HomeMy WebLinkAbout1988-0813.Kowal.89-12-21..~ .i 'i ?'" '~ ,:., ONTARIO EMPLOY£S DE LA COURONNE
· ~ , ... CROWN EMPLOYEES DE L*ONTARtO
GRIEVANCE CQMMISSION DE
SETTLEMENT REGLEMENT
BOARD DES GRIEFS
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813/88
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN' EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
Between:
0PSEU (Donald Kowal)
Grievor
- and -
The Crown in Right of Ontario
(Ministry of Health)
Employer
Before: R.L. Verity vice-Chairperson
M. Lyons Member.
F. Co!lict Member
For the GrieVor: L. Rothstein
Counsel
Gowling, Strathy & Henderson
Barristers & Solicitors
For the Employer: J.' Zarudny
Counsel
Crown Law Office
Ministry of the Attorney General
Hearings: October 25, 1989
October 26, 1989
November 18, 1989
INTERIM DECISION
On July 28, 1988,. Donald Kowal was discharged from his
employvaent as a Staff Pharmacist at the Kingston Psychiatric
Hospital. The dismissal arises as a result o.f a serious
allegation by the hospital's then Acting Administratorj W.A.
Barnett, that on April 6, 1988 the Grievor "deliberately switched
medications while working within the confines of the Pharmacy
Department". In a grievance filed, Mr. Kowal alleges dismissal
without just cause contrary to s. 18 (2) of The Crown Employees
Collective Bar~ainin~ Act~ R.S.O. I980, c. 108. The relief
sought is reinstatement with full remedial redress.
The matter proceeded to arbitration before The
Grievance Settlement Board under s. 19 (1) of the Ac___~t.
Subsequently, the present panel was assigned to decide the
matter~ Mary V. Quick appeared as counsel for the Employer and
Peter Lukasiewicz as counsel for the Grievor. Hearings were held
in Toronto on April 26 and 28, 1989 and in Kingston on October 18
and 19. 'At the conclusion of the hearing on Thursday, October
19, the Employer had completed the presentation of its case in
chief. Further hearing dates had been previously scheduled for~
October 23 in Kingston and October 24, 25, 26 in Toronto.
On Friday, October 20, 1989, Michael M. Fleishman,
counsel for the Ministry of the Attorney General,'" wrote and had
delivered the following letter to Grievance Settlement Board
Chairman Owen Shime, Q.C.:
Please be advised that counsel to the employer in the
within grievance shall bring a motion before the Board
when it next convenes fo~ an order disgualif¥ing the
panel from prooeeding with the hearing of this
grievance.
The employer's counsel is of the opinion that 'as a
result of activities engaged in by union counsel and
the panel members on the evening of Wednesday October
18th last there exists a reasonable apprehension of the~
panel members being biased.
As this matter was to reconvene in Toronto on Tuesday
October 24th and as the employer's counsel requires an
opportunity to brief its counsel the employer is. hereby
requesting an ad3ournment of the proceedings currently
scheduled for Monday October, 23 in Kingston. ._
The panel was unaware of either the letter or the
Employer's concern until the hearing reconvened in Kingston on
Monday, October 23,
On that date, John Zarudny appeared on behalf of the
Employer and produced~a copy of the letter sent to Mr. Shime.
The panel advised counsel that it viewed the written allegation
as a serious matter and would not proceed to hear the merits of
the grievance, prior to-.a resolution of the Employer's concern.
At Mr. Zarudny's request, the panel agreed that the parties meet
privately to attempt to resolve the concern. However, on the
morning of Tuesday, October 24, Mr. Zarudny advised the Vice-
Chair that the issue remained unresolved and that he would
proceed by bringing a formal'motion before the panel in Toronto
on Wednesday, October 25.
For a panel to entertain a motion calling for an Order
to disqualify itself on grounds of reasonable apprehension 6f
bias is a matter of great delicacy and difficulty. However, the-
motion once brought left the Board no choice but to rule on the
motion. Furthermore, in the event of a judicial review, it owed
a duty to the Court to state the grounds. Accordingly, we must
deal with the motion on its merits. The issue is whether or not,
in the particular circumstances of this case, there exists a
reasonable apprehension of bias.
