Canada (Citizenship and Immigration) v. Hinton

Canada (Citizenship and Immigration) v. Hinton
Court (s) Database
Federal Court of Appeal Decisions
Date
2008-06-13
Neutral citation
2008 FCA 215
File numbers
A-11-08
Notes
Reported Decision
Decision Content
Date: 20080613
Docket: A-11-08
Citation: 2008 FCA 215
CORAM: LINDEN J.A.
NADON J.A.
SEXTON J.A.
BETWEEN:
THE MINISTER OF CITIZENSHIP & IMMIGRATION
Appellant
and
ALAN HINTON and IRINA HINTON
Respondents
Heard at Toronto, Ontario, on May 26, 2008.
Judgment delivered at Ottawa, Ontario, on June 13, 2008.
REASONS FOR JUDGMENT BY: SEXTON J.A.
CONCURRED IN BY: LINDEN J.A.
NADON J.A.
Date: 20080613
Docket: A-11-08
Citation: 2008 FCA 215
CORAM: LINDEN J.A.
NADON J.A.
SEXTON J.A.
BETWEEN:
THE MINISTER OF CITIZENSHIP & IMMIGRATION
Appellant
and
ALAN HINTON and IRINA HINTON
Respondents
REASONS FOR JUDGMENT
SEXTON J.A.
Introduction
[1] This is an appeal of the Order of Mr. Justice Harrington (the “Motions Judge”) who granted the Motion of Alan and Irina Hinton (the “respondents”) to treat their application for judicial review of fees charged by the Minister of Citizenship and Immigration (the “appellant”) pursuant to the Immigration and Refugee Protection Regulations SOR/2002-227 and formerly enacted Regulations (collectively, the “impugned regulations”) as an action and for their action against the appellant to be certified as a class action. The respondents sought to initiate a class action on behalf of those who paid processing fees prescribed by the impugned regulations and thus charged by the Department of Citizenship and Immigration Canada (“CIC”) with respect to various immigration visas. They seek a partial refund and declaratory relief on the basis that Her Majesty the Queen made a profit on the service, rendering the impugned regulations contrary to the provisions of the Financial Administration Act, R.S., 1985, c. F-11.
[2] By virtue of section 18 of the Federal Courts Act, R.S.C. 1985, c. F-7 the Federal Courts have exclusive original jurisdiction to hear and determine challenges of the decisions of federal boards, commissions or other tribunals by way of declaratory relief, certiorari, mandamus, etc. Pursuant to this Court’s decision in Grenier v. Canada, 2005 FCA 348 (“Grenier”), such challenges must be commenced by way of an application for judicial review, rather than being collaterally attacked by way of an action.
[3] Subsequent to commencing their application for leave and judicial review on September 14, 2006, the respondents moved, in June, 2007, to simultaneously “convert” their application into an action and have such an action certified as a class action. It is this stage of the proceedings that is at issue in this appeal.
[4] The appellant takes the position that: (1) the originating leave application commenced by the respondents pursuant to section 72(1) of the Immigration and Refugee Protection Act, S.C. 2001, c. 27 (“IRPA”), which only questioned the vires of a single regulation, was not sufficiently broad to encompass individuals affected by one of over forty other regulations, (2) a damages claim could not be commenced prior to a final disposition of the application for judicial review, and (3) a class action was not the preferable procedure for the fair and efficient resolution of the common questions of law and fact in determining the legal validity of the impugned regulations.
[5] For the reasons that follow I agree with the appellant on the first ground, but disagree with respect to the second and third grounds. Thus in the result I would allow the appeal in part by limiting the class of plaintiffs to consist of individuals covered by the leave application, but without prejudice to the right of the respondents or some other person on behalf of the remainder of the proposed class to apply for leave for judicial review and to be added into the certified class as limited by this judgment.
Facts
[6] Since approximately 1986, CIC has charged processing service fees to persons who submit various applications under IRPA, including applications to temporarily visit, work or study in Canada, applications to sponsor relatives living abroad wishing to emigrate to Canada, and applications to come to Canada as a permanent resident. Pursuant to the impugned regulations, different service fees are set for each kind of application.
