Multiple Access Ltd. v. McCutcheon
Encyclopedia
Multiple Access Ltd. v. McCutcheon, [1982] 2 S.C.R. 161 is a leading constitutional decision of the Supreme Court of Canada
on the resolution of overlapping federal and provincial laws under the doctrine of double aspect
.
under the Ontario Securities Act.
In its defence, the company argued that the provisions of the provincial securities Act were inoperative under the paramountcy doctrine
as it overlapped with insider trading provisions in the federal Competition Act.
The issues before the Supreme Court were:
wrote for the majority and held that the Acts were valid and the doctrine of paramountcy did not apply.
Dickson first considered the definition of paramountcy. It first requires that each law be valid and second, that the laws be inconsistent with each other.
Dickson examined the Securities Act using the Lederman Approach of judicial review
. He found that the Act was valid under the provincial authority over matters of "property and civil rights" under section 92(13) of the Constitution Act, 1867. He then considered the federal Competition Act which he found to be valid under the "trade and commerce" power of the federal government as well as the federal peace, order and good government
power.
Dickson then considered whether there was a conflict between the two Acts. He found that there was no conflict. The laws duplicated each other and had the same legislative objective. There is no problem with laws operating concurrently, Dickson argued. Instead, there must be an actual conflict between the laws where compliance with one law will necessarily violate the other. However, any claimant seeking action under the Securities Act will be able to successfully use only one.
Supreme Court of Canada
The Supreme Court of Canada is the highest court of Canada and is the final court of appeals in the Canadian justice system. The court grants permission to between 40 and 75 litigants each year to appeal decisions rendered by provincial, territorial and federal appellate courts, and its decisions...
on the resolution of overlapping federal and provincial laws under the doctrine of double aspect
Double aspect
Double aspect is a legal doctrine in Canadian constitutional law that allows for laws to be created by both provincial and federal governments in relation to the same subject matter. Typically, the federalist system assigns subject matters of legislation to a single head of power...
.
Background
A company incorporated under the federal Canada Corporations Act was charged with insider tradingInsider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...
under the Ontario Securities Act.
In its defence, the company argued that the provisions of the provincial securities Act were inoperative under the paramountcy doctrine
Paramountcy (Canada)
In Canadian constitutional law, the doctrine of paramountcy establishes that where there is a conflict between valid provincial and federal laws, the federal law will prevail and the provincial law will be inoperative to the extent that it conflicts with the federal law...
as it overlapped with insider trading provisions in the federal Competition Act.
The issues before the Supreme Court were:
- whether ss. 100.4 and 100.5 of the Canada Corporations Act are ultra vires Parliament;
- whether ss. 113 and 114 of The Securities Act are ultra vires the Ontario Legistature, and
- if both are intra vires, whether ss. 113 and 114 of the Ontario Act are suspended and inoperative by reason of the doctrine of paramountcy.
Reasons of the court
Justice DicksonBrian Dickson
Robert George Brian Dickson, , commonly known as Brian Dickson, was appointed Chief Justice of Canada on April 18, 1984. He retired on June 30, 1990 and died October 17, 1998.-Career:...
wrote for the majority and held that the Acts were valid and the doctrine of paramountcy did not apply.
Dickson first considered the definition of paramountcy. It first requires that each law be valid and second, that the laws be inconsistent with each other.
Dickson examined the Securities Act using the Lederman Approach of judicial review
Judicial review
Judicial review is the doctrine under which legislative and executive actions are subject to review by the judiciary. Specific courts with judicial review power must annul the acts of the state when it finds them incompatible with a higher authority...
. He found that the Act was valid under the provincial authority over matters of "property and civil rights" under section 92(13) of the Constitution Act, 1867. He then considered the federal Competition Act which he found to be valid under the "trade and commerce" power of the federal government as well as the federal peace, order and good government
Peace, order and good government
In many Commonwealth jurisdictions, the phrase "peace, order and good government" is an expression used in law to express the legitimate objects of legislative powers conferred by statute...
power.
Dickson then considered whether there was a conflict between the two Acts. He found that there was no conflict. The laws duplicated each other and had the same legislative objective. There is no problem with laws operating concurrently, Dickson argued. Instead, there must be an actual conflict between the laws where compliance with one law will necessarily violate the other. However, any claimant seeking action under the Securities Act will be able to successfully use only one.