Judgments

Decision Information

Decision Content

T-4178-78
Joseph Apsassin, Chief of the Blueberry River Indian Band, and Jerry Attachie, Chief of Doig River Indian Band, on behalf of themselves and all other members of the Doig River Indian Band, the Blueberry River Indian Band and all present descendants of the Beaver Band of Indians (Plaintiffs)
v.
The Queen in right of Canada as represented by the Department of Indian Affairs and Northern Development and the Director of the Veterans Land Act (Defendant)
INDEXED AS: APSASSIN V. CANADA (DEPARTMENT OF INDIAN AFFAIRS AND NORTHERN DEVELOPMENT)
Trial Division, Addy J.—Vancouver, January 12-15, 20-22, 26-30, February 2-6, 9-13, 16-19, 23-27, March 9-12, 23-27; Ottawa, November 4, 1987.
Native peoples — Lands — Title to former Indian reserve and mineral rights therein — Effect of surrender of mineral rights and validity of subsequent surrender of reserve Whether full, free and informed consent given by Indians — Formalities — Nature of Indians' title to reserve land — Nature of fiduciary relationship between Crown and Indians, and of Crown's duty thereunder — Validity of transfer of reserve land by Department of Indian Affairs to The Director, The Veterans' Land Act — Inclusion of mineral rights in transfer — Breach of fiduciary duty by Department with respect to sufficiency of sale price — Director having neither duty nor unfettered power to transfer lands or mineral rights back to Indians — Under original treaty setting aside reserve, Indians not entitled, after surrender of reserve, to same number of acres of reserve land.
Constitutional law — Charter of Rights — Life, liberty and security — Charter unavailable to challenge B.C. Limitations Act s. 8 as not applying to interest in or damages pertaining to disposal of property (surrender and transfer of Indian reserve land) — Charter not retrospective — S. 7 referring to bodily wellbeing of person, not extending to protection of property Limitation period applicable to all residents of province not offending principles of fundamental justice.
Constitutional law — Charter of Rights — Equality rights — B.C. Limitations Act s. 8 barring action challenging validity of surrender and transfer of Indian reserve land — S. 8 not contrary to Charter s. 15 as equality rights guarantee provid ing for similar treatment for persons similarly situated, not for identical treatment for all regardless of circumstances — S. 15
not requiring identical laws in all provinces as not meant to destroy federalism.
Bill of Rights — Equality before the law — B.C. Limita tions Act s. 8 not contrary to Bill of Rights s. 1(b) — No requirement under Bill of Rights for Parliament to enact uniform laws throughout country — Limitations differences from province to province not constituting discrimination.
Bill of Rights — Due process — Limitation provisions of general application, as in B.C. Limitations Act, not denial of due process — Ultimate limitation period not denying right to litigate nor right of access to court — Merely imposing time limitation for commencing action.
Practice — Limitation of actions — Pursuant to Federal Court Act s. 38, British Columbia law on prescriptions and limitations applicable — Action brought after expiration of ultimate limitation period of 30 years — Limitation provisions of Act prevailing over provisions in other Acts.
Practice — Evidence — Commission evidence — Videotap ing — Recommendations as to how to film witnesses, how judge should view videotape, use of sound — Recommendation Court consider videotaping testimony at trial — Inadequacy of transcripts.
Practice — Evidence — Commission evidence — Interpret ers — Interpreter should translate questions and answers word for word, not merely substance of conversation with witness Commission hearings should be conducted in presence of legally qualified and experienced persons, such as judge or prothonotary, familiar with rules of evidence and courtroom procedure.
Indian Reserve No. 172 (I.R 172), consisting of 18,168 acres, was set aside for the plaintiff Bands in 1916, pursuant to "Treaty 8", the validity of which is admitted. In 1940, the plaintiff Bands surrendered the mineral rights under I.R. 172, for leasing, to the Department of Indian Affairs (D.I.A.). The validity of this surrender is not disputed. In 1945, the whole reserve was surrendered to the D.I.A. In 1948, the D.I.A. transferred I.R. 172 to The Director, The Veterans' Land Act for the sum of $70,000 and the Director subsequently disposed of parts of that land, including mineral rights, to individual veterans and others. In 1976, there was a major oil find on I.R. 172. This action centres around title to I.R. 172 and the mineral rights under that land.
The plaintiffs allege (1) that between 1916 and 1945, the defendant was guilty of several acts and omissions which constituted negligence and breaches of its fiduciary obligations towards them in allowing unauthorized land use and improper provincial regulation; (2) that the 1945 surrender was void or voidable; (3) that the defendant was guilty of fraud in securing
the Bands' consent to the 1945 surrender; (4) that the defen dant's acceptance of the 1945 surrender was void because it did not conform to section 51 of the Indian Act; (5) that the 1948 transfer to the Director did not conform to section 54 of the Indian Act; (6) that the 1948 transfer was void with respect to the mineral rights since they were never surrendered for sale and since the surrender did not conform to section 54 of the Indian Act and section 41 of the Dominion Lands Act; (7) that in transferring the land in 1948 to the Director, the defendant breached its fiduciary duties and acted fraudulently; (8) that since 1948, the defendant and the Director acted in breach of their fiduciary duty and fraudulently with respect to the miner al rights; (9) that all transfers of mineral rights to the Director since 1952 were void as they did not meet the requirements of the Indian Act.
The plaintiffs claimed a declaration that the 1945 surrender and the 1948 transfer were null and void regarding 1.R. 172 as a whole or, at least, regarding the mineral rights. They also sought a declaration that they continue to be entitled, pursuant to Treaty 8, to the same number of acres of reserve land as was originally set aside for them.
The defendant pleaded that the action was statute-barred. The plaintiffs replied that limitations could not run against them in view of the defendant's continuing fraud and breaches of fiduciary duties. They also questioned the validity of sections 8 and 9 of the B.C. Limitations Act under the Charter and the Bill of Rights.
Held, the action is dismissed.
A—Videotaped commission evidence. The videotaped evi dence of seven witnesses had to be reviewed for accuracy because it had not been obtained properly, the interpreters being advised in each case of the substance of the information counsel wished to obtain and reporting the net result of the conversation with the witness. The videotape should give a direct frontal close-up of the witness' face. It should include full sound recording. At trial, the monitor should be placed in front of the judge. Whenever possible, commission evidence should be taken before a legally qualified and experienced person. It might be worthwhile to consider whether the Rules of the Court should provide for the videotaping of oral testimony at certain trials, as an adjunct to the normal transcription services. Transcripts can be misleading and considerable technical advances had recently been made in videotaping and sound recording.
B—Nature of title, relationship and duty. It had to be stated, at the outset, that there is little doubt that, in the 1940's, the plaintiff Bands did not possess the required skills to engage in
any financial planning or budgeting or to generally manage their affairs from a financial standpoint.
It is established that the Indians' interest in real property is not a legal property interest but merely a "personal and usufructuary interest." The Indians' interest is inalienable except upon surrender and places upon the Crown the equitable fiduciary obligation, enforceable at law, to deal with the land for the benefit of the Indians. This obligation is subject to principles very similar to those which govern the law of trust concerning, for example, the measure of damages for breach. There is no special fiduciary relationship or duty owed by the Crown with respect to reserve lands previous to surrender nor after the surrendered lands have been transferred. Except for certain restrictions in the Indian Act, Indians are not to be treated at law as if they were not sui juris. However, when advice is sought or proferred, there exists a duty on the Crown to take reasonable care. The onerousness of that duty will vary according to the degree of awareness or sophistication on the part of the Indians. And where there does exist a true fiduciary relationship, as in the case at bar following the 1945 surrender, the Crown must exercise the same high degree of prudence and care as in the case of a true trust.
The portion of the reasons dealing with evidence on the mineral rights has been summarized in an Editor's Note. Based on that evidence, there was no breach of the Crown's fiduciary duties towards the plaintiffs. The Crown's officers, servants or agents could not reasonably be expected to have anticipated, in 1948 or previously, that there would be any real value attached to potential mineral rights under I.R. 172 or that there would be any reasonably foreseeable advantage in retaining them.
C—Treaty 8. In 1950, after surrender and disposal of I.R. 172, which comprised 18,168 acres, the plaintiffs received three new reserves comprising 6,194 acres. The plaintiffs claim to be entitled, under the Treaty, to the difference, 11,974 acres. However, even the most liberal interpretation leads to the inevitable conclusion that once the Crown has laid aside as a reserve the required amount of land, the obligation of the Crown pursuant to the Treaty has been fulfilled insofar as reserve land is concerned. There is no subsisting right, after proper surrender and disposal of the reserve, to an area of land equal to the original acreage set aside pursuant to the Treaty.
D-1940 and 1945 surrenders. As to whether the 1945 surrender included the mineral rights which had been surren dered in 1940, the rule is that when, as here, there is no restriction or reservation expressed in the description of the property granted or ceded, all of the property mentioned, whether it be real or personal, and all interest in that property, whether it be legal, equitable or usufructuary, is presumed to be the subject-matter of the grant.
The 1940 surrender did not sever the mineral rights from the Indians' other interests in I.R. 172. The 1940 surrender was not a surrender of "a portion of" the reserve as defined in para-
graph 2(e) of the Indian Act but only of a right in a part of the whole reserve. Mineral rights could not therefore be considered "Indian lands" which could not be surrendered, and the 1940 surrender, with its trust for lease, did not render the mineral rights incapable of any other type of alienation except by means of lease even if both parties agreed to it.
E—Breaches of duty between 1916 annd 1945. With respect to the alleged acts of negligence and breaches of fiduciary duty between 1916 and 1945, there was no legal duty upon the Department to actively police the reserves nor to interfere with legitimate provincial legislation of general application merely because it happened to affect the Indians. Furthermore the claims were statute barred.
F-1945 Surrender. The decision to accept the surrender was an operational rather than a policy decision and, as such, it is reviewable.
Based on the available evidence, the members of the Band fully understood and freely consented to the surrender of I.R. 172 in September 1945. There was no evidence that the surren der meeting was not summoned in accordance with subsection 51(1) of the Act. And, applying subsection 31(1) of the Inter pretation Act, the person who held the surrender meeting was duly authorized pursuant to subsection 51(1) of the Act.
Since subsection 51(3) of the Act was merely directory and not mandatory, non-compliance with the formalities provided for therein, had such non-compliance been proven, would not have rendered the surrender null and void.
G-1948 transfer to The Director, The Veterans' Land Act. The argument that since the 1948 transfer is silent as to minerals, it does not have the effect of transferring them cannot be sustained at law: unless an interest is specifically withheld, and absolute conveyance of land includes all interests except precious metals.
While there was no evidence of fraud at the time of the 1948 transfer, there was a breach of fiduciary duty in that the defendant has not discharged the onus of establishing that a full and fair price was obtained in 1948. That claim, however, was statute barred.
The Director, The Veterans' Land Act did not hold the lands in trust for the Indians. Nothing in the Act provides for such a trust. Nor were the mineral rights reserved from all sales as they had been previously by statute. Furthermore, the Act provides that the Director may hold and transfer property only for the purposes of the Act. There is no power, without consent of the veteran concerned, to reconvey lands or any mineral rights to the Crown for the benefit of Indians or to any other person.
H—Alleged breaches since 1948. While the defendant did not obtain mineral rights to the replacement reserves, there is no evidence that it undertook to do so, nor did it have a duty to do so. Nor was there any duty or promise to obtain the same
acreage of land in the new reserves as was surrendered in I.R. 172.
I—Limitations. Pursuant to section 38 of the Federal Court Act, the Limitations Act of British Columbia applies in this case. The statement of claim in this case was issued in Septem- ber 1978, five and one half months beyond the ultimate limita tion period of thirty years from the time the cause of action arose—March 1948. No other legislation applies to override this limitations period.
The validity of section 8 of the Limitations Act cannot be challenged under section 7 of the Charter. The latter is not applicable as it relates to the protection of the person and to personal rights and freedoms and does not apply to interest in or damages pertaining to the disposal of property. Furthermore, the Charter, generally speaking, is not retrospective. And such a limitation period applicable to all residents of a province does not offend against the principles of fundamental justice.
The retrospective effect rule also applies to section 15 of the Charter. It does not provide for identical treatment for all regardless of circumstances. It is not discriminatory for the Crown to be subject to provincial limitation provisions like ordinary citizens. As far as civil law is concerned, section 15 does not require each province to enact the same laws, as this would be a denial of federalism and be destructive of the federal system itself.
Nor does section 8 of the Limitations Act violate paragraph 1(b) of the Bill of Rights. As in the case of the Charter, there is no requirement under the Bill of Rights for Parliament to enact uniform laws throughout the country. It has been recently decided that even where the matter falls within federal jurisdic tion, where federal law is silent on the subject, the provincial law where the cause of action arose and is being litigated is to be exclusively applied in determining the rights of the litigants. And there is no more discrimination contrary to paragraph 1(b) than under sections 7 or 15 of the Charter.
Section 8 of the Limitations Act does not violate the due proccss provision in paragraph 1(a) of the Bill of Rights. An ultimate limitation period does not deny the plaintiffs the right to litigate nor the right of access to the court. It merely imposes a time limitation within which the action must be commenced. The claim for insufficiency of the sale price to the Director in 1948 is therefore statute barred and also extinguished pursuant to sections 8 and 9 of the B.C. Limitations Act.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canada Evidence Act, R.S.C. 1970, c. E-10, s. 30. Canadian Bill of Rights, R.S.C. 1970, Appendix III, ss. 1(a),(b), 2.
Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.), ss. 7, 8, 15.
Constitution Act, 1867, 30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5] (as am. by Canada
Act 1982, 1982, c. 11 (U.K.), Schedule to the Consti
tution Act, 1982, Item 1), s. 91(24).
Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 38.
Federal Court Rules, C.R.C., c. 663, R. 494(1).
