Canada (Procureur Général) c. Aéroports de Montréal

Canada (Procureur Général) c. Aéroports de Montréal

The Court held that the Lease's broad definitions and clauses 5.04.01–5.04.02 incorporate the CGS such that PERI payments constitute "Loyer Supplémentaire" under the Lease; therefore disputes about overpayment alleged as breaches of contractual obligations (failure to apply the "normes et règles régissant les propriétés fédérales") fall within the CC arbitration clause and the arbitral tribunal is competent to decide ADM's contractual damages claim without prior judicial review.

Citation
2023 CF 1562
Parties
Demandeur: LE PROCUREUR GÉNÉRAL DU CANADA; Défenderesse: AÉROPORTS DE MONTRÉAL
Court
Federal Court
Jurisdiction
Canada
Judgment Date
24 November 2023
Procedural Posture
Preliminary Jurisdictional Challenge Under S.16(3) of the Commercial Arbitration Code (cac) / Motion to Dismiss for Lack of Jurisdiction (moyen Déclinatoire) Decided by Federal Court
Outcome
The Procureur général du Canada’s declinatory motion is dismissed; the arbitral tribunal is competent to hear ADM’s contractual claim concerning overpaid PERI as Loyer Supplémentaire under the Lease.
Legal Topics
Interpretation of Arbitration Clause, Incorporation by Reference, Competence Competence, Judicial Review Vs Damages Remedy, Statutory Discretion of Minister, Payments in Lieu of Taxes (peri)
Source Language
French
Arbitration Contract Law Administrative Law Public Law Tax Law (payments in Lieu of Taxes) Interpretation of Arbitration Clause Incorporation by Reference Competence Competence +3 more

Case Brief

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Parties

LE PROCUREUR GÉNÉRAL DU CANADA

Demandeur

AÉROPORTS DE MONTRÉAL

Défenderesse

Procedural Posture

Preliminary Jurisdictional Challenge Under S.16(3) of the Commercial Arbitration Code (cac) / Motion to Dismiss for Lack of Jurisdiction (moyen Déclinatoire) Decided by Federal Court

Legal Issues

  1. 1 Whether the arbitration clause in the Cession Agreement (CC) covers disputes about PERI amounts
  2. 2 Whether the General Services Agreement (CGS) is incorporated into the Land Lease (Bail)
  3. 3 Whether the arbitral tribunal has jurisdiction to decide ADM's claim regarding overpaid PERI as "Loyer Supplémentaire" under the Lease

Ratio Decidendi

The Court held that the Lease's broad definitions and clauses 5.04.01–5.04.02 incorporate the CGS such that PERI payments constitute "Loyer Supplémentaire" under the Lease; therefore disputes about overpayment alleged as breaches of contractual obligations (failure to apply the "normes et règles régissant les propriétés fédérales") fall within the CC arbitration clause and the arbitral tribunal is competent to decide ADM's contractual damages claim without prior judicial review.

Court Disposition

The Procureur général du Canada’s declinatory motion is dismissed; the arbitral tribunal is competent to hear ADM’s contractual claim concerning overpaid PERI as Loyer Supplémentaire under the Lease.

Orders

  • Declinatory motion rejected
  • Aéroports de Montréal awarded costs calculated at the midpoint of Column III of Tariff B