Alberta (Attorney-General) v. Atlas Lumber Co.

Alberta (Attorney-General) v. Atlas Lumber Co.

Section 8 of the Alberta Debt Adjustment Act is ultra vires and inoperative insofar as it prohibits actions on promissory notes because it conflicts with the federal Bills of Exchange Act, which, under BNA Act s.91(18), grants holders an unconditional right to sue and recover; federal law thus prevails and a province may not condition access to provincial courts via an administrative permit for rights created by federal law.

Citation
[1941] SCR 87
Parties
Appellant/defendant: Attorney-General for Alberta; Appellant/defendant: G. C. Winstanley; Respondent/plaintiff: Atlas Lumber Company Limited; Intervenor: Attorney-General of Canada
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
20 December 1940
Procedural Posture
Appeal; Constitutional Challenge to Provincial Statute / Final Decision by Supreme Court of Canada on Appeal From Appellate Division of the Supreme Court of Alberta
Outcome
Appeal dismissed; judgments below affirmed in result
Legal Topics
Division of Powers, Paramountcy of Federal Law, Bills of Exchange and Promissory Notes, Provincial Ultra Vires Legislation, Access to Courts, Delegation of Judicial Functions
Source Language
English
Constitutional Law Administrative Law Commercial Law Procedural Law Division of Powers Paramountcy of Federal Law Bills of Exchange and Promissory Notes Provincial Ultra Vires Legislation +2 more

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Parties

Attorney-General for Alberta

Appellant/defendant

G. C. Winstanley

Appellant/defendant

Atlas Lumber Company Limited

Respondent/plaintiff

Attorney-General of Canada

Intervenor

Procedural Posture

Appeal; Constitutional Challenge to Provincial Statute / Final Decision by Supreme Court of Canada on Appeal From Appellate Division of the Supreme Court of Alberta

Legal Issues

  1. 1 Whether s.8 of Alberta Debt Adjustment Act, 1937, can lawfully prevent actions on promissory notes absent a provincial permit
  2. 2 Whether federal Bills of Exchange Act (R.S.C. 1927, c.16) grants an unqualified right to sue that federal Parliament exclusively controls under BNA Act s.91(18)
  3. 3 Whether provincial legislation that conditions access to provincial courts via an administrative board is a valid exercise of provincial power over administration of justice or an unconstitutional encroachment on federal jurisdiction

Ratio Decidendi

Section 8 of the Alberta Debt Adjustment Act is ultra vires and inoperative insofar as it prohibits actions on promissory notes because it conflicts with the federal Bills of Exchange Act, which, under BNA Act s.91(18), grants holders an unconditional right to sue and recover; federal law thus prevails and a province may not condition access to provincial courts via an administrative permit for rights created by federal law.

Court Disposition

Appeal dismissed; judgments below affirmed in result

Orders

  • Appeal dismissed with costs to respondent
  • Declaration that Debt Adjustment Act 1937, s.8 is ultra vires and inoperative insofar as it affects actions on promissory notes