Most Canadian provinces have specific legislation dealing with
procedural requirements that must be followed when bringing
lawsuits against the Crown. In Nova Scotia, that legislation is the
Proceedings Against the Crown Act ("PACA").
Exactly what constitutes a "proceeding against the Crown"
is broad, and includes claims made by set-off or counterclaim. Even
where the Crown initiates a lawsuit, PACA will apply if the
defendant countersues or defends on the basis that it owes the
Crown less due to a set-off (i.e. because the Crown owes the
defendant something as well).
One of the restrictions under PACA is that a proceeding against
the Crown cannot be conducted by way of a jury trial. Recently, in
Attorney General of Nova Scotia v. Scott Mattatall (2013),
the Supreme Court of Nova Scotia was asked to determine whether a
jury election can be made where the Crown brings a lawsuit against
a defendant, and no counterclaim or set-off claim is made.
