Reference as to the Validity of Section 6 of the Farm Security Act, 1944 of Saskatchewan

Reference as to the Validity of Section 6 of the Farm Security Act, 1944 of Saskatchewan

Section 6 is, in pith and substance, legislation in relation to interest because paragraph (3) effects a statutory reduction of principal while preserving or producing the same quantum of interest, thereby altering the rate/operation of interest; interest is under exclusive federal jurisdiction (s.91(19)); accordingly s.6 is wholly ultra vires the Legislative Assembly of Saskatchewan.

Citation
[1947] SCR 394
Parties
Applicant/intervener: Attorney-General for Canada; Intervener: Attorney-General for Quebec; Respondent/province Whose Statute Is Challenged: Attorney-General for Saskatchewan; Intervener: Attorney-General for Alberta; Intervener/interested Party: Dominion Mortgage and Investments Association
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
13 May 1947
Procedural Posture
Reference to Supreme Court of Canada Under Supreme Court Act S.55 / Hearing on Constitutionality; Judgment on Reference Questions
Outcome
Section 6 of the Farm Security Act, 1944 (as amended) declared wholly ultra vires of the Legislative Assembly of Saskatchewan (not within provincial competence); reference questions answered accordingly
Legal Topics
Ultra Vires, Division of Powers, Interest, Crown Immunity, Severability, Judicial Vs Administrative Functions
Source Language
English
Constitutional Law Property Law Agriculture Law Bankruptcy and Insolvency Administrative Law Ultra Vires Division of Powers Interest +3 more

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Parties

Attorney-General for Canada

Applicant/intervener

Attorney-General for Quebec

Intervener

Attorney-General for Saskatchewan

Respondent/province Whose Statute Is Challenged

Attorney-General for Alberta

Intervener

Dominion Mortgage and Investments Association

Intervener/interested Party

Procedural Posture

Reference to Supreme Court of Canada Under Supreme Court Act S.55 / Hearing on Constitutionality; Judgment on Reference Questions

Legal Issues

  1. 1 Whether s.6 of the Farm Security Act, 1944 (Sask.) is ultra vires the provincial legislature (pith and substance)
  2. 2 Whether s.6 is legislation in relation to interest (exclusive federal head s.91(19))
  3. 3 Whether s.6 can be sustained as legislation in relation to agriculture (s.95) or property and civil rights (s.92(13))

Ratio Decidendi

Section 6 is, in pith and substance, legislation in relation to interest because paragraph (3) effects a statutory reduction of principal while preserving or producing the same quantum of interest, thereby altering the rate/operation of interest; interest is under exclusive federal jurisdiction (s.91(19)); accordingly s.6 is wholly ultra vires the Legislative Assembly of Saskatchewan.

Court Disposition

Section 6 of the Farm Security Act, 1944 (as amended) declared wholly ultra vires of the Legislative Assembly of Saskatchewan (not within provincial competence); reference questions answered accordingly

Orders

  • Section 6 declared invalid and of no force or effect
  • No costs to any party