Judgments

Decision Information

Decision Content

A-727-90
Attorney General of Canada (Applicant) v.
Richard Roderick Morgan and Canadian Human Rights Commission (Respondents)
A-741-90
Canadian Human Rights Commission (Applicant) v.
Canadian Armed Forces, Norman Fetterly, Barry Sheppard and Ronald Lou-Poy, constituted as a Canadian Human Rights Review Tribunal (Respondents)
and
Richard Roderick Morgan (Mis en cause)
INDEXED AS: CANADA (ATTORNEY GENERAL) V. MORGAN (C.A.)
Court of Appeal, Mahoney, Marceau and MacGuigan JJ.A.—Vancouver, September 24; Ottawa, November 4, 1991.
Human rights — Complainant given medical discharge from Armed Forces — Application to re-enrol rejected as medically unfit, although passed first steps in recruiting process — Forces admitting discriminatory act — Initial Tribunal award ing compensation for lost wages from date could have re- enrolled to date of hearing (after adjustment for delay in filing complaint) with interest compounded semi-annually, at CIBC's prime rate — Reducing compensation to reflect failure to miti gate damages by quitting jobs — Also awarding $1,000 with interest for hurt feelings — Review Tribunal varying compen sation by only allowing it from date complaint made, but extending it to date of reinstatement, not deducting amounts for failure to mitigate, lowering rate of interest to that of Canada Savings Bonds, and increasing award for hurt feelings, but refusing to award interest thereon — Issues: (1) identification of loss (whether necessary to prove actual, probable or serious possibility of loss of position); (2) calculation of compensation (effects of delay in filing complaint, failure to mitigate dam ages, delay in hearing matter); (3) jurisdiction to award inter est, appropriate rate — Review Tribunal's decision set aside.
This was an application and cross-application to set aside the decision of a Human Rights Review Tribunal, varying the rem edies awarded by the initial Tribunal. The complainant, Mor- gan, was given a medical discharge from the Canadian Armed Forces in 1978 after suffering a serious head injury. He applied to re-enrol in 1979, and passed the first steps in the recruiting process, but was rejected in 1980, and again in 1982, as he was not considered medically fit. He filed a complaint under the Canadian Human Rights Act in 1983, but a Tribunal was not appointed until five years later. The Canadian Forces subse quently admitted to a discriminatory act contrary to the Act. The initial Tribunal found that Morgan had lost a position of employment, as opposed to merely losing an opportunity for employment. It awarded compensation for lost wages from the date Morgan could have re-enrolled, after making an adjust ment of two and one-half years for failure to lodge a complaint in a timely fashion, to the date of its hearing. It reduced the compensation for wage loss to reflect the failure to mitigate damages in having quit two jobs which paid as much as Mor- gan would have earned in the Forces. It further awarded inter est, compounded semi-annually, on the compensation for lost wages at the prime rate charged by the Canadian Imperial Bank of Commerce and $1,000 and interest for hurt feelings. Finally it ordered that Morgan be reinstated.
The Review Tribunal agreed that Morgan had lost an actual position, holding that it was sufficient to look at the probable result of the recruiting process to so conclude. The majority of the Review Tribunal agreed that Morgan should be reinstated, but held that where an order of reinstatement is made, the com pensation for lost wages should continue until the order is complied with. The majority took into account the excessive delay in bringing the complaint, and held that the compensa tion period should only begin 27 months after the discrimina tory act. The dissenting member held that only such part of the loss as was reasonably foreseeable was recoverable so there was no reason not to start the period of compensation on the date Morgan would have actually been re-enrolled. He held that it could not extend beyond what appeared reasonable, or some three years and five months later. The Review Tribunal declined to deduct amounts for failure to mitigate damages, because it felt that the initial Tribunal's approach had been too simplistic. The Review Tribunal lowered the rate of interest to that of Canada Savings Bonds. It increased the award for hurt feelings to $2,500, but did not award interest thereon, holding that such was not permitted by law.
Subsection 53(2) empowers the Tribunal to order compensa tion for wages lost as a result of a discriminatory practice. Under subsection 53(3), it may order compensation not exceeding $5,000 (including interest) for hurt feelings as a result of the practice.
The issues concerned (1) the identification of the loss to be compensated, which depended upon whether the complainant had lost an actual position or merely an opportunity to compete for a position, as the discriminatory act occurred prior to a determination of whether there existed a vacancy and the can didate's competitiveness; (2) calculation of the compensation, which required determination of the compensation period, the effect of the delay in filing the complaint, and of the mitigation of damages; (3) the award of interest, i.e. whether the Tribunal had jurisdiction to award interest on the awards for compensa tion for lost wages and for hurt feelings, and the appropriate rate of interest thereon.
Held (MacGuigan J.A. dissenting), the application and the cross-application should be allowed in part and the Review Tribunal's decision should be set aside.
Per Mahoney J.A.: It was unnecessary to decide whether a probability or a serious possibility of actual loss of a position must be established, because the more onerous burden of establishing a probability of actual loss had been discharged.
There must be a causal connection between the discrimina tory act and the amount of wages found to have been lost as a result thereof. It would be sheer coincidence if that amount were the amount attributable to the period selected by either Tribunal. Although the time during which a causal connection exists must be determined according to the circumstances of each case, the time taken by the Commission to process a com plaint, the victim's delay in complaining and time consumed in proceedings until an order is made are not relevant. The deter mination of the dissenting member of the Review Tribunal must be accepted.
No useful purpose would be served by reconstituting the Review Tribunal to consider Morgan's pattern of quitting jobs, as there is no additional relevant evidence to be had. The initial Tribunal considered the financial consequences of Morgan having quit jobs, based on the evidence before it. Its findings, which Marceau J.A. would restore, do not disclose any review- able error.
Since the initial Tribunal had rejected the Bank of Canada prime rate for no good reason, it was subject to review by the Review Tribunal which did not commit reviewable error in selecting the Canada Savings Bond rate.
Per Marceau J.A.: It was sufficient to show a mere possibil ity that the complainant would have secured a position to cre ate a right to compensation. Evidence that employment could have been denied was relevant to the amount of compensation to be awarded. In any event, the conclusion of the initial Tribu nal, that there was no uncertainty that Morgan would have
been re-enrolled was a finding of fact, which could not be said to have been reached in complete disregard of the evidence. Having concluded that the original Tribunal had not committed any palpable and overriding error in this respect, the Review Tribunal was not entitled to intervene.
The initial Tribunal and the majority members of the Review Tribunal erred in refusing to establish a cut-off point for the period of compensation, independent of the order of reinstatement. The principles developed in tort cases to restore the victim to the position he would have enjoyed, but for the wrongful act, apply to human rights cases. Therefore the con sequences of the act that were indirect or too remote must be excluded from the damages recoverable. The minority member was the only one to analyze the circumstances of the case to establish a cut-off point and his conclusion should be accepted.
The majority of the Review Tribunal erred in considering the claimant's three-year delay in making his complaint in assessing the damages. The task was to assess the damages resulting from the discriminatory act. That assessment could not be affected by the date of the complaint. The deduction from recovery in respect of the delay was a penalty, and noth ing in the legislation authorizes a tribunal to so penalize a claimant. The minority member's determination of the period of compensation should be accepted.
The Review Tribunal should not have interfered with the initial Tribunal's finding as to mitigation. The question of miti gation was a mixed question of law and fact, but the disagree ment of the Review Tribunal rested wholly on an appreciation of the evidence. As the initial Tribunal neither misconceived the law nor misapprehended the evidence its conclusions should not have been disturbed. Its deductions for failure to mitigate should be restored.
There is no specific provision expressly granting human rights tribunals the power to award interest. The Tribunals cor rectly held that their power to assure the victim adequate com pensation entitled them to award interest. However, the award ing of interest is not left to the discretion of the tribunal. It should be awarded only if necessary to cover the loss. There were no special circumstances that would support a finding that interest higher than that consented to by the Commission and the complainant was required to cover the loss. Interest is granted as compensation and the loss which it is meant to cover must be established by evidence. In view of the admis sion of liability, the claimant was entitled to be reinstated and receive full compensation from the moment of the claim. Had this been done, the money paid would have been available for permanent investment. Since neither the CIBC nor the Bank of Canada prime rates are applicable to loss of income from investment, the Canada Savings Bond rate should be applied.
Compound interest is warranted only if required to cover the loss. The evidence did not establish that to be the case.
The Review Tribunal had no ground to interfere with the ini tial Tribunal's award of interest for hurt feelings.
Per MacGuigan J.A. (dissenting): A tribunal is entitled to look at the probable result of the whole process. The result does not have to be certain, but must be based on the best inference the tribunal can make from the facts. The initial Tri bunal found as a fact that the applicant was rejected because of his medical record. The Review Tribunal can only intervene with respect to a factual finding where there is palpable and overriding error. It correctly refused to intervene.