The motion was heard in Toronto over a three day
period, Mr, Zarudny appeared as counsel for the Employer and
Linda Rothstein as counsel for the Union, At the outset~ Mr,
Zarudny assured the panel tha.t there was no allegation of actual
bias against any panel member.
The grounds for the motion arise from two separate
incidents which took place in Kingston on Wednesday, October 18~
1989. The prima~y incident occurred in the.evening at which time
Union counsel, Peter Lukasiewicz, had dinner with the full panel
at a local restaurant in. the absence of counsel for the employer,
Mary Quick. The second incident occurred during a recess in the
afternoon session when Union counsel Lukasiewicz was observed
having a private conversation with the Vice-Chair in a public
area adjacent to the hearing room at the Kingston Holiday Inn.
In support of the motion, Mary Quick and Kingston
Psychiatric Hospital personnel officer, Jamie Belch, testified on
behalf of the Employer. Peter Lukasiewicz gave evidence for the
Union. In addition, the Union called former G.S,B. Vice-Chair
Kenneth Swan to testify, as a representative arbitrator, as to
the practice and propriety of social interaction between
arbitrators with counsel for one party in the absence and without
the knowledge or consent of opposin~ counsel.
Essentially there is no real dispute on the facts of
either incident. Further, there is no issue as to credibility.
The material facts can be briefly summarized:
Incident # .1
1. Following the hearing .in Kingston on Wednesday,
October I8, 1989, Union panel member Lyons and Union
counsel Lukasiewicz discussed having dinner together.
No definite plans were made. Subsequently, Employer
panel member Fred Col.lict spoke with Lyons and advised
him that he, Collict, was having dinner with the Vice-
Chair at Minos Restaurant at 7:00 p.m. and invited
Lyons to .loin them. Lyons explained that he expected
to have dinner with Peter Lukasiewicz. Them two members
a~reed that Luka~iewicz should join the panel for
dinner.
Between 6:00 - 6:30 p,m,, Lyons and Lukasiewicz spoke
by telephone and Lukasiewicz was ingited to join the
full panel for dinner.
3. The Vice-Chair was unaware that a dinner invitation had
been extended to Union counsel, At approximately 7:00
.p.m, or shortly before, he encountered Lukasiewicz
outside the Holiday Inn and the latter advised the
Vice-Chair of the dinner invitation. They then walked
the short distance from the Holiday Inn to the Howard
Johnson Hotel.
4. The Vice-Chair and Lukasiewicz met Collict outside the
Howar~ Johnson Hotel. The three then proceeded into
the hotel lobby and obserQed Michael Lyons in the
restaurant having a conversation with Mary Quick who
was seated at a table facing the lobby.
5. The Vice-Chair proceeded to Mrs. Quick's table.
According to Mary Quick's evidence, the Vice-Chair
apologized for the fact that she had not been invited
for dinner and asked if she would join the panel and
Mr. Lukasiewicz. Mrs. Quick explained that she had
already eaten dinner but "might" join them later for a
drink.
The panel members and Mr. Lukasiewicz proceeded across
the street to Minos Restaurant for dinner arriving at
.approximately ?:05 - 7:10 p.m.
7. According to Mr. Lukasiewicz's evidence, the Board
engaged 'in n6rmal social conversation during the dinner
on a broad range of topics all unrelated to the
hearing.
8. At approximately 8:15 p.m. Mary Quick arrived at the
restaurant, sat~ down at the table with the panel and
Union counsel, had a glass of wine and fully
participated in a wide range of social conversation.
She acknowledged that there was no discussion about the
Kowal case.
l'~ 9. Peter Lukasiewicz left the restaurant at approximately
8:25 p.m. in order to meet the Grievor at the Holiday
Inn at 8:30 p.m. Mrs. Quick remained with the panel
members until the~ all left the restaurant together
shortly after 9:00
According to Mrs. Quick"s evidence, she was "shocked"
and "dumbfounded" at the propriety of the Board's conduct in
having dinner alone with Union counsel. Mrs. Quick testified
that after the Board left for dinner she attempted, without
success, on three separate occasions to get legal advice from
Toronto counsel. She did not share her concerns with either Mr,
Lukasiewicz or with the panel at'any time on Wednesday,' October
18 or on the followin~ day when the hearing resumed. However,
Mrs. Quick articulated those concerns to her advisor, Jamie
Belch, durinz a break in 'the proceedings on Thursday morning.
