August 24, 1992
E.C.B. 34/91/037 |
Between: |
Reon
Management Services Inc.
Claimant |
And: |
Her
Majesty the Queen in Right of the Province of British Columbia
Respondent |
and |
E.C.B. 6/90/037 |
Between: |
Shirley
Eleanor Devick
Claimant |
And: |
Her
Majesty the Queen in Right of the Province of British Columbia
as represented by the Minister of Transportation
and Highways
Respondent |
Before:
|
(By
teleconference)
Clifford S. Watt, Q.C.
Vice-Chair, E.C.B.
Mr. Reinhard Burke, For Reon Management Services
Inc.
Mr. Robert W. McDairmid, For Shirley Eleanor
Devick
Ms. Brenda Reder, For the Minister |
REASONS FOR DECISION
This is an application by both claimants in these proceedings
for an order that the hearing of these two claims for
compensation take place at the same time. It is requested
under Rule 11 of the board's Practice & Procedure
Regulation (B.C. Reg 452/87). The claimants say that,
due to the similarity of these claims, time and expense
will be saved if they are heard together. The respondent
says that to face two different counsel at such a hearing
would be prejudicial and that, in any event, no time
or expenses will be saved.
BACKGROUND
The claimant, Shirley Eleanor Devick, commenced proceedings
before the board on May 4, 1990. Acting on her
behalf is Mr. Robert W. McDiarmid of the Kamloops
firm of Morelli Chertkow. The claimant in the
other proceeding, Reon Management Services Inc., filed
its claim on July 11, 1991 and is represented by Reinhard
Burke of another Kamloops firm, Gillespie Renkema
Burke.
From the pleadings and other material filed, it is
clear that these two applications for compensation have
much in common. In the Devick claim, a number of properties
consisting of part of what is known as the "Devick
Ranch" have been expropriated. The Reon claim involves
only one property. That property is contiguous to several
of the expropriated Devick properties. All of them were
required by the Respondent to permit the widening and
upgrading of No. 5 Highway North, the Yellowhead
Highway. They are very near the property that was
subject of an earlier determination of compensation
by this board in the case of Seventh-Day Adventist
Church v. Ministry of Transportation and Highways (1991), 46 L.C.R. 254.
It is not surprising therefore, that not only are the
legal issues in both proceedings similar, but also that
much of the evidence to be called by both the claimants
and the respondent will be the same. Expressed as a
percentage, all counsel agreed that an overlap of at
least 80% exists with respect to both the evidence to
be called and the legal issues to be resolved in these
two claims. Most of it is directed at what is to be
the "highest and best use" of these properties
for purposes of the application of Section 32 of
the Expropriation Act, S.B.C. 1987, c.23, to
the determination of the compensation in these two claims.
There was general agreement that these proceedings would
take 20 to 25 days if heard separately and 15 days if
heard together, as requested by the claimants.
POSITION OF THE PARTIES
The claimants raise the following arguments in favour
of having the claims heard together:
(1) |
There
would be savings of time and expense. |
(2) |
It
is appropriate for the two claims to be heard
together because there are questions of law, and
fact common to both claims. |
(3) |
Closely
related to (2) is that the same questions of law
and fact must be resolved in order to determine
compensation in both claims. |
(4) |
Having
both claims heard at the same time will avoid
the "embarrassment" that could result
if, with two separate hearings, there were different
findings of fact or different legal results from
what are essentially very similar claims. |
The respondent's position was as follows:
(1) |
There
is a rule of practice that co-plaintiffs (or "co-claimants")
in a consolidated action must be represented by
the same lawyer. |
(2) |
The
respondent will be prejudiced by having to argue
the case against two separate counsel. |
(3) |
There
will be no savings of time or expense. |
(4) |
If
the order is not granted, the second case to be
heard will probably settle quickly after the results
of the first case are known, thereby saving time
and expense. |
3. REASONS FOR DECISION
(a) Respondent's Position
I will deal first with the position of the respondent.
