The Federal Court of Canada, which succeeded the Exchequer Court of Canada in 1971, was a national court of Canada that had limited jurisdiction to hear certain types of disputes arising under the federal government's legislative jurisdiction. Originally composed of two divisions, the Appellate Division and the Trial Division, in 2003 the court was split into two separate courts, the Federal Court and the Federal Court of Appeal.
The court used facilities at the Supreme Court of Canada Building as well as Thomas D'Arcy McGee Building and registry office at 90 Elgin Street.
Prior to Confederation, there was no court that had jurisdiction across British North America. The Fathers of Confederation agreed that the provinces would keep their existing court systems, but the new federal government would have the power to create a federal court with jurisdiction across the country. This power was set out in s. 101 of the British North America Act, 1867 (now the Constitution Act, 1867):
<blockquote>101 The Parliament of Canada may, notwithstanding anything in this Act, from Time to Time provide for the Constitution, Maintenance, and Organization of a General Court of Appeal for Canada, and for the Establishment of any additional Courts for the better Administration of the Laws of Canada.</blockquote>
It took eight years to establish the planned federal court. Prime Minister John A. Macdonald made several attempts between 1869 and 1873 to create a national court under the powers granted to Parliament under s. 101 of the Constitution Act, 1867. These early attempts did not pass Parliament, due to concerns over jurisdiction, particularly because the early proposals would have established a federal Supreme Court exercising both original (trial) jurisdiction and concurrent appellate jurisdiction potentially in conflict with existing courts administered by the provinces.
In 1875, the Liberal government of Prime Minister Alexander Mackenzie passed The Supreme and Exchequer Court Act which established both the Supreme Court of Canada and the Exchequer Court. The Exchequer Court was primarily a court for revenue claims involving the federal government, modelled on the Court of Exchequer in England, both in name and in jurisdiction.
The Exchequer Court did not originally have its own separate judges. Initially, the judges of the Supreme Court were also the judges of the Exchequer Court. It was not until 1887 that the Exchequer Court received its own judge. As time passed, the number of judges was increased and the jurisdiction of the Exchequer Court was expanded. Eventually, in 1971 the federal Parliament created the Federal Court, replacing the Exchequer Court.
In 1971, the Exchequer Court was continued as a new court, the Federal Court of Canada. The new court consisted of two divisions: the "Federal Court – Trial Division" and the "Federal Court – Appeal Division". The new court inherited the jurisdiction of the Exchequer Court, and gained jurisdiction over judicial review of the decisions of federal boards, commissions and agencies.
On July 2, 2003, the court was split into two separate courts, with the "Trial Division" continued as the Federal Court and the "Appeal Division" continued as the Federal Court of Appeal. That is the current structure for the federal courts.
The court consisted of a first-level trial court, known as the Federal Court of Canada – Trial Division, and an appellate Court, known as the Federal Court of Canada – Appeal Division (also referred to as the Federal Court of Appeal).
The Trial Division had jurisdiction to hear judicial review of decisions of federal boards and tribunals, including most immigration matters, as well as jurisdiction in admiralty, intellectual property, and disputes involving the federal government.
The Appeal Division had jurisdiction to hear appeals of decisions of the Trial Division, as well as to determine applications for judicial review of decisions made by specific boards and tribunals, set out in section 28 of the Federal Court Act. Decisions of the Appeal Division could be appealed to the Supreme Court of Canada, but only if leave (permission) was granted by either court.
The Federal Court Act provided that juries were not to be used, so all matters in the Trial Division were decided by a single judge. Some pre-trial steps such as motions were decided by prothonotaries, a role similar to a master in other courts. The judges and prothonotaries were appointed by the governor in council, namely the governor general of Canada acting on the advice of the federal Cabinet.
Unlike the general courts set up by each province, matters could not be brought before the Federal Court of Canada unless a law explicitly allowed the proceeding. The docket of the court primarily consisted of judicial reviews of immigration, intellectual property, and federal employment disputes. The court could also deal with incidental aspects of a dispute that fell outside its jurisdiction if the primary dispute was within its jurisdiction.
The court was a national court so trials and hearings occurred throughout Canada. Any orders rendered by the court were enforceable in all the provinces and territories. This contrasts with the provincial superior courts which are organized by each province and require additional steps to enforce decisions in other provinces.
The Federal Court of Canada gained the jurisdiction to hear judicial reviews from federal agencies and tribunals. With respect to maritime jurisdiction, the Trial Division was declared to have:
Until 1976, there was substantial judicial support for the view that Parliament could give a federal court jurisdiction over any matter (even a matter not regulated by federal statute law), on the basis that "the Laws of Canada" meant not only federal statutes, but provincial ones as well. However, in Quebec North Shore Paper Co. v. Canadian Pacific, the Supreme Court of Canada rejected this position, as:
The judges of this court are listed below.