Arishenkoff v. British Columbia, 2004 BCCA 299 (CanLII)

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Date:2004-06-01
Docket:CA030026
Parallel citations: (2004), 241 D.L.R. (4th) 385 • [2004] 9 W.W.R. 455 • (2004), 119 C.R.R. (2d) 206 • (2004), 30 B.C.L.R. (4th) 1
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  • Gosselin v. Québec (Attorney General), 2002 SCC 84 (CanLII) — [2002] 4 S.C.R. 429 • (2002), 221 D.L.R. (4th) 257 • (2002), 100 C.R.R. (2d) 1 • (2002), 44 C.H.R.R. 363
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  • Gustavson Drilling (1964) Ltd. v. M.N.R., 1975 CanLII 4 (S.C.C.) — (1975), [1977] 1 S.C.R. 271
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  • K.L.B. v. British Columbia, 2003 SCC 51 (CanLII) — [2003] 2 S.C.R. 403 • (2003), 230 D.L.R. (4th) 513 • [2003] 11 W.W.R. 203 • (2003), 44 R.F.L. (5th) 245 • (2003), 18 B.C.L.R. (4th) 1
  • K.L.B. v. British Columbia, 2001 BCCA 221 (CanLII) — (2001), 197 D.L.R. (4th) 431 • [2001] 5 W.W.R. 47 • (2001), 87 B.C.L.R. (3d) 52
  • Lavoie v. Canada, 2002 SCC 23 (CanLII) — [2002] 1 S.C.R. 769 • (2002), 210 D.L.R. (4th) 193 • (2002), 15 C.C.E.L. (3d) 159 • (2002), 92 C.R.R. (2d) 1
  • Law v. Canada (Minister of Employment and Immigration), 1999 CanLII 675 (S.C.C.) — [1999] 1 S.C.R. 497 • (1999), 170 D.L.R. (4th) 1 • (1999), 43 C.C.E.L. (2d) 49 • (1999), 60 C.R.R. (2d) 1
  • Levitt v. Carr, 1992 CanLII 1086 (BC C.A.) — [1992] 4 W.W.R. 160 • (1992), 66 B.C.L.R. (2d) 58
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  • Miron v. Trudel, 1995 CanLII 97 (S.C.C.) — [1995] 2 S.C.R. 418 • (1995), 23 O.R. (3d) 160 • (1995), 124 D.L.R. (4th) 693 • (1995), 13 R.F.L. (4th) 1 • (1995), 29 C.R.R. (2d) 189 • (1995), 81 O.A.C. 253
  • M.(K.) v. M.(H.), 1992 CanLII 31 (S.C.C.) — [1992] 3 S.C.R. 6 • (1992), 96 D.L.R. (4th) 289 • (1992), 57 O.A.C. 321
  • M.M. v. Roman Catholic Church of Canada et al., 2001 MBCA 148 (CanLII) — (2001), 205 D.L.R. (4th) 253 • [2001] 10 W.W.R. 607 • (2001), 160 Man. R. (2d) 265
  • Nova Scotia (Workers' Compensation Board) v. Martin; Nova Scotia (Workers' Compensation Board) v. Laseur, 2003 SCC 54 (CanLII) — [2003] 2 S.C.R. 504 • (2003), 217 N.S.R. (2d) 301 • (2003), 231 D.L.R. (4th) 385 • (2003), 110 C.R.R. (2d) 233 • (2003), 28 C.C.E.L. (3d) 1 • (2003), 4 Admin. L.R. (4th) 1
  • Peixeiro v. Haberman, 1997 CanLII 325 (S.C.C.) — [1997] 3 S.C.R. 549 • (1997), 151 D.L.R. (4th) 429 • (1997), 103 O.A.C. 161
  • Perron v. R.J.R. Macdonald Inc., 1990 CanLII 1017 (BC C.A.) — (1990), 66 D.L.R. (4th) 132 • (1990), 43 B.C.L.R. (2d) 178
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  • R. v. Daoust, 2004 SCC 6 (CanLII) — [2004] 1 S.C.R. 217 • (2004), 235 D.L.R. (4th) 216 • (2004), 180 C.C.C. (3d) 449 • (2004), 18 C.R. (6th) 57
  • S.A.D. v. British Columbia, 1999 BCCA 210 (CanLII) — (1999), 172 D.L.R. (4th) 1 • [1999] 9 W.W.R. 298 • (1999), 64 B.C.L.R. (3d) 23
  • S.M. v. Ontario, 2003 CanLII 22812 (ON C.A.) — (2003), 67 O.R. (3d) 97 • (2003), 175 O.A.C. 61
  • Tolofson v. Jensen; Lucas (Litigation Guardian of) v. Gagnon, 1994 CanLII 44 (S.C.C.) — [1994] 3 S.C.R. 1022 • (1994), 120 D.L.R. (4th) 289 • (1994), [1995] 1 W.W.R. 609 • (1994), 100 B.C.L.R. (2d) 1 • (1994), 77 O.A.C. 81
  • Vriend v. Alberta, 1998 CanLII 816 (S.C.C.) — [1998] 1 S.C.R. 493 • (1998), 156 D.L.R. (4th) 385 • (1998), [1999] 5 W.W.R. 451 • (1998), 31 C.H.R.R. 1 • (1998), 50 C.R.R. (2d) 1 • (1998), 67 Alta. L.R. (3d) 1
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  • Wittman (Guardian of) v. Emmott, 1991 CanLII 1119 (BC C.A.) — (1991), 77 D.L.R. (4th) 77 • [1991] 4 W.W.R. 175 • (1991), 53 B.C.L.R. (2d) 228

COURT OF APPEAL FOR BRITISH COLUMBIA

Citation:

Arishenkoff v. British Columbia,

 

2004 BCCA 299

Date: 20040601


Docket: CA030026

Between:

Phillip Arishenkoff, Harry Astaforoff, Tim Babakieff, Grace Burnett, Violet Campbell, Molly Dutoff, Mike Esovoloff, Linda Essex, Rita Halter, Naida Hamoline, Angela Jmio, Cecil Jmio, Peter Kabatoff, Kate Kallin, Grace Kinakin, Kathy Konkin, Nancy Kootnikoff, Bill Makonin, Peter Makonin, Tina Makonin, John Maloff, Marjorie Matvenko, Elaine Miller, Violet Nault, Bill Perepolkin, Paul Pereversoff, Mike Pictin, Anita Plotnikoff, Bill Podmorow, Bill Popoff, Larry Popoff, Lillian Popoff, Pauline Popoff, Bill Potapoff, Laura Powell, Lawrence Poznikoff, Shirley Ralloff, Violet Riebalkin, Ely Salikin, Fred Salikin, Harry Saprikin, Paul Savinkoff, Andrew Stupnikoff, Irene Stushnoff, Walter Swetishoff, Polly Tarasoff, Larry Tomilin, Marcie Tomlin, Florence Traska, Alec Verigin, Michael Verigin, Fred Voykin, Paul Voykin, Carol Wilson And Vera Zado

Appellants

(Respondents on Cross-Appeal)

(Plaintiffs)

And

Her Majesty the Queen in Right of
the Province of British Columbia

Respondent

(Appellant on Cross-Appeal)