[7] On or about May 30, 2003, Alan Hinton submitted an application to sponsor his wife, who resided in Russia, to come to Canada. A few months after Alan Hinton paid his processing fee, Irina Hinton was notified by the Canadian Embassy in Moscow to pick up her permanent residence visa. There was no immigration interview for either of the respondents. Alan Hinton had paid $75. Based on a draft of an internal CIC report of the costs of delivering immigration services obtained through an Access to Information Act request, the respondents believe that the “unit cost” for sponsorship determinations for spouses (including children) was roughly half of what Mr. Hinton paid.
[8] In March of 2005, a proposed class action, which included the respondents, was filed by way of Statement of Claim against the appellant. That claim challenged the legal validity of more than 40 current (and former) immigration service fees, enacted between 1986 and 2002, on the basis that those fees violated section 19(2) of the Financial Administration Act, which provides that the fees charged by the federal government for a service cannot exceed the cost of providing it. On June 26, 2006, because of Grenier, supra, the Motions Judge (for clarification, Justice Harrington is the Case Management judge for this entire proceeding and thus has presided over all stages of the proceeding) decided in Momi v. Canada (MCI) 2006 FC 738 (“Momi”) to stay the action so that an application for judicial review could be launched in its place.
[9] In Momi, despite staying the class action, the Motions Judge made a number of comments about the appropriateness of certification, and then concluded at paragraphs 81 & 83:
I have taken into account the matters set out in Rule 299.18(2). Common questions of law or fact predominate. There is not a significant number of members of the class who would have a valid interest in individually controlling their separate actions. It will cost a fortune to advance a claim, whether it is for one visa, or ten million. It is difficult to think any member of the class would want to take his or her separate action. Other possible means of resolving the claims are in my view less practical and less efficient.
[…]
Although I am dismissing the motion to certify at this time, the action remains under case management. Nothing further need be done until the delays to appeal have expired. If the Plaintiffs launch an appeal, the issue is whether this action should be stayed and, if so, on what basis. If they do not appeal, the modalities of the application for judicial review contemplated herein should be discussed.
[10] Rather than appeal, the respondents applied for leave to commence an application for judicial review pursuant to section 72(1) of IRPA, filed September 14, 2006. The application was to review a decision of Citizenship and Immigration Canada issued on or about May 30, 2003 wherein the Minister charged and Alan Hinton paid $75 to the Receiver General for Canada for the determination of an application for sponsorship for his wife. Unlike Momi, the leave application in this case challenged only one CIC fee regulation: section 304 of the Immigration and Refugee Protection Regulations which require that a sponsor pay a service fee of $75 to have CIC process an application seeking to be a sponsor for a member of the family class.
[11] Concerned that the application for leave had been out of time, the Court extended the time for commencing the application. The Motions Judge ordered that the proceeding be managed as a specially managed proceeding on November 17, 2006. The Motions Judge ultimately granted the application for leave on April 24, 2007, and ordered the appointment of a case management judge on May 14, 2007.
[12] In June, 2007, the respondents moved to “convert” the application into an action and certify it as a class action. Included in the proposed class were all the people under impugned regulations, despite the application for leave only applying to one regulation, namely section 304 of the current Immigration and Refugee Protection Regulations.
Legislation
[13] The substance of the respondents’ claim lies in subsection 19(2) of the Financial Administration Act which provides:
Fees and charges for a service or the use of a facility provided by or on behalf of Her Majesty in right of Canada that are prescribed under subsection (1) or the amount of which is adjusted under section 19.2 may not exceed the cost to Her Majesty in right of Canada of providing the service or the use of the facility to the users or class of users.
Le prix fixé en vertu du paragraphe (1) ou rajusté conformément à l’article 19.2 ne peut excéder les coûts supportés par Sa Majesté du chef du Canada pour la prestation des services aux bénéficiaires ou usagers, ou à une catégorie de ceux-ci, ou la mise à leur disposition des installations.
[14] Section 18 of the Federal Courts Act provides, in part:
(1) Subject to section 28, the Federal Court has exclusive original jurisdiction
(a) to issue an injunction, writ of certiorari, writ of prohibition, writ of mandamus or writ of quo warranto, or grant declaratory relief, against any federal board, commission or other tribunal; and
(b) to hear and determine any application or other proceeding for relief in the nature of relief contemplated by paragraph (a), including any proceeding brought against the Attorney General of Canada, to obtain relief against a federal board, commission or other tribunal.