Each claimant is represented by a different lawyer from
different law firms. Ms. Reder says that if both
cases are heard at the same time, the "rule"
against having more than one lawyer representing co-plaintiffs
would be offended. Relying upon the comments of Lord
Justice Pearson in Lewis v. The Daily Telegraph
(No. 2) [1964] 2 Q.B. 601 (Eng. C.A.)
at 620 and 621, the respondent asks us to read Rule
11 of our Rules as if the words "so long as all
the claimants are represented by the same lawyer"
were part of the Rule.
The rationale behind this rule of practice against
separate representation is stated at p. 621 of
the Lewis case as follows:
Many difficult problems would arise. How would the
opening speech (or speeches) be made? Would it be
right that the plaintiffs should have as against the
defendants the advantage of two opening speeches instead
of one? Then, in the conduct of the case, if there
were two plaintiffs separately represented, would
each plaintiff be allowed to cross-examine the other
plaintiff's witnesses and have the advantage of being
able (as Lord Gardiner pointed out) to put leading
questions to a witness who would be substantially
on the same side? Again, when the defendants' witnesses
were called, would it be right that both plaintiffs,
separately represented, should be allowed to cross-examine
those witnesses? The same problem would arise in respect
of the final speeches at the end of the case. Would
separately represented plaintiffs be allowed to have
two speeches?
Strictly speaking, the Lewis case deals with
consolidation and not merely having the trial or hearing
take place at the same time.1 While the "rule" has been followed in Canada (see Attorney General of Canada v. Canadian
Pacific Railway and Marathon Realty Ltd. (1981)
30 B.C.L.R. 230), it certainly has not met with
unanimous approval. See Levin v. Feintuch [1931] 3 W.W.R. 459 at p. 364 (Man. C.A.)
where Truman J.A. took the view that the reasonableness
of counsel will overcome these potential difficulties.
I do not accept the proposition that, before making
an order under our Rule 11, all claimants must have
the same counsel. To accede to it would restrict the
application of the rule to the fortuitous situation
where all claimants had the same lawyer. The alternative
of requiring one of the parties to change solicitors
offends the principle of freedom of choice. The practical
result of accepting the respondent's argument is that
the utility of Rule 11 would be greatly diminished.
Since the overall policy behind Rule 11 is to save money
- money that most likely will be paid by public authorities
to claimants in costs - I cannot accept that such a
restriction should be placed upon application of the
Rule.
Counsel for the respondent then argued that to proceed
in this manner, with separate counsel representing each
claimant, the respondent would essentially be "outgunned".
Surely the Crown is able to muster adequate resources
to meet the case for the claimants even if it is coming
out of two barrels at roughly the same time. I find
there is no merit to this argument.
Respondent's counsel then argued that there would be
no savings of time or expense by having these two claims
heard together. I will deal with this argument below.
Finally the respondent argued that if one case were
heard and decided before the second case commenced,
settlement of the second case would likely occur on
the basis of the outcome of the first case. During argument,
I put this proposition to counsel for Mrs. Devick.
His response was that it would depend upon the outcome
of the first case. He would certainly not throw in the
towel just because, from his client's point of view,
things did not go well in the first case. It is clear
that he would proceed in the manner most beneficial
to his client and, should this result in a second hearing,
then of course, there would be a second hearing. I think
that the prospect of a settlement of the second case
would be improved in the situation we have here, but
this is not, in my opinion, a good reason for turning
down this application.
(b) Claimants' Position
Counsel for both claimants agreed that cost savings
would result if these two matters were heard at the
same time. All counsel agreed that 15 days would be
required if the two claims for compensation were heard
together. Further, it was agreed that if there were
two hearings, each one would take 10 to 12 days for
a total of 20 to 24 days. Since experience has shown
that counsel tend to underestimate time rather than
the reverse, I will assume that 24 days is the appropriate
figure for two separate hearings of 12 days each.
