Case information

Torts – Tort of negligent investigation – Duty of care – Federal investigators – Whether Federal Court of Appeal erred in law by conflating concepts of cause of action estoppel and issue estoppel – Whether Federal Court of Appeal erred in fact and in law by failing to intervene with respect to Federal Court’s finding that respondents had been diligent in their investigation.<br><br>

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.

The applicants, Transport Car Fré Ltée and Gestion Transport Car-Fré Ltée, are interprovincial automobile transportation companies. The owner of the companies purchased a residence for his son in Alberta and took steps to build a Honco garage there. The applicants acted as the prime contractor and hired various persons to begin the work there. During the work, an employee fell to his death. Four charges under the Canada Labour Code were brought against the applicants in the Alberta Court of Justice. The judge hearing the case declared the charges ultra vires having regard to the jurisdiction of the federal Crown and ordered that the information be quashed. Before the Federal Court, the applicants argued that Employment Canada’s negligent investigation had forced them to incur counsel fees to defend themselves against the charges brought against them, for which they were entitled to claim reimbursement.

The trial judge found that the principle of estoppel did not apply and that the federal investigators had acted diligently in their investigation. The Federal Court of Appeal affirmed the decision of the Federal Court judge, both on the principle of estoppel and on the applicable test for the tort of negligent investigation. It added that this was a highly factual question that the trial judge was better able to assess.