The federal justice department has moved to dismiss a claim that changes made to Net Income Stabilization Accounts in 1994 were enacted after an improper vote by provinces.
The application is expected to be heard in Regina on Jan. 16. “We chose to file a statement of defence but we also filed a motion of summary judgment to dismiss,” said Brian Hay, senior counsel with Justice Canada in Winnipeg.
Sander Holdings Ltd. of Saskatchewan, Donald Patenaude of Holland, Man., and Mathew Nagyl of Porcupine Plain, Sask., launched a claim against the federal agriculture minister in July 2003.
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They argue that the changes were not properly made that disallowed grain freight and handling costs in eligible net sales figures used to calculate NISA contributions.
They said Quebec was allowed to vote even though it had not formally signed the NISA agreement. As well, the vote did not have enough support because British Columbia, Alberta, Saskatchewan, New Brunswick and Prince Edward Island all voted against it.
Under the agreement, two-thirds of participating provinces representing 50 percent of eligible net sales are considered a majority.
The statement of defence filed on behalf of the government says the changes made in 1994 were “a refinement of the guidelines and not an amendment to the NISA agreement,” so the requirements for amendments do not apply.
The statement also says the plaintiffs’ action was launched well beyond six years after the events occurred, and therefore outside the limits set in both the Limitations of Action Act and the Federal Court Act.
The Merchant Law Group, which is representing the plaintiffs, has until Jan. 5 to respond to Hay’s legal argument.
Meanwhile, a federal court judge has not yet ruled on a government motion to dismiss a class-action lawsuit against the Canadian Wheat Board.
The Merchant group is also representing farmers in that case. They allege the board is taking expenses incurred to issue export licences from the pool accounts, and that contradicts the board’s statutory powers.