(Defendant)

 


 

Before:

The Honourable Madam Justice Newbury

The Honourable Madam Justice Huddart

The Honourable Mr. Justice Low

 

F.A. Schroeder, A.P. Berry and M. Pongracic-Speier

Counsel for the Appellants

W.A. Pearce, Q.C. and K.W. Inaya

Counsel for the Respondent

Place and Dates of Hearing:

Vancouver, British Columbia

March 1 and 2, 2004

Place and Date of Judgment:

Vancouver, British Columbia

June 1, 2004

 

Written Reasons by:

The Honourable Madam Justice Newbury

Concurred in by:

The Honourable Madam Justice Huddart

The Honourable Mr. Justice Low


INDEX

                                                   Paragraph

INTRODUCTION

The 'Unlimited Limitation' and the Limitation Act   1

THE NON-CHARTER ISSUES                                 10

Factual Background                                 17

Crown Liability                                    33

ON APPEAL                                               56

The Crown Proceeding(s) Acts and the Limitation Act 59

Peixeiro                                          74

Discoverability Generally                          81

The Cross-Appeal                                   88

THE CONSTITUTIONAL CHALLENGE TO
S. 3(4)(k) OF THE LIMITATION ACT
                       101

The Chambers Judgment                             104

ON APPEAL                                             113

The "Comparator Group"                           114

Differential Treatment                           123

Enumerated or Analogous Ground                    124

Discrimination                                    127

Dignity                                          151

DISPOSITION                                            153


Reasons for Judgment of the Honourable Madam Justice Newbury:

INTRODUCTION

The 'Unlimited Limitation' and the Limitation Act

[1]         Since the early 1980s, damage claims for "historical sexual assault" have become a common feature in Canadian courts of law.  Partly to seek psychological "closure" and partly to seek simple justice, men and women who were subject to harmful and degrading sexual abuse as children have come forward to confront their abusers and, in many cases, the employers and institutional caregivers which, often unwittingly, made their depredations possible.  One obvious concern raised by such cases is the passage of long periods of time between the abuse and the trial of such complaints: for many reasons, it is much more difficult for an individual defendant and his or her employer to respond in a meaningful way to claims of misconduct alleged to have occurred decades earlier.  Indeed, in many instances before the courts, the individual defendants have died or are infirm and unable to mount a real defence, and institutional defendants are hard pressed to locate witnesses or records that might shed light on events of many years ago.

[2]         Society's interest in ensuring that injustice does not result from the advancing of stale claims has of course traditionally been addressed by statutes of limitations.  In British Columbia, those in force until 1975 followed the traditional pattern of prescribing specific limitation periods for specified causes of action.  The focus of the case-law interpreting such statutes was the point in time at which the cause of action "accrued" or was complete and could found a civil suit.  In the area of tort law, the possibility of the appearance of damage or the discovery of injury years after the breach of duty which caused it was the subject of judicial debate in three well-known English cases: Cartledge v. E. Jopling & Sons [1963] A.C. 758 (H.L.), Sparham-Souter v. Town and Country Developments (Essex) Ltd. [1976] Q.B. 858 (C.A.) and Pirelli General Cable Works Ltd. v. Oscar Faber & Partners (a firm) [1983] 1 All E.R. 65.  In the latter case, the House of Lords ruled that the plaintiffs' cause of action against a firm of consulting engineers whom they had engaged to design a chimney, had accrued when cracks formed in the chimney, whether or not the plaintiffs were or could have been aware of the damage at that time.  By the time the plaintiffs became aware of the damage, their action was statute-barred.  Lord Fraser decried this result as "unreasonable and contrary to principle", but concluded that:

. . . the law is now so firmly established that only Parliament can alter it.  Postponement of the accrual of the cause of action until the date of discoverability may involve the investigation of facts many years after their occurrence (see, for example, Dennis v. Charnwood [[1982] 3 All E.R. 486 (C.A.)]) with possible unfairness to the defendant, unless a final longstop date is prescribed, as in ss. 6 and 7 of the Prescription and Limitation (Scotland) Act 1973.  If there is any question of altering this branch of the law, this is, in my opinion, a clear case where any alteration should be made by legislation, and not by judicial decision, because this is, in the words of Lord Simon in Miliangos v. George Frank (Textiles) Ltd. [1975] 3 All E.R. 801 at 823 . . . , a 'decision which demands a far wider range of review than is available to courts following our traditional and valuable adversary system — the sort of review compassed by an interdepartmental committee.'  I express the hope that Parliament will soon take action to remedy the unsatisfactory state of the law on this subject.  [at 72]

[3]         A year later, in Kamloops (City of) v. Nielsen 1984 CanLII 21 (S.C.C.), [1984] 2 S.C.R. 2, the Supreme Court of Canada took a bolder approach.  It declined to follow Pirelli even though, as Wilson J. noted for the majority, postponing the accrual of the cause of action until the date of discoverability could "involve the courts in the investigation of facts many years after their occurrence."  The Court viewed this possibility as "much the lesser of two evils", and (apart from the Limitations Act) would have construed a one-year limitation period in the Municipal Act, R.S.B.C. 1960, c. 255, as beginning to run on the date on which the damage to the plaintiffs' house was called to their attention.  (At 40.)

[4]         By this time, however, British Columbia had enacted a new limitations statute (S.B.C. 1975, c. 37) largely in accord with the recommendations of the 1974 Report on Limitations (No. 15) of the British Columbia Law Reform Commission.  Like its predecessor statutes, the new Limitations Act set out limitation periods applicable to various causes of action.  Section 3(1)(a) provided, for example, that an action for damages in respect of injury to persons or property could not be brought "after the expiration of 2 years after the date on which the right to do so arose".  Section 3(1)(d) specified a similar limitation for actions for false imprisonment.  Section 6, however, provided for the postponement of the running of time in certain circumstances in a manner which at the time was unique in Canada.  Most importantly for purposes of this appeal, s. 6(3) postponed the running of time in respect of certain actions, including actions "for personal injury":

. . . until the identity of the defendant is known to [the plaintiff] and those facts within his means of knowledge are such that a reasonable man, knowing those facts and having taken the appropriate advice a reasonable man would seek on those facts, would regard those facts as showing

(j)  that an action on the cause of action would, apart from the effect of the expiration of a limitation period, have a reasonable prospect of success, and

(k)  that the person whose means of knowledge is in question ought, in his own interests and taking his circumstances into account, to be able to bring an action.

Thus the new Act introduced a "reasonable discoverability" rule in British Columbia, codifying (as Wilson J. noted in Kamloops v. Nielsen) the English Court of Appeal's reasoning in Sparham-Souter, supra, "by postponing the running of time until the acquisition of knowledge or means of knowledge of the facts giving rise to the cause of action."  (Kamloops, at 42.)  As well, s. 7 postponed the running of time against persons who had not reached the age of majority or were otherwise under disability. 