…
(3) The remedies provided for in subsections (1) and (2) may be obtained only on an application for judicial review made under section 18.1
(1) Sous réserve de l’article 28, la Cour fédérale a compétence exclusive, en première instance, pour :
a) décerner une injonction, un bref de certiorari, de mandamus, de prohibition ou de quo warranto, ou pour rendre un jugement déclaratoire contre tout office fédéral;
b) connaître de toute demande de réparation de la nature visée par l’alinéa a), et notamment de toute procédure engagée contre le procureur général du Canada afin d’obtenir réparation de la part d’un office fédéral.
[…]
(3) Les recours prévus aux paragraphes (1) ou (2) sont exercés par présentation d’une demande de contrôle judiciaire.
[15] The powers of the Federal Court on applications for judicial review are outlined by subsection 18.1(3):
On an application for judicial review, the Federal Court may
(a) order a federal board, commission or other tribunal to do any act or thing it has unlawfully failed or refused to do or has unreasonably delayed in doing; or
(b) declare invalid or unlawful, or quash, set aside or set aside and refer back for determination in accordance with such directions as it considers to be appropriate, prohibit or restrain, a decision, order, act or proceeding of a federal board, commission or other tribunal.
Sur présentation d’une demande de contrôle judiciaire, la Cour fédérale peut :
a) ordonner à l’office fédéral en cause d’accomplir tout acte qu’il a illégalement omis ou refusé d’accomplir ou dont il a retardé l’exécution de manière déraisonnable;
b) déclarer nul ou illégal, ou annuler, ou infirmer et renvoyer pour jugement conformément aux instructions qu’elle estime appropriées, ou prohiber ou encore restreindre toute décision, ordonnance, procédure ou tout autre acte de l’office fédéral.
[16] In contrast, the Federal Court’s concurrent original jurisdiction with respect to actions against the Crown is provided by subsections 17(1) and (2):
(1) Except as otherwise provided in this Act or any other Act of Parliament, the Federal Court has concurrent original jurisdiction in all cases in which relief is claimed against the Crown.
(2) Without restricting the generality of subsection (1), the Federal Court has concurrent original jurisdiction, except as otherwise provided, in all cases in which
(a) the land, goods or money of any person is in the possession of the Crown;
(b) the claim arises out of a contract entered into by or on behalf of the Crown;
(c) there is a claim against the Crown for injurious affection; or
(d) the claim is for damages under the Crown Liability and Proceedings Act.
(1) Sauf disposition contraire de la présente loi ou de toute autre loi fédérale, la Cour fédérale a compétence concurrente, en première instance, dans les cas de demande de réparation contre la Couronne.
(2) Elle a notamment compétence concurrent en première instance, sauf disposition contraire, dans les cas de demande motivés par :
a) la possession par la Couronne de terres, biens ou sommes d’argent appartenant à autrui;
b) un contrat conclu par ou pour la Couronne;
c) un trouble de jouissance dont la Couronne se rend coupable;
d) une demande en dommages-intérêts formée au titre de la Loi sur la responsabilité civile de l’État et le contentieux administratif.
[17] Subsection 18.4(2) of the Federal Courts Act provides for the “conversion” of an application into an action:
The Federal Court may, if it considers it appropriate, direct that an application for judicial review be treated and proceeded with as an action.
Elle peut, si elle l’estime indiqué, ordonner qu’une demande de contrôle judiciaire soit instruite comme s’il s’agissait d’une action.
[18] All decisions arising under IRPA can only be judicially reviewed subsequent to the granting of leave, pursuant to section 72 of IRPA:
(1) Judicial review by the Federal Court with respect to any matter – a decision, determination or order made, a measure taken or a question raised – under this Act is commenced by making an application for leave to the Court.