Indian Act, R.S.C. 1927, c. 98, ss. 2(e),(j), 4, 35, 36, 50
(as am. by S.C. 1938, c. 31,s. 1), 51, 54.
Indian Act, R.S.C. 1952, c. 149, s. 18(1).
Interpretation Act, R.S.C. 1927, c. 1, s. 31(/).
Laws Declaratory Act, R.S.B.C. 1948, c. 179, s. 2 (11).
Limitations Act, S.B.C. 1975, c. 37.
Limitations Act, R.S.B.C. 1960, c. 370.
Limitation Act, R.S.B.C. 1979, c. 236, ss. 3(3), 6, 7, 8, 9,
14.
Royal Proclamation, 1763, R.S.C. 1970, Appendix II,
No. 1.
The Department of Mines and Resources Act, S.C. 1936,
c. 33, s. 9(2).
The Dominion Lands Act, S.C. 1908, c. 20, s. 41.
The Soldier Settlement Act, 1917, S.C. 1917, c. 21.
The Soldier Settlement Act, 1919, S.C. 1919, c. 71, s. 57.
The Veterans' Land Act, 1942, S.C. 1942-43, c. 33, ss. 3
(as am. by S.C. 1946, c. 70, s. 1), 5(3).
Trustee Act, R.S.B.C. 1948, c. 345, s. 86(1).
Trustee Act, R.S.B.C. 1960, c. 390, s. 93(1).
Veterans' Land Act, R.S.C. 1970, c. V-4, s. 5(1),(3),(4).
CASES JUDICIALLY CONSIDERED
FOLLOWED:
Guerin et al. v. The Queen et al., [1984] 2 S.C.R. 335, reversing [1983] 2 F.C. 656; (1982), 143 D.L.R. (3d) 416 (C.A.).
APPLIED:
Kruger v. The Queen, [1986] 1 F.C. 3 (abridged); (1985), 58 N.R. 241 (C.A.); The Queen v. George, [ 1966] S.C.R. 267; Montreal Street Railway Company v. Normandin, [1917] A. C. 170 (P.C.); Melville (City of) v. Attorney General of Canada, [1982] 2 F.C. 3 (T.D.); Jasper Park Chamber of Commerce v. Governor General in Council, [1983] 2 F.C. 98 (C.A.); Attorney-General of British Columbia v. Attorney-General of Canada (1889), 14 App. Cas. 295 (P.C.); Reference re Saskatchewan Natural Resources, [1931] S.C.R. 263; The Queen v. Richard L. Reese et al., [1956] Ex.C.R. 94; Bera v. Marr (1986), 1 B.C.L.R. (2d) 1 (C.A.); Grabbe v. Grabbe, [1987] 2 W.W.R. 642 (B.C.C.A.); Davidson v. Davidson Estate, [1987] 2 W.W.R. 657 (B.C.C.A.); Smith, Kline & French Laboratories Limited v. Attorney General of Canada, [1986] 1 F.C. 274 (T.D.); R. v. Hamilton (1986), 57 O.R. (2d) 412 (C.A.); R. v. Burnshine, [1975]
1 S.C.R. 693; (1974), 15 C.C.C. (2d) 505; Algonquin Mercantile Corp. v. Dart Industries Canada Ltd., judg ment dated June 17, 1987, Federal Court of Appeal, A-692-86.
DISTINGUISHED:
St. Ann's Fishing Club v. The King, [1950] S.C.R. 211; Humphries v. Brogden (1850), 12 Q. B. 739; Algoma Ore Properties Ltd. v. Smith, [1953] 3 D.L.R. 343 (Ont. C.A.); Stoughton v. Leigh (1808), 1 Taunt. 402; 127 E.R. 889 (H.C. Ch.); Ex p. Jackson, [1925] 1 D.L.R. 701 (Alta. S.C., App. Div.); Berkheiser v. Berkheiser and Glaister, [1957] S.C.R. 387; Martyn v. Williams (1857), 1 H. & N. 817; 156 E.R. 1430 (Exch.); Earl of Lonsdale v. Lowther, [1900] 2 Ch. 687; Dorset Yacht Co. Ltd. v. Home Office, [1970] A.C. 1004 (H.L.); Anns v. Merton London Borough Council, [1978] A.C. 728 (H.L.); Kam- loops (City of) v. Nielsen et al., [1984] 2 S.C.R. 2; Toews v. MacKenzie (1980), 12 C.C.L.T. 263 (B.C.C.A.); Brusewitz v. Brown, [1923] N.Z. L.R. 1106 (S.C.); Tufton v. Sperni, [1952] 2 The Times L.R. 516 (E.C.A.); Allcard v. Skinner (1887), [1886-90] All E.R. Rep. 90 (E.C.A.); Lloyds Bank Ltd v Bundy, [1974] 3 All ER 757 (E.C.A.); R. v. Antoine (1983), 5 C.C.C. (3d) 97 (Ont. C.A.); Re McDonald and The Queen (1985), 51 O.R. (2d) 745 (C.A.); R. v. Konechny (1983), 10 C.C.C. (3d) 233 (B.C.C.A.); Morgentaler v. The Queen, [1976] S.C.R. 616; (1975), 20 C.C.C. (2d) 449; Curr v. The Queen, [1972] S.C.R. 889; Piercey v. General Bakeries Ltd.; The Queen in right of Newfoundland et al., Inter- venors (1986), 31 D.L.R. (4th) 373 (Nfld. S.C.).
CONSIDERED:
Xerox of Canada Ltd. et al. v. IBM Canada Ltd. (1977), 33 C.P.R. (2d) 24 (F.C.T.D.).
REFERRED TO:
St. Catherine's Milling and Lumber Company v. Reg. (1888), 14 App. Cas. 46 (P.C.); Smith v. The Queen, [1983] 1 S.C.R. 554.
AUTHORS CITED
Armour, Edward D. The Law of Real Property, 2nd ed. Toronto: Canada Law Book Company, 1916.
COUNSEL:
Leslie J. Pinder and Arthur Pape for
plaintiffs.
J. R. Haig, Q. C. for defendant.
SOLICITORS:
Mandell, Pinder & Ostrove, Vancouver and Pape & Salter, Vancouver, for plaintiffs.
Deputy Attorney General of Canada for defendant.
EDITOR'S NOTE
The Executive Editor has decided that His Lord ship's 121 page reasons for judgment herein should be reported as abridged. Some 31 pages have been deleted in the published report. Two portions of the reasons have been omitted. The first was a review of the testimony concerning the I.R. 172 mineral rights and the second, a review of the oral and documentary evidence on the ques tion of free informed consent to the 1945 surren der. No editor's note has been prepared in respect of the last-mentioned issue in that Addy J. has provided a summary of his findings of fact in that regard.
The following are the reasons for judgment rendered in English by
ADDY J.:
THE PLAINTIFFS:
As the style of cause indicates, the two Indian Chief plaintiffs are suing in their personal capacity and on behalf of the members of their respective Bands. Their right to represent all members of the Bands, including former members who are still alive, is undisputed. There is also an allegation in the statement of claim, which allegation is admit ted by the defendant, to the effect that the Chiefs represent all past and future members of their Bands. Although I entertain some very serious doubts as to the legal validity of any such claim, I refrain from making any finding on this issue, since it is not before me to be tried.
The members, whose ancestors for many centu ries lived as hunters and gatherers in the territory north of Fort Saint John, British Columbia, for some years had formed the Beaver Band which in 1962 was re-named the Fort Saint John Band. It included people known as Dunne-za or Beavers who spoke the Dunne-za or Beaver language and members ethnically known as Crees who spoke the Cree language. They are at times collectively referred to as "Dunne-za/Crees". The Fort Saint John Band was divided into 2 bands in 1977: the Doig River Indian Band and the Blueberry River
Indian Band who are presently based in 2 separate reserves, north of Fort Saint John.
THE ISSUES
The action centers around title to a former Indian reserve, the Moberley reserve (subsequently known as Indian Reserve No. 172 or I.R. 172), and especially around the mineral rights under that land.
There are issues pertaining to or arising out of:
1. A treaty known as "Treaty 8" signed in 1900 with the Beaver Band;
2. The setting aside in 1916 of I.R. 172 which consisted of some 18,168 acres;
3. A surrender in 1940 to the Department of Indian Affairs (D.I.A.) by the Band of petroleum, natural gas and mining rights under I.R. 172 for the leasing of those rights;
4. The validity of and the extent or effect of a further surrender to the D.I.A. of I.R. 172 in 1945;
5. The transferring of I.R. 172 in 1948 by the D.I.A. to The Director, The Veterans' Land Act for the sum of $70,000; and
6. The subsequent disposal of parts of that land including mineral rights by The Director, The Veterans' Land Act to individual veterans and others.
The validity of Treaty 8 and the surrender of 1940 is admitted but there is some dispute as to the interpretation of those documents as well as the legal effects flowing from them. There are many contentious matters pertaining to and arising out of I.R. 172. The claims and allegations of the plaintiffs may be briefly summarized as follows:
1. That between 1916 and 1945 the defendant was guilty of several acts and omissions which con stituted negligence and breaches of its fiduciary obligations towards them, in allowing unauthor ized use of lands in which the plaintiffs had an
interest and improper regulation of land use by the Province of British Columbia.
2. That the 1945 surrender of I.R. 172 was void or, in the alternative, voidable.
3. That by various acts and omissions, the defen dant acted both in breach of a fiduciary relation ship and also fraudulently in securing the consent of the Band to the 1945 surrender and in accepting the surrender.
4. That the defendant's acceptance of the 1945 surrender was void because it did not conform to section 51 of the Indian Act [R.S.C. 1927, c. 98].
5. That the defendant's transfer in 1948 to The Director, The Veterans' Land Act was void as it did not conform to section 54 of the Indian Act.
6. That, if the 1948 transfer was valid, it had no force and effect or was void regarding the mineral rights under I.R. 172, on the grounds that those rights were never surrendered by the Band for sale nor did the surrender meet the requirements of section 54 of the Indian Act and section 41 of The Dominion Lands Act, S.C. 1908, c. 20, section 1.
7. That in transferring the land in 1948 to The Director, The Veterans' Land Act the defendant was guilty of numerous breaches of its fiduciary duties towards the Band and, in addition, acted fraudulently.
8. That since 1948 the defendant and The Direc tor, The Veterans' Land Act as such, acted both in breach of their fiduciary duties to the plaintiff and fraudulently in respect of the mineral rights under I.R. 172.
9. That all transfers of mineral rights to The Director, The Veterans' Land Act since 1952 were void as they did not meet the requirements of the Indian Act [R.S.C. 1952, c. 149].
The plaintiffs claim a declaration that both the 1945 surrender and the 1948 transfer to the Direc-
tor are null and void and of no force and effect regarding I.R. 172 as a whole or, alternatively, that they are of no force and effect regarding the I.R. 172 mineral rights, and, in addition, a decla ration that the plaintiffs continue to be entitled, pursuant to Treaty 8, to 18,168 acres of reserve land. The plaintiffs also claim an accounting and damages under various heads.
The defendant denies all of the above claims and allegations of the plaintiffs and, in addition, pleads that the action is prescribed by various statutory limitation provisions to which I shall later refer.
With regard to limitations, counsel for the plain tiffs advanced the proposition that limitations could not even begin to run against their clients for many years following the surrender, as they had no knowledge that they could apply for any recourse before the courts because of their subordinate position with regard to the Department of Indian Affairs. It was also alleged by the plaintiffs that there had been, during the intervening years, a continuing fraud on the part of the defendant perpetuated on the plaintiffs as well as continuing breaches of the fiduciary duties owed to the plain tiffs. Because of the nature and possible effect of these allegations, counsel agreed that the question of when any limitations would begin to run could best be determined only after firm findings had been arrived at on these issues and would therefore have to be deferred until the end of the trial, after all relevant evidence had been adduced.
SEVERANCE OF LIABILITY AND DAMAGES
At the outset of trial, because of what appeared to be the very complex number of issues affecting liability and also because of the estimates by coun sel as to how long these matters would take to resolve, I ordered that the issues of liability and the quantum of damages be severed, the latter to form the subject matter of a reference, subject to
such directions as might be deemed advisable after the evidence as to liability had been determined.
LENGTH OF TRIAL
The trial, with 5 days being allocated for oral argument in addition to comprehensive written arguments, occupied 10 weeks of court time. The issues, although complex to some extent, were, in my view, unnecessarily further complicated by the adducing of a substantial amount of evidence with little or no relevancy or probative value. Both sides seemed to some extent committed to the very questionable practice of submitting evidence both oral and documentary when they did not appear to be convinced of its probative value at the time. The "short statement giving a concise outline of the facts" referred to in Rule 494(1) [Federal Court Rules, C.R.C., c. 663] involved some 186 num bered pages and took three and one half days to deliver; 150 documents, which eventually would become exhibits, were referred to therein. An opening statement should normally not take more than one half to one hour and, in complicated cases, 2 to 3 hours should suffice to inform the judge generally what the case involves since he must be assumed to be acquainted with the con tents of the certified record. Some allegations which apparently could never be established in evidence were maintained until the very end of the trial.
The tendering of massive details on the assump tion that this might help the court to more fully understand the background of the case, more often than not, serves to confuse the real issues and, far from facilitating the court's task, merely compli cates it unnecessarily.
DOCUMENTARY EVIDENCE
Counsel for the parties had jointly caused to be prepared a series of books containing some 916 documents, the authenticity of which would not be contested. Most of the documents produced as exhibits at trial were contained in these books. A few additional exhibits were also produced but authenticity was never an issue.
A serious misunderstanding arose however during the hearing regarding the purposes for which the documents might be used as exhibits.
In presenting the plaintiffs' case, their counsel tendered some 500 exhibits. Until the end of the seventh week of trial, the Court as well as counsel for the defendant, had been considering the evi dence on the basis that all documents being ten dered had been offered for all purposes including proof of the truth of the contents.