Legal Costs
Taking the claimants' legal costs first, we have 15
days for each lawyer or 30 days of counsel fees, if
the claims are heard together and there is one lawyer
representing each of the claimants. Here, simultaneous
hearings would be more expensive, though I believe it
was Mr. Burke who suggested that counsel for the
claim being heard last would want to be in attendance
throughout the hearing of the first proceeding. Whether
that desire would be affected by any ruling under s. 44
of the Act with respect to the costs of such a "watching
brief", it is too early to say. Suffice it to say
that, in these proceedings, no great savings in counsel
time will result if there is one combined hearing.
Witnesses
Take, however, the situation with respect to an expert
witness. Suppose a half a day were required to give
direct evidence followed by a full day of cross-examination.
Here the saving is much more obvious. Assuming only
one of the claimants' counsel will lead in the cross-examination2, the respective times are as follows:
(1) Separate
Hearings |
|
|
|
Direct
examination: |
.5
day x 2 |
= |
1
day |
Cross-examination: |
1
day x 2 |
= |
2
days |
TOTAL:
|
|
|
3
days |
(2) One
Hearing |
|
|
|
Direct
examination: |
.5
day x 1 |
= |
.5 day |
Cross-examination: |
1
day x 1 |
= |
1 day |
TOTAL: |
|
|
1.5
days |
For witnesses common to both claims, the time involved
is half, if the two claims are hard together. I should
add that this is the best case scenario. It is likely
that directions of the panel hearing the claim would
permit cross-examination by the other claimant's counsel
on matters peculiar to his client's claim. In this case,
it is agreed that 80 per cent of the evidence will
overlap. I am satisfied, therefore, that it is likely
there will be cost savings if these two hearings take
place at the same time. Certainly it is not going to
cost more.
As well, it is clear that the witnesses will not have
to testify twice. This may not be a serious problem
for the experts, who are being paid by the parties,
but I understand that there will several other witnesses
who are not connected in any way with this litigation.
Their time will be saved and they will not be subject
to the rigors of cross-examination on more than one
occasion.
The second and third arguments of the claimants are
quite similar. Here, everyone agrees that there are
common issues of law and fact. As well, it is clear
that common matters will certainly be resolved before
compensation can be determined in both cases. This militates
in favour of having both hearings take place at the
same time. (See McLaughlin & Taylor, British
Columbia Practice, (2nd ed.) Vol. 1, 1990,
Butterworths at pp. 5-42-50 and 51 for pertinent
authorities.)
Finally, the claimants say that if the cases are heard
separately, perhaps before differently constituted boards,
it is possible that different results could obtain following
different findings of fact or a differing resolution
of the legal issues. This, it is said, could be "embarrassing"
and could bring the administration of justice into disrepute.
Mr. Burke indicated that he had experienced such
an occurrence in a previous expropriation case. I gather,
this was quite "embarrassing" for everyone
involved. If two owners see themselves being treated
differently in two very similar cases, it would not
be surprising that their views on the administration
of justice, as it affected them in these cases, would
be very disrespectful indeed. Avoiding this possibility
is particularly important in an expropriation case where
both the authority and the adjudicating tribunal may
both be seen as emanations of government.
DECISION
Accordingly, it follows that I am ordering that these
cases be heard at the same time, subject to, and in
accordance with the directions of the panel hearing
the matter.
With respect to those directions, I note that both
counsel for the claimants expressed a willingness to
take advantage of the single hearing to keep costs down.
For example, they indicated that they would take turns
leading in cross-examination with respect to matters
that are common to both claims.
EXPROPRIATION COMPENSATION BOARD
Clifford S. Watt, Q.C.,
Vice-Chair
1 See Fraser & Horn, The Conduct of Civil Litigation in British Columbia,
Vol. 2, Butterworths, 1990, at p. 1571 for a discussion
as to the difference between "consolidation"
and merely having "things" heard at the same
time.
2 See supra, p. 12
|