(2) The following provisions govern an application under subsection (1):
(a) the application may not be made until any right of appeal that may be provided by this Act is exhausted;
(b) subject to paragraph 169(f), notice of the application shall be served on the other party and the application shall be filed in the Registry of the Federal Court (“the Court”) within 15 days, in the case of a matter arising in Canada, or within 60 days, in the case of a matter arising outside Canada, after the day on which the applicant is notified of or otherwise becomes aware of the matter;
(c) a judge of the Court may, for special reasons, allow an extended time for filing and serving the application or notice;
(d) a judge of the Court shall dispose of the application without delay and in a summary way and, unless a judge of the Court directs otherwise, without personal appearance; and
(e) no appeal lies from the decision of the Court with respect to the application or with respect to an interlocutory judgment.
(1) Le contrôle judiciaire par la Cour fédérale de toute mesure — décision, ordonnance, question ou affaire — prise dans le cadre de la présente loi est subordonné au dépôt d’une demande d’autorisation.
(2) Les dispositions suivantes s’appliquent à la demande d’autorisation :
a) elle ne peut être présentée tant que les voies d’appel ne sont pas épuisées;
b) elle doit être signifiée à l’autre partie puis déposée au greffe de la Cour fédérale — la Cour — dans les quinze ou soixante jours, selon que la mesure attaquée a été rendue au Canada ou non, suivant, sous réserve de l’alinéa 169f), la date où le demandeur en est avisé ou en a eu connaissance;
c) le délai peut toutefois être prorogé, pour motifs valables, par un juge de la Cour;
d) il est statué sur la demande à bref délai et selon la procédure sommaire et, sauf autorisation d’un juge de la Cour, sans comparution en personne;
e) le jugement sur la demande et toute décision interlocutoire ne sont pas susceptibles d’appel.
[19] Rule 299 outlines the federal court regime governing class actions that was in force when the respondents’ application was commenced. The conditions to certify a class are provided in Rule 299.18:
(1) Subject to subsection (3), a judge shall certify an action as a class action if
(a) the pleadings disclose a reasonable cause of action;
(b) there is an identifiable class of two or more persons;
(c) the claims of the class members raise common questions of law or fact, whether or not those common questions predominate over questions affecting only individual members;
(d) a class action is the preferable procedure for the fair and efficient resolution of the common questions of law or fact; and
(e) there is a representative plaintiff who
(i) would fairly and adequately represent the interests of the class,
(ii) has prepared a plan for the action that sets out a workable method of advancing the action on behalf of the class and of notifying class members how the proceeding is progressing,
(iii) does not have, on the common questions of law or fact, an interest that is in conflict with the interests of other class members, and
(iv) provides a summary of any agreements respecting fees and disbursements between the representative plaintiff and the representative plaintiff’s solicitor.
(2) All relevant matters shall be considered in a determination of whether a class action is the preferable procedure for the fair and efficient resolution of the common questions of law or fact, including whether
(a) questions of law or fact common to the members of the class predominate over any questions affecting only individual members;
(b) a significant number of the members of the class have a valid interest in individually controlling the prosecution of separate actions;
(c) the class action would involve claims that are or have been the subject of any other action;
(d) other means of resolving the claims are less practical or less efficient; and
(e) the administration of the class action would create greater difficulties than those likely to be experienced if relief were sought by other means.
(3) If the judge determines that a class includes a subclass whose members have claims that raise common questions of law or fact not shared by all the class members so that the protection of the interests of the subclass members requires that they be separately represented, the judge shall not certify the action as a class action unless there is a representative plaintiff who
(a) would fairly and adequately represent the interests of the subclass;
(b) has prepared a plan for the action that sets out a workable method of advancing the action on behalf of the subclass and of notifying subclass members how the proceeding is progressing;
(c) does not have, on the common questions of law or fact for the subclass, an interest that is in conflict with the interests of other subclass members; and
(d) provides a summary of any agreements respecting fees and disbursements between the representative plaintiff and the representative plaintiff’s solicitor.