It is implicit in the Act that the damages awarded must flow from the discriminatory practice. The language of paragraph 53(2)(c) establishes a clear causal connection between the wages awarded and the discrimination. The majority of the Review Tribunal erred in considering Morgan's long delay in making his complaint. There was no legal basis for doing so, except through the power in the Commission to weigh this fac tor. A tribunal has jurisdiction to grant only the remedies found in section 53, which do not include monetarily penalizing a complainant for late filing. The period of compensation must commence at the time of the discriminatory practice. Deduc tion from Morgan's recovery of the period during which he attempted to mitigate his damages by trying to re-enrol would be a such penalty, and not in keeping with the remedial and compensatory purpose of the Act.
Five and a half years of the delay may be attributed to the Commission. Sections 43, 44 and 49 suggest a process where time is, if not of the essence, at least of relevance. One year would normally be a reasonable period of time for the Com mission to investigate and decide whether to proceed to a tribu nal, but so as not to confine it within an unduly procrustean timetable, where there is no satisfactory explanation by the Commission, it should be presumed by a tribunal that two years between complaint and tribunal is an outside limit for the Commission's internal processes. Therefore the delay by the Commission beyond a two-year processing period should not be taken into account in setting lost wages since beyond that time there could not be any causal connection between the dis criminatory practice and the wages awarded. The causal con nection established by the Act must be respected regardless of the suffering imposed thereby on a successful complainant. It would be equitable for the Commission to pay any lost wages for the additional two years or more. The intolerable delay in
processing this complaint calls into question the resources made available to the Canadian Human Rights Commission.
The Review Tribunal erred in disregarding two instances of the respondent voluntarily leaving jobs. The reasonableness of steps taken to mitigate damages must be ascertained in the context of all the circumstances. These were not isolated instances, but a pattern of conduct to be considered.
Tribunals have discretion to award interest on the award for hurt feelings, but the Review Tribunal erred in increasing the award without sufficient reason to revisit the Tribunal's discre tion. Paragraph 53(2)(c), which is concerned specifically with wage compensation, permits awards of interest on any amounts awarded for lost wages. The notion of adequately compensat ing a victim includes a reasonable return on the money, the use of which was lost because of the discriminatory practice. Such interest is not limited to the $5,000 set out in subsection 53(3). The Review Tribunal erred in reversing the Tribunal on the rate of interest without stated justification. As the Act does not expressly permit interest, it cannot be said that only the Bank of Canada rate is permitted. The rate must remain within the discretion of a tribunal, but the Bank of Canada prime rate should be the usual rate, except in special circumstances. Whether to award simple or compound interest is within the discretion of the tribunal, but simple interest should be the norm and that is provided for by legislation in the jurisdiction where the litigation arose.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canadian Human Rights Act, R.S.C., 1985, c. H-6, ss.
41(e), 43 (as am. by R.S.C., 1985 (1st Supp.), c. 31, s.
63), 44(1),(3) (as am. idem, s. 64), 49(1) (as am. idem,
s. 66), (1.1) (as am. idem), 53(2),(3), 55, 56(3),(4),(5). Court Order Interest Act, R.S.B.C. 1979, c. 76, s. 2. Federal Court Act, R.S.C., 1985, c. F-7, s. 28.
CASES JUDICIALLY CONSIDERED APPLIED:
Canadian Broadcasting Corp. v. C.U.P.E., [1987] 3 F.C. 515; (1987), 38 D.L.R. (4th) 617; 76 N.R. 155 (C.A.); Canada (Attorney General) v. Rosin, [1991] 1 F.C. 391; (1990), 34 C.C.E.L. 179; 91 CLLC 17,011 (C.A.); DeJager v. Canada (Department of National Defence) (1987), 8 C.H.R.R. D/3963 (C.H.R. Trib.).
CONSIDERED:
Canada (Attorney General) v. McAlpine, [1989] 3 F.C. 530; (1989), 99 N.R. 221 (C.A.); Torres v. Royalty Kitch enware Limited (1982), 3 C.H.R.R. D/858 (Ont. Bd. of Inquiry); Asamera Oil Corporation Ltd. v. Sea Oil & General Corporation et al., [1979] 1 S.C.R. 633; (1978), 12 A.R. 271; 89 D.L.R. (3d) 1; [1978] 6 W.W.R. 301; 5 B.L.R. 225; 23 N.R. 181; Seneca College of Applied Arts and Technology v. Bhadauria, [1981] 2 S.C.R. 181; (1981), 124 D.L.R. (3d) 193; 14 B.L.R. 157; 17 C.C.L.T. 106; 2 C.H.R.R. D/468; 81 CLLC 14,117; 22 C.P.C. 130; 37 N.R. 455; Morgan v. Canada (Canadian Armed Forces) (1989), 10 C.H.R.R. D/6386 (C.H.R. Trib.); Cashin v. Canadian Broadcasting Corp. (No. 2) (1990), 12 C.H.R.R. D/222; 90 CLLC 17,017 (C.H.R. Trib.); Allen v. Sir Alfred McAlpine & Sons Ltd., [1968] 2 Q.B. 229 (C.A.); Cashin v. Canadian Broadcasting Corpora tion, [1984] 2 F.C. 209; (1984), 8 D.L.R. (4th) 622; 8 Admin. L.R. 161; 5 C.H.R.R. D/2234; 84 CLLC 17,009; 55 N.R. 112 (C.A.).
REFERRED TO:
Chandris v. Isbrandtsen-Moller Co. Inc., [1951] 1 K.B. 240 (C.A.); Minister of Highways for British Columbia v. Richland Estates Ltd. (1973), 4 L.C.R. 85 (B.C.C.A.); Re Westcoast Transmission Co. Ltd. and Majestic Wiley Con tractors Ltd. (1982), 139 D.L.R. (3d) 97; [1982] 6 W.W.R. 149; 38 B.C.L.R. 310 (B.C.C.A.); Cashin v. Canadian Broadcasting Corporation, [1988] 3 F.C. 494; (1988), 9 C.H.R.R. D/5343; 88 CLLC 17,019; 86 N.R. 24 (C.A.); Robichaud v. Canada (Treasury Board), [1987] 2 S.C.R. 84; (1987), 40 D.L.R. (4th) 577; 8 C.H.R.R. D/4326; 87 CLLC 17,025; 75 N.R. 303.
AUTHORS CITED
Waddams, S. M. The Law of Damages, Toronto: Canada Law Book Ltd., 1983.
APPLICATION and cross-application to set aside a Human Rights Review Tribunal decision, [Morgan v. Canada (Armed Forces) (1990), 13 C.H.R.R. D/42] varying the remedies awarded by the initial Tribunal. Application and cross-application allowed in part.
COUNSEL:
Barbara A. Mclsaac for Attorney General of Canada, applicant in A-727-90 and Canadian Armed Forces, respondent in A-741-90.
Peter C. Engelmann for Canadian Human Rights Commission, respondent in A-727-90, applicant in A-741-90.
SOLICITORS:
Deputy Attorney General of Canada for Attor ney General of Canada, applicant in A-727-90 and Canadian Armed Forces, respondent in A-741-90.
Canadian Human Rights Commission for Cana- dian Human Rights Commission, respondent in A-727-90, applicant in A-741-90.
The following are the reasons for judgment ren dered in English by
MAHONEY J.A.: I have had the advantage of reading in draft the reasons for judgment of my colleagues Marceau J.A. and MacGuigan J.A. They are in agree ment on most of the issues raised in these proceed ings and I do not disagree with them in their areas of agreement. However, they are in disagreement on a number of issues, even where they agree in the result. Again, I do not disagree with them in such a result. I find it unavoidable that I briefly express my own rea sons for the conclusions I have reached on points where they have not found agreement.
Firstly, while both agree that Richard Roderick Morgan was denied a position of employment in the Canadian Armed Forces by the discriminatory action of the Forces, as opposed merely to losing an oppor tunity for employment, all as found by the Tribunal [(1989), 10 C.H.R.R. D/6386] and accepted unani mously by the Review Tribunal [(1990), 13 C.H.R.R. D/42], they disagree as to what was required to be proved in order that the conclusion be sustained. The liability of the Forces to compensate Morgan for wages lost depends on the finding that he had lost a position. Mr. Justice MacGuigan would have it that a probability of actual loss of position be established while Mr. Justice Marceau would accept proof of a serious possibility of its having been lost.
However necessary it may be in another case to reach a concluded opinion on one or the other side of this disagreement, it seems to me unnecessary here. The Tribunal and the Review Tribunal, unanimously, found there was a loss of position. As Mr. Justice MacGuigan has shown in his review of the evidence,
the more onerous burden of establishing that as a probability had been discharged. I therefore agree with my colleagues in the result.
Secondly, the Tribunal considered that compensa tion for lost wages under paragraph 53(2)(c) [Cana- dian Human Rights Act, R.S.C., 1985, c. H-6] should normally continue up to the date of its hearing. A majority of the Review Tribunal held that, when an order of reinstatement is made, the compensation should continue until the order is complied with. Par agraph 53(2)(c) provides for compensation of "any or all of the wages that the victim was deprived of ... as a result of the discriminatory practice". I agree with my colleagues that there must be a causal con nection between the discriminatory practice and the amount of wages found to have been lost as a result of it. It would be sheer coincidence if that amount were the amount attributable to either period selected by the Tribunal or the majority of the Review Tribu nal. The cut-off dates chosen by them are arbitrary and have no rational connection to the required find- i ng.