When the plaintiffs were about to close their case and the defendant had been requested, for the convenience of the Court, to furnish a list of the documents which they would eventually be submit ting as exhibits, counsel for the plaintiffs then made it known that they would be objecting to their production as proof of the facts mentioned therein unless the provisions of section 30 of the Canada Evidence Act [R.S.C. 1970, c. E-10] were complied with. Counsel for the defendant, how ever, stated that there had been an agreement that any of the documents contained in the book of documents could be used as evidence of the facts stated therein subject, of course, to normal con siderations of relevancy, weight, probative value, etc. It was at that time only, when the plaintiffs denied any such agreement that the Court and the defendant became aware of the fact that, with the exception of a couple of exhibits presented through witnesses, such as reports of the plaintiffs' experts, none of the exhibits in the plaintiffs' case had been tendered to establish the truth of their contents but that each and every one of them was tendered solely to establish either the state of mind of the writer or the course of conduct of the defendant or its agents. In order to make perfectly clear the limited purposes for which I will be considering the documents tendered in-chief on behalf of the plaintiffs, I quote from the transcript of the 28th of February 1987, as counsel for the plaintiffs were about to close their case (See Volume 30 of the transcript at pages 3951 and 3956):
MR. PAPE: I have no difficulty with answering your question, my Lord. The documents we've tendered are for the purposes I said.
THE COURT: Are what purpose?
MR. PAPE: Are for the purposes I said, that is to prove a course of conduct and to prove the state of mind of the person who wrote the document.
THE COURT: Only, solely?
MR. PAPE: That's correct, my Lord.
THE COURT: All right.
MR. PAPE: My Lord, as far as I know there is no document which we will ask you to take as evidence tending to prove the truth of its contents. Perhaps if I give a couple of examples of the kinds of documents—
THE COURT: Well as long as you make that statement you don't have to give examples.
MR. PAPE: Fine.
The announcement by the counsel for the plain tiffs regarding the purpose for which the docu ments had been tendered during the previous weeks was totally unexpected and could only be described as a bombshell, as it cast a completely different light on the case. The defendant request ed and was immediately granted a lengthy adjournment to prepare to meet the requirements of section 30 of the Canada Evidence Act and to decide which documents including those already submitted by the plaintiffs would be required to be tendered by it as to proof of the truth of contents.
During the argument on that issue it turned out that the plaintiffs had indeed, during the second week of trial, furnished to the Court and the defendant a 62 page document enumerating some 446 documents which they intended to submit as exhibits and referring to specific portions of these documents on which they wished to rely. At page 3 and in other sections of that list when referring to some specific documents there was a statement to the effect that the plaintiffs would be relying on the documents for the purpose of establishing intention of the writer and the course of conduct. There was no statement that no such documents could be relied upon to establish the truth of contents. More importantly however that limita tion directly contradicts in many ways how plain tiffs' counsel in their opening address stated that their case would be established. A written version
of the opening address was furnished to the Court and to the defendant before trial began. A cursory reading of the first 140 pages of that document revealed that over 100 documents were alluded to therein in support of various factual allegations other than state of mind or course of conduct.
It is equally important to note that, even in the written version of their final argument, exhibits which counsel for the plaintiffs, on the 28th of February, insisted had been produced for those two limited purposes, were in fact being referred to as proof of the matters mentioned in them e.g.: at page 11 of the argument, the statement of the commissioners in exhibit 1 is argued as being evidence that the Indians had no developed institu tions at the time; at page 27 of the argument, in order to prove that the potential of I.R. 172 was lost to the community, that lands to the North were cut off, that good lands for the re-establish ment of veterans was at a premium, etc., Exhibits 289 and 301 were referred to. These are but a few examples, and I cite them and refer to Mr. Pape's assertions of the 28th of February, for the sole purpose of making it abundantly clear that none of the exhibits submitted by the plaintiffs in-chief will be considered by me for any purpose, other than to show the state of mind and intention of the originator of the document or a course of conduct of the defendant or its agents, unless the document has been duly confirmed by a witness as being his own document or as being true or unless there has been a formal agreement on the record between counsel as to the truth of contents. This ruling, of course, does not apply to exhibit 896 which was admitted in rebuttal as to truth of contents or to exhibits such as 713 which, although originally submitted by the plaintiffs, were subsequently admitted on motion by the defendant as to proof of contents, nor would it apply to any other of the defendant's exhibits admitted for that purpose.
In some instances, during final argument, for the apparent purpose of establishing not merely the state of mind of the writer but the state of certain conditions and situations, counsel for the plaintiffs referred to opinions expressed in docu ments which he had insisted were not admitted for the purpose of establishing the truth of contents. It is difficult to understand the logic of how opinions referred to in such documents could be relied upon as evidence when the factual assertions do not so qualify.
Regarding the exhibits of the defendant and the purpose for which they will be considered as evi dence, they have been dealt with in an order which I rendered on the 20th of March 1987. To avoid further encumbering these excessively voluminous reasons for judgment, a copy of the aforesaid order is annexed hereto as Schedule "A" [reported at [1988] 3 F.C. 3].
VIDEOTAPED COMMISSION EVIDENCE
The evidence of 7 witnesses had been taken several years previously (i.e. between 1980 and 1982) pursuant to 3 orders of this Court, mainly because the witnesses were ill and getting very old at the time and it was therefore deemed preferable by both parties that their evidence be taken while they were still available and capable of testifying.
The videotaped evidence was taken before an official court reporter who acted as commissioner, the orders having stated that either a prothonotary of the court or an official court reporter could act as commissioner.
Five of the witnesses testified in their native language and an interpreter was used in each case. It is unfortunate that they not only appeared to lack any experience as legal interpreters but that they also were members of the plaintiff Indian Bands and therefore every bit as interested person ally in the outcome of the trial as their elders being interrogated. It is even more unfortunate that the questioning of these witnesses was not properly conducted by counsel. In each case the examina tion had merely begun when, in lieu of addressing
questions directly to the witness, they proceeded to address inquiries to the interpreter indicating to the latter the substance of the information they wished to obtain from the witness. The interpreter would then address the witness following which, on many occasions, lengthy exchanges between the two would occur. The interpreter would then turn to counsel conducting the examination and deliver in a very few words what he, in turn, considered to be the net result of each conversation. This method of proceeding is of course, totally improper and would never have occurred had the commission hearings been conducted in the presence of a judge or some other legally qualified person such as a prothonotary, possessing a proper knowledge of the rules of evidence and especially of court room procedure.
For the above reasons, after listening to and viewing some of the videotaped evidence, I became quite concerned as to possible inaccuracies in both the relaying of the inquiry by the interpreter to the witness and the interpretation of the substance of the replies into English. Upon inquiring from counsel for the parties whether, in the intervening years, anyone had taken the precaution of having the interpretations verified, I was quite surprised to hear that nothing had been done in this regard. I immediately demanded that the required steps be taken to ensure that, in the case of all videotaped commission evidence, where interpretation was involved, the English record represented at least the true substance of each reply.
The end result was that, following verification by other interpreters, counsel agreed that the interpretation of the commission evidence of one of the Indian witnesses was so inaccurate that it had to be discarded and they also requested that the record regarding another one of the witnesses be modified in certain places to reflect the true mean ing of the replies of the witness.
There, of course, still remains the fact that the trier of facts is entitled to hear the verbatim interpretation of all words spoken by a witness and to judge their substance and effect for himself and
not have them judged by an interpreter. However, since both counsel finally agreed as to the sub stance and since at least one of the witnesses was now deceased and some others are now too old or senile to testify, I am accepting the recorded trans lations of the evidence of those witnesses as accu rate for the purposes of the case at bar, subject to the modifications agreed upon by counsel.
The experience of listening to videotaped evi dence in lieu of viva voce evidence at trial has led to several observations and conclusions which pos sibly might be of some assistance to parties apply ing for an order for commission evidence of that type and to judges considering under which condi tions such applications should be granted.
In the first place, the camera, as was done in the case at bar, should be focused in such a way as to give a direct frontal close-up of the witness' face. For TV viewing at the trial it should be placed in front of the judge since he would normally, as I did, have before him a transcript of the evidence and thus would not be required to take notes. He is then, in my opinion, in an even better position to concentrate on, observe and therefore come to the required conclusions regarding the demeanour of the witness, all the voice inflections and generally the manner in which the questions are answered, than in the case of testimony received in a normal way from a witness testifying orally from the witness box. At trial a witness seldom faces the judge, as a person being interrogated naturally turns towards the questioner. However, it is much more tedious and trying to listen to videotaped evidence as it lacks the life and reality of oral evidence at trial and as the judge can exercise no control whatsoever over how it is adduced. Should improper, leading, hearsay or irrelevant questions be asked or answers given, he obviously is in no position to interrupt the flow of evidence and must, at a later date, decide what answers are to be disregarded. Should the record contain many such inadmissible answers from various witnesses in a lengthy case such as the present one, the task of dealing with them ex post facto can become unnecessarily tedious. For that reason, as well as for proper control of interpreted evidence as previ-
ously mentioned, it is my view that commission evidence be taken wherever possible before a legal ly qualified and experienced person who, in certain circumstances, might well be a judge.
In the case at bar, the taking of commission evidence was not controlled and counsel generally examined the witnesses as if they were conducting examinations for discovery of parties to the action. Finally, and perhaps most importantly, in the case of the witnesses who testified in the English lan guage, it became abundantly clear that in many instances, the transcript, although faithfully repro ducing the spoken words, often failed to convey to the reader the true meaning of and conclusions to be drawn from the witnesses' answers. One can well imagine the even greater discrepancies which occur when the text of the transcript is the product of an interpretation.
Although appellate tribunals have for many years quite properly adopted the principle that one must proceed very cautiously before relying on a transcript of testimony to vary or reverse a finding of fact resulting from oral evidence, the basic validity of that principle becomes crystal clear when one listens to and observes videotaped evi dence with the written text in hand. It also brings to light the obvious advantage of having video taped evidence at hand as part of the record where any question might arise on appeal as to the validity of a finding of fact in the context of certain answers of a witness. The spoken word and the visual impression are both preserved as part of the record to explain and at times to modify and even upset the conclusions that one might other wise come to by a mere reading of the transcript. Having read the transcripts previously, I was quite surprised to note the degree to which some of my original impressions as to the effects of the evi-
dence were either modified or completely changed upon viewing the actual videotaped recordings.
As Collier J. stated in the case of Xerox of Canada Ltd. et al. v. IBM Canada Ltd. (1977), 33 C.P.R. (2d) 24 (F.C.T.D.), at page 42:
It is almost trite to observe that no matter how gifted the Court reporter in recording words he cannot (and is forbidden to do so) record the pauses in answers, the hesitancy of a witness, the silent resistance to yielding the obvious, the demeanour and manner in exchanges with counsel, the tone of voice and the nuances of expression, facial and otherwise. Some of the illus trations (earlier set out) for my critical assessment may, poss ibly, seem unexceptional. But the print does not record the atmosphere of the arena at the particular moment.
In conclusion, it seems very obvious that all commission evidence should normally be video taped with full sound recording. Furthermore, having regard to the considerable technical advances recently made in this field and to the fact that both sound and video-recording are now com bined in one small portable camera, it might be worthwhile that, as an adjunct to the normal tran scription services, some consideration be given to provision being made in the Rulesçof the Court for videotaping oral testimony of certain trials. The true weight, probative value and effect of the testimony would then be preserved with all the important inflections, pauses, hesitations and atti tudes of the witnesses none of which are apparent in the arid transcripts, which in fact are at times so misleading.
TOPOGRAPHY
In order to better understand the evidence, the location in relation to I.R. 172 of certain places most frequently referred to, are described in Schedule "B" attached to these reasons. *
THE DUNNE-ZA CREE SOCIETY
An appreciation of the culture of the Dunne-za Cree, their way of life and degree of sophistication, as well as how the society was organized and functioned, is of some importance in determining many of the issues raised, such as how the surren-
* Editor's Note: The Schedules have been omitted.
der meeting of 1945 was in fact conducted, how it should have been conducted, whether the Crown owed any special duty to or stood in any special fiduciary relationship to the Dunne-za Cree, the extent of their comprehension and whether or not they consented to the surrender with sufficient knowledge of the basic relevant facts.
A considerable amount of testimony was heard on their way of life, culture and other related matters from the Indian witnesses themselves and other witnesses called both by plaintiffs and the defendant including an expert anthropologist called by the plaintiffs. It is not my intention to comment extensively on these matters, but to merely touch on some of the highlights. The evi dence of the anthropologist will be dealt with more fully at a later stage.
The Dunne-za Cree who, for some centuries, had been living in northeastern B.C. and were originally engaged exclusively in hunting, fishing and the gathering of berries, had also, for many years previous to the 1940s, added trapping as an integral part of their livelihood. Although they remained hunters and gatherers, trapping in fact had become the principal means of obtaining money or credit and therefore goods, clothing, amenities and supplies from the white man.
From 1930, the Provincial government of British Columbia required that all trappers, including Indians, confine their trapping activities to regis tered trap lines. By 1945, the Department of Indian Affairs had managed to obtain from B.C. the registration of several trap lines all situated together in a large area to the north and northeast of I.R. 172, for the exclusive use of the Dunne-za Cree. One further line was obtained in 1949. The various hunting, fishing, trapping and berry pick ing areas of the two Bands are indicated on maps filed at trial as Exhibits 919 to 928 inclusively. Although these maps show the areas exploited during 1978 and 1979, they appear, generally speaking, to represent approximately the same areas as those used in the 1940s. Although they hunted all year round, their trapping activities took place in the fall and winter and also extended
until the middle of May for beaver furs. They trapped beaver, muskrat, lynx, fisher, squirrel and other fur bearing animals and hunted such animals as bear, moose, deer, rabbit and porcupine as well as grouse and other game birds. They would gener ally eat the flesh of all animals trapped and hunted except lynx, marten and fisher.
