Jacs Jackets and Crest Ltd., Re; Workers' Compensation Board (Alta.) v. Deloitte Haskins and Sells Ltd., (1985) 60 N.R. 81 (SCC)

• Judge: Laskin, C.J.C., Ritchie, Dickson, Beetz, Estey, McIntyre, Chouinard, Lamer and Wilson, JJ.
• Court: Supreme Court (Canada)
• Case Date: June 13, 1985
• Jurisdiction: Canada (Federal)
• Citations: (1985), 60 N.R. 81 (SCC);63 AR 321;60 NR 81;19 DLR (4th) 577;31 ACWS (2d) 297;38 Alta LR (2d) 169;[1985] 4 WWR 481;55 CBR (ns) 241;60 NSR (2d) 81;JE 85-602;1985 CanLII 82 (SCC);[1985] SCJ No 35 (QL);[1985] 1 SCR 785

Jacs Jackets & Crest Ltd., Re (1985), 60 N.R. 81 (SCC)

MLB headnote and full text

Deloitte Haskins and Sells Limited v. Workers' Compensation Board and Attorney General of Canada, Attorney General of Alberta, Workers' Compensation Board of New Brunswick, Workers' Compensation Board of Ontario, Workers' Compensation Board of British Columbia and Workers' Compensation Board of the Yukon (intervenors)

(No. 17587)

Indexed As: Jacs Jackets and Crest Ltd., Re; Workers' Compensation Board (Alta.) v. Deloitte Haskins and Sells Ltd.

Supreme Court of Canada

Laskin, C.J.C., Ritchie, Dickson, Beetz, Estey, McIntyre, Chouinard, Lamer and Wilson, JJ.

June 13, 1985.

Summary:

The Alberta Workers' Compensation Board claimed to be a secured creditor of a bankrupt estate under s. 78(4) of the Workers' Compensation Act, S.A. 1973, c. 87. The trustee resisted the claim on the ground that the Workers' Compensation Board ranked after secured creditors under s. 107(1)(h) of the Bankruptcy Act. The Alberta Court of Queen's Bench in a judgment unreported in this series of reports allowed the claim. The trustee appealed.

The Alberta Court of Appeal in a judgment reported [1983] 3 W.W.R. 587; 43 A.R. 241; 144 D.L.R.(3d) 525; 25 Alta. L.R.(2d) 57, dismissed the appeal and held that the Board was a secured creditor. The trustee appealed.

The Supreme Court of Canada, Estey, J., dissenting, allowed the appeal and held that the Board was not a secured creditor for bankruptcy purposes. The court held that s. 78(4) of the Workers' Compensation Act was inapplicable to bankruptcy proceedings and that under s. 107(1)(h) of the Bankruptcy Act the Board was not a secured creditor and ranked after secured creditors.

Bankruptcy - Topic 3645

Creditors - Priorities - Statutory liens - Effect of - Workers' compensation - The Supreme Court of Canada held that s. 78(4) of the Alberta Workers' Compensation Act was inapplicable in bankruptcy proceedings and did not constitute the Workers' Compensation Board as a secured creditor under s. 107(1) of the Bankruptcy Act.

Constitutional Law - Topic 3504

Paramountcy of federal statutes - General principles - Requirement of conflict or repugnancy - The Supreme Court of Canada held that s. 78(4) of the Alberta Workers' Compensation Act, which made the Workers' Compensation Board a secured creditor of an employer, was inapplicable in bankruptcy proceedings in the face of s. 107(1)(h) of the Bankruptcy Act, which ranked the Workers' Compensation Board below secured creditors - The court held that s. 78(4) should not be declared invalid because of conflict with the Bankruptcy Act, but should merely be declared inoperative in bankruptcy, where federal jurisdiction prevailed - See paragraphs 22 to 26, 28 to 32.

Constitutional Law - Topic 6265

Federal jurisdiction - Bankruptcy - Provincial legislation - Statutory liens - Workers' compensation - The Supreme Court of Canada held that s. 78(4) of the Alberta Workers' Compensation Act was inapplicable in bankruptcy proceedings and did not constitute the Workers' Compensation Board as a secured creditor under s. 107(1) of the Bankruptcy Act.

