Letter Decision No. LET-R-212-1999
Canadian National Railway Company Arborfield Subdivision Net Salvage Value Determination
The Canadian Transportation Agency (Agency) hereby acknowledges receipt of Canadian National Railway Company's (CN) answer dated July 22, 1999 to the motion made by the Rural Municipality of Arborfield No. 456 and the Village of Zenon Park (Respondents) requesting the Agency to dismiss CN's application on the basis that both parties did not consent to have the matter proceed to the Agency. The Agency is also in receipt of the Respondents' reply dated July 26, 1999.
Pleadings
In its preliminary answer, the Respondents claim that the application to the Agency was premature, as both parties did not consent to appearing before the Agency. In their acceptance, the Respondents state, "In the event that the parties are unable to agree on the net salvage value, a reference to the Agency pursuant to Section 145(5) may be made only with the consent of the parties." The Respondents argue that CN has violated this condition in applying to the Agency for a determination of net salvage value for this particular subdivision.
In its reply, CN argues that the condition is of no legal significance and the statutory requirements in the Canada Transportation Act supersede the condition contained in the Respondents' acceptance. CN states that any condition that would limit its right to apply to the Agency would in effect thwart and frustrate the intent of the legislation and therefore be an invalid condition.
Agency Finding
In Decision No. 497-R-1997, the Agency stated that the terms and conditions attached to the City of Guelph's acceptance of the St. Lawrence and Hudson Railway Company's offer were valid as "...none of the conditions would have the effect of thwarting the purpose of the legislation which is to ensure an adequate process to transfer railway lines to governments..." The Agency finds that any term or condition in an agreement that abrogates the ability of any party to exercise their rights pursuant to the Canada Transportation Act would in effect thwart the purpose of the legislation and therefore would be invalid. In this particular case, the Respondents seek to limit CN's right to apply to the Agency for a net salvage value determination. Subsection 145(5) states that "If a government accepts the offer, but cannot agree with the railway company on the net salvage value within ninety days after the acceptance, the Agency may, on the application of the government or the railway company, determine the net salvage value." The framers have clearly stated that either party may apply to the Agency for a determination if no agreement were possible after negotiations. Requiring consent of another party before proceeding to the Agency would in effect limit the rights of the parties to come before the Agency, where clearly there was no intent on the part of the framers to do so.
The Agency hereby rejects the Respondents Motion to dismiss CN's application.
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