[5]         At the same time, the Legislature considered it necessary to enact certain "ultimate" or "longstop" limitation periods so that the running of time could not be postponed indefinitely, even by application of the discoverability provision.  Thus s. 8 of the Limitations Act (later renamed the Limitation Act, R.S.B.C. 1996, c. 266) provided that notwithstanding a postponement or suspension of the running of time under the Act, "no action to which this Act applies shall be brought after the expiration of 30 years from the date on which the right to do so arose".  (Shorter ultimate periods were prescribed for actions against hospitals and medical practitioners based on negligence or malpractice.)

[6]         In 1992, the British Columbia Legislature determined that even the 30-year ultimate limitation period should not be applied in cases "based on" sexual assault or sexual misconduct.  The Attorney General of the day, Mr. Gabelmann, addressed the Legislature on June 9, 1992 concerning the amendment he proposed to the Act as follows:

     Hon. Speaker, I wish to describe to the House the background and principal features of this bill, a bill which I believe to be of great importance.  There is growing recognition in our society of the extent of child sexual abuse and its often devastating long-term psychological effects.  I'm sure that all members of the House have been horrified upon hearing or reading accounts of the trauma suffered by survivors of childhood sexual abuse.  This knowledge makes it imperative that we as legislators do everything possible to demonstrate society's unwillingness to tolerate this crime.  Even more important, we must do everything within our power to assist those who have suffered as victims of childhood sexual abuse.

     One of the things we have learned is that a great many people who have endured such abuse suppress the memory for many years as a way of coping with the horror.  We have also learned that one of the most important healing factors is to have the opportunity, however many years have passed, to confront the abuser.  This bill has been introduced in recognition of those facts, and reflects the government's desire to address the crime of childhood sexual abuse, and to assist and support those who have survived it.

     One of the most effective ways for survivors of childhood sexual abuse to confront their abusers is by seeking compensation through civil suits for the mental, physical and emotional damage inflicted by the abusers.  As a result, we have become aware of obstacles posed at present by provisions of the Limitation Act as they relate to the capacity to bring suit by survivors of childhood sexual abuse.  The basic limitation period for personal injuries under the act at the present time is two years.  In the case of minors, this two-year period begins at the time they reach the age of majority.  The act does provide for postponements under particular circumstances.  It has become evident, however that the present provisions are inadequate to meet the needs of survivors of sexual abuse.

     The victim in some cases still lives in fear of the abuser until long after the opportunity to bring action has passed.  Of even greater significance is the suppression factor I referred to previously.  There are many documented cases where the survivor is in his or her thirties or forties or even older before the suppressed memories surface.  At that point, for many individuals the need for healing becomes intense, and an important component, as I have suggested, is to se the abuser confronted publicly, and the crime recognized.  The amendment proposed in this bill reflects an understanding of these factors and the importance of addressing them.  The amendment would remove the time restrictions in such cases and would thus allow a survivor of childhood sexual abuse to take legal action at any time.

(Debates of the Legislative Assembly, vol. 4, No. 10 (June 9, 1992.)  Similar sentiments were expressed by other Members of all parties.

[7]         In due course, s. 3 of the Limitations Act was amended by S.B.C. 1992, c. 44, which added a new s. 3(3)(k).  The amended provision stated:

(3)  The following actions are not governed by any limitation period and may be brought at any time:

. . .

(k)  in tort or for negligence

(i)   where the cause of action is based on misconduct of a sexual nature,

(ii)  where the misconduct occurred while the person was a minor, and

(iii) whether or not the person's right to bring the action was at any time governed by a limitation period.

In 1994, yet another amendment was made so that ss. 3(3)(k) and (l) now read as follows:

(3)  The following actions are not governed by any limitation period and may be brought at any time:

(k)  for a cause of action based on misconduct of a sexual nature, including, without limitation, sexual assault,

(i)  where the misconduct occurred while the person was a minor, and

(ii) whether or not the person's right to bring the action was at any time governed by a limitation period;

(l)  for a cause of action based on sexual assault, whether or not the person's right to bring the action was at any time governed by a limitation period.

 

(See S.B.C. 1994, c. 8.)  The same bill modified the ultimate limitation in s. 8 such that where the plaintiff was a minor, the 30 years did not begin running until he or she reached the age of majority.  (I will refer to the Limitation Act or its predecessor, the Limitations Act, as the "Act".)

[8]         Obviously, these amendments to s. 3(3) — now renumbered as s. 3(4) — had an ameliorative purpose — i.e., they were intended to improve the circumstances of a disadvantaged group. (See Nova Scotia (Workers' Compensation Board) v. Martin; Nova Scotia (Workers' Compensation Board) v. Laseur 2003 SCC 54 (CanLII), [2003] 2 S.C.R. 504, at para. 102.)  The plaintiffs in this case, however, submit that the amendments were underinclusive and discriminate against them contrary to s. 15(1) of the Canadian Charter of Rights and Freedoms.  They allege that they were unlawfully confined when the Province apprehended them, separated them from their parents and homes, and housed them at a facility at New Denver in the 1950s.  They also allege abuse of statutory authority, breach of fiduciary duty and non-delegable duty, and negligence on the part of the Province.  Some of the plaintiffs say they were sexually abused at the New Denver facility, either by provincial employees or by other children; but those who allege wrongs other than sexual misconduct say that they too should have the benefit of the 'unlimited limitation' period provided by s. 3(4)(k) of the Limitation Act.  In their submission, all forms of child abuse are "capable of causing" similar kinds of harm to victims, including depression, anxiety disorders, fear of public places, nightmares, sleep disturbances, eating disorders, poor self-image, interpersonal and sexual dysfunction, and self-destructive behaviour such as substance abuse and addiction.  All such victims, they say, suffer from "disability" and, on an application of the three phases of analysis mandated by the Supreme Court of Canada in Law v. Canada (Minister of Employment and Immigration) 1999 CanLII 675 (S.C.C.), [1999] 1 S.C.R. 497, the failure of the Limitation Act to extend the benefit of s. 3(4)(k) to all victims of child abuse impinges on their dignity.  Thus they state in their factum:

The Limitation Act fails to take some abuse survivors' needs into account, while providing benefits to others.  The result is an arbitrary and discriminatory regime that signals to the Charter Plaintiffs that their disabilities, needs, and access to the justice system are less important than those of sexual abuse survivors.

Accordingly, the plaintiffs seek the constitutional remedy of "reading in" to s. 3(4)(k) causes of action based not only on sexual misconduct or assault, but actions "based on abuse resulting in physical or emotional harm" where the misconduct occurred when the plaintiff was a minor.

[9]         The Chambers judge below, Madam Justice Kirkpatrick, did not accede to the plaintiffs' constitutional argument.  She ruled that s. 3(3)(k) did not discriminate against victims of non-sexual abuse contrary to s. 15 of the Charter.  I shall return to her Reasons in this regard, and counsel's arguments on appeal, below.

THE NON-CHARTER ISSUES

[10]   The first part of the judgment appealed from, however, dealt with various technical arguments concerning the interpretation and application of the Limitation Act, and to a lesser extent the Crown Proceeding(s) Acts, to the claims of the plaintiff Mr. Poznikoff.  He is a "test" plaintiff for various questions of law which counsel asked the court below to answer in the hope that the scope and length of the trial of all the plaintiffs' claims might be reduced.  Applications were made pursuant to both Rules 18A and 34 of the Rules of Court.  First, the Province applied under R. 18A for an order dismissing Mr. Poznikoff's claims on the ground that they were statute-barred.  This required the determination of the threshold question of whether Mr. Poznikoff's particular allegations were "based on misconduct of a sexual nature" within the meaning of s. 3(4)(k) of the Limitation Act.  He alleged that he and the other children at New Denver had not been given personal privacy, in particular in showering, bathing and using the washroom; that he had been required to dress and undress in the presence of his peers, and occasionally in the presence of staff members; and that he was taunted by other boys at the residence because of his physical characteristics.