According to Mr. Belch's evidence, Mrs. Quick said words to the
effect: Don't you think its odd or strange that the panel' had
dinner last night with Peter Lukasiewicz? Mr. Belch testified
that Mrs, Quick appeared "*visibly upset". -
Mrs. Quick's concern appears to have triggered in the
mind of Mr. Belch, incident number 2, which he recalled having
observed on the prior hearing day on October !8.
Incident # 2
1. During a hearing recess on the afternoon of Wednesday
October 18, Jamie Belch observed Union counsel approach
and speak privately with the Vice-Chair in a public
area outside the hearing room.
2. Mr. Belch testified that he placed no significance to
that incident and saw nothing wrong at the time until
his conversation with Mary Quick on the morning of
Thursday, October 19.
3. ~_ In his testimony, Peter Lukasiewicz acknowledged that
Mr. Belch~s recollection was accurate and that he had
engaged the Vice-Chair in a social conversation which
was totally unrelated to the proceeding before the
panel and which lasted "in excess of 5 minutes".
Mr. Lukasiewicz testified that, "on numerous occasions"
in the absence of opposing counsel, he had engage~ in social
interaction with several Grievance Settlement Board Vice-Chairs
in travelling to and from out of town hearings, and with various
panel members in a variety of settings in Toronto including the
hearing room, coffee shops, ~allways adjacent to the hearing
room, and public washrooms. He stated that he did not feel the
necessity to seek the consent of opposing counsel to speak with a
10
Vice-Chair in social conversations. Mr. Lukas.iewicz testified
that he had never spoken with a Vice-Chair concerning a case in
progress.
Kenneth Swan, a former Vice-Chair of the G.S.B., was
contacted by the Union and was asked to attend the hearing. Mr.
Swan indicated his discomfort in appearing on behalf of either
party and stated that he was prepared to be a voluntary Board
witness, if so requested. The panel declined Mr. Swan*s
suggestion. Subs.equently at his request, the Union served him
with a subpoena.
Mr. Zarudn¥ objected to the issuance of the subpoena
and moved to set it aside under s. 49 of The Crown Employees
Collective Bargainin~ Act. That section reads: "No Chairman,
Vice-Chairman or member of the Tribunal or of a board or the
Grievance Se.ttlement Board and no person appointed thereby shall
be required to give evidence in any civil action, suit or other
proceeding respecting information obtained in the discharge of
his duties under this Act."
After hearing submissions, the Board ruled that there
was nothing in s. 49 of the Ac___~t to prohibit the testimony of Mr,
Swan~
Kenneth Swan was a Vice-Chair of the Grievance
Settlement Board from 1976 until he resigned from that position
in September 1988. He is a former Professor of LaboUr Rela~f'~ns
at Queen's University from 1973 to 1982. Currently, he serves as
President of the Ontario Labour-Management Arbitrators'
Association and carries on an active practice in civil
litigation, constitutional law and private labour arbitrations.
Mr. Zarudny candidly acknowledged that Mr. Swan was an expert
witness,
Mr, Swan testified that as Vice-Chair of the Grievance
Settlement Board, during the course of hearings he had spoken to
one counsel in the absence and without the knowledge or consent
of the other "in a broad range of circumstances and on any number
of occasions". The range of discussions varied from very general
questions on the hearing itself (i.e. how much longer do you
expect your. witness to be? and. do you think you will finish
today?) to children~ mutual friends and who won the ball game
last night. Mr. Swan testified that these conversations would
vary in length from "a quick chat" to "up to an hour during a
break in the hearing", The settings for such conversations would
include the adjacent hallways, coffee shops and the men's
washroom.
