Royal Bank of Canada v. The King
Encyclopedia
Royal Bank of Canada v. The King, [1913] A.C. 212 is a notable Canadian constitutional decision of the Judicial Committee of the Privy Council
where the Council limited the province's ability to create laws in relation to extraprovincial contractual rights.
The Alberta provincial government passed a law to expropriate the bonds from a London railway company kept in an Albertan branch of the Royal Bank of Canada
on the basis that the company had defaulted on the construction of a railway.
The Council held that the law was ultra vires
the province's law-making powers. The Council noted that the right to appropriate the bond would only be valid where the Royal Bank of Canada was headquartered and where the bonds were deposited. The Council incorrectly identified Quebec as the province where the bonds were deposited when in fact it was Alberta. Consequently, the Council reasoned that Alberta was denying Quebec from recovering any of the assets and so the law was unconstitutional.
Judicial Committee of the Privy Council
The Judicial Committee of the Privy Council is one of the highest courts in the United Kingdom. Established by the Judicial Committee Act 1833 to hear appeals formerly heard by the King in Council The Judicial Committee of the Privy Council (JCPC) is one of the highest courts in the United...
where the Council limited the province's ability to create laws in relation to extraprovincial contractual rights.
The Alberta provincial government passed a law to expropriate the bonds from a London railway company kept in an Albertan branch of the Royal Bank of Canada
Royal Bank of Canada
The Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
on the basis that the company had defaulted on the construction of a railway.
The Council held that the law was ultra vires
Ultra vires
Ultra vires is a Latin phrase meaning literally "beyond the powers", although its standard legal translation and substitute is "beyond power". If an act requires legal authority and it is done with such authority, it is...
the province's law-making powers. The Council noted that the right to appropriate the bond would only be valid where the Royal Bank of Canada was headquartered and where the bonds were deposited. The Council incorrectly identified Quebec as the province where the bonds were deposited when in fact it was Alberta. Consequently, the Council reasoned that Alberta was denying Quebec from recovering any of the assets and so the law was unconstitutional.