I also agree with my colleagues that the time dur ing which a causal connection exists is a matter to be determined in the circumstances of each case. How ever, Mr. Justice MacGuigan appears to consider that the time taken by the Commission to process a com plaint may be relevant to that inquiry. With respect, I do not agree. Nor do I think that the victim's delay in complaining nor, for that matter, time consumed in proceedings before a tribunal or review tribunal until an order, whether of reinstatement or otherwise, is made can be relevant to it.
In the present circumstances, I agree with Mr. Jus tice Marceau that the determination of the dissenting member of the Review Tribunal, the only adjudicator below who properly addressed the matter, should be accepted.
Thirdly, as to mitigation, Mr. Justice MacGuigan would have the Review Tribunal consider Morgan's pattern of voluntarily quitting jobs while Mr. Justice Marceau has stipulated amounts in each relevant year
by which any award should be reduced for failure to mitigate. The amounts stipulated are amounts fixed, for the particular years, by the original Tribunal and they do take account of Morgan's failure to retain particular positions but not the pattern of voluntarily leaving jobs.
While I do not disagree with the principles upon which Mr. Justice MacGuigan has reached his con clusion and certainly agree that a pattern of voluntary job leaving is highly relevant to the question of miti gation, it seems to me that no useful purpose would be served by reconstituting the Review Tribunal except in a pro forma fashion. It is apparent that no additional relevant evidence is to be had. The Tribu nal took account of the financial consequences of Morgan having voluntarily left jobs. It arrived at its findings on the evidence it had and which it recog nized as not entirely satisfactory. Its findings, which Mr. Justice Marceau would restore, cannot be said to have been reached on a basis in which either the Review Tribunal or this Court could appropriately find reviewable error.
Fourthly, as to interest, my colleagues agree that, in the circumstances, compound interest was unwar ranted and that the Review Tribunal erred in varying the award by the Tribunal under paragraph 53(3)(b) from $1,000 with interest to $2,500 without interest, but, as I understand their reasons, disagree as to the appropriate rate. Mr. Justice Marceau would accept the Canada Savings Bond rate which the Review Tri bunal substituted for the prime rate charged by the Canadian Imperial Bank of Commerce [CIBC] to its most credit worthy customers selected by the Tribu nal. Mr. Justice MacGuigan would leave it to the dis cretion of the Review Tribunal while indicating that the Bank of Canada prime rate should be the norm absent special circumstances. Since the Tribunal had rejected the Bank of Canada prime rate for no good reason—it is at least as easy to ascertain as the CIBC's prime rate at various dates since 1980—it left itself open to the Review Tribunal selecting a differ ent rate. I am not persuaded that the Review Tribunal committed a reviewable error in selecting the Canada
Savings Bond rate. I would therefore make the direc tion as to interest proposed by Mr. Justice Marceau.
I would allow both the application and cross-appli cation, set aside the decision of the Review Tribunal and remit the matter to the Review Tribunal for reconsideration in accordance with the conclusions of Mr. Justice Marceau.
The following are the reasons for judgment ren dered in English by
MARCEAU J.A.: This application and cross-applica tion are brought under section 28 of the Federal Court Act [R.S.C., 1985, c. F-7] and directed against a decision of a review tribunal appointed under the Canadian Human Rights Act, R.S.C., 1985, c. H-6. They may appear, at first, to be of somewhat limited interest, concerned as they are only with the amount of money awarded a claimant as compensation for his having been the subject of a discriminatory act. The fact is, however, that their disposition may be much broader than the settling of the immediate litigation as they involve principles of general application pre viously unaddressed by this Court in a similar con text.
I have had the advantage of reading the reasons for judgment prepared by my brother MacGuigan J.A. Unfortunately, my approach in dealing with the vari ous issues raised has led me to conclusions somewhat different from his. In view of the possible signifi cance of this judgment, I think I ought to explain quickly, with respect, my own views of the matter.
It would serve no purpose to review the facts again. Their description is not critical to what I have to say. I may have to make allusion to some of them in more detail in the course of discussion, but at this moment only the very basic ones need be repeated. The impugned lengthy decision (94 pages) is that of a three-member Tribunal sitting in review of a first instance decision rendered by a one-member Tribu nal. Their mandate was to determine the remedies to
which a complainant, Morgan, was entitled. Ten years previously, Morgan had been refused enrolment into the Armed Forces in an "improper fashion" that amounted, in the view of all concerned, to prohibited discrimination. By that decision, the Review Tribunal upheld the requirement of the initial Tribunal that the complainant be reinstated, but it varied the amount of the monetary compensation the Forces had to pay him. As explained by Mr. Justice MacGuigan, the issues to be considered are all concerned with the conclusions reached as to that monetary compensa tion. I will discuss them in the order followed by my colleague.
1. The first issue has to do with the identification of the loss that had to be compensated. The Attorney General still, as he has from the start, contends that the claimant has lost only an opportunity to compete for a position, not a position per se as accepted by the initial Tribunal and confirmed by the Review Tribu nal.
I have great difficulty with the proposition adopted by the Review Tribunal and accepted by my col league that it was sufficient to look at the probable result of the recruiting process to be able to draw the conclusion that the loss was that of a job rather than a mere opportunity. We are not dealing with the estab lishment of a past fact which in a civil court need only be proved on a balance of probabilities. Nor are we concerned with the relation between a particular result and its alleged cause. It seems to me that the proof of the existence of a real loss and its connection with the discriminatory act should not be confused with that of its extent. To establish that real damage was actually suffered creating a right to compensa tion, it was not required to prove that, without the discriminatory practice, the position would certainly have been obtained. Indeed, to establish actual dam age, one does not require a probability. In my view, a mere possibility, provided it was a serious one, is suf ficient to prove its reality. But, to establish the extent of that damage and evaluate the monetary compensa tion to which it could give rise, I do not see how it would be possible to simply disregard evidence that the job could have been denied in any event. The presence of such uncertainty would prevent an assessment of the damages to the same amount as if
no such uncertainty existed. The amount would have had to be reduced to the extent of such uncertainty.
That being said, I nevertheless share the view of my colleague that the applicant's argument on this point must fail. As I read the judgment of the initial Tribunal, the Chairman concluded, in spite of some equivocal remarks, that there was no uncertainty that Morgan would have been enrolled, regardless of the fact that theoretically other stages remained to be completed in the recruiting process. This was obvi ously a finding of fact which could not be said to have been reached in complete disregard of the evi dence. Having come to the conclusion that the origi nal Tribunal had not committed in this respect any palpable and overriding error, 1 the Review Tribunal was not entitled to intervene. We, in turn, are simi larly disentitled.
2. The second issue, the calculation of the compen sation for lost wages, is much more involved and complex. As explained by my colleague, the Review Tribunal unanimously concluded that the decision of the initial Tribunal had to be varied but it disagreed as to what should be substituted therefor. The disa greement was as to whether a "cap" or "cut-off point" had to be established in determining the period of compensation. For the majority, in human rights cases, an order of reinstatement dispelled any reason to end the period of compensation before actual rein statement. In the case at bar, however, in view of the claimant's excessive delay (39 months) in bringing his complaint, that period should start only 27 months after the date his application for re-enrolment had been unduly refused. For the minority member, the doctrine of "foreseeability" developed in tort law was applicable and a cut-off date had to be estab lished. But there was no reason not to start the period of compensation on the very date Morgan would have been actually enrolled if his application had not been wrongly refused. His conclusion was that the period should start on July 21, 1980, but it could not extend beyond what appeared reasonable, namely some three years and five months later. On the other hand, neither the majority nor the minority could accept the initial Tribunal's decision to deduct any
1 Cashin v. Canadian Broadcasting Corporation, [1988] 3 F.C. 494 (C.A.), at p. 501.
amount based on the claimant's alleged failure to mitigate from the wage total payable during the period of compensation.
This second issue relating to the amount of com pensation raises three questions which concern: (a) the limitation of the compensation period; (b) the subtraction of months for the delay in filing the com plaint; (c) the deduction for failure to mitigate.