(1) Sous réserve du paragraphe (3), le juge autorise une action comme recours collectif si les conditions suivantes sont réunies :
a) les actes de procédure révèlent une cause d’action valable;
b) il existe un groupe identifiable formé moins d’au moins deux personnes;
c) les réclamations des membres du group soulèvent des points de droit ou de fait collectifs, qu’ils prédominent ou non sur ceux qui ne concernent qu’un membre;
d) le recours collectif est le meilleur moyen de régler de façon équitable et efficace les points de droit ou de fait collectifs;
e) un des membres du groupe peut agir comme représentant demandeur et, à ce titre :
(i) représenterait de façon équitable et appropriée les intérêts du groupe,
(ii) a élaboré un plan qui propose une méthode efficace pour poursuivre l’action au nom du groupe et tenir les membres du groupe informés du déroulement de l’instance,
(iii) n’a pas de conflit d’intérêts avec d’autres membres du groupe en ce qui concerne les points de droit ou de fait collectifs,
(iv) communique un sommaire des ententes relatives aux honoraires et débours qui sont intervenues entre lui et son avocat.
(2) Afin de déterminer si le recours collectif est le meilleur moyen de régler les points de droit ou de fait collectifs de façon équitable et efficace, tous les facteurs pertinents doivent être pris en compte, notamment les facteurs suivants :
a) la prédominance des points de droit ou de fait collectifs sur ceux qui ne concernent que certains membres;
b) le nombre de membres du groupe qui on véritablement intérêt à poursuivre des actions séparées;
c) la question de savoir si le recours collectif comprendrait des réclamations qui ont été ou qui sont l’objet d’autres actions;
d) l’aspect pratique ou l’efficacité des autres moyens de régler les réclamations;
e) la question de savoir si la gestion du recours collectif créerait de plus grandes difficultés que l’adoption d’un autre moyen.
(3) Si le juge constate qu’il existe au sein du groupe un sous-groupe dont les réclamations soulèvent des points de droit ou de fait collectifs que ne partagent pas tous les membres du groupe de sorte que la protection des intérêts des membres du sous-groupe exige qu’ils aient un représentant distinct, il n’autorise l’action comme recours collectif que si un des membres du sous-groupe peut agir comme représentant demandeur et, à ce titre :
a) représenterait de façon équitable et appropriée les intérêts du sous-groupe;
b) a élaboré un plan qui propose une méthode efficace pour poursuivre l’action au nom du sous-groupe et tenir les membres du sous-groupe informés du déroulement de l’instance;
c) n’a pas de conflit d’intérêts avec d’autres membres du sous-groupe en ce qui concerne les points de droit ou de fait collectifs;
d) communique un sommaire des ententes relatives aux honoraires et débours qui sont intervenues entre lui et son avocat.
[20] The contents of the Order for certification are delineated in Rule 299.19:
(1) An order certifying an action as a class action shall
(a) describe the class;
(b) state the name of the representative plaintiff;
(c) state the nature of the claims made on behalf of the class;
(d) state the relief claimed by or from the class;
(e) set out the common questions of law or fact for the class; and
(f) specify the time and manner for members to opt out of the class action.
(2) If the judge determines that a class includes a subclass whose members have claims that raise common questions of law or fact not shared by all class members so that the protection of the interests of the subclass members requires that they be separately represented, the order certifying the action as a class action shall include the information referred to in subsection (1) in respect of the subclass.
(1) L’ordonnance d’autorisation de l’action comme recours collectif contient les éléments suivants :
a) la description du groupe;
b) le nom du représentant demandeur;
c) l’énoncé de la nature des réclamations présentées au nom du groupe;
d) l’énoncé des réparations demandées par ou contre le groupe;
e) l’énumération des points de droit et de fait collectifs du groupe;
f) des instructions quant à la façon dont les membres du groupe peuvent s’exclure du recours collectif et la date limite pour le faire.
(2) Si le juge constate qu’il existe au sein du groupe un sous-groupe dont les réclamations soulèvent des points de droit ou de fait collectifs que ne partagent pas tous les membres du groupe de sorte que la protection des intérêts des membres du sous-groupe exige qu’ils aient un représentant distinct, l’ordonnance d’autorisation de l’action comme recours collectif contient les éléments visés au paragraphe (1) à l’égard du sous-groupe.
[21] Rule 299.2 provides further guidance with respect to certifying a class:
A judge shall not refuse to certify an action as a class action solely on one or more of the following grounds:
(a) the relief claimed includes a claim for damages that would require an individual assessment after a determination of the common questions of law or fact;
(b) the relief claimed relates to separate contracts involving different class members;
(c) different remedies are sought for different class members;
(d) the number of class members or the identify of each class member is not known; or
(e) the class includes a subclass whose members have claims that raise common questions of law or fact not shared by all class members.