Mr. Swan could not recall having travelled out of
Toronto on a Grievance Settlement Board case. However,~ he does
conduct arbitrations out of . town on a weekly basis. Mr. Swan
testified that "on innumerable occasions" while out of town and
in the course of a hearing, he has had "social contacts" with
one counsel without the knowledge or consent of the other
counsel, including dinner and drinks. From his experience, such
social interaction is common practice for Arbitrators whether
appointed under statutory authority or chosen .in consensual
arbitrations. In Mr. Swan's opinion, such contacts are entirely
proper in the absence of any discourtesy or attempt to conceal or
any impropriety as, for example, any discussion of a case in
progress. Ms. Rothstein posed three hypothetical fact situations
to this witness.
By way of brief submission, Mr. Zarudny contended that
the Ministry client, Hospital Administrator Barnett, had formed
an "unfortunate apprehension" of bias and that the panel should
disqualify itself to alleviate that apprehension. He contended
that if the panel disqualified itself it would enhance its
integrity and perceived impartiality. The thrust of this
argument was that a panel must scrupulously avoid any form of
social contact during the course of a hearing. Mr. Zarudny
contended that Arbitrator Swan's evidence was irrelevant. In the
alternative, if it was relevant,- it did not assist in this
matter. Further, he cited his client's right to proceed with an
application for prohibition, if necessary. During argument, Mr,
Zarudny adopted the position that the panel was not required' to
know the law of reasonable apprehension of bias and accordingly
submitted no legal authority. However, at the Board's request,
the Employer did forward by courier the following authorities on
November 21: Re Reid et al. and WiJle, (1980), 29 O.R. (2d)
633 (Ont, Div. Ct.); Re Dick and Attorney-General for Ontario
(1973), 2 O.R. (2d) 313 (Ont. Div. Ct,); panforth Travel Centre
Ltd. v. British Overseas Airways Corp. et al [1972] 3 O.R. 633
(Ont. H.C.J.); Re~ina v. Moor¢ Ex parte Brooks et
20.R. ' 239 (Ont. H.C,J.); Re~ina v. Ontario Labour Relations
Board; Ex parte Hall [I963] 20.R. 239 (Ont. H.C0J.); and Th__~e
Kin~ v. Sussex Justices [1924] ! K.B. 256,
Counsel for the Union argued that the Board must make a
decision based on a determination of facts in accordance with the
law. Ms. Rothstein contended that it would be highly.improper
for the Board to give weigh~ to a subjective apprehension of bias
unless, as a matter of law, there was a reasonable apprehension.
.She maintained that a relevant consideration is the p~actice
before a particular tribunal and that . in the absence of any
evidence to contradict Mr. Swan, his evidence must stand. It was
submitted that the application could be determined solely on the
evidence of Mrs. Quick and Mr. Lukasiewicz,. without regard to the
expert evidence of Mr, S~an. The Union contended that the facts
did not raise a reasonable apprehension of bias, In the event of
doubt, it was argued that-the evidence of Mr. Swan clearly
supports such a conclusion. In the alternative, Ms. Rothstein
maintains that where, as in this case, one party fails to raise
an alle~ation of this nature in a timely fashion, the party has
waived or acquiesced in its right 'to do so. in support, the
panel .was referred to the followin~ authorities: P.P.G.
Industries Canada Ltd. et al v. The Attorney General of Canada
[197S] 65 D.L.R. '(3d) 354 (SCO); Spencev. Spencer, Ch'airman of
Board of Police Commissioners of City of Prince Albert et al.
i1987) 2§ Admin. L.R. 90; Bateman v. McKayj Wallace, Zarzeczny
and Attorne3_ General for . Saskatchewan [1976] 4 W.W.R. 129;
Ghirardosi v. Minister of Highways {B,C.) (1966) 56 D.L.R.
469; Re Thompson and Local 1026 of The International Union of.
Mine, Mill and Smelte~ Workers et.al (1962), 35 D.L.R. (2d) 333;
Szilard v. Szasz [1955], 1D.L.R. 3?0; Committee for Justice and
Liberty el al. v. National Energy Board [1976] 68
71~; Kane v. The Board of Governors of Universitz of British
Columbia (1980), 110 D.L.R. (3d) 311; Re Marques et a~l'f v.