[11]   In her Reasons dated April 4, 2002 and reported at 2002 BCSC 488 (CanLII), [2002] 7 W.W.R. 127, 1 B.C.L.R. (4th) 368, 2002 BCSC 488, Kirkpatrick J. concluded that viewed through the eyes of a reasonable observer, these complaints did not constitute a "real affront to [Mr. Poznikoff's] sexual integrity" or amount to conduct "falling outside the accepted society norms of the day."  She summarized her conclusions as follows:

     In my view, a reasonable observer would not regard the lack of privacy or the teasing to which Mr. Poznikoff was subjected as conduct falling outside the accepted societal norms of the day.

     First, while the reasonable observer might well regard the apprehension and confinement of the children at New Denver as unfortunate or even abhorrent, because it separated children from their parents, the actual circumstances of their confinement were consistent with dormitory life in other schools or other institutions.  In other words, the sensibilities of society would not be offended because the facilities were not out of the ordinary at the time or even now.

     Second, there is no evidence that the teasing of Mr. Poznikoff about his genital size was encouraged or countenanced, by the staff.  The only evidence suggests that the staff acted appropriately in respect of general teasing of Mr. Poznikoff by encouraging the older boys to treat him as "one of the gang."  Furthermore, I cannot say that juvenile teasing by peers in regard to the sexual development of their peers is conduct which is sufficiently egregious so as to demand that either the perpetrators or the staff charged with their supervision be brought to justice so that Mr. Poznikoff may confront them.  First, as I have noted, there is no compelling evidence that the staff was made aware of the teasing.  There is only the vague recollection that one of the staff may have been present on one occasion when Mr. Poznikoff was teased about his genitals.  Second, it is behaviour that, while it may be offensive and juvenile, it is also characteristic of adolescents.  It is a passing phase which most, if not all, children endure to one degree or another.  In other words, it is a commonplace of life, despite adults trying to make it otherwise.  [paras. 74-76]

Accordingly, she ruled that Mr. Poznikoff had not been exposed to misconduct of a sexual nature within the meaning of the Limitation Act.  No appeal was taken from this ruling.

[12]   This left the issues of law raised by the R. 18A application for the dismissal of Mr. Poznikoff's claims as statute-barred, and the Province's second motion, made under R. 34, for the determination of the following questions:

(1)  Can an action for a tort referred to in ss. 3(4)(k) and (l) of the Limitation Act that was committed before those sections came into force have been statute-barred before that date by reason of section 8(1)(c) of the Limitation Act?

(2)  Do ss. 3(4)(k) and (l) of the Limitation Act apply so as to revive a cause of action that was statute-barred before the coming into force of those sections?

(3)  Can the Crown be liable for a tort alleged to have been committed before the Crown Proceedings Act came into force?  [para. 4]

If the foregoing questions were answered in favour of the Province, the plaintiffs Mr. Poznikoff, Ms. Tina Makonin, and Ms. Naida Hamoline asked the Court to determine, pursuant to Rules 39(29) and 18A, the constitutional validity of s. 3(4)(k) of the Limitation Act as earlier mentioned.  The Chambers judge's second judgment (reported at 2002 BCSC 951 (CanLII), [2002] 10 W.W.R. 130, 4 B.C.L.R. (4th) 58, 2002 BCSC 951) addressed all of these issues and is the judgment under appeal.

[13]   We were told by counsel that as the hearing dates for their applications approached, the questions they had formulated became something of a "moving target", a fact complicated by amendments the plaintiffs proposed to make to their pleadings.  Eventually, in order to be able to proceed with the scheduled hearing, counsel for the Province agreed to make admissions "for purposes of the R. 18A [limitation] application only", reserving (as I understand it) the Province's right to withdraw the "admissions" at trial and adduce evidence to the contrary.  Counsel confirmed before us that the admissions were accurately stated by the Chambers judge at para. 33 of her Reasons as follows:

     As I have been asked to do so by the defendant for the purpose of the application under Rule 18A, I assume that Mr. Poznikoff's confinement at New Denver was unlawful.  Mr. Poznikoff was released from New Denver on or about September 30, 1956.  He reached the age of majority on September 23, 1965.  It has already been determined by this court that Mr. Poznikoff did not suffer misconduct of a sexual nature.  For the purpose of this analysis, the Crown has admitted that Mr. Poznikoff neither connected his injury with his confinement nor knew that he could seek legal recourse until the Ombudsman published her report on April 8, 1999.  The writ in this action was issued on April 4, 2001.  [Emphasis added.]

In response to questioning in this court, counsel agreed that the word "admissions" was a misnomer, given that the Province reserved its right to take a different position at trial, and that the word "assumptions" might have been more accurate.

[14]   I must confess to difficulty in accepting "admissions" or even assumptions for the purpose only of the determination of a question under to R. 18A.  That rule mandates a summary trial in which evidence is adduced and the Court finds facts.  The process is quite different from the determination of a question of law, on the pleadings, under R. 34.  As we noted in Hobbs v. Robertson, 2002 BCCA 381 (CanLII), 2002 BCCA 381 at paras. 8-10, a defendant who makes an admission in a summary trial runs the risk of final judgment when that may not be the intended result.  However, since both counsel in this case agreed that the Province would not be bound in a "full" trial by the "admissions", and since the Chambers judge (who was also sitting in this case as a summary trial judge) considered that the dangers of "litigation in slices" were outweighed by the possible benefits of deciding the questions of law put to her without a full trial, I will proceed on the basis of the assumptions set out above.  (These assumptions made it unnecessary for the Court to consider many of the documents and affidavits filed in the proceeding; but for some reason they were adduced and then reproduced in the appeal books for this court as well, and were referred to in the factums as though they supported facts found by the Chambers judge.)

[15]   As counsel for the Province evidently conceded in argument below, the first two of the three questions concerning ss. 3(4)(k) and (l) of the Limitation Act were readily answered, in the affirmative, by reference to P.(J.) v. Sinclair 1997 CanLII 12500 (BC C.A.), (1997) 37 B.C.L.R. (3d) 366 (B.C.C.A.).  In that case, this court held that the effect of s. 3(3)(k) was to remove all time restrictions on causes of action based on sexual assault or misconduct of a sexual nature, even causes of action previously barred.  We stated:

     Section 3(3)(k), however, contains what in my view is more explicit wording: it states that the cause of action is not governed by a limitation period whether or not the action "was at any time" so governed.  This wording — the use of the past tense "was" rather than "is", and the broadness of "any time" — seems designed to overcome the rules of construction I have referred to.  In fact it would in my opinion be difficult to use any clearer words to lift "causes of action based on misconduct of a sexual nature", even those previously barred, from the ambit of any limitation whatsoever.  Thus I would agree that s. 3(3)(k) must be applied retrospectively and that it does have the unusual effect of reviving causes of action previously extinguished.  [para. 13]

It may be that if this case is appealed further, the Province will challenge the correctness of our conclusions in Sinclair, but I did not understand counsel to do so before us.