They would all meet every summer for a few weeks in a summer gathering place where they would rest, visit, exchange information, play tames, engage in various activities and generally ;njoy and benefit from various social exchanges.
Their life was essentially a nomadic one. They hunted and trapped in small hunting groups of between 3 and 10 male members. The women also took part in the hunting and trapping activities. Each group recognized one Indian, generally the eldest or, at times, the most skilful hunter, as the leader. There were 7 such groups. They would follow their trap lines during the trapping season. During the remainder of the year, they would spend some time at their summer gathering place but most of the time gathering berries and looking for game in their various hunting areas. Some winter cabins were built along the various trap lines. In the summer they originally used tepees and, later on, tents.
In addition to the group leaders, there was in the 1940s a Chief of the Band, Chief Succona and also a Headman or Sub-Chief, one Joe Apsassin. Until approximately 1954, the Chiefs were appointed for life. Since then, they are elected pursuant to proce dures laid down by the Department of Indian Affairs. I find that, even when the Chiefs were appointed for life, they could nevertheless be removed if they were deemed to no longer be wise or good as Chiefs and another Chief could be chosen. The witness John Davis at first denied this but then subsequently admitted it upon being faced, on cross-examination, with his previous tes timony given on commission.
In the 1940s the Dunne-za Cree mixed very little with white society although white settlers were gradually moving north and their contacts with white trappers and with some of the farmers settling in the general area were becoming some what more frequent. They maintained contact with the Department of Indian Affairs through the Indian Agent whose office was situated in Fort Saint John. The Indian Agent would, throughout the year, visit the Indians from time to time and would also see them when they came to Fort Saint John to trade their furs and would also meet with them at treaty time wherever treaty money was to be paid.
There seems to be little doubt that, in the 1940s, the Dunne-za Cree did not possess the required skills to engage in any financial planning or budg eting or to generally manage their affairs from a financial standpoint. They had no true organized system of government or real law makers. They also lacked to a great extent the ability to plan or manage, with any degree of success, activities or undertakings other than fishing, hunting and trap ping. It seems that many of their decisions even regarding these activities, could better be described as spontaneous or instinctive rather than deliberately planned. The witness Johnson-Watson testified that, even during the years 1975 and 1978 when he was district manager for the Fort Saint John district office, he found that the Dunne-za Cree were greatly limited in the ability to manage the financial aspect of their affairs, that they were not successful farmers and that they still relied to a large extent on advice and guidance from the Department's staff. Most of the other bands were considerably more advanced in these areas. The society was individualistic, having to rely on one another and the members were not inclined to be competitive.
NATURE OF TITLE, RELATIONSHIP AND DUTY
The leading case pertaining to the nature of the interest of status Indians in lands and of the relationship existing between them and the Crown is, without a doubt, the case of Guerin et al. v. The Queen et al., [1984] 2 S.C.R. 335.
All of the judges recognized and reaffirmed that the Indians' interest in real property was not a legal property interest but merely a "personal and usufructuary interest", as laid down by the Privy Council in the case of St. Catherine's Milling and Lumber Company v. Reg. (1888), 14 App. Cas. 46, and recently approved by the Supreme Court in Smith v. The Queen, [1983] 1 S.C.R. 554.
In her reasons, concurred in by Ritchie and McIntyre JJ., Wilson J. stated that, although sub section 18(1) of the Indian Act [R.S.C. 1952, c. 149] did not per se create a fiduciary obligation on the part of the Crown, it did recognize the exist ence of such a relationship which has its roots in aboriginal title and also did acknowledge the his toric reality that Indians have a beneficial interest in reserves and that the Crown has a responsibility to protect it. The Crown does not, previous to surrender, hold the land in trust. However, upon surrender the fiduciary relationship which previ ously existed at large is crystalized into an express trust.
The Chief Justice [then Puisne Judge], whose reasons were concurred in by three of the Judges namely, Beetz, Chouinard and Lamer JJ., took a somewhat different view of the relationship.
The nature of the Indians' interest is that it is inalienable except upon surrender and places upon the Crown the equitable obligation, enforceable at law, to deal with the land for the benefit of the Indians. They agreed with Le Damn J., who had delivered the judgment in that case on behalf of the Federal Court of Appeal [[1983] 2 F.C. 656; (1982), 143 D.L.R. (3d) 416], that the Crown does not hold land in trust for the Indians after surrender. They did not agree that, at the time of surrender, the Crown's obligation crystallized into a trust either express or implied. They felt that upon unconditional surrender, the Indians' right in the land disappears. No property interest is trans ferred which could constitute the res of the trust nor is there a constructive trust created by the surrender. The Crown must however hold the sur rendered land for the use and benefit of the surren dering band and that obligation is [at page 387] "subject to principles very similar to those which govern the law of trusts concerning for example,
the measure of damages for breach". They also stated that, although the relationship does bear some similarity to an agency, it does not constitute an agency at law, as the Crown's authority to act is not based on contract and the band is not a party to the ultimate disposal of the land, which would be the case if there were an agency relationship.
After analyzing the effect of the Royal Procla mation, 1763 [R.S.C. 1970, Appendix II, No. 1], the reasons of the Chief Justice contained the following statement at page 383:
The purpose of this surrender requirement is clearly to interpose the Crown between the Indians and prospective pur chasers or lessees of their land, so as to prevent the Indians from being exploited. This is made clear in the Royal Procla mation itself, which prefaces the provision making the Crown an intermediary with a declaration that "great Frauds and Abuses have been committed in purchasing Lands of the Indi- ans, to the great Prejudice of our Interests, and to the great Dissatisfaction of the said Indians...."
It appears clear however that the special fiduci ary relationship arises upon surrender. The Chief
Justice states at page 382:
... it is also true, as will presently appear, that the interest gives rise upon surrender to a distinctive fiduciary obligation on the part of the Crown to deal with the land for the benefit of the surrendering Indians. These two aspects of the Indian title go together, since the Crown's original purpose in declaring the Indians' interest to be inalienable otherwise than to the Crown was to facilitate the Crown's ability to represent the Indians in dealings with third parties. The nature of the Indians' interest is therefore best characterized by its general inalienability, coupled with the fact that the Crown is under an obligation to deal with the land on the Indians' behalf when the interest is surrendered. Any description of Indian title which goes beyond these two features is both unnecessary and potentially mislead ing. [Emphasis added.]
Estey J., for his part, chose to dispose of the case strictly on the basis of an agency relationship, without considering the problem of whether there existed any trust, fiduciary relationship or pre- surrender duty.
I feel that the views expressed by the Chief Justice and the three Justices who concurred, are binding upon me and also appear to be the most plausible. This approach has since been followed by Urie J. in the appeal of Kruger v. The Queen, reported in [1986] 1 F.C. 3 (abridged); (1985), 58
N.R. 241 (C.A.), at pages 47-48 F.C.; 257 N.R., paras. 52 and 53. With the exception of any special obligations which might be created by treaty, there is no special fiduciary relationship or duty owed by the Crown with regard to reserve lands previous to surrender nor, a fortiori, is there any remaining after the surrendered lands have been transferred and disposed of subsequently. The duty from that moment attaches to the proceeds of disposition. There might indeed exist a moral, social or political obligation to take special care of the Indians and to protect them (especially those bands who are not advanced educationally, socially or politically) from the selfishness, cupidity, cun ning, stratagems and trickery of the white man. That type of political obligation, unenforceable at law, which the Federal Court of Appeal in the Guerin case (supra) felt should apply to the Crown following surrender (which concept was, of course, rejected by the Supreme Court), would be appli cable previous to surrender. This legal issue is of some importance in the present case since counsel for the plaintiffs argued that, previous to the sur render and also following final disposition of the lands the Crown was in breach of certain alleged fiduciary duties such as the duty to take action to prevent some white farmers from grazing cattle on certain parts of the reserve.
Although, as previously stated, three justices of the Supreme Court (Ritchie, McIntyre and Wilson JJ.) held that there existed, previous to surrender, a fiduciary duty regarding the lands, neither they nory anyone else at any time suggested that there might continue to subsist some general continuing legally recognized fiduciary duty regarding the lands, once they have been disposed of.
The Indian Act does impose certain restrictions on the actions and on the rights of status Indians. Except insofar as those specific restrictions might prevent them from acting freely, the Indians are not to be treated at law somehow as if they were not sui juris such as infants or persons incapable of managing their own affairs, which would cause
some legally enforceable fiduciary duty to arise on the part of the Crown to protect them or to take action on their behalf. They are fully entitled to avail themselves of federal and provincial laws and of our judicial system as a whole to enforce their rights, as they are indeed doing in the case at bar.
Finally, the provisions of our Constitution are of no assistance to the plaintiffs on this issue. The Indian Act was passed pursuant to the exclusive jurisdiction to do so granted to the Parliament of Canada by subsection 91(24) of the Constitution Act 1867, [30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5] (as am. by Canada Act 1982, 1982, c. 11 (U.K.) Schedule to the Consti tution Act, 1982, Item 1)]. This does not carry with it the legal obligation to legislate or to carry out programs for the benefit of Indians any more than the existence of various disadvantaged groups in society creates a general legally enforceable duty on the part of governments to care for those groups although there is of course a moral and political duty to do so in a democratic society where the welfare of the individual is regarded as paramount.
I must hasten to state however, that, wherever advice is sought or whenever it is proferred, regardless of whether or not it is sought or whether action is taken, there exists a duty on the Crown to take reasonable care in offering the advice to or in taking any action on behalf of the Indians. Wheth er or not reasonable care and prudence has been exercised will of course depend on all of the cir cumstances of the case at that time and, among those circumstances, one must of course include as most important any lack of awareness, knowledge, comprehension, sophistication, ingenuity or resourcefulness on the part of the Indians of which the Crown might reasonably be expected to be aware. Since this situation exists in the case at bar, the duty on the Crown is an onerous one, a breach of which will bring into play the appropriate legal and equitable remedies.
Where there does exist a true fiduciary relation ship such as in the case at bar, following the 1945 surrender, the same high degree of prudence and
care must be exercised in dealing with the subject- matter to which the fiduciary duty relates, as in the case of a true trust (refer Guerin et al. v. The Queen et al., supra, at page 376). The test to be applied is an objective one: good faith and a clear conscience will not suffice. It is also similar to a trust in another respect: where a trustee is in any way interested in the subject-matter of the trust, there rests upon him a special onus of establishing that all of the rights and interests both present and future of the beneficiary are protected and are given full and absolute priority and that the subject-matter is dealt with for the latter's benefit and to the exclusion of the trustee's interest to the extent that there might be a conflict. A similar onus rests on the Crown in the case at bar regard ing the equitable obligation which it owed the plaintiffs.
EDITOR'S NOTE
With the exception of a one-year exploration permit granted in 1940, no oil, gas or other miner al leases in respect of I.R. 172 were sought or granted until several years after the transfer to The Director, The Veterans' Land Act in 1948. By that year, no oil or gas field had been discovered closer than 340 miles away (Leduc) except for a small gas field at Pouce Coupé some 50 miles distant on the Alberta—B.C. border. As late as 1981 there, was no oil field in the Pouce Coupé area. No actual exploration for gas or oil was done on I.R. 172 prior to 1976. Nor did I.R. 172 lie within any of the 14 large areas of land in north eastern British Columbia targeted for oil explora tion in 1950 by a consortium of major oil companies.
It was in 1976 that there was a major oil find, in an unusual trap between rock layers, on l.R. 172. The opinion of the plaintiffs' expert, that "by the 1940s it would have been obvious even to a casual observer that the Peace River area of B.C. had attracted serious commercial interest for oil and gas", could not be accepted as the evidence did not support that conclusion. The opinion of the defendant's geologist was to be preferred. The excitement over the discovery at Leduc in 1947 was restricted to the areas around Edmon-
ton and Calgary and had little if any effect in British Columbia. In that year the question was not considered as being whether there was oil on I.R. 172 but whether there were any economic oil or gas accumulations anywhere in northeastern B.C. The opinion of the defendant's expert was not destroyed by the evidence that, in 1950, Sun Oil Company had acquired exploration rights in respect of I.R. 172. That company had risked a limited amount of money but nothing resulted therefrom for many years. There was evidence that the oil discovery, made a quarter century after 1947, was accidental and that the accumula tion was so unique that it could not have been anticipated in 1948. Until that discovery, the min eral rights under I.R. 172 would have carried a modest value. That opinion was supported by the fact that mineral rights were apparently not con sidered worthy of mention in the sale to the Director and in the land sales to veterans.
I find that, taking into account the fiduciary relationship then existing between Her Majesty the Queen and the plaintiffs, none of her officers, servants or agents, exercising due care, consider ation and attention in the discharge of those fiduciary duties, could reasonably be expected to have anticipated at any time during 1948 or previ ously that there would be any real value attached to potential mineral rights under I.R. 172 or that there would be any reasonably foreseeable advan tage in retaining them.
TREATY 8
The plaintiffs formally adhered to Treaty 8 in May 1900 (Exhibit 1 at trial). In 1916, pursuant to that Treaty, they obtained I.R. 172 which com prised 18,168 acres. The three new reserves which they eventually received in 1950 after surrender and disposal of I.R. 172, comprised some 6,194 acres. They claim to be entitled to the difference, that is 11,974 acres, of new reserves as a loss of the benefits of Treaty 8 because they allege that,
pursuant to its terms, the Crown was obliged to secure for them in perpetuity a fair portion of the ceded treaty territory.