Le juge ne peut refuser d’autoriser une action comme recours collectif en se fondant uniquement sur l’un ou plusieurs des motifs suivants :
a) les réparations demandées comprennent une réclamation de dommages-intérêts qui exigerait, une fois les points de droit ou de fait collectifs tranchés, une évaluation individuelle;
b) les réparations demandées portent sur des contrats distincts concernant différents membres du groupe;
c) les réparations demandées ne sont pas les mêmes pour tous les membres du groupe;
d) le nombre de membres du groupe ou l’identité de chacun des membres est inconnu;
e) il existe au sein du groupe un sous-groupe dont les réclamations soulèvent des points de droit ou de fait collectifs que ne partagent pas tous les membres du groupe.
[22] Rule 299.11 envisioned the possibility of a an application for judicial review being treated as a class action in subsection 18.4(2) of the Federal Courts Act:
Rules 299.1 and 299.12 to 299.42 also apply to an application for judicial review that is to be treated and proceeded with as an action under subsection 18.4(2) of the Act.
Les règles 299.1 et 299.12 à 299.42 s’appliquent notamment à une demande de contrôle judiciaire dans le cas où la Cour a ordonné, en vertu du paragraphe 18.4(2) de la Loi, qu’elle soit instruite comme une action.
[23] Rules 299.1 to 299.42 were repealed effective December 13, 2007 – following the hearing under appeal before the Motions Judge but prior to the release of his decision – and replaced by Class Proceedings Rules 334.1 to 334.4 (as enacted by SOR/2007-301, s.7).
Decision Below
[24] The Motions Judge granted an Order to convert the application for judicial review into an action and certified the class action.
[25] He concluded that this Court’s decision in Grenier does not stand for the proposition that a judicial review must be completed before an action can be commenced, especially in light of the existence of section 18.4(2) of the Federal Courts Act.
[26] He rejected the argument that the class action could not encompass fees chargeable under the regulations which were not attacked in the original application for leave. The Motions Judge said, at paragraphs 18 & 20:
Although the Minister's proposition may have merit in the abstract, section 19(2) of the Financial Administration Act provides that "fees and charges for a service ... may not exceed the cost to Her Majesty -". Notice the singular "service" and the plural "fees". As mentioned in Momi, the fee differential for different types of visas may well depend on the amount of time or labour required. There is no real basis at this stage for suggesting that each "fee" is a distinct "service".
[…]
If rule 299.11 has any meaning, a converted judicial review which has been certified if it were a class action must call into question more than one decision. It appears that only one service is in issue. This is not to say that as the case develops, sub-classes may have to be created with respect to specific fees.
[27] The Motions Judge then turned to the five-part test for certification as outlined in Rule 299.18. Given that leave had already been granted for the application for judicial review, the Motions Judge concluded that there was a reasonable cause of action.
[28] Excluding those in the class who may face a six-year time bar defence, the Motions Judge concluded that there was an identifiable class, namely plaintiffs alleging a systemic violation of section 19(2) of the Financial Administration Act. The class consists of those persons who, at any time during the period 1 April 1994 to 31 March 2004, paid a fee or charge to Her Majesty in Right of Canada for a determination of any of the applications made pursuant to any one or more of the impugned regulations, and who were informed of determination decisions in respect of such applications on or after September 12, 2000.
[29] There were common questions of law or fact, as allegations of systemic violations of section 19(2) of the Financial Administration Act permeated throughout. The Motions Judge acknowledged that some sub-classes might have to be created if it were established that different fees were determined by way of different methodologies. He identified the common question of fact to be whether the fees and charges for the service exceeded the cost to Her Majesty in Right of Canada of providing the service to the plaintiff class. If that question of fact were answered in the affirmative, the common question of law would be whether the plaintiff class is entitled to recovery.
[30] The Motions Judge considered the factors outlined in Rule 299.18(2) to determine whether or not a class action was the preferable procedure, and decided that inquiry in the affirmative. He found that questions of law or fact common to the members of the class predominated over questions affecting individual members, once those who could face a time bar defence were eliminated from the class. Given the small size of the award per member, he concluded that members did not have a valid interest in individually controlling the prosecution of separate actions.
