Greater Toronto Airports Authority v. Air Canada, (1999) 99 O.T.C. 81 (SC)

• Judge: Cameron, J.
• Court: Superior Court of Justice of Ontario (Canada)
• Case Date: July 02, 1999
• Jurisdiction: Ontario
• Citations: (1999), 99 O.T.C. 81 (SC)

Airports Authority v. Air Can. (1999), 99 O.T.C. 81 (SC)

MLB headnote and full text

Temp. Cite: [1999] O.T.C. TBEd. JL.100

Greater Toronto Airports Authority (applicant/responding party) v. Air Canada (respondent/moving party)

(No. 99-CV-162721)

Air Canada (plaintiff/responding party) v. Greater Toronto Airports Authority (defendant/moving party)

(No. 99-CV-164536)

Indexed As: Greater Toronto Airports Authority v. Air Canada

Court of Ontario

Superior Court of Justice

Cameron, J.

July 2, 1999.

Summary:

Air Canada was the principle tenant of Terminal 2 at the Pearson Airport. Air Canada made various improvements to Terminal 2. In 1989, to ensure that it could recover the costs of the improvements, Air Canada negotiated the "Guiding Principles for Air Canada Lease Negotiations". The Guiding Principles provided that Air Canada would have a 20 year lease of Terminal 2 with options to renew for two successive ten year terms. In 1996, Transport Canada transferred possession and operation of Pearson to the Greater Toronto Airports Authority (GTAA), a corporation incorporated by letters patent under the Canada Corporations Act. GTAA planned an upgrade of the airport which included the demolition of Terminal 2. GTAA sought to impose fees and charges on users of Pearson. GTAA applied for declarations that the Guiding Principles were not binding on it and that Air Canada did not have a lease. Air Canada commenced an action seeking various declarations, including, that the Guiding Principles were enforceable and binding on GTAA and that the fees and charges were invalid and unreasonable. Air Canada also sought, inter alia, enforcement of the Guiding Principles and an injunction restraining GTAA from levying user fees and charges. GTAA applied to strike out Air Canada's statement of claim as disclosing no cause of action or, alternatively, to stay the claims because GTAA's application dealt with the same subject matter. Air Canada applied to dismiss GTAA's original application, stay it pending the determination of Air Canada's action or consolidate the action and the application.

The Ontario Superior Court struck out portions of Air Canada's statement of claim. The court held that the Guiding Principles issues could be determined in GTAA's application. The court stayed Air Canada's action pending the outcome of GTAA's application.

Aeronautics - Topic 1902

Airports - Operation of - Airport authority - Powers of - See paragraphs 80 to 169.

Aeronautics - Topic 2703

Regulation - Tariffs and tolls - Authority to impose - See paragraphs 120 to 128 and 140 to 156.

Company Law - Topic 690

Powers - Doctrine of ultra vires - Practice - Persons entitled to challenge exercise of corporate power - See paragraphs 131 to 139.

Contracts - Topic 9916

Promissory estoppel - Where applicable - As shield or sword - See paragraphs 90 to 105.

Crown - Topic 12

General principles - Crown policy - Effect on substantive rights - See paragraphs 129 to 130.

Estoppel - Topic 9

General principles - Estoppel as a shield, not sword - See paragraphs 90 to 105.

Practice - Topic 43

Actions - Commencement of - Avoidance of multiplicity of proceedings - See paragraphs 170 to 187.

Practice - Topic 73

Actions - Commencement of - Choice of method of commencement of proceedings - Action v. application - See paragraphs 170 to 187.

Practice - Topic 221

Persons who can sue and be sued - Individuals and corporations - Status or standing - Public interest standing (incl. requirements of) - See paragraphs 131 to 139.

Practice - Topic 1338

Pleadings - The issues - Pleading of conditions precedent - See paragraphs 72 to 78.

Practice - Topic 2230

Pleadings - Striking out pleadings - Grounds - Failure to disclose a cause of action or defence - See paragraphs 80 to 88.

Practice - Topic 3061

Applications and motions - General - Avoidance of multiplicity of proceedings - See paragraphs 170 to 187.