There is no dispute over the fact that when the plaintiffs received the 18,168 acres, they received their full reserve land entitlement under the Treaty. The three paragraphs dealing with reserve land rights are to be found at the bottom of page 12 and top of page 13 of the Treaty. They read as follows:
And Her Majesty the Queen hereby agrees and undertakes to lay aside reserves for such bands as desire reserves, the same not to exceed in all one square mile for each family of five for such number of families as may elect to reside on reserves, or in that proportion for larger or smaller families; and for such families or individual Indians as may prefer to live apart from band reserves, Her Majesty undertakes to provide land in severalty to the extent of 160 acres to each Indian, the land to be conveyed with a promise as to non-alienation without the consent of the Governor General in Council of Canada, the selection of such reserves, and lands in severalty, to be made in the manner following, namely, the Superintendent General of Indian Affairs shall depute and send a suitable person to determine and set apart such reserves and lands, after consult ing with the Indians concerned as to the locality which may be found suitable and open for selection.
Provided, however, that Her Majesty reserves the right to deal with any settlers within the bounds of any lands reserved for any band as She may see fit; and also that the aforesaid reserves of land, or any interest therein, may be sold or otherwise disposed of by Her Majesty's Government for the use and benefit of the said Indians entitled thereto, with their consent first had and obtained.
It is further agreed between Her Majesty and Her said Indian subjects that such portions of the reserves and lands above indicated as may at any time be required for public works, buildings, railways, or roads of whatsoever nature may be appropriated for that purpose by Her Majesty's Government of the Dominion of Canada, due compensation being made to the Indians for the value of any improvements thereon, and an equivalent in land, money or other consideration for the area of the reserve so appropriated.
In The Queen v. George, [1966] S.C.R. 267, at page 279, we find the following statement of the law regarding an 1827 treaty:
We should, I think endeavour to construe the treaty of 1827 and those Acts of Parliament which bear upon the question before us in such manner that the honour of the Sovereign may be upheld and Parliament not made subject to the reproach of
having taken away by unilateral action and without consider ation the rights solemnly assured to the Indians and their posterity by treaty.
This same principle would certainly apply to Treaty 8.
Even the most liberal interpretation, in accord ance with the above mentioned principle in The Queen v. George of the above quoted treaty clauses, leads one to the inevitable conclusion that, once the Crown had laid aside as a reserve the required amount of land, the obligation of the Crown pursuant to the Treaty had been fulfilled insofar as reserve land is concerned. In other words, the second and third paragraphs are incon sistent with any perpetual obligation to continue providing reserve bases from time to time to the extent of that acreage, after a reserve has been legally and properly surrendered by the Band and subsequently disposed of and the proceeds of dis position have been set aside to the credit of or paid to the Band. There is no subsisting right on the part of the Band under the Treaty itself to receive, over and above the proceeds of disposition, addi tional reserve land up to the amount of acreage initially set aside pursuant to the Crown's treaty obligations.
Counsel for the plaintiffs relied on certain state ments of the report of the Commissioners for Treaty 8, dated 22nd September 1899. The report is annexed to the Treaty as part of Exhibit 1 at trial.
The Commissioners were responsible to negoti ate and obtain the adhesion of various Indian bands who were within the territory to be covered by the Treaty. It was argued by counsel that representations made by the Commissioners, as evidenced by the report, created the obligation to continue to supply reserve land to the extent men tioned in the Treaty, notwithstanding the fact that the land might have at one time been properly disposed of with the full consent of the Indians.
Because of the special relationship existing be tween the Crown and the Indians, the iiiiteracy of the latter and their dependency on the advice of
agents of the Crown, if there was in fact a special representation made to the Indians to that effect previous to signature, any such representation would be fully binding at law on the Crown, notwithstanding the fact that it might not have been incorporated in the formal terms of the Treaty.
The plaintiffs rely specifically on the underlined sentence of the following paragraph contained in the report of the Commissioners:
The Indians are given the option of taking reserves or land in severalty. As the extent of the country treated for made it impossible to define reserves or holdings, and as the Indians were not prepared to make selections, we confined ourselves to an undertaking to have reserves and holdings set apart in the future, and the Indians were satisfied with the promise that this would be done when required. There is no immediate necessity for the general laying out of reserves or the allotting of land. It will be quite time enough to do this as advancing settlement makes necessary the surveying of the land. Indeed, the Indians were generally averse to being placed on reserves. It would have been impossible to have made a treaty if we had not assured them that there was no intention of confining them to reserves. We had to very clearly explain to them that the provision for reserves and allotments of land were made for their protection and to secure to them in perpetuity a fair portion of the land ceded, in the event of settlement advancing. [Emphasis added.]
I simply cannot read into that statement the meaning which the plaintiffs urge that I attribute to it: the undertaking is to provide reserve lands when required by the Indians up to the amount stipulated. Once that land has been provided it will be theirs in perpetuity and they cannot then be deprived of it without their consent. That is the effect and substance of the statement. There is no mention whatsoever that, if a reserve is subse quently disposed of with the properly obtained consent of the Indians, new reserves will be fur nished. There might well exist in certain circum stances a political or moral obligation to do so, but not a legal one pursuant to Treaty 8. The provi sions of fresh reserve lands might also be one of the conditions imposed by the Indians or suggested and agreed upon by the Crown at the time of the surrender of a reserve but this would be the subject-matter of a new agreement and has noth ing to do with Treaty 8 nor is it dealt with either directly or indirectly in the Treaty or by the Commissioners in their report.
1940 SURRENDER
On the 9th of July, 1940 the plaintiffs surren dered to the Crown their mineral rights in I.R. 172 "in trust to lease the same to such person or persons and upon such terms as the Government of Canada may deem most conducive to our welfare and that of our people". That surrender document was executed by Succona and Joseph Apsassin, the same Chief and Headman who subsequently signed the 1945 surrender. The 1940 surrender was also signed by 3 councillors or "principal men".
Section 51 of the Act prescribes the require ments for a valid release or surrender of "Indian lands". The first part of that section reads as follows:
51. Except as in this Part otherwise provided, no release or surrender of a reserve, or a portion of a reserve, held for the use of the Indians of any band, or of any individual Indian, shall be valid or binding, unless the release or surrender shall be assented to by a majority of the male members of the band of the full age of twenty-one years, at a meeting or council thereof summoned for that purpose, according to the rules of the band, and held in the presence of the Superintendent General, or of any officer duly authorized to attend such council, by the Governor in Council or by the Superintendent General.
As previously stated, neither the validity of that surrender nor, presumably, the Indians' informed consent to it were, unlike the subsequent surrender of 1945, disputed. The latter was for sale or lease and the issue between the parties regarding the 1940 surrender of the mineral rights for lease was whether it resulted in the mineral rights not being included in the 1945 surrender or not being cap able of being included in it.
It is of some importance to remember that the title of the reserve lands remained in the Crown at all times. What might be termed the granting clause in the 1940 surrender effectively released to the King whatever usufructuary interests the plaintiffs had in "the petroleum and natural gas and the mining rights in connection therewith" pertaining to I.R. 172. The 1945 surrender, on the other hand, refers to the reserve itself and not to any particular limited right in the reserve and purports to release to His Majesty for ever the entire reserve. This, of course, can only mean whatever usufructuary interest or rights the Indi-
ans might have in the entire reserve. There is no restriction in the granting clause; the habendum clause mentions that it is "in trust to sell or lease ... and moneys received shall be placed to our credit in the usual way." When there is no restric tion or reservation expressed in the description of the property granted or ceded all of the property mentioned, whether it be real or personal and all of the interest in that property whether it be legal, equitable or usufructuary, is presumed to be the subject-matter of the grant. This is not only a rule of common law but one of common sense.
Assuming for the moment that full, free and informed consent was given by the plaintiffs to the 1945 surrender, one would normally conclude on the mere reading of those two documents and failing evidence to the contrary, that it was intend ed by.both parties on executing the 1945 surren der, that all of the property rights of the plaintiffs, including any property or other rights in minerals which they might possibly have were being surren dered for the purposes mentioned in that docu ment, that is, for sale or lease by the Crown for the benefit of the Indians. I find that, in interpreting the document pursuant to the principle mentioned in The Queen v. George (supra), the wording imposes, upon sale or absolute disposal of the reserve, the obligation on the part of the Crown to set aside for the plaintiffs not only whatever con sideration might be attributable to the usufructu- ary interests ceded, but also whatever part of the total consideration might arguably be attributable to the remainder of the absolute title. In any event, the absolute title, when subject to the burden of a perpetual unlimited usufructuary interest affecting the whole of the land involved, would have no real value.
Counsel for the plaintiffs argued however that, whatever meaning one might attempt to attribute to the 1945 surrender document, their clients' interests in the petroleum and natural gas rights were no longer capable at law of being surrendered by that document because they were no longer encompassed within the reserve: upon surrender in 1940 and acceptance of the surrender by Order-in-
Council they became "Indian lands" and were unavailable for re-surrender in 1945. The mineral rights were, by the 1940 surrender, severed from the Indians' other interest in I.R. 172.
The 1940 instrument of surrender was, pursuant to the requirements of subsection 51(4) of the Indian Act duly accepted by the Governor in Council in November 1941 by Q.C. 8939 (Exhibit 214 at trial).
The argument rests mainly on the definitions of "Indian lands" and "reserve" as they are found in the 1927 Act. Paragraph 2(e) of that act defines "Indian lands" as:
2. ...
(e) any reserve or portion of a reserve which has been surrendered to the Crown;
"Reserve" is defined in paragraph 2(j) as follows: 2....
(j) "reserve" means any tract or tracts of land set apart by treaty or otherwise for the use or benefit of or granted to a particular band of Indians, of which the legal title is in the Crown, and which remains set apart and has not been surrendered to the Crown, and includes all the trees, wood, timber, soil, stone, minerals, metals and other valuables thereon or therein;
Based on these definitions, counsel for the plain tiffs argued that, once the 1940 surrender was taken, the petroleum and gas became "Indian lands" and therefore no longer a reserve or a portion of a reserve and subject only to disposal as petroleum and natural gas rights on reserves pur suant to the 1930 Regulations, paragraph 1(a) of which provided that they could be leased at a rental of 50¢ per acre for the first year and then at $1 an acre for each subsequent year, if they had been released to His Majesty in trust in accord ance with section 50 of the Indian Act. They relied mainly on the case of St. Ann's Fishing Club v. The King, [1950] S.C.R. 211, at page 215, where Taschereau J. stated:
These lands in question were formerly part of a "Reserve" for the use or benefit of the Chippewa and Pottawatomie Indians of Walpole Island, and there is no doubt that they could not be originally leased in May, 1881, to the predecessors
of the appellant, unless they had been surrendered to the Crown. The effect of a surrender is to make a reserve or part of a reserve, "Indian Lands", defined in section 2 of the Indian Act, para. (k) ((i.e. 2(e) of the 1927 Act)) as "any reserve or portion of a reserve which has been surrendered to the Crown". [Emphasis and text in double parentheses added.]
They also relied on the following statement by Kerwin J. at pages 212 and 213 of the same case:
During the argument a question was asked as to whether a contention could be advanced that the surrender "to the end that said described territory may be leased to the applicants for the purpose of shooting and fishing for such term and on such conditions as the Superintendent of Indian Affairs may consid er best for our advantage", was really a surrender upon condi tion, and that if the condition were not fulfilled the land would revert. It was suggested in answer thereto that this would not assist the appellant and this was made quite clear by Mr. Jacket when he pointed to ss. 2(i) and (k) ((i.e. 2(j) & (e) of 1927 Act)), 19, 48 and 49 of the Indian Act, c. 81, R.S.C. 1906. If by some means the lands again became part of the reserve, then s. 49 ((i.e. see 51 of 1927 Act)) would apply and, except as in Part I otherwise provided, no release or surrender of a reserve or a portion thereof shall be valid or binding unless the release or surrender complies with the specified conditions. [Emphasis and text in double parentheses added.]
The St. Ann's Fishing Club case can clearly be distinguished from the present one as it involved the surrender of an entire island being a portion of a reserve while the gas and oil rights are merely an interest in the whole of the reserve. The 1940 surrender was not a surrender of "a portion of" the reserve as defined in paragraph 2(e) and as con sidered in the St. Ann's Fishing Club case but only of a right in a part of the whole reserve. Further more, in the Act, a reserve is contemplated as being an extent or stretch of territory which is defined therein as a "tract or tracts of land set apart ... and includes ... the trees, wood ... minerals, metals and other valuables". That simply means that the land of the reserve includes these objects and does not mean that a right or interest such as a leasehold interest in any of these objects constitutes a reserve. The inclusion of those objects in the term "reserve" might have been deemed preferable as the Indians do not have a title to the reserve but merely an usufructuary interest in it and there does not exist in such a case a common law rule which, as in the case of an absolute title, provides that all of these objects are necessarily
included in a fee simple unless specifically excepted.
Finally, there is nothing in the Indian Act pro hibiting the Band from changing its mind and giving approval and consent to another arrange ment with the Crown. Counsel for the plaintiffs were in fact arguing that, because of the trust for lease imposed on the Crown by the 1940 surren der, that surrender rendered the interests of the Indians in mineral rights incapable of any oher type of alienation except by means of lease even if both the Crown and the Indians subsequently agreed to a sale or to a further type of alienation as part of the whole reserve. This would lead to the absurd conclusion that these oil and gas rights would be forever incapable of sale although the remaining rights in the reserve could be surren dered for that purpose. In order to arrive at any such extraordinary conclusion, there would have to be a clear and unequivocal provision in the Indian Act to that effect. No such restraint on alienation exists therein. Legislative enactments do at times lead to absurdities, but, before accepting them, the Courts must, at the very least, insist that in such cases the intention of the legislators be not only clearly and unequivocally expressed but that the text be completely incapable of supporting any other interpretation.
