Injunction dismissed | Group of ex-directors will likely appeal saying judge misunderstood intent of Section 47.1
Former directors of the Canadian Wheat Board are still weighing their legal options after a failed attempt to get a court injunction blocking Ottawa’s controversial grain marketing law.
On Feb. 24, Manitoba Court of Queen’s Bench Justice Shane Perlmutter ruled that plaintiffs seeking the injunction had “failed to demonstrate that there is a serious question to be tried.”
But late last week, members of the plaintiffs group said they were still considering their next moves, which might include an appeal of the Perlmutter ruling.
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The plaintiffs group, comprising eight farmer-elected former wheat board directors who were removed from the CWB’s board in mid-December, met with legal counsel last week and were expected to meet again this week to decide if a formal appeal would be launched.
Bill Toews, a Manitoba farmer and former CWB director, said a decision would likely be made this week.
“My view is that we will likely appeal because in our opinion and in counsel’s opinion, there were a number of errors that were made in the judgment.”
Toews said plaintiffs in the case were particularly concerned by Perlmutter’s interpretation of Section 47.1 in the former CWB Act.
“I guess one of our main concerns is that he … did not understand, in our opinion, the purpose and intent of Section 47.1,” Toews said.
Response to Perlmutter’s decision has been mixed.
Allan Oberg, another plaintiff and former chair of the CWB, said he and other displaced CWB directors were disappointed.
“As elected representatives of the farm community we (believe) … that our democratic rights have been ignored by the minister of agriculture,” he said.
But supporters of the federal legislation endorsed Perlmutter’s decision.
In a statement issued late last week, federal agriculture minister Gerry Ritz applauded the ruling, suggesting it would provide certainty to farmers and grain handlers.
“Our government knows that producers need market certainty as they move forward and this decision allows farmers the best possible opportunities to succeed as they transition to an open market,” Ritz said.
The Western Canadian Wheat Growers also applauded the ruling, called it a victory for western Canadian grain farmers.
“This ruling removes the uncertainty that was overhanging the marketplace,” said Manitoba farmer and WCWG vice-president Rolf Penner.
“Farmers and the trade can now be confident in their business decisions, knowing that an open market for wheat and barley is no longer in doubt.”
Plaintiffs in the case argued that the federal government ignored existing laws when it passed Bill C-18, which will end the wheat board’s monopoly over wheat and malting barley as of Aug. 1.
Their case was based on the assertion that Ottawa contravened Section 47.1 of the former Canadian Wheat Board Act by refusing to hold a producer referendum before making major changes to the wheat board’s mandate.
The plaintiffs also argued that passage of Bill C-18 in mid-December would cause financial hardship for western Canadian farmers, a notion that was rejected in Perlmutter’s ruling.
“Given the conflicting evidence, it is far from clear that producers’ incomes will be adversely affected,” Perlmutter wrote.
“The weakness of the plaintiffs’ case reduces the risk that there will be any harm which calls for a remedy and increases the risk that an injunction may prevent the enforcement of valid legislation.”
Despite Perlmutter’s ruling, there are still plenty of unanswered legal questions surrounding Western Canada’s murky grain marketing environment.
At least two class action suits have already been initiated against the federal government seeking compensation for monetary losses suffered by farmers.
One of those cases will also use constitutional arguments in hopes of having the farmer-controlled CWB reinstated.
The federal government is also appealing a December 2011 Federal Court ruling that suggested Ottawa violated the Canadian Wheat Board Act.
