# 2013-021 Pay and Benefits, Education Allowance, Promissory Estoppel

Case Summary

F&R Date: 2013–05–21

The grievor was posted outside Canada for an anticipated period of three years; one of his dependents was enrolled in a private residential school in British Columbia. The grievor ultimately returned to Canada a year earlier than expected and was posted to Ottawa. He elected to leave his dependent at the same private school for the final year of high school. The grievor was denied reimbursement of education allowances (tuition fees) for his dependent's final year.

The Board had to determine whether the decision to deny the grievor reimbursement of tuition fees was justified and in accordance with policy and, whether the grievor was entitled to reimbursement for boarding and lodging expenses for the same period.

The Director General Compensation and Benefits (DGCB) advised the grievor that his tuition fee expenses could no longer be covered under the Foreign Service Directives (FSD) 34 nor by the Compensation and Benefits Instructions (CBI) Chapter 12 once he became aware that he was being posted back to Canada. With regard to the tuition fees, the Board agreed that once the grievor was posted back to Canada, FSD 34 and CBI Chapter 12 no longer applied to his situation. Accordingly, the Board found that the decision to deny the grievor reimbursement of tuition fees was justified and in accordance with policy.

The DGCB also determined that although the grievor's situation did not fall within the parameters of CBI Chapter 12, it fell within the intent of the policy. On that basis, the DGCB determined that non-resident school fees and board and lodging expenses for a maximum of ten months of full-time attendance could be reimbursed. The Board did not agree with the DGCB decision and pointed out that the CF does not have the authority to change or ignore the conditions found in CBI Chapter 12. As a result, the DGCB's decision to use and interpret CBI Chapter 12 in a manner to allow reimbursement of the boarding and lodging expenses for a member posted from abroad, as opposed to within Canada, was unjustified and not in accordance with Treasury Board policy.

However, the Board also considered that the doctrine of promissory estoppel, a common law equitable doctrine, was applicable in this case. Based on the evidence on file, the Board found that the CF was estopped from recovering the grievor's overpayment because the CF and its representatives made erroneous representations to the grievor, who then relied on them to his detriment.

The Board recommended that the Chief of the Defence Staff deny the grievance but that he direct that no recovery action be taken as it pertains to the boarding and lodging expenses paid to the grievor for the graduation year of his dependent.

CDS Decision Summary

CDS Decision Date: 2014–07–22

Case withdrawn at Final Authority Level.