[16]   This left the third question posed under R. 34 — namely, whether the Crown can be liable for a tort alleged to have been committed before the Crown Proceedings Act, S.B.C. 1974, c. 24, came into force on August 1, 1974 — and the question under R. 18A of whether Mr. Poznikoff's claim was statute-barred before April 4, 2001, the date his action was commenced.

Factual Background

[17]   The "facts" of the case must of course be assumed from the plaintiffs' pleadings for purposes of the R. 34 question.  They begin with the apprehension of the plaintiffs, who were children between five and 15 years of age, and their confinement at the New Denver facility between 1953 and 1959.  Although this does not appear in the Further Amended Statement of Claim, it is common ground that the plaintiffs' parents were members of the Sons of Freedom sect of the Doukhobor religion.  A general idea of the social, religious and legal background of the Doukhobors in British Columbia is provided by the "Report of the Doukhobor Research Committee" (the "Hawthorn Report") placed in evidence by the plaintiffs. I shall refer to this report, and to other matters alleged in the Province's Statement of Defence, only for background purposes and to add a human dimension to the issues before the Court.  These allegations have not been tried below, and again I emphasize that the Chambers judge made no findings of fact on the summary trial of the Limitation Act issues before her.

[18]   The Hawthorn Report was prepared by a group of academics from the University of British Columbia assembled at the request of the Attorney General of the Province in 1950.  The group was headed by Dr. Harry B. Hawthorn. It recounted that the Doukhobors had emerged in Russia as a sect of dissident peasants who separated themselves during the 18th century from the Russian Orthodox Church.  The Report continued:

Throughout the nineteenth century their actions and beliefs led to an intermittent conflict with state and clerical authority and to persecution and exile, until humanitarians in England and Russia sought a land to which they could emigrate.

     In brief, their beliefs centered on direct revelation and guidance which denied the need for a church organization and by extension included a denial of governmental authority and of the right of anyone to use force in human affairs.  The attempt to construct complete and logical systems of belief took them even farther, and the translation of belief into action was pursued without the compromises which are usually labelled "common sense".  In order to protect their existence, however, they developed ways to evade, mislead and passively resist the inquiries and requirements of the authorities.

     Welcomed by a government which wanted settlors, the first groups of Doukhobors arrived in Canada in 1899, some 7,427 in number.  They were followed from 1900 to 1920 by small numbers of liberated exiles and their families, totalling 417 in all.  In 1927 one small additional group arrived with Peter Petrovich Verigin, son of the man who had been the Doukhobors' first leader in Canada.

     They were seeking land and freedom, on their own terms. . . .  They had in the first place fixed ideas of their goal which included freedom from the control of any government, and they failed to consider its impossibility.  Decisions and communications were hopelessly bogged down until they had to be made by [Aylmer] Maude and the other representatives without the group's full understanding simply because full understanding could not be achieved.

[19]   According to the Report, in the early years of the 20th century, groups of Doukhobors migrated to western Canada hoping to escape "what they felt to be the constraints of government and the corrupting influences of their Canadian neighbours."  By 1950, an estimated 11,000 had settled in British Columbia, mainly in the Kootenay and Grand Forks areas.  Most belonged to one of three major religious groups — the Union of Spiritual Communities of Christ, the Society of Independents, and the Sons of Freedom, the group with which we are concerned in this case.  They numbered some 2,000 to 3,000 and were in general considered to exhibit "the most intense reaction to the processes of adjustment to Canadian life, which operate on them as the others, and the firmest belief in the necessary conflict between good and government."

[20]   The Hawthorn Report noted the difficulty of relations between Doukhobors and other Canadians, including the existence of prejudice and hostility on both sides.  Under the heading "Conflicts of Law and Government", it stated:

     Most of the formal relationships of the Doukhobors with the Governments of Canada and British Columbia have been accompanied by conflict: over land and its laws of registration and ownership; over citizenship and its privileges and obligations; over education and the receipt of other forms of welfare; and over taxation.  The conflicts have led to refusal, avoidance, illegal protest and violence.  Gradually, the Sons of Freedom protests have gained the additional aim of wanting to provoke the Canadian Government sufficiently to deport the protesters, ignoring the fact that the consent of two nations is required for a deportation. 

Protests by the Doukhobors often took the form of arson or dynamiting.  According to the Hawthorn Report, between 1924 and the date of the Report, over 400 instances of arson and dynamiting — mostly of Doukhobor property but also of railroads — had occurred in British Columbia.  Another form of protest was nudity, a tactic used to induce "anxiety" in non-Doukhobors at public gatherings and meetings.

[21]   The problem of schooling of Doukhobor children became a focus of conflict which manifested itself in the burning of schools by members of the Sons of Freedom sect, the intimidation of teachers, the boycotting of schools, and a retreat to "places of isolation" such as Krestova, where it was felt that the "educational arm of the government [would]  not reach."  The Doukhobors' major grounds of resistance to schooling were summarized as follows:

     1.   The belief, especially noticeable in recent developments of Sons of Freedom philosophy, that education is synonymous with propensity for evil, and that it drives out "natural" good sense as well as good moral qualities.  This poses a sharp dilemma for the present leaders of the Sons of Freedom, who are effective as leaders largely by reason of their own schooling, but who are by the pressure of this belief enjoined from sending their own children to school.

     2.   The fear of the assimilative processes of education in public schools along with other children has existed from the early days of Doukhobors residence in Canada, and was one of the reasons for the move to British Columbia.  This fear was once fostered by the leadership, who saw the possibility of losing the identity of the group, and is now held most intensely by the Sons of Freedom, who see relocation as a retreat from this threat.

     3.   The objection to national history in so far as it fails to condemn wars, and in so far it glorifies governments.

     4.   The objection to schooling, some say, where pure discipline is an aim of the classroom, where equipment is inadequate and activity and learning minimal.

     5.   The feeling that Doukhobors are treated with discrimination.

     6.   The need of assistance from the children in gardening, child-minding and housework at the times when school claims them.

[22]   The Hawthorn Report noted that these beliefs were most firmly held by the Sons of Freedom adherents, with whom, it said, "no compromise agreement can be reached at present."  The authors nevertheless recommended a generally "benevolent" approach aimed at ameliorating the grievances of the Doukhobors, which it was felt would over time "ultimately ease the situation."  Specifically, the Report contemplated a commission on Doukhobor affairs which would co-operate with local school boards to strengthen the educational program, and the supplementing of teachers' salaries "in areas resistant to education", the encouragement of teachers' participation in community organizations, the providing of extra counselling and guidance services in schools attended by Doukhobor children, and the development of a "flexible program of studies", including studies of Russian culture and language. 

[23]   The chapter of the Report on "Childhood and Family Life" was written by Miss Lewis, an expert in the field of "Child Study".  She warned that it would be adding "fuel to the flame" to remove the children of Sons of Freedom Doukhobors from their parents.  In her words:

The uprooting of child from home, of mother from child, is one way to court disaster in terms of personality warping.  Such a policy of removal would but add grievance to grievance, protest to protest.

