Case information

Crown law — Crown liability — Civil procedure — Class actions — Agriculture — Animals —Canadian farmers bringing class proceeding in negligence against respondent for damages arising from Bovine Spongiform Encephalopathy — Trial judge dismissing action as barred by Crown Liability and Proceedings Act — Purpose and scope of s. 9 of Crown Liability and Proceedings Act — Whether acceptance by farmer of program incentive payments from federal Crown in respect of crop or herd management or market failure triggers s. 9 in absence of proof of loss — Whether voluntary participation in incentive programs strips away all legal rights to sue the Crown for damages or losses grounded in negligence — Whether acceptance by farmer of any payment from government relating to crop failure or animal disease forever forecloses all civil claims for actual damages or losses caused by government — Crown Liability and Proceedings Act, R.S.C. 1985, c. C-50, ss. 3, 9 — Farm Income Protection Act, S.C. 1991, c. 22, s. 12.

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

In 2003, a cow that had died on a farm in Saskatchewan was found to have had Bovine Spongiform Encephalopathy (hereafter, “BSE”), often referred to as mad cow disease. The United States immediately closed its border to Canadian beef and cattle products; other countries followed. This greatly impacted Canadian cattle producers and related industries.

Applicant Flying E Ranche Ltd. (hereafter, “Flying E”) acted as representative plaintiff in a class proceeding brought by Canadian farmers for damages arising from the presence in Canada of BSE. Flying E claimed that the respondent Attorney General of Canada on behalf of His Majesty the King in Right of Canada as represented by the Minister of Agriculture (hereafter, “Canada”) was negligent in failing to ensure that BSE did not enter the country.

The matter proceeded to trial. The trial judge found that the claim was barred by s. 9 of the Crown Liability and Proceedings Act. The trial judge further found that Canada did not owe the class members a duty of care and that, even if such a duty was owed, Canada was not negligent. The Court of Appeal for Ontario unanimously dismissed Flying E’s appeal.