A Federal Court judge has reserved his decision on a challenge to a class-action lawsuit against the Canadian Wheat Board.
Well-known Regina lawyer Tony Merchant launched the action on behalf of farmers more than a year ago, claiming the board is taking expenses related to the issuance of export licences from the pool accounts. That contravenes the board’s statutory powers, he said.
In a Vancouver courtroom on July 14, Merchant argued against a government motion to strike the claim. He said later he was sure the claim he put forward would proceed.
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“The judge said often to the government lawyer words like, ‘But even the Canadian Wheat Board may not disobey the statutes,’ ” he said. “I’m confident things will go in favour of Canadian and prairie farmers.”
Merchant said sections 7 and 33 of the wheat board act set out that the federal government will pay certain costs related to “that wheat” or the wheat in the designated area.
“What the wheat board has been doing … is taking all sorts of expenses out of the pooled accounts and they’ve been doing it since 1935,” he said.
Another Merchant case, filed in Regina July 10, involves changes to the Net Income Stabilization Account point-of-sale guidelines nearly 10 years ago.
Those changes meant that grain freight and handling costs were not included in eligible net sales figures used to calculate NISA contributions.
The claim alleges this change was made after an improper vote because Quebec was allowed to vote even though it had not formally signed the NISA agreement.
Merchant said the vote didn’t have enough support because Saskatchewan, Alberta, British Columbia, New Brunswick and Prince Edward Island all voted against it.
Under the NISA agreement, two-thirds of participating provinces, representing at least 50 percent of eligible net sales, constitute a majority.
“Canada and five provinces do not meet the requirements to amend the NISA agreement,” says the statement of claim.
The claim was filed against the federal agriculture minister on behalf of Sander Holdings Ltd. of Saskatchewan, Donald Patenaude of Holland, Man., and Mathew Nagyl of Porcupine Plain, Sask.
The government has 30 days to file its statement of defence.
Merchant added this case differs from one launched and subsequently lost by Farm Business Consultants Inc. in the name of John and Jean Boyko of Raymore, Sask.
He said the plaintiffs aren’t challenging NISA’s right to handle its affairs as it deems appropriate.
“That’s quite different from obeying the statute,” he said.
Spokespersons for the wheat board would not comment while the case is before the courts. NISA officials did not return phone calls.