Counsel for the plaintiffs, in their argument regarding severance of oil and gas rights from the remaining rights in the reserve and the conse quences of such severance, referred to several cases as well as to Armour on Real Property, 2nd Ed., 1916. The cases referred to were Humphries v. Brogden (1850), 12 Q. B. 739; Algoma Ore Prop erties Ltd. v. Smith, [1953] 3 D.L.R. 343 (Ont. C.A.); Stoughton v. Leigh, (1808), 1 Taunt. 402; 127 E.R. 889 (H.C. Ch.); Ex p. Jackson, [1925] 1 D.L.R. 701 (Alta. S.C., App. D.), at page 702; Berkheiser v. Berkheiser and Glaister, [1957] S.C.R. 387; Martyn v. Williams (1857), 1 H. & N. 817; 156 E.R. 1430 (Exch.), and Earl of Lonsdale v. Lowther, [ 1900] 2 Ch. 687. That jurisprudence does not affect the fundamental issue of whether the rights surrendered for lease in
1940 were legally capable of forming part of the 1945 surrender and of being eventually sold free of any trust for lease in favour of the plaintiffs originally created by the 1940 surrender.
I therefore find that the oil and petroleum rights surrendered for the purpose of leasing in 1940 were still at law capable of being surrendered with the remainder of the reserve in 1945 for either leasing or sale or both.
BREACHES OF DUTY BETWEEN 1916 AND 1945
The acts of negligence and of non-fraudulent breach of fiduciary duty alleged by the plaintiffs to have occurred between 1916 and 1945, in allowing unauthorized use of the lands in which the plain tiffs had an interest and also in allowing the Province of British Columbia to improperly regu late the use of certain lands are without foundation at law. There is no legal duty statutory, fiduciary or otherwise, cast upon the Department of Indian Affairs to actively police the Indian reserves nor is there any legal duty on the part of the defendant to interfere with or to use its constitutional power to override legitimate provincial legislation of gen eral application merely because it also happens to affect the Indians.
By reason of their very nature, the incidents complained of must necessarily have been known to the plaintiffs at the time they occurred. There is no evidence that any complaint was ever made to Superintendent General or to the departmental officials regarding these alleged trespassers which might bring into play any duty on the part of the Department to prosecute trespassers as mentioned in sections 35 and 36 of the Indian Act of 1927.
For the reasons which I will be dealing with subsequently these claims are also statute barred by the mere fact that they are all alleged to have occurred during a period well over 30 years previ ous to the institution of the action and no fraud on the part of the defendant pertaining thereto has even been alluded to.
1945 SURRENDER
a) Statute Law applicable:
In order to be valid, the 1945 surrender must, among other things, have been carried out in accordance with the provisions of the Indian Act applicable at that time, namely sections 4, 50 [as am. by S.C. 1938, c. 31, s. 1] and 51. They read as follows:
4. The Minister of the Interior, or the head of any other department appointed for that purpose by the Governor in Council, shall be the Superintendent General of Indian Affairs, and shall, as such, have the control and management of the lands and property of the Indians in Canada.
50. Except as in this Part otherwise provided, no reserve or portion of a reserve shall be sold, alienated or leased until it has been released or surrendered to the Crown for the purposes of this part; but the Superintendent General may lease, for the benefit of any Indian, upon his application for that purpose, the land to which he is entitled without such land being released or surrendered, and may, without surrender, dispose to the best advantage, in the interests of the Indians, of wild grass and dead or fallen timber.
2. The Governor in Council may make regulations enabling the Superintendent General in respect of any Indian reserve, to issue leases upon such terms as may be considered proper in the interest of the Indians and of any other lessee or licensee of surface rights,
(a) upon surrender in accordance with this part, of any land deemed to contain salt, petroleum, natural gas, coal, gold, silver, copper, iron or other minerals and to grant in respect of such land the right to prospect for, mine, recover and take away any or all such mineral, and
(b) without surrender, to any person authorized to mine any of the minerals in this section mentioned, of surface rights over such area of any land within a reserve containing any such minerals as may be necessary for the mining thereof.
(As amended by S.C. 1938, c. 31, s. 1.)
51. Except as in this Part otherwise provided, no release or surrender of a reserve, or a portion of a reserve, held for the use of the Indians of any band, or of any individual Indian, shall be valid or binding, unless the release or surrender shall be assented to by a majority of the male members of the band of the full age of twenty-one years, at a meeting or council thereof summoned for that purpose, according to the rules of the band, and held in the presence of the Superintendent General, or of any officer duly authorized to attend such council, by the Governor in Council or by the Superintendent General.
2. No Indian shall be entitled to vote or be present at such council, unless he habitually resides on or near, and is interest ed in the reserve in question.
3. The fact that such release or surrender has been assented to by the band at such council or meeting shall be certified on
oath by the Superintendent General, or by the officer author ized by him to attend such council or meeting, and by some of the chiefs or principal men present thereat and entitled to vote, before any person having authority to take affidavits and having jurisdiction within the place where the oath is administered.
4. When such assent has been so certified, as aforesaid, such release or surrender shall be submitted to the Governor in Council for acceptance or refusal. R.S., c. 81, s. 49; 1918, c. 26, s. 2.
b) Status of decision to surrender
In dealing with the decision of the Department in 1945 to sell I.R. 172, counsel for the defendant argued that the question of whether a particular surrender should be taken and accepted was a policy function of the Department as opposed to an operational function and was therefore not review- able by the Courts. He relied on a statement by Lord Diplock in Dorset Yacht Co. Ltd. v. Home Office, [ 1970] A.C. 1004 (H.L.), at page 1067, wherein he is quoted as stating:
It is, I apprehend, for practical reasons of this kind that over the past century the public law concept of ultra vires has replaced the civil law concept of negligence as the test of the legality, and consequently of the actionability, of acts or omis sions of government departments or public authorities done in the exercise of a discretion conferred upon them by Parliament as to the means by which they are to achieve a particular public purpose. According to this concept Parliament has entrusted to the department or authority charged with the administration of the statute the exclusive right to determine the particular means within the limits laid down by the statute by which its purpose can best be fulfilled.
That statement of the law was reaffirmed and followed subsequently by the House of Lords in Anns v. Merton London Borough Council, [1978] A.C. 728 (H.L.), at page 754:
Most, indeed probably all, statutes relating to public authori ties or public bodies, contain in them a large area of policy. The courts call this "discretion" meaning that the decision is one for the authority or body to make, and not for the courts. Many statutes also prescribe or at least presuppose the practical execution of policy decisions: a convenient description of this is to say that in addition to the area of policy or discretion, there is an operational area. Although this distinction between the policy area and the operational area is convenient, and illuminating, it is probably a distinction of degree; many `oper- ational" powers or duties have in them some element of "dis- cretion." It can safely be said that the more `operational" a power or duty may be, the easier it is to superimpose upon it a common law duty of care.
The principle was also approved by the Supreme Court of Canada in Kamloops (City of) v. Nielsen et al., [1984] 2 S.C.R. 2, and by the British Columbia Court of Appeal in Toews v. MacKenzie (1980), 12 C.C.L.T. 263 (B.C.C.A.).
I do not accept the argument that, in the cir cumstances of this case, the decision to accept the surrender cannot be reviewed or that an action in damages could not be founded on its improper exercise. The decision is more properly character ized as being in the "operational" rather than in the "policy" field. Although it is a provision in a statute which confers powers on the Department, the scale 'and the extent to which the power can be exercised is left to the Department. The discretion is not absolute but must be accompanied by a properly obtained consent on the part of the Indi- ans and the Department in effect can only recom mend: the approval depends ultimately on accept ance by the Governor General in Council. Finally, in the case at bar, the consent of the Indians depended to some extent at least on the advice and guidance which they sought and received from the Department and the decision to accept the surren der cannot logically be considered separately from that advice given by the same authorities. Finally, the plaintiffs are, in essence, not complaining of the policy, but rather of the manner in which it was actually implemented. That is reviewable and, if improper, can form the basis of an action for damages.
c) Surrender documents
One of the main issues to be tried was whether the members of the Band fully understood and freely consented to the surrender of I.R. 172 on the 22nd of September, 1945. A closely related issue was whether an individual vote was taken at the meeting.
The indenture of surrender (Exhibit 295) and the reporting letter by Mr. Grew (Exhibit 294) dated September 24, 1945 are, of course, impor tant exhibits to be considered on these issues.
The surrender document, witnessed by Mr. Grew and Mr. Galibois, was executed on behalf of
the Band by Chief Succona and four other mem bers of the Band, one of whom was the Headman Joseph Apsassin and two of the remaining three were leaders of their respective groups. Attached to the actual surrender document is what counsel described as an improperly executed affidavit taken by Mr. Grew and also by Chief Succona and Headman Joseph Apsassin, before one J. S. Young described therein as "a Justice of the Peace in and for British Columbia". Since the validity of this document has been strongly objected to by counsel for the plaintiffs, it is set out hereunder textually:
DOMINION OF CANADA
Province of British Columbia
County of Cariboo
To Wit:
Personally appeared before me
J. L. Grew
of the city of Ottawa
in the Province of Ontario
and Chief Succona and Headman Jos Apsassin Chiefs of the
St. John Beaver Band of Indians
And the said J. L. Grew
for himself saith:—
That the annexed release or surrender was assented to by a majority of the male members of the said band of Indians of the full age of twenty-one years entitled to vote, all of whom were present at the meeting or council.
That such assent was given at the meeting or council of the said Band summoned for that purpose and according to its rules or the rules of the Department.
That the terms of the said surrender were interpreted to the Indians by an interpreter qualified to interpret from the English language to the language of the Indians.
That he was present at such meeting or council and heard such assent given.
That he was duly authorized to attend such council or meeting by the Deputy Superintendent General of Indian Affairs.
That no Indian was present or voted at said council or meeting who was not a member of the band or interested in the land mentioned in the said release or surrender.
And the said Chief Succona and Headman Joseph Apsassin
say:—
That the annexed release or surrender was assented to by them and a majority of the male members of the said band of Indians of the full age of Twenty-one years.
That such assent was given at a meeting or council of the said band of Indians summoned for that purpose as herein- before stated, and held in the presence of the said
J. L. Grew
That no Indian was present or voted at such council or meeting who was not a habitual resident on the reserve of the said band of Indians and interested in the land mentioned in the said release or surrender.
That the terms of the said surrender were interpreted to the Indians by an interpreter qualified to interpret from the English language to the language of the Indians.
That they are Chief and Headman of the said band of Indians and entitled to vote at the said meeting or council.
Sworn before me by the deponents
at the P.O. of Rose Prairie
In the County of Cariboo
This 22 day of September
A.D. 1945
J. E. Young
A Justice of the Peace
in and for British Columbia
Also annexed to the surrender document is what is described as a complete list of voters dated September 22, 1945. It lists 27 members as having been present and having voted in favour of the surrender, 4 as having been absent and none as being against the surrender. The list was certified as correct by J. L. Grew.
In his reporting letter (Exhibit 294) addressed to Mr. Hoey, the Director of the Indian Affairs Branch, Mr. Grew stated that he was enclosing the signed surrender papers together with the voters list and also informed Mr. Hoey that, on Saturday, September 21, the Fort Saint John Band of Indi- ans unanimously agreed to the surrender for sale of their reserve.
The documents to which I have referred consti tute at least prima facie evidence to the effect that the Band had freely consented to the surrender of I.R. 172 for the purpose of sale and, in the absence of convincing evidence to the contrary, the plain tiffs would fail on this issue.
Regarding the actual subject-matter of the sur render and the conditions attached to it, I have already discussed to some extent the granting and habendum clauses of the document when dealing with the 1940 surrender (refer page 53 supra). To summarize: the document purports to grant all of the interest of the Band in I.R. 172 subject only to the fiduciary obligation of the Crown to sell or lease to such persons and upon such conditions as the Crown may deem conducive to the welfare of the Band, with the proceeds to be placed "to our
credit in the usual way". It is obvious that, although the surrender is drawn as if the fee simple were being granted, it could not operate as such since the title of the lands was in the Crown before the surrender. The legal effect could only be to grant or surrender whatever rights the plaintiffs had in I.R. 172.
d) Informed consent:
The plaintiffs argued that the majority of the Band did not consent and that, in any -event, if consent was given it was not an informed consent: the matter having been put to the Indians too suddenly, they did not have time to consider the matter and really know what the implications of the surrender were. It is further alleged that not only was there a failure to disclose important matters but improper advice was actually given and it was given because the Crown actually had an interest in obtaining the surrender and that that interest was the governing reason for the action. In support of the above arguments and what might be described as the superior position of the Crown in relation to the Indians, the plaintiffs relied greatly on the doctrine of undue influence as defined in such cases as Brusewitz v. Brown, [1923] N.Z. L.R. 1106 (S.C.); Tufton v. Sperni, [1952] 2 The Times L.R. 516 (E.C.A.); Allcard v. Skinner (1887), [1886-90] All E.R. Rep. 90 (E.C.A.); Lloyds Bank Ltd y Bundy, [1974] 3 All ER 757 (E.C.A.) and other cases. In the Brusewitz case (supra) we find the following statement at page 1109:
Where there is not merely an absence or inadequacy of con sideration for the transfer of property, but there also exists between the grantor and the grantee some special relation of confidence, control, domination, influence, or other form of superiority, such as to render reasonable a presumption that the transaction was procured by the grantee through some uncon- scientious use of his power over the grantor, the law will make that presumption, and will place on the grantee the burden of supporting the transaction by which he so benefits, and of rebutting the presumption of its invalidity.
In the Lloyds Bank case (supra) Sir Eric Sachs states at page 768 of the report:
As regards the second class of undue influence, however, that word in the context means no more than that once the existence of a special relationship has been established, then any possible use of the relevant influence is, irrespective of the intentions of the persons possessing it, regarded in relation to the transaction under consideration as an abuse—unless and until the duty of fiduciary care has been shown to be fulfilled or the transaction is shown to be truly for the benefit of the person influenced. This approach is a matter of public policy.
