Summary: Flying E Ranche Ltd. represented Canadian farmers in a class action seeking damages exceeding $8 billion due to losses from Bovine Spongiform Encephalopathy (BSE), known as mad cow disease, between 2003 and 2008. The trial judge dismissed the claim based on Section 9 of the Crown Liability and Proceedings Act, which bars claims against the Crown when compensation has been paid or is payable from government funds related to the claim.

Key Points:

• BSE Background: BSE, first identified in the UK in 1986, led to extensive cattle disease and was transmitted through feed containing ruminant-derived protein. Canada took preventive measures, including import bans and later feed bans.
• Canadian Impact: The first Canadian BSE case was detected in 2003, leading to significant trade impacts and economic losses due to border closures, primarily with the US.
• Government Response: Numerous government programs provided financial support to affected farmers, aiming to mitigate the economic impact of BSE. These programs were at the core of the Crown's defense under Section 9.
• Court Ruling: The Court of Appeal upheld the dismissal, agreeing that the government programs constituted compensation under Section 9, barring the claim.

Outcome: The appeal was dismissed. The court confirmed that the payments made to farmers under government programs for losses due to BSE were a form of compensation, thus barring further claims against the Crown regarding these losses. Costs were awarded to the respondent in the amount of $50,000.