territories and Nunavut were linked to the Alberta courtroom by telephone conference.
[38]   The inherent jurisdiction of the Superior Court of Justice to fashion procedures to facilitate the efficient and effective resolution of issues encountered in implementing a pan-Canadian settlement agreement is reinforced by the general supervisory powers conferred by the Class Proceedings Act, 1992: see Fontaine v. Canada (Attorney General), 2012 BCSC 839 (CanLII), 2012 BCSC 839, at paras. 111-12. Section 12 of the Act empowers the court to “make any order it considers appropriate respecting the conduct of a class proceeding to ensure its fair and expeditious determination”. This broad jurisdiction exists throughout the implementation of the settlement agreement. As stated in Fantl v. Transamerica Life Canada, 2009 ONCA 377 (CanLII), 2009 ONCA 377, 95 O.R. (3d) 767, at para. 39: “the court’s supervisory jurisdiction… continues throughout the ‘stages’ of the proceeding until a final disposition, including the implementation of the administration of a settlement”.
(d) Conclusion on jurisdiction
[39]   The request that this court hear a contested motion sitting together with the supervisory judges from British Columbia and Québec in a different province raises an issue concerning this court’s inherent jurisdiction to fully control its own process. In particular, the request engages the following two functions of inherent jurisdiction as referred to in MacMillan Bloedel: ensuring convenience and fairness in legal proceedings and preventing steps being taken that would render judicial proceedings inefficacious.
[40]   Accordingly, the issue then becomes whether this court should exercise its discretion to sit outside the territorial boundaries of Ontario.

(3)         Should the court exercise its discretion to sit outside the territorial boundaries of Ontario?

[41]   The prospect of a court exercising its discretion to sit outside the territorial boundaries of its home province only arises where the court has subject matter and personal jurisdiction over the proceeding. This scenario occurs infrequently. However, it does arise in relation to class action litigation and settlement administration involving national classes. Such cases are commonly referred to as “complex litigation” which of necessity require innovative solutions to problems that are often not addressed by the rules of court or by statute.
[42]   Apart from the Hepatitis C class actions, provincial superior courts have certified a number of multi-jurisdictional class actions with extra-provincial class members: see, for example, Nantais v. Telectronics Proprietary (Canada) Ltd. 1995 CanLII 7113 (ON SC), (1995), 25 O.R. (3d) 331 (Gen. Div.), leave to appeal to Divisional Court refused; Carom v. Bre-X Minerals Ltd. 1999 CanLII 14781 (ON SC), (1999), 43 O.R. (3d) 441 (Gen. Div.); Webb v.  K‑Mart Canada Ltd. 1999 CanLII 15076 (ON SC), (1999), 45 O.R. (3d) 389 (S.C.); Wilson v. Servier Canada Inc. 2002 CanLII 49484 (ON SC), (2002), 59 O.R. (3d) 656 (S.C.); McCutcheon v. The Cash Store Inc. 2006 CanLII 15754 (ON SC), (2006), 80 O.R. (3d) 644 (S.C.); Harrington v. Dow Corning Corp. 1997 CanLII 4153 (BC SC), (1997), 29 B.C.L.R. (3d) 88 (S.C.).
[43]   A court should exercise its discretion to hold a hearing outside its home province sparingly. However, the interests of justice may in certain situations be such that the court is entitled – indeed, perhaps even required – to exercise its jurisdiction to hold a hearing outside its home province. When the exercise of this discretion takes place in the context of a class proceeding, the recognized goals of achieving judicial economy and enhancing access to justice must be taken into account. Therefore, these goals must be considered in determining the location of the hearing.
[44]   The underlying motion before this court seeks to extend the deadline in the Hepatitis C settlement agreement for filing first claims. This will require the judges of the superior courts of Ontario, British Columbia and Québec to independently exercise their discretion pursuant to their supervisory jurisdiction over the settlement agreement. Under the terms of the settlement agreement, for an order of the courts to take effect, the courts must issue orders without material difference. The orders would be issued and entered in each judge’s respective home province.
[45]   It is apparent that holding a single hearing instead of three will save expense and valuable resources. Equally important is that a single hearing will help to avoid potential additional costs by facilitating the process of rendering consistent judgments as mandated by the settlement agreement. Should the courts reach inconsistent orders, the parties may be required to re-attend, thereby requiring further legal costs that would be borne by the settlement trust.
[46]   The risk of inconsistent decisions is a very real concern and not merely hypothetical. This scenario has unfolded previously in these proceedings. After the approval of the settlement agreement, a motion to obtain approval of the Administrator of the settlement agreement was brought in each of the three courts. Three separate and consecutive hearings were held in Ontario, British Columbia and Québec. The courts in Ontario and British Columbia approved the administrator recommended by class action counsel, whereas the Québec court raised concerns about that appointment and called for more evidence and submissions. In the end, the Québec court approved a different administrator. The Ontario and British Columbia courts were provided with the transcripts of the Québec proceeding and issued subsequent orders approving the Administrator approved by the Québec court.
[47]   A joint hearing of all three supervisory courts avoids to the greatest extent possible – in keeping with the principle of judicial independence – the potential for inconsistent orders and the costs associated therewith. A joint hearing ensures that the supervisory judges will receive the same oral and written submissions and will be able to confer directly with one another before issuing an order on the merits.
[48]   The alternative proposal advanced by AG Ontario of using video-conferencing technology to permit a concurrent hearing in three separate locations suffers from technical and logistical constraints. Given the current state of technology, it would be difficult for the individual judges to ask questions of the numerous counsel, who would be appearing at three sites, without repeated interruptions and breakdowns in the flow of exchange between the bench and counsel. Experience has shown that video-conferencing technology does not offer the equivalent procedural advantages of holding a hearing before all the supervisory judges in one location.
[49]   AG Ontario further submits that the open courts principle demands that the hearing be held in Ontario, and that Ontario residents (including class members, defendants and other interested parties) would suffer prejudice by having to travel to attend the hearing in Edmonton. Further, Ontario submits that while the class members in other provincial jurisdictions have given up their right to have a hearing in their home provinces by not opting out of the class, the Ontario class members have not given up this right. This argument accepts that class members can voluntarily concede their right to an open hearing in their province.
[50]   AG Ontario’s argument overlooks the fundamental reality of class proceedings, that Ontario class members are represented by class counsel. Class counsel consented on behalf of all class members to the hearing being conducted in another province. This is a complete answer to AG Ontario’s concerns that the open court principle is imperilled by holding the hearing outside of Ontario.
[51]   If Ontario class members had wanted to observe the hearing, class counsel could have requested that the hearing be transmitted by way of video-link to an Ontario courtroom.  In the present case no such request was made.

