10 Mar 2023
Giannina Velasco v. Canada Revenue Agency
Background:
- Situation: Giannina Velasco applied for Employment Insurance (EI) benefits after losing her job due to a work shortage on March 17, 2020.
- EI Emergency Response Benefits (ERB) Payment: Velasco received an advance payment of $2,000 for EI ERB, followed by seven weeks of benefits.
- Overpayment Notification: The Commission determined that Velasco was entitled to only seven weeks of EI ERB, not the 11 weeks paid (including the advance). Consequently, the Commission issued a Notice of Debt for the $2,000 overpayment.
Legal Proceedings:
- Reconsideration Request: Velasco requested a reconsideration of the overpayment decision.
- Commission's Decision: The Commission declined to reconsider, stating it lacked the authority to do so, as the issue concerned debt repayment, not the Commission’s decision.
- Judicial Review Application: Velasco sought judicial review, arguing she should not repay as she never consented to receive ERB over regular EI benefits and was unaware of the repayment obligation.
Court's Analysis & Judgment:
- Decision Unreasonable: The Court found the Commission’s decision to be unreasonable, lacking a coherent rationale, and thus set it aside.
- Reconsideration Requirement: The Court emphasized that the Commission must reconsider its decision upon request under Section 112 of the Employment Insurance Act, which was applicable in this case.
- Outcome: The application for judicial review was granted. The case was remitted for reconsideration by a different officer of the Commission.
- Costs: No costs were awarded for this application.
Key Legal Principle:
- The Court emphasized the importance of reasonableness and intelligibility in administrative decisions, especially when it concerns the reconsideration of decisions related to overpayment and debt under the Employment Insurance Act.