Agricultural Law NetLetter - Saturday, July 7, 2018

HIGHLIGHTS

* A Justice of the Alberta Court of Queen's Bench has summarily dismissed the claims of two Alberta seed potato growers who sought damages against the CFIA on the ground that the CFIA was allegedly negligent in testing for the presence of Potato Cyst Nematode ("PCN"). Based on alleged false positive PCN tests, the CFIA had required the potato growers to destroy their seed potato crops, and prevented them from producing or selling seed potatoes. Both potato producers had applied for and received funding pursuant to a Seed Potato Assistance program partially funded by the Federal Government, which had been established to compensate potato growers for losses sustained as a result of PCN destruction orders and quarantines, and the closure of the US and Mexican borders to the export of Alberta seed potatoes. The claims were summarily dismissed based on the provisions of s. 9 of the Crown Liability and Proceedings Act which provides that "no proceedings lie against the Crown.in respect of a claim if.compensation has been paid.out of the Consolidated Revenue Fund.in respect of.damage or loss and in respect of which the claim is made". (North Bank Potato Farms Ltd. v. Canadian Food Inspection Agency, CALN/2018-017, [2018] A.J. No. 818, Alberta Court of Queen's Bench)

NEW CASE LAW

North Bank Potato Farms Ltd. v. Canadian Food Inspection Agency;

CALN/2018-017,

Fulltext: [2018] A.J. No. 818;

2018 ABQB 505,

Alberta Court of Queen's Bench,

J.A. Fagnan J.,

June 29, 2018.

Section 9 of Crown Liability and Proceedings Act -- Receipt of Federal Assistance for Crop Quarantine -- Bar Against Subsequent Negligence Action.

North Bank Potato Farms Ltd. and Haarsma Farms Ltd. (collectively, the "Potato Producers") sued The Canadian Food Inspection Agency (the "CFIA") and ABC Laboratory in negligence, claiming the loss of profits, goodwill and land value. The Potato Producers alleged the CFIA had been negligent in testing their land for the presence of Potato Cyst Nemotode ("PCN"), and in concluding that PCN was present in their land, when the tests only disclosed "false positive" results.

The CFIA appealed to the Alberta Court of Queen's Bench from a decision of a Master, who refused to strike out the Potato Producers' pleadings or to summarily dismiss the Potato Producers' claim against the CFIA.

In 2006, the Governments of Quebec, Idaho, Canada and the United States had negotiated and agreed to a protocol on the sampling and surveillance of potato...