Approvals from Federal Authorities May Not Protect Against Charges under Provincial Environmental Laws

Approvals from Federal Authorities May Not Protect Against Charges under Provincial Environmental Laws[1]

In R v Great Lakes Stevedoring Company Ltd,[2] companies are given a stark reminder that provincial environmental laws and regulations must be complied with notwithstanding compliance with all applicable federal laws and regulations and operating exclusively on federal property. 

Great Lakes Stevedoring Company Ltd. (“Great Lakes”), a stevedoring operation on the Welland Canal in the St. Lawrence Seaway was charged with violating Ontario’s Environmental Protection Act(the “EPA”).[3]

Prior to trial, Great Lakes challenged the application of the EPA provisions arguing they offended two constitutional principles: (1) the doctrine of interjurisdictional immunity; and (2) the doctrine of federal paramountcy. 

Justice J. De Fillipis of the Ontario Court of Justice disagreed with the position taken by Great Lakes, confirming that companies operating in compliance with federal legislative requirements does not automatically mean that they do not have to comply with the provincial legislative requirements. 

Background

Great Lakes operates as a private federal corporation.

The history of Great Lakes is as follows – Great Lakes amalgamated with Quebec Stevedoring Company Ltd. also a private federal corporation. Great Lakes was a 50% shareholder of Port Weller Marine Terminal Inc. (“Port Weller Marine”) whose sole business is providing stevedoring services at the terminal located in Port Weller, Ontario on the Welland Canal (“Terminal”). Port Weller Terminal provides logistical services for the loading and unloading of cargo at the Terminal, including vessels travelling to and from foreign ports. Great Lakes acts as the broker for Port Weller Marine. 

Federal White Cement Inc. (“Federal White”) purchased cement clinker, a solid that becomes highly toxic when wet and can burn the eyes and skin. The cement clinker was shipped by Federal White on a vessel called the “Puffin” to the Terminal.  Federal White contracted with Great lakes to handle the cement clinker through the Terminal.

The St. Lawrence Seaway is an area of overlapping federal and provincial jurisdiction. It is governed by various statutes, including the federal Canada Marine Act(the “CMA”),[4] and the Seaway Property Regulations.[5] The purposes of the CMA includes strengthening the competitiveness of Canadian ports and the commercial activities of the St. Lawrence Seaway, as well as providing a high level of safety and environmental protection.