Decision No. 450-R-2010

October 29, 2010

File Nos. T7375-3/07-5
T7375-3/07-6
T7375-3/07-7
T7375-3/07-8
T7375-3/07-9
T7375-3/07-10

Federal Court of Appeal Ruling

The Federal Court of Appeal (FCA), in its ruling in the consolidated case of Canadian National Railway v. Canadian Wheat Board et al., North East Terminal Ltd. et al., North West Terminal Ltd. et al., Parrish and Heimbecker Limited et al., Providence Grain Group Inc. et al. and Paterson Grain et al., 2010 FCA 225, overturned the Canadian Transportation Agency (Agency) Decision Nos. 20-R-2008, 21-R-2008, 22-R-2008, 23-R-2008, 24-R-2008 and 25-R-2008 dated January 18, 2008 and directed the Agency to dismiss the complaints by the Canadian Wheat Board (CWB), North East Terminal Ltd. (NET), North West Terminal Ltd. (NWT), Parrish and Heimbecker Limited (P&H), Providence Grain Group Inc. (PGG) and Paterson Grain (PG).

Background

In response to level of service complaints, the Agency determined, in Decision Nos. 20-R-2008, 21-R-2008, 22-R-2008, 23-R-2008, 24-R-2008 and 25-R-2008 dated January 18, 2008, that the Canadian National Railway Company (CN) breached its statutory level of service obligations to CWB, NET, NWT, P&H, PGG and PG for grain crop year 2006-2007. In those Decisions, the Agency determined that there continued to be level of service shortfalls in grain crop year 2007-2008. However, the Agency found that based on the limited information for that crop year, the evidence of service shortfalls at that point in time was not sufficient to find CN in breach of its level of service obligations to the complainants.

The Agency ordered CN and the complainants to provide service information for the period of August 2007 to April 2008. The Agency ruled that following the receipt of the requested information, it would determine whether CN had failed to provide adequate level of service during grain crop year 2007-2008.

On September 25, 2008, the Agency rendered Decision No. 488-R-2008. The Agency determined that CN was in breach of its level of service obligations to NET, NWT, P&H and PG. The Agency ordered CN to provide these shippers with a level of service as set out in established service performance benchmarks.

Conclusion

In accordance with the FCA's September 9, 2010 ruling, the Agency dismisses the level of service complaints filed by CWB, NET, NWT, P&H, PGG and PG.

As a result of the Court overturning the Agency January 18, 2008 decisions and the direction to the Agency to dismiss the level of service complaints, the Agency, pursuant to section 32 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, rescinds Decision No. 488-R-2008.

Members

• Geoffrey C. Hare
• Raymon J. Kaduck