Cases Noticed:

Workers' Compensation Board v. Provincial Treasurer of Alberta (1967), 59 W.W.R.(N.S.) 298 (Alta. C.A.), consd. [paras. 9, 37].

Davis v. Workers' Compensation Board et al., [1980] 2 W.W.R. 349; 33 C.B.R. (N.S.) 146 (Alta. S.C.), consd. [paras. 9, 15].

Royal Bank of Canada v. Larue, [1928] A.C. 187, appld. [para. 11].

Gingras Automobile Ltée, Re, [1962] S.C.R. 676, consd. [paras. 12, 40].

Bourgault's Estate v. Deputy Minister of Revenue of Quebec, [1980] 1 S.C. R. 35; 30 N.R. 24, appld. [paras. 13, 39].

Clemenshaw, Re (1963), 4 C.B.R. (N.S.) 238 (B.C.C.A.), not folld. [para. 15].

R.A. Nelson Construction, Re (1966), 8 C.B.R. (N.S.) 221 (B.C.S.C.), not folld. [para. 15].

Trinel Office Products Limited, Re (1971), 14 C.B.R. (N.S.) 248 (Alta. S.C.), not folld. [para. 15].

Black Forest Restaurant Ltd. Re (1981), 47 N.S.R.(2d) 454; 90 A.P.R. 454; 37 C.B.R. (N.S.) 176, affd. 47 N.S.R.(2d) 446; 90 A.P.R. 446; 38 C.B.R. (N.S.) 253 (N.S.C.A.), appld. [para. 17].

Workers' Compensation Board of British Columbia v. Kinross Mortgage Corporation, [1982] 1 W.W.R. 87 (B.C.C.A.), appld. [para. 19].

Smith v. R., [1960] S.C.R. 776, consd. [para. 23].

Montcalm Construction Inc. v. Minimum Wage Commission, [1979] 1 S.C.R. 754; 25 N.R. 1, consd. [para. 23].

Multiple Access Ltd. v. McCutcheon, [1982] 2 S.C.R. 161; 44 N.R. 181, consd. [para. 24].

Canadian Pacific Limited v. Quebec North Shore Paper Company, [1977] 2 S.C.R. 1054; 9 N.R. 471, appld. [para. 24].

Statutes Noticed:

Bankruptcy Act, R.S.C. 1970, c. B-3, sect. 2 [paras. 5, 34]; sect. 50(6) [paras. 10, 38]; sect. 107(1)(h) [paras. 3, 35, 36].

Constitution Act, 1867, sect. 91(21).

Workers' Compensation Act S.A., 1973, c. P-7, sect. 78(4) [paras. 2, 34].

Authors and Works Noticed:

Hogg, Constitutional Law of Canada, p. 103 [para. 25].

Counsel:

L.N. Boddy and M.J. McCabe, for the appellant;

J. Douglas Carr, for the respondent;

A.M. Austin, for the Workers' Compensation Board of Ontario;

Levi E. Clain and Catherine Walsh, for the Workers' Compensation Board of New Brunswick;

Gerald Massing, for the Workers' Compensation Board of British Columbia;

Don Kidd, for the Workers' Compensation Board of the Yukon;

T.B. Smith, Q.C., and Susan Clarke, for the Attorney General of Canada;

Gordon D. Gillis, for the Attorney General of Nova Scotia;

William Henkel, Q.C., for the Attorney General of Alberta.

This case was heard on December 14, 1983, at Ottawa, Ontario, before Laskin, C.J.C., Ritchie, Dickson, Beetz, Estey, McIntyre, Chouinard, Lamer and Wilson, JJ., of the Supreme Court of Canada.

On June 13, 1985, the judgment of the Supreme Court of Canada was delivered and the following opinions were filed:

Wilson, J. (McIntyre and Lamer, JJ., concurring) - see paragraphs 1 to 27;

Chouinard, J. (Dickson and Beetz, JJ., curring) - see paragraphs 28 to 32;

Estey, J., dissenting - see paragraphs 33 to 43.

Laskin, C.J.C., and Ritchie, J., did not take part in the judgment.