[31] The Motions Judge did not agree with the appellant that the validity of the impugned regulations were better considered in an ordinary judicial review. He also rejected the appellant’s suggestion that the judicial review be converted into an action only after an application for judicial review had been completed. He noted that the validity of the impugned regulations cannot be determined purely as a point of law, as the question was whether or not the appellant received a profit, which is a question of fact. This would need to be determined by expert evidence, he decided. The Motions Judge commented at paragraphs 42-3:
The question is whether an exchange of affidavits, and cross-examinations thereon, would be sufficient to allow the Court to tote up the expenses, which are the real subject of controversy, and compare them to the revenue generated by the visa program. Barring testimony at the hearing, which is not the standard practice; the Court would be unable to pose questions of its own. Take for example the affidavit of Tom Heinze, a law clerk, filed in opposition to the motion. His assertions were on information and belief, but presumably his affidavit would be replaced when the matter is heard on the merits by those with personal knowledge. Among other things, he set out various expenses which the Minister submits should be taken into account when considering the cost of administering the service. One interesting item for the fiscal year commencing 1 April 2004 is the salary of the Federal Court and Federal Court of Appeal judges, of which just over half was attributed to the visa program.
Leaving aside whether the cost to Her Majesty should extend to the cost of maintaining Parliament and judges, the figures raise an almost unlimited number of questions. The Immigration and Refugee Protection Act takes less than half of the Federal Court's time, and the vast majority of that time relates to refugee claims, not visa claims. The Court of Appeal only gets involved if a serious question of general importance is certified. How was the percentage determined? The costing is more properly dealt with on an examination for discovery. Plaintiffs' experts should have an opportunity to examine that information before filing their affidavits and testifying in open court.
The Motions Judge also noted that the appellant had not agreed to a test case or to a blanket extension of time: those options could have militated towards preferring an application for judicial review.
[32] Finally, the Motions Judge was satisfied that the respondents would fairly and adequately represent the interests of the class, and that they presented a workable litigation plan.
Issues
[33] Pursuant to subsection 74(d) of IRPA, the Motions Judge granted leave to appeal by certifying seven serious questions of general importance. They are:
a) Is leave required to commence an action for judicial review, the purpose of which is to put in issue the vires of a regulation issued pursuant to the Immigration and Refugee Protection Act?
b) Must claimants who seek recovery of money paid under a regulation alleged to be ultra vires commence proceedings by way of judicial review?
c) May a judicial review, which is treated and proceeded with as an action, call into question the vires of fee categories not paid by the representative plaintiffs?
d) Since recovery of money is beyond the scope of judicial review, must the claimants await the outcome of judicial review before commencing an action?
e) When the legality of a federal Regulation is properly challenged in a judicial review application in Federal Court, is it premature to "convert" that judicial review into an action (pursuant to s. 18.4(2) of the Federal Court Act) before the Federal Court has heard and rendered its decision disposing of the judicial review?
f) When the central legal issue in a proposed class action (launched pursuant to rule 299 of the Federal Courts Rules) is the legality of a federal Regulation, does Grenier (2005 FCA 348) require that the legality of the federal Regulation first be determined by the Federal Court, through the process of judicial review pursuant to s. 18(1) of the Federal Courts Act?
g) Where the central issue in an application for judicial review which is the subject of an application for conversion and certification as a class action involves a mixed question of fact and law in which resolution of disputed facts is critical to the determination of these common questions of fact and law, and where in the exercise of its discretion the Court concludes that it is appropriate to direct that the application for judicial review be treated and proceeded with as an action pursuant to sections 18.2 and 18.4(2) of the Federal Courts Act and that the proceeding be converted as a class action pursuant to rule 299, does Grenier preclude the Court from making such order and instead require that the validity of the regulation in issue in the judicial review first be determined without conversion or certification pursuant to section 18(1)?