     I believe it is generally recognized now that the removal of children from home during the time of imprisonment at Piers Island was a mistake, albeit one made with good intentions.  In fact, the recognition that children need their homes is such an accepted consideration in social welfare work today that it is probably unnecessary for me to develop the point further here.

     I am convinced that Doukhobor children do not suffer serious material neglect when one or both parents are away in jail.  To remove them from the Doukhobors community at such times in order to provide physical care for them is the unwise way to alleviate the hardships.  The sense of responsibility toward care of children among the Doukhobors is high.

However, the Report recommended that "in situations where prosecution of parents for habitual truancy of children is considered desirable, and local School Boards will not give the necessary consent for action, the Superintendent of Education [should] exercise his prerogative to do so." 

[24]   According to the Province's Statement of Defence filed in this action, civil disobedience and active destruction of schools and governmental offices continued unabated in the Doukhobor communities in the early 1950s.  A rash of incidents occurred in the spring of 1953 when the Sons of Freedom community "became preoccupied with the prospect of migrating from Canada to a new as yet unspecified home."  The Statement of Defence continues:

8.   . . . By 1953 it was estimated that some 435 Doukhobor children were not attending school in the West Kootenays.  On April 16, 1953 Attorney General Robert Bonner announced his party's policy respecting the problems.  He promised wholesale arrests should any mass demonstration occur and outlined a three point program which included an increasingly firm attitude on school attendance.  All children from 7-15 years of age were to be sent to school or else the parents would be liable to fines.  If this failed the driver's licenses of parents were to be revoked and if that failed steps would be taken under the Protection of Children Act to protect the children on the basis that the children were habitually truant.

9.   On May 29, 1953 a letter was written to Attorney General Robert Bonner from the Secretary-Treasurer of Slocan School District #8.  In that letter reference was made to a large delegation from the Slocan Valley Citizens Committee who demanded that the School Board prosecute parents for the non-attendance of their children.  The School Board passed a resolution recognizing that "from past experience that full support has not been forthcoming from provincial authorities and ... the solution of the problem can only come from the enforcement of the Public Schools Act and such other legislation as may be applied".  The resolution called for the parents of truant children to be prosecuted notwithstanding that such action "will most certainly result in protest demonstrations, burnings and possibly the loss of a school".  The School Board sought the approval of the Attorney General to this policy before proceeding with enforcement.

10.  Following the policy announcement of the Attorney General on April 16th, 1953 incidents of arson continued unabated and the climax came at the end of summer of 1953 when more than 400 homes were burned down, primarily in Krestova, the home of a large segment of the Sons of Freedom community.  Then, just before the schools were to open on September 8th a group of mainly homeless Sons of Freedom set up a tent town at Perry Siding in the Slocan Valley.  The site was located adjacent to a school.

[25]   On September 8, 1953, children arriving at school for registration were confronted by a large number of Sons of Freedom parading in the nude in plain view of the school and in direct defiance of warnings given to them by the police.  The next day, the police effected the arrest of 144 men and women without incident and the removal of 104 children and 15 women in the tent camp at Perry Siding.  (Photographs of these events were included in the evidence.)  The latter were transported to New Denver and were turned over to officials of the Department of Social Welfare.  The Premier made a speech in the Legislature stating that the government was prepared to implement many of the recommendations of the Hawthorn Report, including the establishment of a commission to determine outstanding questions concerning the sale of Doukhobor lands, the introduction of legislation to recognize the Doukhobor form of marriage, and the repeal of existing legislation that evidently excluded Doukhobors and their descendents from voting.  However, he said, the government had a constitutional duty to maintain law and order in the Province.

[26]   The Statement of Defence describes unsuccessful attempts made to place children of the Sons of Freedom Doukhobors in homes of other Doukhobors, and then to place them in the non-Doukhobor community.  The Province alleges that when these efforts failed, it began schooling many of the apprehended children at the local community school in New Denver.  Between 1954 and 1959, many other children from Sons of Freedom communities were apprehended and placed under the care of the Superintendent of Child Welfare pursuant to the Protection of Children Act, R.S.B.C. 1948, c. 47.  Section 7(m) of that statute permitted the Superintendent to apprehend without warrant and bring before a judge as needing protection any child "who, by reason of the action of his parents, or otherwise, is habitually truant from school and is liable to grow up without proper education."  Since many of the children were hidden by their parents, governmental authorities had to apprehend them in distressing circumstances in many cases.  Those who were not found lived in fear of being apprehended.

[27]   Again according to the Statement of Defence, local resistance generally lessened with time as the children responded favourably to the educational program.  Eventually, it was decided the children could be schooled at the local public school while living at the New Denver facility.  By 1959, the Province alleges, "Freedomite children" were being enrolled in large numbers and the number of "holdouts" had declined.  In July 1959, Magistrate Evans released 77 Freedomite children on the promise of their parents that the children would attend public school.  Soon after, the New Denver facility was closed.  In the final analysis, the Province says, although force had been necessary to ensure compliance with school attendance laws and the separation of the children from their parents was extremely distressing, Freedomite children benefited from their education, became literate in the English language, acquired communication and other skills to enable them to obtain employment and advance themselves, and even developed "respect for the laws of this country which facilitated their acceptance by the non-Doukhobor community."

[28]   It is against this general background that Mr. Poznikoff, then a child of nine, was taken from his parents at Perry Siding on September 9, 1953.  It is alleged that he is one of a subset of the plaintiffs who was not the subject of an apprehension order under the Protection of Children Act when he was removed from his parents' care.  He was confined at New Denver from then until his release by order of the Juvenile Court on September 6, 1956.  The release order recited that the Superintendent's application, first brought on September 16, 1953, had been adjourned several times until it came on for hearing on September 4, 1956.  On that date Magistrate Evans heard from counsel — Mr. Crossley on behalf of the Superintendent and Mr. John Steeves on behalf of Mr. Poznikoff's parents. The Court ruled that the child was not in need of protection within the meaning of the Protection of Children Act and ordered him returned to the care, custody and control of his parents, who by then had been released from prison.

[29]   Mr. Pearce referred us to correspondence (dated later in 1956) in evidence between Mr. Steeves and Miss McKay, the then Superintendent of Child Welfare.  In response to his threat to commence an action against her for wrongful imprisonment, she advised Mr. Steeves that Mr. Poznikoff had been apprehended pursuant to "verbal orders" of the Juvenile Court judge.  Mr. Steeves responded that he would check the court records.  The correspondence appears to end there.

[30]   As I have already mentioned, however, the question of whether Mr. Poznikoff's apprehension was lawfully authorized was not before the court below and is not before us.  The Province asked the Chambers judge to assume for purposes of the R. 18A application that Mr. Poznikoff's confinement was in fact unlawful, and that he did not connect his "injury" with his confinement and was not aware that he could seek legal recourse until the publication of a report of the Ombudsman in April 1999: Righting the Wrong: The Confinement of the Sons of Freedom Doukhobor Children.  Mr. Poznikoff brought his action within two years of that date.  He was then 56 years of age.