Dylex Ltd. et al (I977), 81D.L.R. (3d) 554; Re Reid et al. and
Wi~le, Supra,; Re Clark (1982), 38 O.R. (2d) 42~; and Re
Laurentian University and Laurentian University Faculty
Association (1988.), 35 L.A.C. (3d) 142 (Craven).
No useful purpose can be served by any extensive review
of the numerous authorities submitted. Suffice it to say that no
case was cited in which the facts were similar to the instant
matter. However it is useful, we think, to briefly set forth the
position taken by Canadian Courts. The appropriate test as set
out by Laskin C.J.C., is whether the facts complained of could
give rise to "a reasonable apprehension..of..biased appraisal and
judgement of the issues to be determined": Committee for Justice
and Liberty v. National Energy Board, supra, at p.733. The test
is an objective test based on a reasonable person with knowledge
of the facts.
In the Ontario Division Court Judgement of Osler J. in
Re Clark, supra, at pp. 429-430, the following rationale was
expressed:
"-...The position to be taken by Canadian courts,
however, has been last authoritatively settled by the
Supreme Court of Canada in Committee for Justice and'
Liberty et al. v. National E~er~y Board et al. [1978],
1 S.C.R. 369, 9 N.R. 115, 68 D.L.R. (3d) 716. There,
as here, the court was not dealing with a~y allegation
of actual bias but rather with one of apprehension.
The appeal to the Supreme Court of Canada was from a
decision of the Federal Court of Appeal Re Canadian
Arctic Gas Pipeline Ltd. et' al. [1976] 2 F.C. 20, 65
D.L.R. (3d) 660 that the. chairman of a panel of the
National Energy Board, hearing a particular
application, should not be disqualified on grounds Of
apprehended bias because of certain earlier
participation in the affairs of one of the interested
parties. The Federal Court of Appeal had stated that
[at p. 667 D.L.R.]:
It is true that all of the circumstances of
the case, including the decisions in which Mr.
Crowe participated as a member of a study group,
might give rise in a very sensitive or scrupulous
conscience to the uneasy suspicion that he might
be unconsciously biased, and therefore should not
serve. But that is not, we think, the test to
apply in this case. It is, rather, what would an
informed person, viewing the matter realistically
and practically - and having thought the matter
through - conclude. Would he th£nk that it is
more likely than 'not that Mr. Crowe, whether
consciously or unconsciously, would not de~ide
fairly?
In allowing th~ appeal, we do not understand Chief
Justice Laskin, for the majority, to have disapproved
that language. After a full review of the facts Laskin
C.J..C. stated as follows [at p. 391S.C.R.]:
This Court in fixing' on the test of
reasonable apprehension of bias, as in Ghirardosi
v. Minister of Highways for British Columbia
[(1966) S,C.R. 367] and again in Blanchette v.
C.I.S. Ltd. [[1973] S.C.R. 833]~ .(where Pigeon J.
said at p. 842-43, that "a reasonable apprehension
that the judge might not act in an entirely
impartial manner is ground for disqualification")
was merely restating what Rand J. said in Szilard
v. Szasz [[1955] S.C.R. 3], at pp. 6-7 in speaking
of the "probability or reasoned suspicion of
biased appraisal and judgment, unintended though
it be" ....
On the factual analysis'he had made, the Chief Justice,
for the majority, came to the conclusion that, applying
such a test, the proposed chairman should', in those
circumstances, be disqualified..."
Turning to the merits of the motion before us, we wish
to emphasize that the issue was not one of actual bias but an
allegation of reasonable apprehension of bias. In law,.bias in
this case means a disposition of mind on the part of the panel
towards a party to the proceeding.
The issue is whether or not a reasonable person with
full knowledge of the facts would conclude that there was a
reasonable apprehension of bias on the part of the panel. In
other words, it is an objective test. If the panel properly
understands the law, the subjective view by one of the.parties is
not the determining factor unless it coincides with the
conclusion of a reasonable person · apprised of all the facts.
Each case, or course, must be decided on its own particular
facts.
The Grievance Settlement Board is a statutory tribunal
which serves a narrow range of clients and decides numerous
cases, primarily in Toronto and, where appropriate, in outside
locations. Essentially, there is one employer, the Government of
Ontario and several independent agencies and with some five
unions representing bargaining unit employees. 3n practice,-
there is frequent communication between client groups and their
representatives.