(a) Reading the comments of the Chairman of the initial Tribunal and those of the Review Tribunal majority, I am afraid, I say it with respect, that there exists some confusion between the right to obtain reparation for a damage sustained and the assessment of that damage. While the particular nature of the human rights legislation — which has been said to be so basic as to be near-constitutional and in no way an extension of the law of tort (see e.g. Robichaud v. Brennan (sub nom. Robichaud v. Canada (Treasury Board), [1987] 2 S.C.R. 84, at page 89, and Bhadauria v. Board of Governors of Seneca College (sub nom. Seneca College of Applied Arts and Tech nology v. Bhadauria), [1981] 2 S.C.R. 181)—renders unjustifiable the importation of the limitations to the right to obtain compensation applicable in tort law, the assessment of the damages recoverable by a vic tim cannot be governed by different rules. In both fields, the goal is exactly the same: make the victim whole for the damage caused by the act source of lia bility. Any other goal would simply lead to an unjust enrichment and a parallel unjust impoverishment. The principles developed by the courts to achieve that goal in dealing with tort liability are therefore necessarily applicable. It is well known that one of those principles has been to exclude from the dam ages recoverable the consequences of the act that were only indirect or too remote. In my view, the minority member was perfectly right in writing (at pages D/74-D/75):
If reinstatement is purely discretionary and compensation is less so then it seems to me certain well-known accepted princi ples of compensatory damages should guide the Tribunal in assessing or quantifying the financial loss. These principles are quoted with approval by the Review Tribunal in the Foreman (Can. Rev. Trib.) case, supra, [Foreman v. Via Rail Canada
Inc. (1980), 1 C.H.R.R. D/233] as follows at para. 7716 [D/869 of Torres, supra]:
In our view the use of the language of "compensation" by the Canadian Act implies that tribunals are to apply the prin ciples applied by courts when awarding compensatory dam ages in civil legislation. The root principle of the civil law of damages is "restitutio in integrum": the injured party should be put back into the position he or she would have enjoyed had the wrong not occurred, to the extent that money is capable of doing so, subject to the injured party's obligation to take reasonable steps to mitigate his or her losses. (D/238)
In a recent case, Canada (Attorney General) v. McAlpine, supra [[1989] 3 F.C. 530], the Federal Court of Appeal, on appeal from a decision of a human rights tribunal which relied on that principle in assessing damages for lost U.I.C. benefits, commented as follows at p. 538 [para. 13, D/258]:
... the proper test must also take into account remoteness or foreseeability where the action is one of contract or tort. Only such part of the loss resulting as is reasonably foresee able is recoverable.
The Federal Court goes on to quote with approval from Profes sor Cumming in the Torres case, supra [Torres v. Royalty Kitchenware Ltd. (1982), 3 C.H.R.R. D/858 (Ont. Bd. Inq.)], with respect to a cut-off point in awarding general damages, and notes the rationale quoted was followed by the Review Tri bunal in De)ager v. Canada (Dept. of National Defence) (No. 2), supra [(1987), 8 C.H.R.R. D/3963], at D/3966 and D/3967, and also in other decisions where human rights tribunals have accepted the doctrine of reasonable foreseeability as a neces sary component in the assessment of damages.
It follows from the interpretation I have placed on the reme dial provisions of the Act the duration of the compensatory period need not coincide with the reinstatement whenever it may occur. Much less that it is automatically determined by the order for reinstatement. This is the crux of the matter on which I part company with my colleagues. I would agree that if the victim of the discriminatory act were fired from a position he actually occupied and if reinstatement were to take place soon thereafter the duration of the compensatory period would logically coincide with that happening. What we have here, on the other hand, is a notional loss of a position in which the respondent was not employed when the discriminatory act occurred.
I think one should not be too concerned by the use of various concepts in order to give effect to the sim ple idea that common sense required that some.limits be placed upon liability for the consequences flowing from an act, absent maybe bad faith. Reference is
made at times to foreseeable consequences, a test more appropriate, it seems to me, in contract law. At other times, standards such as direct consequences or reasonably closely connected consequences are men tioned. The idea is always the same: exclude conse quences which appear down the chain of causality but are too remote in view of all the intervening facts. Whatever be the source of liability, common sense still applies.
It has been found, I know, that the practice devel oped in cases of wrongful dismissal with respect to the assessment of the lost wages was not necessarily applicable to cases of job loss attributable to discrim inatory treatment. Note that, in cases of wrongful dis missal, the act for which the employer is reproached is not to have put an end to the employment but to have done so without proper notice or in contraven tion of the terms of a contract. The nature of the act source of liability is different, therefore the conse quences flowing from it ought to be different.
In my view, the initial Tribunal and the majority members of the Review Tribunal were wrong in refusing to establish a cap or cut-off point for the period of compensation, independent of the order of reinstatement. The establishment of that cut-off point was, as it is in all such cases, a difficult exercise requiring a careful analysis of the circumstances of the case. The minority member is the only one who has gone through the exercise and I think this Court, instead of ordering a new hearing, should accept his conclusion, a conclusion that had previously been reached, in similar circumstances, in the case of DeJager v. Canada (Department of National Defence) (1987), 8 C.H.R.R. D/3963 (C.H.R. Trib.).
(b) The second question, relating to the subtraction of months to account for the late filing of the com plaint, appears to me easy to settle. I simply fail to understand on what basis the majority members could take into account the claimant's three-year delay in making his complaint. They certainly could not con sider that the bringing of the complaint sooner was part of the duty to mitigate, and they do not express that view. So how could the delay come into play in assessing the damages? I can see that, for one who adopts the premise that the damages must run until
reinstatement, the claimant's delay in seeking an order to that effect can be seen as having had the effect of extending the period. But the premise is wrong. The problem is to assess the damages result ing from the loss of wages due to the act source of liability. I do not see how that assessment could be affected by the date of the complaint. The deduction of the three-year period from recovery could only be a penalty and obviously nothing in the legislation could be interpreted as authorizing a tribunal to so penalize a claimant. So I readily agree with my col league that the cross-appeal, in this respect, must be allowed.
(c) The third question about mitigation also appears to me, at this stage, relatively simple. There is no point of law involved here; both tribunals admitted that the assessment of damages had to be made subject to the long established common-law duty to mitigate and their understanding of the con tent of that duty was essentially similar. Nevertheless, the Review Tribunal saw fit to intervene because it felt the initial Tribunal's approach to the problem had been too simplistic. In its opinion, for instance, the claimant, considering all factors, could not be reproached for having left without reason, in 1980 and 1981, two employment situations which paid him as much as what he would have earned in the Forces at the time.
I do not think this intervention of the Review Tri bunal was warranted. While this question of mitiga tion was a mixed question of law and fact, the disa greement of the Review Tribunal rested wholly on an appreciation of the evidence. It could certainly not be said that the Chairman of the initial Tribunal, in reaching his conclusion, had been influenced by a misconception of the law or a misapprehension of the evidence brought before him. His conclusions should have remained undisturbed—I think they should be restored.
So, on this issue relating to the amount of compen sation, I am forced to respectfully disagree with my brother MacGuigan J.A. I would accept the period of compensation determined by the minority member,
that is to say from July 1980 to December 1983. However, I would restore the conclusion of the initial Tribunal that the respondent failed in his duty to miti gate his damages during these years for amounts of $4,092.56 in 1980, $4,767.57 in 1981, $901.46 in 1982 and $4,861.80 in 1983.
3. The third issue concerns the award of interest on both the main amount of compensation for lost wages and the subsidiary one for hurt feelings.
(a) On the compensation for lost wages, the initial Tribunal awarded interest, compounded semi-annu ally, at the rate charged by the Canadian Imperial Bank of Commerce with respect to its most worthy customers. The Review Tribunal substituted a differ ent rate, namely that of the Canada Savings Bonds. The issue here again must be looked into in succes sive stages: (i) was it within the powers of the tribu nals to award interest; (ii) if it was, from what date, at what rate and on which amount could interest be awarded; and finally (iii) was it justified that the interest be compounded?
(i) There is no specific provision expressly grant ing human rights tribunals the power to give inter est and this Court has not yet been faced directly with the question. Nevertheless, I agree with Mr. Justice MacGuigan that the tribunals were right in considering that their power to assure the victim adequate compensation entitled them to award interest. This is indeed a common sense conclusion that this Court had no difficulty to apply in its decisions in Canadian Broadcasting Corp. v. C.U.P.E., [1987] 3 F.C. 515 and Canada (Attorney General) v. Rosin, [1991] 1 F.C. 391. It should be carefully noted, however, that in this perspective the awarding of interest is not left to the discretion of the tribunal nor is it solely based on the general idea applicable in tort or contract liability claims that the defendant has kept the plaintiff out of money while he has had the use of it himself. It must be required if, but only if, it can be seen to be necessary to cover the loss. This reflection is at the basis of my reaction in coming to the other ques tions relative to interest.
(ii) With respect to these other questions, my col league has quoted a passage of the decision of the initial Tribunal, the first paragraph of which I reproduce again [at page 6406]:
In this case, counsel for the respondent submitted that if interest is awarded, the rate of interest should be 5 percent because that is the rate of interest provided by s. 3 of the Canada Interest Act. Although both counsel for the respon dent and the Commission submitted that they were prepared to accept an interest rate of 5 percent, I do not think that the rate should be restricted to 5 percent.
I am disturbed by that decision of the Chairman to discard the consent of the claimant and the Com mission to accept 5 percent. I am not so much influenced by the fact that, in so doing, the Chair man was in a sense going beyond the claim, since I do not think that the doctrine of ultra petita could have direct application here. I am impressed though by the fact that there is absolutely no refer ence to special circumstances that could support a finding that a higher interest was required to cover the loss. Nothing in the evidence even remotely suggested that the claimant had had to substitute his lost wages by borrowed money on which he had paid interest or that he would have earned interest on his wages or a portion thereof had he not been deprived of them. Again, it is as compen sation that interest is granted and, in my judgment, the loss which it is meant to cover must be estab lished by some evidence.