Practice - Topic 5277

Trials - General - Stay of proceedings - When available - See paragraphs 170 to 187.

Torts - Topic 5282

Interference with economic relations - Intimidation and duress - Elements of - See paragraphs 161 to 166.

Trade Regulation - Topic 1506

Monopolies - General principles - Abuse of monopoly power - See paragraphs 140 to 160.

Cases Noticed:

Transworld Shipping v. R., [1976] 1 F.C. 159; 12 N.R. 129 (F.C.A.), refd to. [para. 74].

Montreal Trust v. Toronto-Dominion Bank (1992), 40 C.P.C.(3d) 389 (Ont. Gen. Div.), refd to. [para. 74].

Canadian Plasmapheresis Centres Ltd. v. Canadian Broadcasting Corp. (1975), 8 O.R.(2d) 55 (H.C.), refd to. [para. 74].

Peaker v. Canada Post (Corp.) (1989), 68 O.R.(2d) 8 (H.C.), refd to. [para. 75].

Hunt v. Carey Canada Inc. - see Hunt v. T & N Plc et al.

Hunt v. T & N Plc et al., [1990] 2 S.C.R. 959; 117 N.R. 321; 74 D.L.R.(4th) 321; [1990] 6 W.W.R. 385; 4 C.C.L.T.(2d) 1, refd to. [para. 82].

Nash v. Ontario - see Fallconcrest Financial Corp. v. Ontario.

Fallconcrest Financial Corp. v. Ontario (1995), 27 O.R.(3d) 1 (C.A.), refd to. [para. 83].

Toronto-Dominion Bank v. Deloitte, Haskins and Sells (1991), 5 O.R.(3d) 417 (Gen. Div.), refd to. [para. 83].

Belanger (R.D.) & Associates Ltd. et al. v. Stadium Corp. of Ontario Ltd. and Bitove Corp. (1991), 57 O.A.C. 81; 5 O.R.(3d) 778 (C.A.), refd to. [para. 82].

Dawson et al. v. Rexcraft Storage and Warehouse Inc. et al. (1998), 111 O.A.C. 201; 164 D.L.R.(4th) 257 (C.A.), refd to. [para. 84].

Jane Doe v. Board of Police Commissioners of Metropolitan Toronto et al. (1990), 40 O.A.C. 161; 74 O.R.(2d) 225 (Div. Ct.), refd to. [para. 85].

Reclamation Systems Inc. v. Rae (1996), 27 O.R.(3d) 419 (Gen. Div.), refd to. [para. 90].

Rogers Cable T.V. Ltd. v. 373041 Ontario Ltd., [1996] O.J. No. 2033, refd to. [para. 90].

Confederation Treasury Services Ltd. v. Hees International Bancorp Inc., [1997] O.J. No. 351, refd to. [para. 90].

Verreault (J.E.) & Fils Ltée v. Procureur général de la Province du Quebec, [1977] 1 S.C.R. 4; 5 N.R. 271; 8 N.R. 72; 57 D.L.R.(3d) 403, refd to. [para. 95].

Quebec (Attorney General) v. Labrecque, [1980] 2 S.C.R. 1057; 38 N.R. 1; 125 D.L.R.(3d) 545, refd to. [para. 95].

CAE Industries Ltd. and CAE Aircraft Ltd. v. Canada, [1986] 1 F.C. 129; 61 N.R. 19 (F.C.A.), refd to. [para. 95].

Somerville Belkin Industries Ltd. v. Manitoba, [1988] 3 W.W.R. 523; 51 Man.R.(2d) 232 (C.A.), refd to. [para. 98].

Tudale Explorations Ltd. v. Bruce (1978), 20 O.R.(2d) 593 (Div. Ct.), refd to. [para. 99].

Palais Royale Ltd. v. Muszynski, [1994] O.J. No. 588 (C.A.), refd to. [para. 101].

789247 Ontario Inc. v. 215 Piccadilly Properties Inc., [1991] O.J. No. 855 (Gen. Div.), refd to. [para. 103].

Peter v. Beblow, [1993] 1 S.C.R. 980; 150 N.R. 1; 23 B.C.A.C. 81; 39 W.A.C. 81, refd to. [para. 107].