[34] The appellant has framed this appeal in terms of three errors of law by the Motions Judge. They are:
He erred in holding that s. 18 of the Federal Courts Act and Grenier permit a class action to proceed in advance of, and instead of, a decision first being rendered on the validity of the impugned immigration regulation through the outcome of an application for leave and judicial review;
He erred in defining the class to include persons who paid fees pursuant to the immigration regulations which were not challenged by way of the respondents’ application for leave pursuant to s. 72(1) of IRPA; and
He erred in finding that a class action was the preferable procedure to fairly and efficiently determine the legal validity of the impugned regulations.
It will be sufficient to address the appellant’s alleged errors of law to adequately dispose of this appeal.
Standard of Review
[35] A determination of the correct procedure to follow in order to contest the vires of the impugned regulations (as well as to claim a partial refund of fees paid under such regulations) is a question of law for which no deference is accorded and thus will be determined on a correctness standard: Housen v. Nikolaisen, [2002] 2 S.C.R. 235 at paragraph 8.
[36] With respect to the certification decision itself, appellate courts should be reluctant to interfere given the discretionary nature of assessing the preferability of a class proceeding generally: Ward Branch, Class Actions in Canada (looseleaf) (Aurora: Canada Law Book, 2007) at ¶4.1850. As stated by the British Columbia Court of Appeal in J.L.G. v. A.W.W. 2003 BCCA 367 at paragraph 22:
Absent an error of law or principle the decision of a certification judge is discretionary. Under the Class Proceedings Act the certification judge is the case management judge who is seized with all aspects of management of a class proceedings at least up to trial. The familiarity with the case thereby acquired is a reason to give greater deference to decisions of the case management judge on certification and procedural issues generally.
Analysis
In the Federal Court, can a class action proceed in advance of a decision first being rendered on the validity of an impugned immigration regulation?
Summary
[37] Section 18 of the Federal Courts Act grants exclusive jurisdiction to the Federal Courts to hear and determine challenges of decisions of federal boards by way of certiorari, mandamus, declarations, etc. using the judicial review procedure. The decision of this Court in Grenier underscored the importance of this exclusive jurisdiction and holds that it cannot be circumvented by launching a collateral attack by way of an action.
[38] However, Grenier does not hold that there must first be a successful application for judicial review invalidating an impugned immigration regulation before proceeding with a class action. There is also nothing stated in Grenier to suggest that where an application for judicial review is treated as an action, a claim for damages cannot be added to that action.
[39] This Court’s decision in Tihomirovs v. Canada 2005 FCA 308 (“Tihomirovs”) confirmed that an application for judicial review could be the basis for a class action prior to a complete disposition of the application for judicial review, provided that subsection 18.4(2) of the Federal Courts Act were employed to treat the application as an action and that the proposed class action satisfies the criteria set out in what was then Rule 299.18.
A Review of Grenier: What it Does and Does Not Stand For
[40] The case of Grenier concerned an action brought by an inmate seeking damages for administrative and disciplinary segregations he faced while serving time in a maximum security penitentiary. The inmate had not sought a judicial review of the Institutional Head’s decision, even though he knew or ought to have known of the effect of the decision upon him personally and knew or ought to have known that judicial review was available to him if he wished to challenge the decision. Following this Court’s decision in Tremblay v. Canada (2004) 244 D.L.R. (4th) 422 (F.C.A.), leave to appeal to S.C.C. refused (file: 30424), Justice Létourneau concluded that a litigant who seeks to impugn a federal agency’s decision is not free to choose between a judicial review proceeding and an action in damages but must rather proceed by judicial review in order to have the decision invalidated. According to Grenier, to assert such a claim as an action as opposed to an application for judicial review would constitute a collateral attack on the original decision in light of section 18 of the Federal Courts Act.
[41] Justice Létourneau explained the rationales and importance of the exclusive jurisdiction outlined in section 18 of the Federal Courts Act at paragraphs 24-6:
In creating the Federal Court and in enacting section 18, Parliament sought to put an end to the existing division in the review of the lawfulness of the decisions made by federal agencies. At the time, this review was performed by the courts of the provinces: see Patrice Garant, Droit administratif, 4th ed., vol. 2 (Les Éditions Yvon Blais Inc., 1996), at pages 11 to 15. Harmonization of disparities in judicial decisions had to be achieved at the level of the Supreme Court of Canada. In the interests of justi