On the facts of the case, however, in view of the admission of liability by the Armed Forces, it seems to me that from the moment of the claim, the claimant was entitled to be reinstated and, at the same time, receive full compensation. If this had been done, the money paid to him as compen sation would have been readily available for per manent investment. His daily needs would have been satisfied by the normal wages to which he would have become entitled again. As to the rate, since we speak of the loss of income resulting from investment, I would agree with the Review Tribunal that neither the Canadian Imperial Bank of Commerce nor the Bank of Canada prime rates are appropriate. I too would adopt the Canada Sav ings Bonds rate and make it applicable to the amount of compensation year after year until pay ment.
(iii) As to whether it was right for the tribunals to award compound interest, the answer must be arrived at taking the same approach. Compound interest is warranted if, but only if, it can be deduced from the evidence or the circumstances of the case that it was required to cover the loss. I quickly agree with my colleague that that was cer tainly not the case here.
(b) There remains the question of the award of interest on the compensation for hurt feelings. As explained by my colleague, the Review Tribunal here again refused to uphold the decision of the initial Tri bunal, expressing the view that an award of interest on such a compensation was not permitted by law. I agree with my colleague that the decision of this Court in Canada (Attorney General) v. Rosin, supra, has settled this question. The Review Tribunal had no ground to interfere with the Tribunal's conclusion.
Summing up my own views, I would suggest that the Review Tribunal was in error: (a) in considering a period of compensation longer than that suggested by the minority member; (b) in decreasing the period of compensation based on the claimant's delay in filing his complaint; (c) in interfering with the initial Tribu nal's conclusion regarding the deduction made from compensation otherwise payable during the years 1980 and 1981 for failure to mitigate; (d) in awarding more than simple interest, at the Canada Savings Bonds rate, from the date of the complaint; and (e) in interfering with the conclusion of the initial Tribunal in respect of the amount of compensation for hurt feelings and the interest thereon. I would, like my brother MacGuigan J.A., grant in part both the appli cation and the cross-application and I would set aside the impugned decision, but in sending the matter back to the Tribunal for reconsideration, I would give directives in accordance with these conclusions.
The following are the reasons for judgment ren dered in English by
MACGUIGAN J.A. (dissenting): The section 28 application in A-727-90 is directed against a decision dated September 14, 1990 of a review tribunal appointed under the Canadian Human Rights Act, R.S.C., 1985, c. H-6 ("the Act"). In that decision, the Review Tribunal varied a decision dated March 8, 1989 of a Tribunal appointed under the Act to deal with a complaint brought by the first respondent, Richard Roderick Morgan ("Morgan"). Review is sought in this Court of the remedies awarded.
A cross-application has been brought in A-741-90 by the Canadian Human Rights Commission ("the Commission") against the decision of the Review Tribunal. Pursuant to the directive of the Court, the same record was used on both section 28 applica tions, and they were argued together.
Morgan served as an infantryman with the Cana- dian Armed Forces ("the Canadian Forces") from November 21, 1973 to March 30, 1978. In 1975, while off-duty, he suffered a serious head injury in a motor vehicle accident which left him unconscious for eight weeks and unable to return to work for a year. As a consequence, he was given a medical dis charge from the Canadian Forces in March of 1978.
In June of 1979, Morgan applied to re-enrol in the Canadian Forces. He successfully passed the first steps in the recruiting process, but was informed by letter dated April 17, 1980 that, as a result of a com plete review of his file, he was "not considered medi cally fit for re-enrolment" (Case V, at page 882). It should also be noted that, because of a judicial obli gation which he had outstanding, he could not in any event have been enrolled before July 21, 1980, which therefore ought to be considered to be effectively the date of the discriminatory act in this case. In Febru- ary of 1982, Morgan enquired again about re-enrol ment into the Canadian Forces, but was again refused. He then brought a complaint under the Act on July 31, 1983. It was nearly five years later, June 9, 1988, that notice of the appointment of a Canadian
Human Rights Tribunal was given, an unexplained delay of which more will be said in due course.
At the time of Morgan's rejection in 1980, his most recent medical examination by a base physician reported that he was fit for enrolment. This examina tion was occasioned by Morgan's attempt to obtain a disability pension on the basis of the brain damage which he was previously diagnosed as having suf fered. It was the clean bill of health he received on this new examination that prompted him to apply for re-enrolment. The Canadian Forces subsequently admitted to an act of discrimination contrary to the Act, and the legal proceedings taken have concerned the remedies to be awarded.
The relevant provisions of the Act are as follows: 53....
(2) If, at the conclusion of its inquiry, a Tribunal finds that the complaint to which the inquiry relates is substantiated, it may, subject to subsection (4) and section 54, make an order against the person found to be engaging or to have engaged in the discriminatory practice and include in that order any of the following terms that it considers appropriate:
(b) that the person make available to the victim of the dis criminatory practice, on the first reasonable occasion, such rights, opportunities or privileges as, in the opinion of the Tribunal, are being or were denied the victim as a result of the practice;
(c) that the person compensate the victim, as the Tribunal may consider proper, for any or all of the wages that the victim was deprived of and for any expenses incurred by the victim as a result of the discriminatory practice; and
(d) that the person compensate the victim, as the Tribunal may consider proper, for any or all additional cost of obtaining alternative goods, services, facilities or accommo dation and for any expenses incurred by the victim as a result of the discriminatory practice.
(3) In addition to any order that the Tribunal may make pur suant to subsection (2), if the Tribunal finds that
(a) a person is engaging or has engaged in a discriminatory practice wilfully or recklessly, or
(b) the victim of the discriminatory practice has suffered in respect of feelings or self-respect as a result of the practice,
the Tribunal may order the person to pay such compensation to the victim, not exceeding five thousand dollars, as the Tribunal may determine.
55. Where a Tribunal that made a decision or order was composed of fewer than three members, the Commission, the complainant before the Tribunal or the person against whom the complaint was made may appeal the decision or order by serving a notice, in a manner and form prescribed by order of the Governor in Council, within thirty days after the decision or order appealed was pronounced, on all persons who received notice from the Tribunal under subsection 50(1).
56....
(3) An appeal lies to a Review Tribunal against a decision or order of a Tribunal on any question of law or fact or mixed law and fact.
(4) A Review Tribunal shall hear an appeal on the basis of the record of the Tribunal whose decision or order is appealed and of submissions of interested parties hut the Review Tribu nal may, if in its opinion it is essential in the interests of justice to do so, admit additional evidence or testimony.
(5) A Review Tribunal may dispose of an appeal under sec tion 55 by dismissing it, or by allowing it and rendering the decision or making the order that, in its opinion, the Tribunal appealed against should have rendered or made.
The applicant contended in its factum that the Review Tribunal was in error in the following respects:
(1) in deciding that the admitted discriminatory practice deprived Morgan of a position with the Canadian Forces as opposed to an opportunity to compete for a position;
(2) in ordering compensation for a period of time that was unreasonable in the circumstances;
(3) in misdirecting itself in principle as to the sig nificance of Morgan's failure to mitigate his dam ages;
(4) in ordering interest exceeding the sum of $5,000 on the award for loss of wages;
(5) in ordering compound interest on the award for loss of wages;
(6) in failing to deduct the amounts received by Morgan as unemployment insurance and social assis tance benefits from the award for loss of wages.
The last contention was dropped in oral argument and the fourth was not pressed. The remaining will be dealt with in turn. To them must be added the three issues raised by the Commission as cross-appli cant, viz. that the Review Tribunal erred (a) in refus ing to order interest on the amount awarded as com pensation for hurt feelings, (b) in substituting the Canada Savings Bonds rate of interest for the prime rate of interest charged by the Canadian Imperial Bank of Commerce, and (c) in taking into account, with respect to compensation for lost wages, the com plainant's delay in pursuing his claim under the Act. These issues from the cross-application will be merged with those in the application.
1. Loss of a Position
This challenge is mounted only in the application.
The applicant's contention that Morgan really lost only an opportunity to compete for a position rather than a position per se is based on the fact that, at the time the discriminatory act occurred, there remained two stages in the recruiting process through which the candidate had to pass even if he had been recom mended by the Unit Selection Board interviewer: (a) the determination of whether a vacancy existed; (b) the determination of the candidate's competitiveness (Case V, at page 899).
The applicant's argument was as follows: (1) enti tlement to compensation for loss of a position will depend upon whether it is certain that the complain ant would have obtained the position but for the dis criminatory practice; (2) this determination will depend upon the point in the hiring process at which the complainant's application is rejected and upon whether the discriminatory practice was the sole rea son for the rejection of the complainant's application. It was said that on the facts of this case a proper med ical evaluation was never obtained, and, moreover, that Morgan's application was rejected before he had reached the end of the recruiting and selection pro-
cess, and that the success of his application was not guaranteed even with a favourable medical evalua tion.