I fully accept as authoritative the statements of law expressed in those cases when considered in the light of the factual situations to which they relate. Based on those principles, counsel for the plaintiffs however, in their oral argument, went on to state that, in view of the relationship existing between the parties, it was now incumbent upon the defendant to prove positively that some 16 matters enumerated at pages 29, 30 and 31 of their written argument (which I have not repro duced here) had been explained to the Band before informed consent could be found to have existed and that, failing the discharge of this burden, the plaintiffs would succeed. In the first place, I total ly reject the argument that all these matters had to be explained. Many of them are redundant or irrelevant, others would obviously be known to the Indians, and others would be required only if they were not only dependant persons but actually non compos mentis, in which case no consent could validly be obtained. In the second place, it would be manifestly ludicrous to require now, 40 years after the event, when all of the persons who might have given the advice are either deceased or too senile to testify, that the defendant establish posi tively that advice was given on all these matters. It would have to have been communicated orally in any event as none of the Indians could read or write. Finally, even where there exists a special relationship between the parties, when an agree ment in writing is being challenged and especially an indenture under seal such as the present one, it seems that there would have to be something more than a bare allegation of improper conduct before there is any duty on the person in the dominant position to adduce evidence to establish that the special duty was properly fulfilled.
In the case at bar, there was, however, at the outset, sufficient evidence adduced by the plain tiffs to put in issue from a factual standpoint the question of whether informed consent was in fact given. This casts upon the defendant the burden of establishing on a balance of probabilities that there was no failure in the performance of any of the duties entailed by the existence of the special relationship. The duties to which that burden will extend will depend, among other things, on the nature of the relationship on the subject-matter in issue, and on the capability of the subordinate party to fully understand and consent to the issue.
* * * *
Review of evidence on consent to the 1945 sur render deleted. See findings of fact infra.
* * * *
To summarize, with regard to the question of informed consent to the 1945 surrender, I make the following findings of fact:
1. That the plaintiffs had known for some consid erable time that an absolute surrender of I.R. 172 was being contemplated;
2. That they had discussed the matter previously on at least three formal meetings where repre sentatives of the Department were present;
3. That, contrary to what has been claimed by the plaintiffs, it would be nothing short of ludicrous to conclude that the Indians would not also have discussed it between themselves on many occasions in an informal manner, in their various family and hunting groups;
4. That, at the surrender meeting itself, the matter was fully discussed both between the Indians and with the departmental representatives previous to the signing of the actual surrender;
5. That neither Mr. Grew, Mr. Galibois nor Mr. Peterson appeared to have attempted to influence the plaintiffs either previously or during the sur render meeting but that, on the contrary, the matter appears to have been dealt with most con scientiously by the departmental representatives concerned;
6. That Mr. Grew fully explained to the Indians the consequences of a surrender;
7. That, although they would not have understood and probably would have been incapable of under standing the precise nature of the legal interest they were surrendering, they did in fact under stand that by the surrender they were giving up forever all rights to I.R. 172, in return for the money which would be deposited to their credit once the reserve was sold and with their being furnished with alternate sites near their trapping lines to be purchased from the proceeds;
8. That the said alternate sites had already been chosen by them, after mature consideration.
I therefore conclude that not only the majority of but all of the male members of the Band present at the surrender meeting gave their free and informed consent to the surrender and that each, in turn, orally signified his consent in accordance with the voters list attached to the surrender docu ment. There is also evidence which I accept to the effect that the voters list included all of the Indi- ans of the Fort Saint John Band who were entitled to vote and no others.
e) Other objections to 1945 surrender:
Several further arguments regarding the validity of the surrender were raised by counsel for the plaintiffs. They all relate to section 51 of the Indian Act, R.S.C. 1927, c. 98, in force at the time. I am reproducing again for the sake of convenience the relevant portions of section 51:
51. Except as in this Part otherwise provided, no release or surrender of a reserve, or a portion of a reserve, held for the use of the Indians of any band, or of any individual Indian, shall be valid or binding, unless the release or surrender shall be assented to by a majority of the male members of the band of the full age of twenty-one years, at a meeting or council thereof summoned for that purpose, according to the rules of the band, and held in the presence of the Superintendent General, or of any officer duly authorized to attend such council, by the Governor in Council or by the Superintendent General.
3. The fact that such release or surrender has been assented to by the band at such council or meeting shall be certified on oath by the Superintendent General, or by the officer author ized by him to attend such council or meeting, and by some of the chiefs or principal men present thereat and entitled to vote, before any person having authority to take affidavits and having jurisdiction within the place where the oath is administered.
4. When such assent has been so certified, as aforesaid, such release or surrender shall be submitted to the Governor in Council for acceptance or refusal. R.S., c. 81, s. 49; 1918, c. 26, s. 2.
The objections raised were the following:
1. The meeting was not summoned in accordance with subsection 51(1) of the Act.
2. The meeting was not held before a duly author ized officer in accordance with that section.
3. The required certificate under subsection 51(3) was not obtained and furnished.
With regard to the first objection, there is no evidence whatsoever that the Fort Saint John Band had any rules regarding the summoning of its meetings or councils. The Indians were informed in plenty of time of the meeting. Wit nesses of the plaintiffs also admit that they were convened to the meeting although some claim that they were unaware of the purpose. There were four members of the Band absent but there is no evi dence that they were not aware of the meeting or that they ever complained of insufficient notice. In any event the onus on this issue is clearly on the plaintiffs and it has not been met.
On the question of whether Mr. Grew was duly authorized pursuant to subsection 51(1) to hold a surrender meeting it is of some importance that he was directed to do so by Mr. Hoey who at the time was the Director of Indian Affairs Branch of the Department and possessed all the powers of the Deputy Minister pursuant to subsection 9(2) of The Department of Mines and Resources Act [S.C. 1936, c. 33] which read as follows:
9. ...
(2) The chief officer in charge of the branch of the Depart ment in which is included Indian Affairs may, under the Deputy Minister, perform and exercise all the duties, powers and functions with respect to Indian Affairs which are or may be vested in the Deputy Superintendent General of Indian Affairs by any Act of the Parliament of Canada or by any order or regulation made under the authority thereof.
Paragraph 31(l) of the Interpretation Act [R.S.C. 1927, c.1] in effect in 1927 provides that a
Deputy Minister may exercise a Minister's power in administering the Department. That provision reads as follows:
31....
(1) words directing or empowering a minister of the Crown to do any act or thing, or otherwise applying to him by his name of office, include a minister acting for, or, if the office is vacant, in the place of such minister, under the authority of an order in council, and also his succes sors in such office, and his or their lawful deputy;
There is nothing in section 51 of the Indian Act to indicate that the Parliament intended that the Superintendent General rather than his Deputy was to personally authorize any individual to attend the surrender meeting. Paragraph 31(l) of the Interpretation Act would therefore apply. Finally, there is nothing to say that the Superin tendent General could not authorize the person orally or instruct Mr. Hoey to direct Mr. Grew to attend the meeting. There is no evidence that this was not in fact what happened. The onus of estab lishing that Mr. Grew was not authorized rests with the plaintiffs and that onus is not discharged by simply establishing that Mr. Grew was directed by Mr. Hoey to attend the meeting and to take the surrender since, as previously stated, this might well have been done with the full authority, approval and direction of the Superintendent General.
On the question of whether non compliance with all of the provisions of subsection 51(3) of the Act would invalidate the surrender, a legal issue arises as to whether those provisions are mandatory or merely directory. In the latter case non-compliance would not render void the surrender itself nor its subsequent acceptance by the Governor in Council.
In considering this issue the actual wording of the other provisions of section 51 are of some importance. Subsection (1) provides that "no sur render ... shall be valid or binding unless assented to". This is clearly a substantial or mandatory provision. Subsection (2) defines who is entitled to vote at a meeting and subsection (4) provides that the Governor in Council may either accept or refuse the surrender. These provisions are also clearly substantial or mandatory. Subsection (3), however, provides the means by which the fact
that the surrender has been properly taken and executed is to be evidenced or established.
The leading decision in this area of the law is the Privy Council case of Montreal Street Railway Company v. Normandin, [1917] A. C. 170. This case involved a claim that a jury verdict should be set aside due to the failure of the sheriff to update voters' lists to empanel juries. In it the Privy Council laid down the general principles to guide courts on this issue. At pages 174 and 175 they stated as follows:
The statutes contain no enactment as to what is to be the consequence of non-observance of these provisions. It is con tended for the appellants that the consequence is that the trial was coram non judice and must be treated as a nullity.
It is necessary to consider the principles which have been adopted in construing statutes of this character, and the authorities so far as there are any on the particular question arising there. The question whether provisions in a statute are directory or imperative has very frequently arisen in this coun try, but it has been said that no general rule can be laid down, and that in every case the object of the statute must be looked at. The cases on the subject will be found collected in Maxwell on Statutes, 5th ed. p. 596 and following pages. When the provisions of a statute relate to the performance of a public duty and the case is such that to hold null and void acts done in neglect of this duty would work serious general inconvenience, or injustice to persons who have no control over those entrusted with the duty, and at the same time would not promote the main object of the Legislature, it has been the practice to hold such provisions to be directory only, the neglect of them, though punishable, not affecting the validity of the acts done.
The Montreal Street Railway case was followed in this Court in Melville (City of) v. Attorney General of Canada, [1982] 2 F.C. 3 (T.D.), by Mr. Justice Collier, whose decision was upheld by the Federal Court of Appeal in the parallel case of Jasper Park Chamber of Commerce v. Governor General in Council, [1983] 2 F.C. 98.
The City of Melville case involved the allegation that the failure to register an Order in Council within the prescribed time limits, relating to the discontinuance of rail service, was fatal. Mr. Jus tice Collier dealt with this claim at page 14 of the report, applying the principles set out in the Mon- treal Street Railway case. The Federal Court
upheld his finding at pages 118 and 119 of the Jasper Park case (supra).
As stated in the Montreal Street Railway case, the object of the statute must be considered. It seems clear that section 51 has been enacted to ensure that the assent of the majority of adult members of the Band has been properly obtained before a surrender can be accepted by the Gover nor in Council and become valid and effective. The object of that section is to provide the means by which the general restrictions imposed on the sur render sale or alienation of Indian reserve lands by section 50 of the Act can be overcome. In other words, the sale or lease of Indian reserve lands must be made pursuant to the wishes of the Indian Band and must, of course, also be approved by the Governor in Council. The last requirement would presumably involve the Governor in Council being satisfied that the surrender has been properly approved, that it is for the general welfare of the Indians and that they are not being unfairly deprived of their lands.
Examination of the object of the statute reveals that a decision which would render the surrender null and void solely because of non-compliance with the formalities of subsection 51(3) would certainly not promote the main object of the legis lation where all substantial requirements have been fulfilled; it might well cause serious inconve niences or injustice to persons having no control over those entrusted with the duty of furnishing evidence of compliance in proper form. In the subsection, unlike subsection (1), where it is pro vided that unless it is complied with no surrender shall be valid or binding, there is no provision for any consequences of non-observance. I therefore conclude that the provisions of subsection 51(3) are merely directory and not mandatory.
It is also of some importance that the subsection does not state specifically that an affidavit must be submitted attesting to those facts but merely pro vides that:
51....
3. The fact that such release or surrender has been assented to by the band ... shall be certified on oath ... before any
person having authority to take affidavits and having jurisdic tion....
This was in fact done and J. E. Young, whose signature is admitted and whose authority as a justice of the peace in and for the Province of British Columbia is uncontested and which I must accept (in the absence of any evidence to the contrary) has stated that the deponents were sworn before him and that they testified as mentioned in the document. The failure to actually require the deponents to sign or affix their mark to the docu ment can well be understood when one considers the lack of legal training or knowledge of some persons who are granted commissions as justices of the peace in remote areas of Canada.
Finally, the Department, in addition to this document, had before it for submission to the Governor General in Council if required, the sur render document itself, the attached voters list and Mr. Grew's letters of the August 8, 1945 (Exhibit 283) and September 24, 1945 (Exhibit 294). There was therefore ample evidence that the substantial requirements of section 51 had been complied with. In addition, I have found as a fact that the surrender was fully assented to.
To summarize, I find that subsection 51(3) was in fact sufficiently complied with and, if not, the plaintiffs' objection on this ground must neverthe less fail as subsection (3) is merely directory and not mandatory.
1948 TRANSFER TO THE DIRECTOR, THE VETER ANS' LAND ACT
a) Effect of the transfer
Section 54 of the Indian Act, 1927 provides that all reserve lands "shall be managed, leased and sold as the Governor in Council directs, subject to the conditions of surrender and the provisions of this Part." The special provisions in the Act which apply to the facts of this case are sections 50 and 51. I have already dealt with them as well as the terms of the surrender. The Department obviously had the right to alienate the lands by absolute sale. There were no special directions given by the Governor in Council and the letters patent (Exhib-
it 506) transferring the lands from the Department of Indian Affairs to the Director contain no reser vation whatsoever except for the public road allow ance reserved through the parcel. The grant is to the Director, his heirs and successors forever and is absolute in every way.
The plaintiffs claim that, since the document is silent as to minerals, it does not have the effect of transferring them. This argument cannot be sus tained at law: unless an interest is specifically withheld, an absolute conveyance of land includes all interests except precious metals (Attorney- General of British Columbia v. Attorney-General of Canada (1889), 14 App. Cas. 295 (P.C.), at pages 302, 303 and 306).
b) Whether the Department of Indian Affairs had the duty to retain the minerals
The plaintiffs also claim that the Department of Indian Affairs had a fiduciary duty to retain the minerals for the plaintiff Band in March 1948 when the letters patent were granted to the Direc tor. They argue that the Department should have noticed the error subsequently and should have required that the letters patent be corrected.
I have already made several findings affecting this issue in dealing with the value and foreseeabil- ity of potential mineral rights under I.R. 172 (refer pages 48-49 supra) and, in the concluding paragraph, I held that the defendant had suf ficiently established that, in 1948, no fiduciary could reasonably have anticipated or foreseen that there would be any value to those rights.
