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     A-681-96






CORAM:              HUGESSEN J.A.
                 DENAULT J.A.
                 MacGUIGAN J.A.


BETWEEN:


     ATTORNEY GENERAL OF CANADA,

     Applicant,
AND:
     LINE MORIN,
     Respondent.








     Hearing held at Montréal
     on Tuesday, May 27, 1997




     Judgment delivered at Montréal
     on Tuesday, May 27, 1997







REASONS FOR JUDGMENT OF THE COURT BY:      DENAULT J.A.

     A-681-96






CORAM:      HUGESSEN J.A.

     DENAULT J.A.

     MacGUIGAN J.A.



BETWEEN:



     ATTORNEY GENERAL OF CANADA,


     Applicant,

AND:

     LINE MORIN,

     Respondent.





     REASONS FOR JUDGMENT OF THE COURT

     (Delivered from the bench at Montréal

     on Tuesday, May 27, 1997)



DENAULT J.A.


     In an initial judgment on the facts of this case (A-453-95), this Court clearly stated that an umpire is entitled to vary the amount of a penalty "if he or she concludes that the Commission did not exercise its discretion judicially".

     According to the Commission"s own policy, mitigating factors must be taken into account in exercising its discretion as to the penalty to impose on a claimant. For the Commission"s purposes, those factors are defined in the Insurance Services Policy Manual:

Mitigating Factors

Mitigating circumstances are those which lessen the seriousness of the offence due to unusual or out of the ordinary events existing at the time of the offence. Such circumstances will warrant a penalty lower than that which would be imposed for the basic act of making false statements.

Circonstances atténuantes

Les circonstances atténuantes sont celles qui réduisent la gravité d'une infraction parce que celle-ci a été commise dans une situation inhabituelle ou hors de l'ordinaire. Dans de telles circonstances, la pénalité sera moindre que s'il y avait simplement eu fausse déclaration.



     We have no hesitation in stating that, in so far as the Commission followed this policy in the case at bar, it unduly limited its discretion. All factors existing before or at the time a penalty is imposed that may affect its appropriateness are relevant to determining its amount.

     In the instant case, the Umpire, in an initial decision on March 24, 1995, criticized the Commission for merely using a mathematical formula to determine the penalty " in short, for not properly exercising its discretion.

     It would no doubt have been better if the Umpire had clearly ruled on the legality of the Commission"s exercise of discretion before ruling on the appropriateness of varying the penalty. However, the Court infers from the Umpire"s two decisions that he considered both the legality of the exercise of discretion and the appropriateness of reducing the penalty. He therefore did not err in reducing the penalty.

     The application will be dismissed.


     Pierre Denault

     J.A.




Certified true translation



A. Poirier



     FEDERAL COURT OF APPEAL



     A-681-96

BETWEEN:

     ATTORNEY GENERAL OF CANADA,


     Applicant,


AND:


     LINE MORIN,


     Respondent.




     REASONS FOR JUDGMENT OF THE COURT


     FEDERAL COURT OF APPEAL

     NAMES OF COUNSEL AND SOLICITORS OF RECORD




COURT FILE NO.:                  A-681-96



STYLE OF CAUSE:              ATTORNEY GENERAL OF CANADA,

     Applicant,

                         AND:

                         LINE MORIN,
                             Respondent.

PLACE OF HEARING:              Montréal, Quebec



DATE OF HEARING:              May 27, 1997



REASONS FOR JUDGMENT OF THE COURT (THE HONOURABLE HUGESSEN, DENAULT AND MacGUIGAN JJ.A.)

DELIVERED FROM THE BENCH BY:      the Honourable Mr. Justice Denault


     Dated:                  May 27, 1997



APPEARANCES:

    

     Francisco Couto

     Pauline Leroux                  for the Applicant

    

     William de Merchant                  for the Respondent


SOLICITORS OF RECORD:


     George Thomson

     Deputy Attorney General

     of Canada

     Ottawa, Ontario                  for the Applicant

     Campeau, Ouellet, Nadon,

     Barabé, Cyr, Rainville, de Merchant,

     Bernstein & Cousineau             

     Montréal, Quebec                  for the Respondent

     A-681-96



MONTRÉAL, QUEBEC, THE 27TH DAY OF MAY 1997.



CORAM:      THE HONOURABLE MR. JUSTICE HUGESSEN

     THE HONOURABLE MR. JUSTICE DENAULT

     THE HONOURABLE MR. JUSTICE MacGUIGAN



BETWEEN:      ATTORNEY GENERAL OF CANADA,


     Applicant,


     AND:


     LINE MORIN,


     Respondent.








     J U D G M E N T





     The application for judicial review is dismissed.






     James K. Hugessen

     J.A.



Certified true translation



A. Poirier

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