The fundamental flaw with this argument is that it rests on a purely static conception of the hiring pro cess. A tribunal is surely not required to reach its conclusion based only upon the stage actually reached in that process. It is entitled to look at the probable result of the whole process in the light of the evidence before it. The result does not have to be certain, but rather to be based on the best inference the tribunal can make from the facts. Even more, the process does not have to be foreshortened to the actual stage reached, unless the evidence does not permit the drawing of conclusions beyond that.
Here the Tribunal found as a fact that the medical examination which had certified him as fit for enrol ment had been conducted within the previous year and was, therefore, still valid. In looking at the evi dence as to vacancies and as to the candidate's com petitiveness, the Tribunal said (at pages D/6392- D/6393):
Evidence was tendered on behalf of the respondent to show that during the year 1980 the armed forces received approxi mately three times as many applications for enrolment as they had positions available and consequently they were unable to accept all of the applications which they received. Evidence was also introduced that, at the time when the complainant applied for re-enrolment, the armed forces were over strength in the positions of cook, vehicle technician and mobile support equipment operator. However, no evidence was tendered to suggest that the respondent rejected the complainant's applica tion on the basis that, in competition with applications of other former service members, the complainant's skills, education and other characteristics were less meritorious. Furthermore, there is no evidence that the respondent rejected the complain ant's application on the basis that all of the positions for which he had applied were over strength.
Mr. Flewelling testified that when the complainant's appli cation was considered by the enrolling authority at headquar ters in Ottawa there were three concerns about the complain ant's application. First, there was the concern with respect to the medical advice that had been received from Dr. Pritchard. Second, there was a concern about the complainant's rudeness toward administrative staff and medical examination centre staff. Third, there was a concern about the complainant's con viction during the preceding year for an alcohol-related offence (driving a motor vehicle with a blood alcohol content in excess of .08). With respect to the second concern, Captain
Ujimoto of the Victoria Recruiting Centre was in a much better position to assess any concern of this nature and he recom mended that the complainant's application be accepted. With respect to the third concern, Mr. Flewelling acknowledged under cross-examination that it was not unusual for the Cana- dian Armed Forces to enrol an applicant who has had a convic tion for an alcohol-related offence. More importantly, how ever, neither the second nor third "concerns" were expressed as reasons for rejecting the complainant's application.
With respect to all of the above "possible" bases for rejecting complainant's application, if they had in fact been a reason for rejecting his application, surely they would have been recorded in the documentation and communicated to the complainant. Since there is no mention of these grounds, I con clude that in the absence of the medical ground the respondent would have accepted the complainant's application for re- enrolment. Indeed, Mr. Flewelling testified that applicants for re-enrolment who had not been out of the armed forces for a long period were more favourably considered than applicants with no previous military training because the cost of basic training could be saved.
Consequently, I find that the only real reason the respondent had for rejecting the complainant's application for re-enrol ment in 1980 was his medical record, and the respondent has admitted liability for failing to consider this aspect of the com plainant's application in a proper fashion. On the evidence before me, I find that the consequence of the respondent's fail ure to properly consider the complainant's application was that the complainant was denied a position of employment with the respondent on the basis of a prohibited ground of discrimina tion.
In point of fact, the evidence was even somewhat stronger than indicated by the Tribunal, because the applicant admitted in the course of argument that it showed that there had been hirings during the rele vant period in the areas in which Morgan had applied for re-enrolment.
In my view, the Review Tribunal was correct when it refused to intervene (at page D/53):
On the whole of the evidence this Tribunal is unable to con clude that there was a " ... palpable overriding error" which would justify setting aside the factual findings of the Chairman that this was in fact the denial of a position of employment arising from the discriminatory act by the appellant, as opposed to a lost opportunity for employment and his findings on this issue stand and that ground of appeal is dismissed.
It rightly thought that, like any appellate body, it could intervene with respect to a factual finding only
in the case of a palpable and overriding error by the first Tribunal.
In keeping with this understanding, the Review Tribunal modified the Tribunal's order in only one respect (at page D/53):
We are of the opinion that it would be inadvisable to inter fere with the Chairman's discretion in awarding reinstatement, except to limit the occupations or trades to be made available to the respondent to that of cook, vehicle technician or mobile support operator, because the respondent himself made it clear when applying for re-enrolment that he was not interested in the trade or occupation of infantryman. Moreover, duties and responsibilities of an infantryman are demanding and require a high standard of physical strength, stamina and confi dence .... The respondent is now over thirty-two years of age and in his evidence he acknowledges he is unsuited at the pre sent time to resume the occupation of infantryman ....
The appeal therefore succeeds in part on this ground and the order of the Chairman for reinstatement is to be varied accord ingly.
I find this to be a justifiable emendation of the Tribu nal's order, since it reflects Morgan's own evidence.
The application must therefore be dismissed in this respect.
2. The Period of Compensation
This matter was raised in both the application and the cross-application and it was also the issue on which the Review Tribunal divided.
The Chairman, in dissent, took the view that, while the purpose of the Act is to make whole (to provide restitutio in integrum) the victim of a discriminatory practice, this Court, in Canada (Attorney General) v. McAlpine, [1989] 3 F.C. 530, following Chairman Cumming in Torres v. Royalty Kitchenware Limited (1982), 3 C.H.R.R. D/858 (Ont. Bd. of Inquiry), and DeJager v. Canada (Department of National Defence) (1987), 8 C.H.R.R. D/3963 (C.H.R. Trib.), set limits on the concept by holding that only such part of the actual loss resulting as is reasonably fore seeable by the person engaging in the discriminatory practice is recoverable.
The Chairman found as follows (at pages D/82- D/83):
... ought the appellant to have reasonably foreseen that the consequences of its discriminatory act would extend for some six and one-half years after the event, or, longer if one accepts my view of the evidence. With respect, it seems to me, the ini tial Tribunal in awarding damages for that period of time after making an adjustment of two and one-half years for failure to lodge a complaint in a timely fashion, went far beyond what was reasonably foreseeable. The six and one-half year period for which compensation was awarded substantially exceeds the respondent's service time with the Armed Forces.
In my opinion, the respondent will be fairly and adequately compensated by ordering compensation from the beginning of the earning period on July 15, 1980 as determined by the ini tial Tribunal, to the end of 1983, i.e. December 31, 1983.
The majority of the Review Tribunal came to a dif ferent conclusion (at pages D/66-D/67):
If however reinstatement is an appropriate order, as it is in the case before this Review Tribunal, then in my [sic] view a "cap" or cut-off point, or point of assuming responsibility, is automatically built into the award by the reinstatement order. The reinstatement order in itself contains the factor to make the period of time or cut-off point determinate, that being the date of actual reinstatement.
In our view, the application of the doctrine of reasonable foreseeability, for purposes of providing a cut-off point, is inappropriate to cases in which reinstatement is ordered, as that order in itself contains a cut-off point.
We, therefore, in the case before this Review Tribunal, order that compensation for lost wages continue from July 15, 1982 until the date the respondent is reinstated. The respondent did not file his complaint until July 1983, some three years and three months after the discriminatory act. We find this time to be excessive and we accordingly do not award compensation for approximately twenty-seven months of that period.
However, the majority hedged its bet by finding that, even if the reasonable foreseeability test were to be applied, the result would be the same (at page D/67):
If our reasoning is not considered correct and if the doctrine of reasonable foreseeability is applicable to cases in which reinstatement is ordered, then it is our view that the tests of reasonable foreseeability contained in that doctrine are com plied with in this case without any change to the compensation for lost wages that we have awarded to the respondent. It is in our view very reasonable for a person carrying out a discrimi-
natory act to foresee that, in those cases in which reinstatement is ordered, the compensation payable by him will include com pensation for lost wages from the time of the discriminatory act to the time of reinstatement. If such is not the case, the person acting in a discriminatory manner will benefit by delays and by the time that it takes to process a claim through the mechanics of the human rights system. The aggrieved person is prejudiced.
The notion of placing a cap on the amount to be awarded for lost wages based on a principle of rea sonable foreseeability is one that, to my mind, cannot be deduced from McAlpine. In that case, an offer to employ the complainant was withdrawn when it was discovered that she was pregnant, since at that time it was against departmental policy to employ pregnant employees. The department admitted discrimination and the issue was as to damages as a result of her failure to receive unemployment insurance benefits, the rationale being that, in the absence of the discrim inatory act, she would have worked for 14 weeks, more than enough to qualify her for unemployment insurance benefits.
This Court held that what are now paragraphs 53(2)(b), (c) and (d) of the Act did not permit or allow an award of compensation for foregone unem ployment insurance benefits. That decision was the only one necessary for the disposition of the case, but the Court went on in obiter dicta to endorse the prin ciple of reasonable foreseeability. 2 However, in my opinion, the Court applied that principle only to the kind of damages claimed: in other words, that it was not reasonably foreseeable by an employer that such an act of discrimination would lead to a loss of unem ployment insurance benefits.
