PSC Industrial Services Inc. v. Ontario (Ministry of the Environment)

PSC Industrial Services Inc. v. Ontario (Ministry of the Environment)

The court held as a matter of law that the tort claims (defamation, misfeasance in public office) were not clearly unassignable and should proceed to trial to determine whether the assignee possessed the requisite pre-existing legitimate commercial interest and whether the assignments are tainted by champerty or maintenance; however the Charter claims under ss.7, 8 and 11 could not be sustained by the assignee as pleaded (corporations cannot claim s.7, s.11 protections apply only where charged with an offence, and the s.8 claim was tenuous and in any event not assignable), so those Charter claims were dismissed.

Citation
C41568, C42609
Parties
Plaintiff (respondent): PSC Industrial Services Canada Inc.; Defendant (appellant): Her Majesty the Queen in Right of Ontario (as represented by the Ministry of the Environment)
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
9 August 2005
Procedural Posture
Civil Appeal / Court of Appeal Hearing Appeal From Superior Court Rule 20 and 21 Motion Order (motion Judge Sent Action to Trial)
Outcome
Appeal dismissed in part (tort claims) and allowed in part (Charter claims dismissed)
Legal Topics
Assignability of Causes of Action, Defamation (libel), Misfeasance in Public Office, Charter Remedies (s.7, S.8, S.11, S.24), Champerty and Maintenance, Rule 21 Striking Pleadings, CCAA Assignments, Search and Seizure Under Environmental Statute
Source Language
English
Tort Administrative Law Constitutional Law Civil Procedure Corporate/insolvency Law Environmental Law Assignability of Causes of Action Defamation (libel) +6 more

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Parties

PSC Industrial Services Canada Inc.

Plaintiff (respondent)

Her Majesty the Queen in Right of Ontario (as represented by the Ministry of the Environment)

Defendant (appellant)

Procedural Posture

Civil Appeal / Court of Appeal Hearing Appeal From Superior Court Rule 20 and 21 Motion Order (motion Judge Sent Action to Trial)

Legal Issues

  1. 1 Whether tort causes of action pleaded (defamation, misfeasance in public office) are clearly unassignable as a matter of law under Rule 21
  2. 2 Whether the facts pleaded disclose a cause of action under the Charter (ss.7, 8 and 11)
  3. 3 Whether Charter remedies/claims (s.24(1)) are assignable to the current plaintiff

Ratio Decidendi

The court held as a matter of law that the tort claims (defamation, misfeasance in public office) were not clearly unassignable and should proceed to trial to determine whether the assignee possessed the requisite pre-existing legitimate commercial interest and whether the assignments are tainted by champerty or maintenance; however the Charter claims under ss.7, 8 and 11 could not be sustained by the assignee as pleaded (corporations cannot claim s.7, s.11 protections apply only where charged with an offence, and the s.8 claim was tenuous and in any event not assignable), so those Charter claims were dismissed.

Court Disposition

Appeal dismissed in part (tort claims) and allowed in part (Charter claims dismissed)

Orders

  • Tort claims (defamation and misfeasance in public office) are not struck under Rule 21 and action proceeds to trial to determine assignability/champerty issues
  • Claims under the Canadian Charter of Rights and Freedoms (ss.7, 8 and 11) are dismissed insofar as pursued by the assignee plaintiff