On January 28,
1999, the Supreme Court of Canada proved once again how the
course of the common law, when it comes to civil remedies, can
be determined by the decisions it makes in cases of little renown.
In Ryan v. Victoria (City) et al., S.C.C. No. 25704;
[1999] S.C.J. No. 7, http://www.droit.umontreal.ca/doc/csc-scc/en/rec/
index.html, the top court ruled in favour of Murray Ryan, who
was thrown from his motorcycle when his front tire was trapped
in a "flangeway" gap running along side the inner
edge of a rail track. The track was owned by the Esquimalt &
Nanaimo Railway Company, leased to Canadian Pacific Limited,
and authorized by the City of Victoria.
In the course of
finding these defendants liable for Mr. Ryan's injuries, the
court ever so quietly abolished a "special rule" of
the common law rooted in the economic and social importance
of the railways to the development of Canada at the turn of
the century. For more than 90 years, railway companies were
exempted from the law of negligence which governs other members
of society, as long as their actions complied with applicable
minimum standards set out in statutes, regulations and administrative
orders. With the backing of a unanimous court, Mr. Justice Major
held that "the time has come for that rule to set aside."
In doing so, the court reversed its own decision in Paskivski
v. Canadian Pacific Ltd., [1976] 1 S.C.R. 687, which nevertheless
contained calls for reform of the rule. In Ryan, the
court appears to be in the final stretch of a project to bring
governmental and regulated entities into a unified theory of
tort law, starting with the controversial House of Lords decision
in Anns v. Merton London Borough Council, [1978] A.C.
728 (from which subsequent U.K. courts have retreated, but which
has been consistently adopted in Canada since City of Kamloops
v. Nielson, [1984] 2 S.C.R. 2), for duty of care, and R.
in the right of Canada v. Saskatchewan Wheat Pool, [1983]
1 S.C.R. 205, for standard of care.
At first glance,
the abolition of a common-law privilege for railways might appear
to be of interest only to railway owners and operators and to
those suffering harm arising from their equipment and operations.
If we examine the socio-economic justification for doing away
with the exclusion, however, there is little doubt that the
court is sending a broader message. The decision calls upon
those who represent the interests of governmental, municipal,
and institutional target defendants, and of their insurers,
to reconsider some of the legal defences involved in their sources
of exposure. In cases relying on "special" common-law
defences, all bets are off. Problems may occur in claims ranging
from the commonplace to the esoteric, and in unexpected ways.
The example which
most readily comes to mind is the "trip-and-fall"
action against municipalities. In Ontario, the 1996 amendments
to section 284 of the Municipal Act, R.S.O. 1990, chap.
M.45, took some steps to right the balance of the statutory
cause of
action for accidents
arising from disrepair of a highway, previously much more weighted
in the favour of the plaintiffs. The changes did not, however,
affect the long-standing distinction in the common law between
the standard of repair of sidewalks and crosswalks, on the one
hand, and the vehicular portion of the road, on the other. The
leading case, upon which a generation of counsel has relied,
remains the majority opinion of Mr. Justice Aylesworth in the
Court of Appeal decision in Sutherland v. Town of Port Credit,
[1968] 1 O.R. 175 (C.A.). In that case, the municipality
successfully defended on the ground that the depression in the
highway was close to but outside the boundaries of the crosswalk.
The municipality, in effect, would not have been liable to the
plaintiff unless the disrepair also posed a threat to the safety
of vehicular traffic. This expression of the law has served
to guide defendants and their representatives' handling of claims
by pedestrians who have fallen into or tripped over potholes,
tram rails and other road imperfections in the vehicular portion
of the road allowance. It has also check plaintiffs' lawyers
from advising clients to sue.
In his inimitable
style, Mr. Justice Laskin (then on the Court of Appeal) wrote
a dissent to presage the future direction of this area of law.
"I do not think," he stated, "that the obligation
of the municipality towards pedestrians should be reduced in
this case simply because the hole was literally outside the
white lines of the crosswalk." The same reasoning could
apply to pedestrians stepping off the curb into potholes at
the side of the road or falling over raised utility equipment.
In Ryan, Mr. Justice Major relied heavily on the decision
in Paskivski of the same Mr. Justice Laskin, Chief Justice
of the Supreme Court. Mr. Justice Laskin, although reluctantly
concurring in the result which upheld the old rule immunizing
railways, severely criticized the relevance of the rule in modern
times.
While it may be
the rarest of trip-and-falls in which the quantum of damages
warrants the case being taken to the Supreme Court of Canada,
the effect of Ryan may very well be that some trial judges
will see it as a call to follow Mr. Justice Laskin's dissent.
Ryan, once it is noticed in the plaintiffs' bar, will
certainly embolden some to advance cases which would hitherto
have been discouraged.
From a broader
perspective, Ryan should send a message to traditional
target defendants that minimum regulatory standards can operate
as swords for plaintiffs and fail as shields for defendants.
This has been the law since Saskatchewan Wheat Pool, but
this new decision, in its toppling of what had been an immutable
substantive rule, requires everyone to put the word out once
again. If observance of the statute or regulation failed to
prevent the harm from happening, count on the courts to find
the conduct of the defendant equally lacking.