It is true that in Torres, which the Court cited, the principle was applied to the quantum of damages, but I believe that the Court did not turn its mind to that issue. In fact, it had no need to do so, since the issue before it was a matter of kind, not quantum. I would therefore agree with the Tribunal in Cashin v. Cana-
2 Reasonable foreseeability might be said to be the common- law principle whether the act was classified as being of con tract or of tort: see Asamera Oil Corporation Ltd. v. Sea Oil & General Corporation et al., [1979] 1 S.C.R. 633, at pp. 645 ff. Estey J. concludes, at p. 673, that "the same principles of remoteness will apply to the claims made whether they sound in tort or contract."
dian Broadcasting Corp. (No. 2) (1990), 12 C.H.R.R. D/222 (C.H.R. Trib.), in distinguishing McAlpine and also with respect to the broader considerations involved (at pages D/233-D/234):
The merits of McAlpine, supra, aside, it seems on its face to be inappropriate to apply the tort test of foreseeability to dam ages for discriminatory acts. The Supreme Court of Canada has stated in Bhadauria v. Board of Governors of Seneca Col lege (1981), 124 D.L.R. (3d) 193, [(sub nom. Seneca College v. Bhadauria), 2 C.H.R.R. D/468] that there is no tort of dis crimination. Moreover, that court has also expressed the view that one should not try to fit human rights remedies into inap propriate legal doctrines. For example, when asked in Robichaud, supra, to decide whether an employer was liable (vicariously or otherwise) for sexual harassment of an employee by a supervisor, the Supreme Court looked first at the purpose of the Act and the wording and intent of the reme dies provided by the Act, avoiding the problem of determining whether the employer's liability for discriminatory acts of its employees fell under the tort doctrine of vicarious liability or some other rubric. In the words of La Forest J. at p. 89 [D/4329]:
... considerable attention was given to various theories supporting the liability of an employer for the acts of its employees, such as vicarious liability in tort and strict liabil ity in the quasi-criminal context. As Thurlow C.J. notes, however, the place to start is necessarily with the Act, the words of which, like those of other statutes, must be read in light of its nature and purpose.
He goes on to state that the purpose of the Act is essentially to remove discrimination rather than punish anti-social beha viour. He then says, at p. 91 [D/4330]:
The interpretive principles I have set forth seem to me to be largely dispositive of this case. To begin with, they dispose of the argument that one should have reference to theories of employer liability developed in the context of criminal or quasi-criminal conduct. These are completely beside the point as being fault-oriented, for, as we saw, the central pur pose of a human rights Act is remedial -- to eradicate anti social conditions without regard to the motives or intentions of those who cause them.
In concluding that the Act contemplated the imposition of lia bility on employers for all acts of their employees, La Forest J. said that [at D/4331]: " ... It is unnecessary to attach any label to this type of remedy; it is purely statutory."
This method of interpretation supports my view that the wording of the Act itself in s. 41(2), interpreted in light of the purpose of the legislation and the guidance provided by the Supreme Court of Canada, is sufficiently clear to dispose of the argument that the test of reasonable foreseeability should be considered to be a limit on the damages for lost wages that can be awarded. The section itself imposes its own limits, which are that the tribunal may order that compensation for "any or all" lost wages be awarded, "as the tribunal may consider proper."
This is all right as far as it goes. A strict tort or contract analogy should not be employed, since what is in question is not a common-law action but a statu tory remedy of a unique nature: see Seneca College of Applied Arts and Technology v. Bhadauria, [1981] 2 S.C.R. 181, where the Supreme Court held that The Ontario Human Rights Code [R.S.O. 1970, c. 318] established neither a common-law tort, nor, it seems, a statutory tort, since the regime of that Act is dis tinctive, and has itself laid out the procedures for vin dication of the public policy it embodies. As La For est J. put it in Robichaud v. Canada (Treasury Board), [1987] 2 S.C.R. 84, at page 91: "the central purpose of a human rights Act is remedial—to eradi cate anti-social conditions without regard to the motives or intention of those who cause them." Sub section 53(2) of the Act may be said to impose its own ultimate limits, viz. the total of all lost wages, but in my opinion it does not thereby establish the total of lost wages, i.e. all wages from the date of the discriminatory act to the date of reinstatement, as the criterion to be followed in making an award.
Identifying the limits and the criterion was the legal error into which, in my view, the majority of the Review Tribunal fell when they said, in a passage I have already cited at page 428:
If however reinstatement is an appropriate order, as it is in the case before this Review Tribunal, then in my [sic] view a "cap" or cut-off point, or point of assuming responsibility, is automatically built into the award by the reinstatement order. The reinstatement order in itself contains the factor to make the period of time or cut-off point determinate, that being the date of actual reinstatement. [Emphasis added.]
The appropriateness of reinstatement as a remedy cannot be taken to establish the appropriateness of the total period between the discriminatory act and the reinstatement as the correct measure of the award for wages. In my opinion, the criterion which is implicit in the Act is that the damages awarded have to flow from the discriminatory practice. Paragraph 53(2)(c) provides that the person found to have engaged in the discriminatory practice "compensate the victim, as the Tribunal may consider proper, for any or all of the wages that the victim was deprived of and for any expenses incurred by the victim as a result of the discriminatory practice" [my emphasis]. In other words, there is a clear requirement of causal connection (for, as a result of) between the wages awarded and the discrimination.
This seems to me to be probably what Heald J.A. had in mind in McAlpine when he wrote (at page 538) that "the proper test must also take into account remoteness or reasonable foreseeability," so that in this sense a broader interpretation of McAlpine is jus tifiable.
In the present case, what would constitute such a causal connection? The principal difficulty to be con sidered in this regard, I believe, is the appalling length of time that has elapsed between the discrimi natory act and the present, more than eleven years at this point, which seems to point to a kind of interven ing cause. In a triad of cases where legal delays had amounted to some nine years, Allen v. Sir Alfred McAlpine & Sons Ltd., [1968] 2 Q.B. 229 (C.A.), at page 243, Lord Denning M.R. said:
In these three cases the law's delays have been intolerable. They have lasted so long as to turn justice sour.
In the case at bar, the milk of justice may justly be said to have curdled.
The minority member of the Review Tribunal found this the most striking feature of the case (at page D/70):
The most troubling and difficult aspect of this case to me is the inordinate lapse of time between the occurrence of the dis-
criminatory act in April 1980 until January 1989 when the matter was heard by the initial Tribunal.
I suspect the initial Tribunal, as well as my colleagues on this Review Tribunal, were similarly troubled by the lapse of time.
The majority was equally struck by the fact, but more accepting of it (at page D/67):
The compensatory period in this case seems extreme, but for whatever reasons, it has taken this length of time to process the complaint through the human rights system. If there was any evidence of the respondent contributing to a delay in the proce dure, then that delay should be taken into account in the com pensation award. But there is no such evidence. It does not seem equitable or within the intent of the Human Rights Act that a successful complainant should suffer because of the length of time that it takes to proceed through the mechanics established by the human rights legislation.
The first thing to be said is that there is no legal basis for taking into account Morgan's long delay in making his complaint, except, as the Commission argued, through the power in the Commission itself to weigh this factor. The period of compensation must logically commence at the time of the discrimi natory practice—in this case July 21, 1980. Where an allegedly discriminatory act precedes the complaint by more than a year, paragraph 41 (e) of the Act gives the Commission discretion as to whether to receive the complaint at all. But a tribunal has the jurisdiction to grant only the remedies found in section 53, none of which includes monetarily penalizing a complain ant for late filing.
Morgan testified that he waited to file his com plaint under the Act because he had continued to try to get back into the Forces during that period. It would be penalizing him for attempting to mitigate his damages by trying to re-enrol for the Review Tri bunal to deduct that period from his recovery, nor would it be in keeping with the remedial and com pensatory purpose of the Act. In my view, therefore, the Review Tribunal majority was wrong in law in altering that aspect of the Tribunal's decision. In this respect, the cross-application must be allowed.
Second, it is impossible to pass over the almost- five-year period between the complaint and the notice of appointment of the Tribunal on June 9, 1988.
The Act provides that, after receiving a complaint, the Commission may designate an investigator to investigate it (section 43 [as am. by R.S.C., 1985 (1st Supp.), c. 31, s. 63]), that the investigator shall "as soon as possible after the conclusion of an investiga tion, submit to the Commission a report of the find ings of the investigation" (my emphasis) (subsection 44(1)), and that "[o]n receipt of [this] report the Commission (a) may request the President of the Human Rights Tribunal Panel to appoint a Human Rights Tribunal in accordance with section 49" (my emphasis) (subsection 44(3) [as am. idem, s. 64], sub section 49(1) [as am. idem, s. 66]). On receipt of such request, the President "shall appoint a Tribunal to inquire into the complaint to which the request relates" (my emphasis) (subsection 49(1.1) [as am. idem]). All of this suggests a process where time is, if not of the essence, at least of relevance.
The process of appointment presumably takes a minimum of time, so that it must be presumed that some five and a half years of the delay here must be attributed to the processes of the Commission. The record of the Commission over the years well estab lishes its bona fides, and so to say that such an intol erable processing time for a complaint will not do is probably to call into question the resources made available to it rather than its use of them. Neverthe less, as Mahoney J.A. indicated for this Court in Cashin v. Canadian Broadcasting Corporation, [1984] 2 F.C. 209, at page 215, it is the Commis sion's obligation to devise ways of achieving what must be done, or, failing that, simply to request the appointment of a tribunal.