Peel (Regional Municipality) v. Ontario, [1992] 3 S.c.R. 762; 144 N.R. 1; 59 O.A.C. 81, refd to. [para. 107].

Rathwell v. Rathwell, [1978] 2 S.C.R. 436; 19 N.R. 91; 83 D.L.R.(3d) 289; [1978] 2 W.W.R. 101, refd to. [para. 107].

Canada v. Confederation Life Insurance Co. (1995), 24 O.R.(3d) 717 (Gen. Div.), refd to. [para. 107].

Keyser v. Hansen (1990), 99 N.S.R.(2d) 251; 270 A.P.R. 251 (C.A.), refd to. [para. 110].

Hussey Seating Co. (Canada) Ltd. v. Ottawa (City) (1997), 26 O.T.C. 365; 32 O.R.(3d) 633 (Gen. Div.) affd. (1998), 128 O.A.C. 1; 41 O.R.(3d) 254 (C.A.), refd to. [para. 112].

Hotel Holdings Ltd. v. Canadian National Railway Co. (1975), 8 Nfld. & P.E.I.R. 301; 8 A.P.R. 301 (Nfld. C.A.), refd to. [para. 112].

Deglman v. Brunet Estate, [1954] S.C.R. 725, refd to. [para. 114].

Brewer v. Chrysler Canada Ltd., [1977] 3 W.W.R. 69; 4 A.R. 497 (T.D.), refd to. [para. 114].

MacIver v. American Motors (Canada) Ltd. (1976), 70 D.L.R.(3d) 473 (Man. C.A.), refd to. [para. 114].

R. v. Billen, [1999] S.J. No. 202 (C.A.), refd to. [para. 123].

Gendron v. Supply and Services Union of the Public Service Alliance of Canada, Local 50057 et al., [1990] 1 S.C.R. 1298; 109 N.R. 321; 66 Man.R.(2d) 81; [1990] 4 W.W.R. 385, refd to. [para. 123].

Bramalea Consolidated Developments Ltd. v. Ontario (Attorney General), [1971] 1 O.R. 252 (H.C.), affd. [1971] 2 O.R. 570 (C.A.), refd to. [para. 129].

Mohammad (M.M.I.) v. Minister of Employment and Immigration, [1989] 2 F.C. 363; 91 N.R. 121 (F.C.A.), refd to. [para. 129].

Dagenais v. Centre Local de Services Communicautaires Kateri, [1991] A.Q. No. 2001 (C.A.), refd to. [para. 129].

Parklane Private Hospital Ltd. v. Vancouver (City), [1975] 2 S.C.R. 47; 2 N.R. 305, refd to. [para. 129].

Baker v. Canada, [1997] 2 F.C. 127; 207 N.R. 57; 122 F.T.R. 320; 142 D.L.R.(4th) 554, refd to. [para. 130].

Old St. Boniface Residents Association Inc. v. Winnipeg (City) et al., [1990] 3 S.C.R. 1170; 116 N.R. 46; 69 Man.R.(2d) 134; 75 D.L.R.(4th) 385, refd to. [para. 130].

Finlay v. Canada, [1986] 2 S.C.R. 607; 71 N.R. 338; 33 D.L.R.(4th) 321, refd to. [para. 131].

Operation Dismantle Inc. et al. v. Canada et al., [1985] 1 S.C.R. 441; 59 N.R. 1; 18 D.L.R.(4th) 481; 13 C.R.R. 287; 12 Admin. L.R. 16, refd to. [para. 13].

Bonanza Creek Gold Mining Co. v. R., [1916] A.C. 566 (J.C.P.C.), refd to. [para. 132].

Edwards v. Blackmore (1918), 42 O.L.R. 105 (C.A.), refd to. [para. 132].

Canadian Council of Churches v. Canada et al., [1992] 1 S.C.R. 236; 132 N.R. 241, refd to. [para. 133].

Meilleur v. Aéroports de Montréal, [1997] A.Q. No. 1171 (C.A.), refd to. [para. 134].