[31]   Mr. Poznikoff and the other plaintiffs framed their causes of action as follows:

13.  The Plaintiffs' claims against the Defendant for breaches of the duties referred to in paragraph 9 include the following:

(a)  abuse of public power;

(b)  unlawful confinement;

(c)  breach of fiduciary duty and breach of trust, that is, the duty that the Defendant owed the plaintiffs as parent to child when the Plaintiffs were taken into the protection of the Defendant;

(d)  vicarious liability, or alternatively, breach of the Defendant's non-delegable duty for the assaults, physical and sexual, on the Plaintiffs by servants of the Defendant on the basis that such assaults occurred because the Defendant failed to adequately, properly and effectively supervise or direct its servants so as to ensure that the Plaintiffs would not be harmed or injured;

(e)  vicarious liability, or alternatively, breach of the Defendant's non-delegable duty for the assaults, physical and sexual, on the Plaintiffs, by other children at New Denver, for failing to provide a safe environment for the plaintiffs; for failing to properly direct and supervise all of the children; for creating a hostile, brutal and demeaning environment bound to result in physical and sexual abuse of one child upon another;

(f)  negligence, or alternatively, breach of the Defendant's non-delegable duty by hiring and employing incompetent servants to supervise the Plaintiffs at New Denver;

(g)  negligence, or alternatively, breach of the Defendant's non-delegable duty for failing to establish standards of conduct for its servants and the children in New Denver to ensure that no servant or child would injure or endanger the health or well-being of any other child.

14.  The Defendant further breached its duty of special diligence owed to the Plaintiffs pursuant to the Protection of Children Act, R.S.B.C. 1948, c. 47.

An appendix attached to the Statement of Claim, in respect of Mr. Poznikoff specifically, alleges that as a result of his confinement and mistreatment at New Denver, he suffered and continues to suffer from depression and post-traumatic stress disorder.  Two complete expert reports, one by a psychologist and one by a psychiatrist, were filed in support of this claim.

[32]   For its part, the defendant contended that in relation to the allegations of physical and sexual assault said to have occurred at the local district school, no cause of action had been disclosed against the Province.  Further, it pleaded that for the most part "it is not possible to assess these allegations because of the passage of time".  It reserved the right to amend its pleadings upon completion of discoveries.  Finally, the Province relied on Crown immunity and the provisions of the Crown Proceeding Act, and "legislation respecting the limitations of actions."  Paragraphs 26 and 27 of the Amended Statement of Defence state:

26.  At common law the Sovereign can do no wrong, which means that the Crown cannot be found vicariously liable for the torts of Her servants because the Sovereign cannot be deemed to have authorized an unlawful act.  With the enactment of the Crown Proceeding Act the Crown became subject to all the liabilities to which it would be liable if it were a person for torts committed arising after August 1st, 1974.  However the Crown Proceeding Act has no application in this case because the facts allege the commission of a tort before August 1st, 1974.

27.  In further response to the entire Statement of Claim the Defendant states that any cause of action that the Plaintiffs might have had expired by the passage of time in accordance with legislation respecting the limitation of actions.  The Defendant further pleads and relies upon s. 3(2)(a) and (e) of the Crown Proceeding Act.

Crown Liability

[33]   Against this background, Kirkpatrick J. turned first to the question of law posed pursuant to R. 34 — whether the Province "can be liable" for a tort alleged to have been committed before the Crown Proceedings Act came into force on August 1, 1974.  She saw that question as breaking down into two, namely, whether s. 2 of the Crown Proceeding Act, R.S.B.C. 1996, c. 89 (the "1996 Act") had retrospective effect; and if not, whether the "discoverability principle" applied to create potential Crown liability for torts committed prior to August 1, 1974, the date on which the Crown Proceedings Act, S.B.C. 1974, c. 24 (the "1974 Act") came into force.  That Act repealed the Crown Procedure Act, R.S.B.C. 1960, c. 89, a statute largely unchanged from its original form, S.B.C. 1888, c. 32.

[34]   It will be recalled that the 1974 Act effected a sea change in the position of the Crown vis-à-vis its subjects in British Columbia.  Previously, it was the general rule at common law that no proceeding, civil or criminal, could be maintained against the Crown, as reflected in the maxim "the King can do no wrong".  As well, the King could not as a matter of procedure be sued in his own courts — a rule said to be derived from days when a feudal lord could not be sued in his own court.  (See Wade and Phillips, Constitutional Law (8th ed., 1970) at 678.)  This immunity extended to acts committed by servants of the Crown in the course of their employment, although the rigour of the Crown's immunity was eased in practice by the fact that Crown servants sued personally would be indemnified by the Crown in most cases.

[35]   In the 19th century, petitions of right began to be used in place of some more ancient writs.  It became possible through the petition of right to advance certain types of claims against the Crown, including those in contract, where the Crown was willing to grant a fiat to the would-be plaintiff.  With respect to tort, however, petitions of right would not be entertained.  As noted by Hogg and Monahan in Liability of the Crown (3rd ed., 2000):

     With respect to tort . . .  the answer was no: the courts refused to extend the petition of right to torts.  The courts quoted the old maxim that "the King can do no wrong", and they concluded that he could neither commit nor authorize the commission of a tort.  In fact this maxim had been used in the middle ages to produce virtually the contrary result, namely, when the King infringed the law he should give redress to an aggrieved subject.  The courts were also wrong in supposing that the imposition on the King of vicarious liability in tort necessarily involved imputing to him the commission or the authorization of the tort.  This error was understandable at the time, but it is now obvious that vicarious liability does not need to rest on any such fiction.

     The exclusion of tort claims from the petition of right procedure immunized the Crown from liability in tort, because no other remedy was available for the purpose.  The injured subject was not necessarily without redress because in many (but not all) cases an action could be brought against the individual Crown servant who committed the tort, and in practice the Crown itself would defend the action and pay any damages.  Nonetheless, it was a serious defect in the law that the Crown itself was not liable as of right.  [at 6-7; footnotes omitted.]

[36]   The 1974 Act ended the Crown's immunity.  Section 2 of that statute abolished proceedings against the Crown by way of petition of right and stated in part:

(b)  a claim against the Crown, that, if this Act had not been passed, might be enforced by petition of right, subject to the grant of a fiat by the Lieutenant-Governor, may be enforced as of right by proceedings against the Crown in accordance with this Act, without the grant of a fiat by the Lieutenant-Governor;

(c)  the Crown is subject to all those liabilities to which it would be liable if it were a person; and

(d)  the law relating to indemnity and contribution is enforceable by and against the Crown in respect of any liability to which it is subject, as if the Crown were a person.  [Emphasis added.]

As the Chambers judge noted, ss. 15 and 16 of the 1974 Act made it clear that it was intended to operate only prospectively and not to affect causes of action in existence immediately prior to the enactment of the 1974 Act.  The material portions provided:

     15. (1)   Except as otherwise provided in this Act, this Act does not affect proceedings against the Crown that have been instituted before the coming into force of this Act; and, for the purposes of this section, proceedings against the Crown by petition of right shall be deemed to have been instituted if a petition of right with respect to the matter in question has been submitted for consideration to the Lieutenant-Governor before the coming into force of this Act.