Under s. 20(1) of the Crown Employees Collective
Bargaining Act, the G'.S.B. is eom-posed of a chairman and several
vice-chairs together with "an equal number .... of members
representing the employees .... and members representing, the
employer." Similarly, under -s. 20(5) of the ~ct, a quorum is
defined as "the chairman or a vice-chairman, one member
representative of employee interest'and one member representative
of employer interest."
However, it is useful to cite the 3udgement of }IcRuer
C.J.H.C. in Re~ina v. Ontario Labour Relations Board; Ex parte
Hal__l, supra, where he stated that members of a Board of
Arbitration, in that case the Ontario Labour Relations Board,
perform their duties as Board members and do not represent
either the employer or the 'employee. At p. 243 Chief Justice
McRuer adopted the position of Roach J. A. i'n .Re Ontario Labour
Relations Board, Bradley et al. v. Canadian General Electric Ltd.
(1957), 8 D.L.R. (2a) 65 at pp. 77-8, [1957] O.R. 316 (ONT.
C.A.):
I have heard it said t~hat the nominees
of management and labour, on the Board
"represent" one or the other. This may be an
appropriate time to say that they "represent"
neither. As members of the Board they are
independent of both. They occupy a quasi-
3udicial position and in the discharge of
their duties they must act judicially.
Sitting in between them is an equally
independent chairman ..... as between all the
members there can be no gradations of
independence.
Each panel of the G.S.B. exercises quasi-judicial
powers of decision, The standard'of arbitral conduct does not
differ whethe~ an arbitration is constituted under ~tatutory
authority or by consent of the parties. In each case, it is
expected that panel members will act in good faith and in
accordance with the rules of natural justice. The parties must
be treated fairly and equally in all respects, By the same
token, however, counsel have a duty to advise the panel promptly
on any area of perceived sensitivity. /
Given the narrow range of clients appearing before the
G.S.B. there is frequent contact and more than passing
acquaintance between panel, members and counsel who frequently
appear before them. G.S.B. hearings take place in .special
hearing rooms in Toronto or at various hotel locations, both
inside and outside of Toronto, where there are no separate
entrances or exits for panel members,
The casual conversation between Union counsel
Lukasiewicz and the Vice-Chair at the ,Kingston Holiday inn on the
afternoon-of October 18, 1989 was in substance an exchange of
pleasantries This conversation occurred during an afternoon
recess and was not done in secret but took place openly in a
large public area adjacent to the hearing room. On these facts,
there is no basis for any reasonable apprehension o'f bias,
However, it does not escape the attention of the pangi that it is
the fact of the conversation rather than its substance that gives
the matter significance.
The panel is not unmindful of the fact that the dinner
invitation to Union, counsel arose from a conversation, ho~ever
casual, between panel members and a subsequent conversation
between one member and Union counsel. If, as. it appears, there
was a genuine apprehension of bias on the part of counsel for the
Employer regarding the dinner invitation, subsequent events have
neutralized it. A similar invitation was extended to Mary Quick
and was accepted to the extent that she joined~the panel at the
table, participated, in social conversation unrelated to the case
and remained alone with' the p~nel for some 30 minutes after the
departure of' Mr. Lukasiewicz.
The panel has carefully weighed the cumulative
significance of all the evidence and concludes that in these
circumstances it is'not likely that anyone would con~ider there
was ~ reasonable apprehension of bias. While all panel members
are i~dependent in their function, given the composition of the
panel with two members provided by the p~rties and a neutral
vice-chair~ the frequent contact between counsel and panel
members, the open nature of the invitation extended to Mrs.
Quick and the fact of her subsequent participation, it seems to
us a lon~ and unrealistic stride from the facts of this case to ~
conclusion of reasonable apprehension of bias. In our opinion,
it is unnecessary to consider the Union's alternate argument of
waiver or acquiesence.
For the above reasons, the motion is dismissed'.
Accordingly, the panel requests the G.S.B. Registrar to schedule
five continuation dates to proceed with the hearing on the
merits.
DATED at Brantford, Ontario this 2l~ day. of December,
t989.