E.           CONCLUSION

[52]   This motion raises a narrow procedural issue concerning the physical location of a hearing involving the pan-Canadian settlement agreement of the Hepatitis C class actions. No issue is taken with the composition of the class or with the court’s personal and subject matter jurisdiction over the proceeding.
[53]   In the interests of promoting access to justice and judicial economy, the three supervisory courts were prepared to sit together to hear and determine a motion for directions regarding the extension of the time to file claims under the settlement agreement. This was an instance of judicial cooperation intended to permit the supervisory judges to efficiently and effectively hear submissions so that each court could render a decision on a matter within its own competence. In my view, AG Ontario’s highly restrictive reading of the inherent jurisdiction of the Superior Court of Justice to control its own process is inimical to this judicial initiative. Furthermore, in my opinion, AG Ontario’s proposed alternatives to a joint hearing, whether in the form of three duplicative hearings or a video-linked joint hearing, do not adequately address the goals of ensuring access to justice and judicial economy.
[54]   Access to justice is a national and, indeed, an international, issue. The Hepatitis C and Indian Residential Schools class actions are internationally recognized examples of Canadian class proceedings that provided access to justice to thousands of people who suffered common wrongs. The procedural vehicle of the class action has permitted these victims to obtain redress for the harms they have suffered. The tragic events that gave rise to the actions transcended provincial borders and were national in scope. The settlements were pan-Canadian in nature because of the need to avoid inefficiencies and costly duplication which would have ensued had the settlements been limited by provincial jurisdictions.
[55]   Within Canada’s constitutional framework, the provincial and territorial superior courts are charged with the responsibility for certifying class actions, approving settlement agreements, and, ultimately, administering those settlements. The provincial superior courts have had to adapt their procedures to ensure that settlements of pan-Canadian class actions achieve their intended purpose in the most efficient and effective way possible.
[56]   Contrary to AG Ontario’s position, I conclude that there is no constitutional, statutory or common law provision precluding the Superior Court of Justice from conducting a hearing outside Ontario. Where the Superior Court of Justice has subject matter and personal jurisdiction over a proceeding, the court may conduct a hearing outside the province as a function of its inherent jurisdiction to fully control its own process.
[57]   In deciding whether to exercise this discretion, the court should consider if sitting outside Ontario is in the interests of justice. In the class proceedings context where national or inter-provincial classes are involved, the interests of justice include the goals of achieving judicial economy and access to justice.
[58]   Having regard to these considerations, I am satisfied that it is in the interests of justice for this court to conduct a hearing in a location outside Ontario alongside the other two supervisory judges from British Columbia and Québec.
 
Released:    May 24, 2013  WKW
                                               
 
                                                                                      “W.K. Winkler C.J.O.”


[1] Chief Justice F. Rolland of the Québec Superior Court and Chief Justice R.J. Bauman of the Supreme Court of British Columbia are the two other supervisory judges of the settlement agreement.