Greater Toronto Airports Authority v. Mississauga (City) (1999), 87 O.T.C. 27 (Gen. Div.), refd to. [para. 134].

Royal Aviation v. Aéroports de Montréal, [1998] A.Q. No. 2451 (C.S.Q.), refd to. [para. 141].

Allnut v. Inglis (1810), 12 East. 527, refd to. [para. 142].

Chastain v. British Columbia Hydro and Power Authority (1972), 32 D.L.R.(3d) 443 (B.C.S.C.), refd to. [para. 142].

Malone v. Metropolitan Police Commissioner, [1979] 1 Ch. 344, refd to. [para. 152].

O'Driscoll v. McLeod, [1986] B.C.J. No. 1355 (S.C.), refd to. [para. 152].

Reference Re Canada Assistance Plan Act - see Reference Re Constitutional Question Act (B.C.).

Reference Re Constitutional Question Act (B.C.), [1991] 2 S.C.R. 526; 127 N.R. 161; 1 B.C.A.C. 241; 1 W.A.C. 241, refd to. [para. 152].

Reference Re Secession of Quebec, [1998] 2 S.C.R. 217; 228 N.R. 203; 161 D.L.R.(4th) 385, refd to. [para. 152].

Aerlinte Eireann Teoranta et al. v. Canada (1987), 9 F.T.R. 29 (T.D.), refd to. [para. 153].

Cassidy v. Stuart (1928), 42 O.L.R. 374 (C.A.), refd to. [para. 157].

Hollinger Bus Lines Ltd. v. Ontario Labour Relations Board, [1951] O.R. 562, refd to. [para. 157].

Daishowa Inc. v. Friends of the Lubicon et al. (1996), 88 O.A.C. 1; 27 O.R.(3d) 215 (Div. Ct.), refd to. [para. 162].

Rookes v. Bernard, [1964] A.C. 1129, refd to. [para. 163].

Roehl v. Houlahan et al. (1990), 46 O.A.C. 72; 75 O.R.(2d) 482 (C.A.), refd to. [para. 163].

Poulos v. Matovic (1989), 47 C.C.L.T. 207 (Ont. H.C.), refd to. [para. 165].

Victoria Property and Investment Co. (Canada) Ltd. v. Vitznau Management Ltd. (1978), 22 O.R.(2d) 193 (H.C.), refd to. [para. 172].

Sportmart Inc. v. Toronto Hospital Foundation (1995), 62 C.P.R.(3d) 129 (Ont. Gen. Div.), refd to. [para. 172].

Authors and Works Noticed:

Driedger, Construction of Statutes (3rd Ed. 1994), p. 307 [para. 104].

Fleming, The Law of Torts (9th Ed. 1998), pp. 766 [para. 162]; 767 [paras. 162, 163]; 768 [para. 163].

Fraser and Stewart, Company Law of Canada (5th Ed.), pp. 51, 52 [para. 132].

Halsbury's Laws of England (4th Ed. 1989), vol. 1(1), para. 165 [para. 157].

Hogg, Peter, Liability of the Crown (2nd Ed. 1989), pp. 167 [para. 98]; 169 [para. 95].

Klar, Remedies in Tort (1999) (Looseleaf), vol. 1, pp. 13 to 19 [para. 162].

Maddaugh, P.D., and McCamus, J.D., The Law of Restitution (1990), pp. 465, 466 [para. 112].

Ontario, Law Reform Commission, Report of the Liability of the Crown (1989), pp. 38 to 40 [para. 98].

Saana, Lazar, The Law of Declaratory Judgments (2nd Ed. 1988), p. 30 [para. 157].

Sullivan, Ruth, Dreidger, Construction of Statutes (3rd Ed. 1994), p. 307 [para. 144].

Waddams, S.M., The Law of Contracts (4th Ed. 1999), s. 201, p. 146 [para. 99].

Counsel:

Brian Morgan and Mahmud Jamal, for the Greater Toronto Airports Authority;

Peter H. Griffin, for Air Canada.

These applications were heard on May 10-13, 1999, by Cameron, J., of the Ontario Superior Court, who delivered the following judgment on July 2, 1999.