     (2)  Subject to subsection (1), this Act does not apply to a cause of action that existed on the day before the date this Act comes into force.

     16. (1)   Subject to subsection (2), the Crown Procedure Act, being chapter 89 of the Revised Statutes of British Columbia, 1960, is repealed.

     (2)  Notwithstanding the Crown Procedure Act, that Act applies to a cause of action in respect of proceedings against the Crown that arose before the date this Act comes into force, whether or not it is or is considered to be a cause of action continuing after the date this Act comes into force.  [Emphasis added.]

When the 1974 Act was replaced by R.S.B.C. 1979, c. 86 (the "1979 Act"), s. 16(2) was carried forward in somewhat different language in s. 17:

     17.  Notwithstanding the repeal of the Crown Procedure Act, that Act applies to a cause of action for proceedings against the Crown that arose before August 1, 1974, whether or not it is or is considered to be a cause of action continuing after August 1, 1974.  [Emphasis added.]

[37]   Section 17 was not in turn carried forward into the most recent iteration, the 1996 Act, when the general statute revision was carried out.  However, Kirkpatrick J. concluded at para. 21 of her Reasons that the presumption against retrospective operation would in any event preserve the Crown's "vested right to immunity for causes of action arising prior to August 1, 1974."  On this point, she noted Angus v. Sun Alliance Insurance Co. 1988 CanLII 5 (S.C.C.), [1988] 2 S.C.R. 256, where it was held that a statutory bar to recovery by one spouse against another was a substantive provision.  In the words of La Forest J. speaking for the Court:

A provision is substantive or procedural for the purposes of retrospective application . . . according to whether or not it affects substantive rights. . . .

     In the present case, it is difficult to see how procedure is being affected at all. The provision in question provides a complete defence to an action. Whatever may be the reasons for this, and whether one agrees or disagrees with them, the provision of a complete defence to an action, just as much as the creation of a cause of action itself, is a substantive matter.  [at 265; emphasis added.]

Accordingly, the law in question was presumed not to have retrospective application; and even if it were procedural, La Forest J. stated, "a presumption of retrospectivity" should not be applied, since it would amount to "a serious deprivation of an acquired right of the [defendant] husband, and it should not lightly be assumed that this was the intention of the legislature."  (At 267.)  Kirkpatrick J. reasoned that similarly in this case, s. 2(c) of the 1996 Act, which made the Crown liable to all liabilities to which it would be liable if it were a person, was substantive in nature and was not intended to apply retrospectively to "deprive the Crown of its immunity from suit regarding causes of action that existed (i.e., were complete) before August 1, 1974."  (Para. 22.)

[38]   The Chambers judge next considered whether the discoverability principle might allow Crown liability for torts committed prior to August 1, 1974.  On this point, she noted Botting v. British Columbia 1996 CanLII 8642 (BC S.C.), (1996) 27 B.C.L.R. (3d) 106 (B.C.S.C.).  In that case, Shaw J. held that the widow of a man killed in an accident, allegedly due to the negligent design and construction of a bridge, could sue the Province, notwithstanding the fact that the alleged negligent acts had occurred prior to 1974.  The cause of action was found, on an application of the discoverability rule to s. 17 of the 1979 Act, to have arisen on the date of the accident in 1992.

[39]    In the course of his Reasons, Shaw J. went on in obiter to discuss Crown immunity.  He discounted as a "misconception" the maxim that "the Sovereign can do no wrong".  In his analysis:

     It is helpful to start with an understanding of the maxim "The Sovereign can do no wrong".  At first glance, the words appear to state an all-encompassing principle that puts the Crown above the law and gives the Sovereign (that is, the state) the right to ignore the laws which govern the conduct of all persons.  This is a misconception.  According to early authorities, the Sovereign was as subject to the laws of the realm as everyone else.  However, despite being under the law, the Sovereign could not be impleaded in the courts. The courts had no jurisdiction over the Sovereign, the reason being that if the courts were given control over the Sovereign, that was seen as destructive of the Sovereign's constitutional independence.  It is this immunity from being impleaded in the courts that underlies the maxim that the Sovereign can do no wrong.  [para. 47]

He cited several authorities, including R. v. McLeod (1883) 8 S.C.R. 1 at 30-32, various texts, and a passage from Blackstone's Commentaries on the Laws of England (3rd ed., at 246).  He also quoted from the judgment of Davis J.A. for the Ontario Court of Appeal in Peccin v. Lonegan [1934] O.R. 701, where it was said that:

The Crown can do no wrong, and the immunity of the Crown for the tortious acts of its servants and agents is well established as a constitutional rule of law. It is, like other Royal prerogatives, not to be treated as personal to the Sovereign, but as a constitutional right conferred on the Sovereign upon principles of public policy for the benefit of the people.  These prerogatives of the Crown form part of the law and, generally speaking, are "as ancient as the law itself." The Queen v. McLeod (1883), 8 S.C.R. 1.  [at 706]

[40]   Shaw J. concluded in Botting that prior to August 1, 1974, the Crown was "quite capable of committing a wrong" and that what the 1974 Act had changed was "not the Crown's duty to obey the law, but its immunity from being taken to court."  He rejected the argument that the application of the discoverability principle to the 1979 Act violated the principle against retrospectivity.  In his view, that statute had opened the Crown to being taken to court as of right and abolished Crown immunity, but had not changed the Crown's duty to obey the law.  That duty, he said, had existed for centuries. (Para. 59.)  He distinguished Angus v. Sun Alliance, supra, on the ground that it dealt with a cause of action that had "crystallized" before the statutory amendment.  The cause of action in Botting, in contrast, "arose after the Crown Proceeding Act was enacted."  (Para. 62.)

[41]   The second authority referred to by Kirkpatrick J. on this point was B.(K.L.) v. British Columbia 1999 BCCA 210 (CanLII), (1999) 64 B.C.L.R. (3d) 23, a decision of five judges of this court.  It concerned claims for damages for negligence and/or equitable compensation for breach of fiduciary duty arising out of physical and sexual abuse to which the plaintiffs had allegedly been subjected when in foster care as wards of the Superintendent of Child Welfare.  With one exception, the abuse occurred prior to August 1, 1974.  The Province took the position that prior to that date the old Crown Procedure Act would have been an absolute bar; that the plaintiffs' causes of action were ones that existed the day before August 1, 1974 as referred to in s. 15(2) of the 1974 Act; and that they "arose before August 1, 1974" as referred to in s. 17 of the 1979 Act.  Thus it was argued the new regime of Crown liability did not apply to them.

[42]   The plaintiffs' position was that causes of action in tort and equity as against the Crown had not accrued until May 25, 1993, since each of the plaintiffs "was unable to discover the nature of her injuries and/or nexus between the injuries and the wrongful conduct of each of the defendants" until the plaintiffs had received and responded to therapeutic assistance.  They urged the Court to apply the discover­ability principle approved in Kamloops v. Nielsen, supra, and to find that their causes of action had arisen after August 1, 1974 and were therefore not barred by the old rules of Crown immunity.

[43]   On an application under R. 34, the Court adopted the latter argument, concluding that the date of accrual of the plaintiffs' causes of action "should