Canada Transportation Act

Marginal note:Complaint and investigation concerning company’s obligations

• 116 (1) On receipt of a complaint made by any person that a railway company is not fulfilling any of its service obligations, the Agency shall

  • (a) conduct, as expeditiously as possible, an investigation of the complaint that, in its opinion, is warranted; and

  • (b) within 90 days after receipt of the complaint, determine whether the company is fulfilling that obligation.

• Marginal note:Time limits

  (1.1) For the purpose of an investigation conducted under subsection (1), the Agency shall allow a company at least 20 days to file an answer and at least 10 days for a complainant to file a reply.

• Marginal note:Agency’s own motion

  (1.11) The Agency may, with the authorization of the Minister and subject to any terms and conditions that the Minister considers appropriate, of its own motion, conduct an investigation to determine whether a railway company is fulfilling its service obligations. The Agency shall conduct the investigation as expeditiously as possible and make its determination within 90 days after the investigation begins.

• Marginal note:Considerations

  (1.2) The Agency shall determine that a company is fulfilling its service obligations if it is satisfied that the company provides the highest level of service in respect of those obligations that it can reasonably provide in the circumstances, having regard to the following considerations:

  • (a) the traffic to which the service obligations relate;

  • (b) the reasonableness of the shipper’s requests with respect to the traffic;

  • (c) the service that the shipper requires with respect to the traffic;

  • (d) any undertaking with respect to the traffic given by the shipper to the company;

  • (e) the company’s and the shipper’s operational requirements and restrictions;

  • (f) the company’s obligations, if any, with respect to a public passenger service provider;

  • (g) the company’s obligations in respect of the operation of the railway under this Act;

  • (h) the company’s contingency plans to allow it to fulfil its service obligations when faced with foreseeable or cyclical events; and

  • (i) any information that the Agency considers relevant.

• Marginal note:Confidential contract binding on Agency

  (2) If a company and a shipper agree, by means of a confidential contract, on the manner in which service obligations under section 113 are to be fulfilled by the company, the terms of that agreement are binding on the Agency in making its determination.

• Marginal note:Long-haul interswitching order binding on Agency

  (3) If a long-haul interwitching order has been made under subsection 134(1), the terms established by the order that are related to the manner in which the local carrier is to fulfil its service obligations are binding on the Agency in making its determination.

• Marginal note:Orders of Agency

  (4) If the Agency determines that a company is not fulfilling any of its service obligations, the Agency may

  • (a) order that

    • (i) specific works be constructed or carried out,

    • (ii) property be acquired,

    • (iii) cars, motive power or other equipment be allotted, distributed, used or moved as specified by the Agency, or

    • (iv) any specified steps, systems or methods be taken or followed by the company;

  • (b) specify in the order the maximum charges that may be made by the company in respect of the matter so ordered;

  • (c) order the company to fulfil that obligation in any manner and within any time or during any period that the Agency deems expedient, having regard to all proper interests, and specify the particulars of the obligation to be fulfilled;

  • (c.1) order the company to compensate any person adversely affected for any expenses that they incurred as a result of the company’s failure to fulfil its service obligations or, if the company is a party to a confidential contract with a shipper that requires the company to pay an amount of compensation for expenses incurred by the shipper as a result of the company’s failure to fulfil its service obligations, order the company to pay that amount to the shipper;

  • (d) if the service obligation is in respect of a grain-dependent branch line listed in Schedule I, order the company to add to the plan it is required to prepare under subsection 141(1) an indication that it intends to take steps to discontinue operating the line; or

  • (e) if the service obligation is in respect of a grain-dependent branch line listed in Schedule I, order the company, on the terms and conditions that the Agency considers appropriate, to grant to another railway company the right

    • (i) to run and operate its trains over and on any portion of the line, and

    • (ii) in so far as necessary to provide service to the line, to run and operate its trains over and on any portion of any other portion of the railway of the company against which the order is made but not to solicit traffic on that railway, to take possession of, use or occupy any land belonging to that company and to use the whole or any portion of that company’s right-of-way, tracks, terminals, stations or station grounds.

• Marginal note:Right of action on default

  (5) Every person aggrieved by any neglect or refusal of a company to fulfil its service obligations has, subject to this Act, an action for the neglect or refusal against the company.

• Marginal note:Right of action not limited

  (5.1) If an arbitrator’s decision made under section 169.37 includes a term with respect to an amount described in paragraph 169.31(1)(c.1), the term does not limit the right to claim an amount of compensation in an action under subsection (5).

• Marginal note:Company not relieved

  (6) Subject to the terms of a confidential contract referred to in subsection 113(4) or a tariff that sets out, in accordance with subsection 136.4(1), terms established in a long-haul interswitching order, a company is not relieved from an action taken under subsection (5) by any notice, condition or declaration if the damage claimed in the action arises from any negligence or omission of the company or any of its employees.