In my view, one year would normally be a reason able period of time for the Commission to investigate and decide whether to proceed to a tribunal, but, so as not to confine it within an unduly procrustean timeta ble, let me rather say that, where there is no satisfac tory explanation by the Commission, it should be presumed by a tribunal that two years between com-
plaint and tribunal is an outside limit for the Com mission's internal processes.
In the case at bar, where there is no such explana tion, I would hold that the delay by the Commission beyond a two-year processing period may not be taken into account by the tribunals below in setting lost wages, since beyond that time there could not be any causal connection between the discriminatory practice and the wages awarded.
The Review Tribunal worried that (in a passage quoted at pages 432-433) "It does not seem equitable or within the intent of the Human Rights Act that a successful complainant should suffer because of the length of time that it takes to proceed through the mechanics established by the human rights legisla tion." But the causal connection established by the Act must be respected. What would be equitable would be for the Commission to pay any lost wages for the additional two years or more. Whether the holding here may found a claim by the complainant against the Commission is a matter for another day.
The application should therefore be allowed in this respect, and the cross-application dismissed.
3. Mitigation of Damages
I find myself in complete agreement with the initial statement of the law by a unanimous Review Tribu nal on this point (at page D/60):
With respect, it seems to us, the Tribunal employed an overly simplistic basis on which to approach the problem of mitigation. The reasonableness or unreasonableness of the steps taken by the respondent to mitigate can only be ascer tained in the context of all the circumstances including, not only his effort to find employment but also his military back ground, his previous experience in the Armed Forces, the opportunities for career advancement, his age and personal qualifications. These are, in our opinion, factors to be consid ered.
However, I believe the Review Tribunal immedi ately thereafter fell into error under paragraph 28(1)(c) of the Federal Court Act by deciding as fol-
lows, without regard for the material before it (at page D/61):
From that perspective [of the claimant's whole pattern of conduct] two isolated instances shortly after his rejection by the Armed Forces when the respondent voluntarily left jobs become relatively insignificant. The respondent persisted and continued in efforts to re-enlist or re-muster with the Armed Forces until July 1983 when he filed his complaint under the Canadian Human Rights Act.
The Review Tribunal is not mistaken in its immediate reaction to these two instances of Morgan's aban doning full-time employment, both for the reason given and because, as I have already indicated, the time before the making of his claim should not be taken into account for remedial purposes.
Nevertheless, these two instances are not, as I see them, isolated, but part of a pattern of conduct. In addition to these voluntary quittings, in 1984, accord ing to his income tax return for the year, Morgan held apparently full-time jobs with the District of Victoria and with the Government of Canada, although in his testimony he claimed to be unable to recall either working for those two employers or why he left their employ. This pattern of job-leaving is certainly one of the principal matters that must be looked at in a perspective of a total course of con duct.
The section 28 application should therefore be allowed in this respect.
4. Interest, the Rate of Interest, and Interest on the Award for Hurt Feelings
The case most directly on point, since it deals with a question of interest under the same Act, is Canada (Attorney General) v. Rosin, [1991] 1 F.C. 391 (C.A.). There, the Tribunal awarded the complainant $1,500 for loss and hurt feelings under paragraph 53(3)(b), along with interest on this amount. Linden J.A. said for the Court (at pages 413-414):
While there is no specific provision expressly granting human rights tribunals the power to give interest, it is included in the power granted to "order the person to pay such compensation to the victim, not exceeding five thousand dollars, as the Tribu nal may determine." (see subsection 53(3)). Such awards for
interest have been ordered frequently by human rights tribu nals.
This decision settles the issue as to whether interest can be awarded on the award for hurt feelings (awarded by the Tribunal on $1,000, but not by the Review Tribunal on $2,500). It can be awarded, up to a total award (including interest) of $5,000, but whether it is awarded is entirely in the discretion of a tribunal. In my opinion, the Review Tribunal erred in increasing the award for hurt feelings to $2,500 (without interest), without having sufficient reason to revisit the Tribunal's discretion, and the cross-appli cation must succeed on this ground.
Even though the notion of interest per se was not challenged in oral argument by the applicant, it is worth pointing out that that question is not decided by Rosin, which is concerned only with subsection 53(3). In subsection 53(2), paragraph (b), of course, as held by McAlpine, does not cover monetary awards at all, but paragraph (c), which is concerned specifically with wage compensation, must be taken, I believe, to permit awards of interest on any amounts awarded for lost wages, on the analogy of Canadian Broadcasting Corp. v. C.U.P.E., [1987] 3 F.C. 515 (C.A): 3 the notion of adequately compensating the victim must needs include a reasonable return on the money of which the victim has lost the use by reason of the discriminatory practice. As the Review Tribu nal held (at pages D/56-D/57), compensation in para graph 53(2)(c) should be broadly interpreted. Such interest, being awarded under subsection 53(2), is not limited by the $5,000 limit set out in subsection
53(3).
With respect to the rate of interest, the Tribunal had this to say (at page D/6406):
In this case, counsel for the respondent submitted that if interest is awarded, the rate of interest should be 5 percent because that is the rate of interest provided by s. 3 of the Canada Interest Act. Although both counsel for the respondent and the Commission submitted that they were prepared to
3 See also Chandris v. Isbrandtsen-Moller Co. Inc., [1951] 1 K.B. 240 (C.A.); Minister of Highways for British Columbia v. Richland Estates Ltd. (1973), 4 L.C.R. 85 (B.C.C.A.); Re Westcoast Transmission Co. Ltd. and Majestic Wiley Contrac tors Ltd. (1982), 139 D.L.R. (3d) 97 (B.C.C.A.).
accept an interest rate of 5 percent, I do not think that the rate should be restricted to 5 percent.
In Canadian Broadcasting Corp. v. Broadcast Council of Canadian Union of Public Employees, supra [[1987] 3 F.C. 515 (C.A.)), the Canada Labour Relations Board had awarded interest at " ... the Bank of Canada prime rate ..... The Fed eral Court of Appeal upheld the decision of the Board. In so doing, I think it may be assumed that the Federal Court approved of a rate of interest that was higher than the rate pro vided by s. 3 of the Canada Interest Act. Presumably, the higher rate may be justified on the basis that the award is "compensation" rather than interest and therefore the Canada Interest Act does not apply.
While there is some attraction to using the Bank of Canada prime rate, it would be a chore to determine the applicable prime rates since 1980. For reasons that will become apparent later, I prefer to use the prime rate charged by the Canadian Imperial Bank of Commerce with respect to its most creditworthy customers. This is consistent with the holding in Boucher v. Canada (Correctional Service), supra [(1988), 9 C.H.R.R. D/4910 (C.H.R. Trib.)].
It need hardly be said that the fact that "it would be a chore" to determine the Bank of Canada prime rates since 1980 does not constitute a valid reason to select a different rate.
The Review Tribunal substituted a different rate, saying simply that (at page D/57) "With regard to the rate of interest it should be in accordance with the applicable rate of interest from time to time of Canada Savings Bonds on the amount outstanding from time to time during the period of compensa tion." This apparent fiat, on the part of the Review Tribunal, is clearly wrong in reversing the Tribunal without stated justification. However, it is less easy to establish what rate should be allowed.
One thought advanced was that the best rate would be the Bank of Canada prime rate, as a compromise between the lower Canada Savings Bonds rate and the higher commercial bank prime rate. I accept that point of view, and indeed that seems to have been the preferred rate of the initial Tribunal except for the "chore" involved.
It is not, in my opinion, possible to say that only the Bank of Canada prime rate is permitted under the legislation, since the Act does not even expressly per-
mit interest. The rate to be set must remain within the discretion of a tribunal, but the Bank of Canada prime rate should be taken as the usual rate to be established, except when the tribunal finds special circumstances in play.
On the choice of simple or compound interest by courts, Professor S. M. Waddams, The Law of Dam ages, 1983, at page 512, has this to say:
Compound interest has not generally been awarded at com mon law and is specifically excluded by the British Columbia and Ontario legislation following the English statute in this respect. It is understandable, in view of the slow recognition of simple interest, that compound interest has not been awarded in the past. However, there seems in principle no reason why compound interest should not be awarded. Had prompt recom pense been made at the date of the wrong the plaintiff would have had a capital sum to invest; he would have received inter est on it at regular intervals and would have invested those sums also. By the same token the defendant will have had the benefit of compound interest.
I agree in that, in my view, this choice must remain within the discretion of a tribunal, but simple interest should be taken to be the norm except in special cir cumstances identified and justified by the tribunal. To the extent that there was interest at common law, simple interest was the standard, and here there is the additional factor that the Court Order Interest Act in British Columbia (R.S.B.C. 1979, c. 76, s. 2), the province where this case arose, provides for simple
interest.
In sum, on the interest issues, both the application and the cross-application should be allowed in part.
5. Conclusion
In the result, both the application and the cross- application should be allowed in part, the decision of the Review Tribunal set aside in part, and the matter remitted to that Tribunal for reconsideration in accor dance with these reasons.
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