Supreme Court rejects damage award for miners killed at Royal Oak

The Supreme Court of Canada today upheld the decision of the Northwest Territories Court of Appeal in the Royal Oak case. This tort case, brought by the widows of the miners killed after an criminal explosion at the mine during a bitter 1992 strike, centred on the question of who bore tort liability for the deaths of the miners. The widows had sued the territorial government, Pinkerton's, Royal Oak for failing to prevent the murders. The widows also sued the national union (CASAW, subsequently merged with CAW), union officials and members of the Local for inciting and failing to control the miner who set off the explosion.

The strike began in 1992 and, following rejection of a tentative agreement by the miners, rapidly became violent. The mine decided to operate with replacement workers guarded by Pinkerton's security. Striking miners engaged in acts of sabotage, including setting explosions. On September 18 one such explosion killed 9 miners. The territorial government then ordered the closing of the mine.

At trial, the judge assigned tort liability to all of the parties sued and awarded damages of $10.7 million. This was appealed and set aside by the Territorial Court of Appeal. The widows appeal to the Supreme Court of Canada to reinstate the trial judge's award.

The labour relations piece is really interesting. It was deeply troubling that a trial judge could find tort liability for actions not planned or executed by the trade union. There was no evidence led to indicate that the local or national union were involved in way in the planning or executing of the explosion which led to the miners' deaths.

The Court says it best here:

CAW National cannot be found liable as a joint tortfeasor with W. Concerted action liability may be imposed where the alleged wrongdoers acted in furtherance of a common design — this means that all participants must act in furtherance of the wrong. Here, there is no basis in law or in fact for a finding that CAW National’s liability could be sustained on the basis of concerted action liability because it “incited and participated in W’s tort and contributed to the deaths”. The trial judge’s findings of fact do not meet the applicable test. There was no finding of any common design between W and CAW National to murder the miners and no finding that the murders were committed in direct furtherance of any other unlawful common design between W and the union.

and here:

The trial judge’s findings of liability with respect to the claims against the national union, union officers and members cannot be sustained.

This is a nice decision to read. I think the Court nailed this one exactly right. Trade unions have limited control over their members. Unfortunately, employers trying to operate with replacement workers in a highly charged atmosphere can create the space for this kind of action. Setting off explosions is clearly a criminal act and cannot be justified. However, amending the Labour Code to prohibit use of replacement workers would help prevent the creation of this kind of atmosphere.

What do you think?