The evidence indicated that no importance was attached to minerals either at the time of the transfer to the Director nor until many, if not all of the veterans, had at least taken possession pur suant to their respective agreements to purchase and, as a result, no mention whatsoever was made of mineral rights in those documents. A duty on the Department of Indian Affairs to retain the minerals has not been established.
c) Breach of duty of defendant upon transfer to the Director
The plaintiffs also argue that, at the time of the transfer to the Director in 1948, the defendant acted fraudulently and also in breach of the fiduci ary duties which it owed the Band at the time. With regard to the allegations of fraud, I find that they have failed completely to establish that the defendant had, in any way, through its agents or servants, been guilty of fraud towards them at any times relevant to this action. The allegations of breaches of fiduciary duty at the time of the transfer to the Director, however, have much greater substance. Mr. Justice Dickson (as he then was) stated in the Guerin case (supra) that upon unconditional surrender, the Indians' right in the land disappeared but that there subsisted however an obligation of the Crown to the Indians which was trust-like in that "the Crown must hold the surrendered land for the use and benefit of the surrendering Band". (Refer Guerin case (supra) at page 387.) Regardless of whether the opinion of the majority expressed by Chief Justice Dickson in the Guerin case, that no true trust whether con structive or otherwise is created, or whether one adopts the view of Wilson J. concurred in by Ritchie and McIntyre JJ. to the effect that an express trust is created, the duty cast upon the defendant as represented by the Department of Indian Affairs, which arises upon surrender of the land by the Indians, is equally as onerous, since the obligation is at least "trust-like".
It appears that, as in the case of Kruger v. The Queen, [1986] 1 F.C. 3 (C.A.), there existed in the case at bar a conflict of interest between the Department of Indian Affairs and The Director, The Veterans' Land Act: the former was seeking the best price available for the land and was interested in obtaining it immediately in order to purchase substitute reserves closer to the trap lines (See Exhibit 428). The latter, on the other hand, wanted to secure good agricultural land at the lowest possible price in order to allow the veterans to obtain a greater benefit from the purchase.
The statement of Heald J. at page 17 of the above cited report of the Kruger case is particular ly relevant here:
Bearing in mind that it is the Crown which owes the fiduci ary duty to the Indians, the facts of this case clearly raise the issue of conflict of interest, in my view. It seems evident that two Departments of the Government of Canada were in conflict concerning the manner in which the Indian occupants of Parcel A should be dealt with. The evidence seems to unquestionably establish that the officials of the Indian Affairs Branch were diligent in their efforts to represent the best interests of the Indian occupants. On the other hand, the Department of Transport was anxious to acquire the additional lands in the interests of air transport. This situation resulted in competing considerations. Accordingly, the federal Crown was in a con flict of interest in respect of its fiduciary relationship with the Indians. The law is clear that "one who undertakes a task on behalf of another must act exclusively for the benefit of the other, putting his own interests completely aside" and that "Equity fashioned the rule that no man may allow his duty to conflict with his interest". On this basis, the federal Crown cannot default on its fiduciary obligation to the Indians through a plea of competing considerations by different departments of Government.
There is also the argument that there might well be an element of self-dealing involved. As stated in the case of Reference re Saskatchewan Natural Resources, [1931] S.C.R. 263, at page 275:
There is only one Crown, and the lands belonging to the Crown are and remain vested in it, notwithstanding that the adminis tration of them and the exercise of their beneficial use may, from time to time, as competently authorized, be regulated upon the advice of different Ministers charged with the appro priate service.
There is, of course, a rather important distinc tion to be drawn between the last mentioned case and the case at bar. We are not dealing with a question of the land being administered for the Crown by one Minister or another on behalf of their respective departments but of the transfer from a department of government, namely the Department of Indian Affairs, to a corporation sole, namely The Director, The Veterans' Land Act, created by Parliament for the express purpose of acquiring, administering and disposing of lands for the exclusive benefit of veterans in accordance with the specific provisions of the Act and independently of the control normally exercised by a Minister over his department. Be that as it may, I find that, in the case at bar, there rested an onerous fiduciary duty upon the Department of
Indian Affairs to ensure that all reasonable efforts were made to obtain the best price possible for the land at the time of sale.
Where such a fiduciary duty exists there also rests upon the person by whom the duty is owed, an onus of proving that it has been discharged.
The evidence establishes that an appraiser engaged by the Department of Indian Affairs appraised the value of the land at $93,160 (Exhibit 414). After lengthy negotiations between that department and The Director, The Veterans' Land Act, who would not purchase at that price, the land was finally sold to him for the sum of $70,000 on March 30, 1978 (Exhibit 506). In addition, the cost of survey was borne by the Department of Indian Affairs.
There is a lack of evidence adduced by the defendant to justify the discrepancy between the appraised price and the actual sale price. Although I am not making any finding as to the actual value, since the question of damages is not before me and also because Exhibit 414 is not in evidence for the purpose of establishing the truth of the assertion that the land was in fact worth $93,160, the evidence does establish that the defendant was fully aware of a discrepancy between the appraised price of its own appraiser and the sale price. The sufficiency of the sale price is therefore a real issue and not merely a speculative or a theoretical one. The defendant had a duty to convince the Court that it could not reasonably have been expected to obtain a better price. There was no evidence as to what other offers were sought and what efforts were made to obtain a better price elsewhere. Since the onus of establishing that a full and fair price was in fact obtained in March 1948 has not been discharged by the defendant, I find that the latter was guilty of a breach of its fiduciary duty towards the plaintiffs in that regard. Unless the claim is statute barred, the amount of damages sustained by the plaintiffs due to the possible insufficiency of the sale price would thus remain to be determined at a later hearing or upon a refer ence for assessment of damages. However, as pre viously stated, the evidence does not establish the
probability of fraud, of fraudulent intent or of willful concealment.
d) Whether The Director, The Veterans' Land Act held in trust for Indians
The plaintiffs argued that, following the transfer to The Director, The Veterans' Land Act, in 1948, the latter continued to hold the mineral rights in trust for the plaintiffs and should have transferred them back when some interest in obtaining exploration permits subsequently arose.
Regarding title to minerals, the present case is clearly distinguishable from the matters which arose under and were dealt with under the former The Soldier Settlement Act, 1917 [S.C. 1917, c. 21] later replaced by The Soldier Settlement Act, 1919 [S.C. 1919, c. 71] which were enacted for the resettlement of veterans of the first Great War. Section 57 of the 1919 Act specifically provided that "mines and minerals shall be and shall be deemed to have been reserved" from all sales made by the Board. Therefore, one could not obtain from the Board any title or claim to mines or minerals regardless of whether or not they were reserved or regardless of any statement in the document of conveyance. When Parliament in 1942 enacted The Veterans' Land Act, 1942, [S.C. 1942-43, c. 33] for the benefit of the veterans of the 1939-45 War it chose to omit any such reser vations or limitations. The general law must there fore be applied.
In addition, however, there would have been a serious legal impediment to any conveyance by the Director to the Department of Indian Affairs or to any person other than a veteran. The Veterans' Land Act, 1942 (R.S.C. 1970, c. V-4) provides that the Director is a corporation sole with per petual succession, having power to hold and trans fer property which he is "by this Act authorized to acquire, hold, convey, transfer, agree to convey or agree to transfer, but for such purposes only" [underlining added] (subsection 5(1)), and that "All property acquired for any of the purposes of
this Act shall vest in the Director as such corpora tion sole" (subsection 5(4), formerly subsection 5(3)). The Director obtains land by grant in fee simple from the Crown as in the case of any other person or corporation. In order for the Crown to obtain title to those lands, they must be recon- veyed by the Director. The powers of disposition of land of the Director and the purposes for which land is to be acquired by him are strictly defined in considerable detail in the Act. There are provisions for reconveyance of the land to the Crown where it is required for a public purpose or for conveyance to any person with the consent of the interested veteran or for the sale of land which eventually might not be required for the purposes of the Director. There is no power however, without con sent of the veteran concerned, to reconvey lands or any mineral rights to the Crown for the benefit of Indians or to any other person for that matter.
Section 3 of the Act as amended in 1946 [S.C. 1946, c. 70, s. 1] renders the Director responsible to the Minister of Veterans Affairs and subject to the latter's direction. It is obvious, however, that the Director must comply strictly with the provi sions of the Veterans' Land Act and that the Minister cannot instruct him to exercise powers as Director which are not contained in the Veterans' Land Act nor to act in any way contrary to the statute.
If any authority were needed to support the proposition that the Director's powers and author ity are strictly limited to those conferred upon him by the Veterans' Land Act, the case of The Queen v. Richard L. Reese et al., [1956] Ex.C.R. 94, could be cited as relevant and authoritative. In that case, a promise made to convey mineral rights under the Soldier Settlement Act was declared to be unenforceable against the Crown even though the undertaking was given to a soldier. Since the Director (formerly "the Board" under the Soldier Settlement Act) can only bind the Crown for the purposes mentioned in the Act, the latter cannot be vicariously liable for the Director's failure to
either administer or reconvey the land for the benefit of the Indians, nor can the Crown order him to do so without an amendment to the Veter ans' Land Act.
Finally, once the letters patent had been issued, the full purchase price had been paid by the Director to the Department of Indian Affairs and the latter had set aside the funds as required by the Act for the benefit of the Indians, the lands of I.R. 172 no longer formed the object of the trust, if it was a trust, or, alternatively, no longer constitut ed the object to which the special fiduciary duty of the defendant related. From that moment on, namely from March 30, 1948, the proceeds of the sale in lieu of the land were to be administered by the defendant for the benefit of the plaintiffs.
For the above reasons the plaintiffs' argument on the issue of the Director's duty to reconvey mineral rights to or on behalf of the Indians cannot succeed.
e) Non-compliance with The Dominion Lands Act, 1908
There is no merit to the argument founded on paragraph 78 of the statement of claim that the 1948 transfer of mineral rights in I.R. 172 would be void as regards those rights because of non compliance with the requirements of section 41 of The Dominion Lands Act, 1908, c. 20. This section refers exclusively to terms of payment of the pur chase price of school lands. No part of I.R. 172 was ever designated as school lands pursuant to the Act nor is there any evidence that any part was used for such purpose.
ALLEGED BREACHES SINCE 1948
Numerous breaches of trust and of duty towards the Indians are alleged to have occurred since 1948. Unlike the issue of sufficiency of the sale price of I.R. 172, the onus of proof of these allegations rests upon the plaintiffs.
It has not been established as alleged in para graph 35 of the statement of claim that the defendant undertook to obtain replacement
reserves which would be situated beyond the area of future agricultural settlements.
With regard to the alleged delay in actually acquiring legal title until 1950 to the reserves from the Province of British Columbia, since I.R. 172 was actually sold in 1948 and some time was required to complete surveys I do not feel that the delay was excessive. More importantly, however, there can be no damage since the evidence indi cates that the plaintiffs apparently continued to enjoy the benefit and use of those reserves between 1945 and 1950. The evidence establishes also that they had in the past been making very limited use of reserve lands.
The plaintiffs also complained that they did not obtain mineral rights to the replacement reserves. Treaty lands normally carried mineral rights, since those rights had been held by the Crown in right of Canada in the first place. This did not apply to the replacement reserves after the mineral rights had been transferred to the Province. Unlike I.R. 172, the replacement reserves were merely reserves obtained for the benefit of the plaintiffs under the provisions of the Indian Act and in pursuance of the conditions of the 1945 surrender of I.R. 172, and were not treaty reserves. It turned out that the Department could not, in view of the general policy of the Provincial Government regarding reservation of all mineral rights, obtain title to those rights for the benefit of the Indians. The Department was apparently not aware of this policy nor of the reservation of rights until some time later when, in error, some of its officials indicated a readiness to grant an exploration licence on the replacement reserves to an oil com pany. Furthermore, although the defendant, had it obtained mineral rights in the replacement reserves, would undoubtedly have considered them as forming an integral part of the reserve, there is a lack of evidence that the defendant, as a condi tion of the 1945 surrender, undertook in any way to obtain mineral rights in the replacement reserves. There is also evidence which might tend to indicate the contrary. Before being chosen, the areas were considered by both parties merely from the standpoint of their suitability for habitation, their proximity to the hunting, fishing and trap-
ping grounds of the Indians, their distance from white settlements in the vicinity and the possible future development of the lands for agricultural or cattle farming by the Indians. There is no evidence of any thought whatsoever having been given to mineral rights under the new reserves.
Although there were rumours at some time during 1950 that the British Columbia Govern ment was contemplating a change of policy regard ing the granting of lands for the purpose of estab lishing Indian reserves, it was only in January 1951 that the Canadian Government was advised that the Provincial Government had, in November 1950, formally decided that, altogether apart from the reservation of mineral rights, no more lands would henceforth be transferred in fee to the Department of Indian Affairs to be used for Indian reserves unless an equivalent amount of land was obtained in exchange. As a result of that decision many, if not all, proposed land purchases by the defendant for the benefit of other Indian bands in the Province had to be abandoned (refer Exhibit 688). No promise of the defendant was established to the effect that the same acreage of land would be obtained in the new reserves as was surrendered in I.R. 172 nor does there seem to be any evidence that the plaintiffs at that time expected the defendant to do so. There was a considerable amount of correspondence pertaining to the proposed replacement and to the reserves themselves when they were obtained and in none of this correspondence or the memoranda of the various officials does there appear to be any ques tion of equivalent acreage.
Sales under the agreements which the Director had entered into with the veterans gave each veter an purchaser a right to immediate possession of the lands upon the signing of the agreement and payment of the deposit and also the right, upon payment in full of the purchase price, to a deed and fee simple free of all encumbrances. Para graph 14 of the agreement reads as follows:
14. It is agreed that upon punctual payment by the Veteran of all moneys hereby by him agreed to be paid and subject to
performance of all and singular the aforesaid provisions, condi tions and agreements, and upon the surrender of this contract, he shall be entitled to a conveyance of the said land in fee simple free from all encumbrances other than such as may have resulted through the act and neglect of the Veteran, but subject to all reservations, limitations, provisos and conditions con tained or expressed in the title held by the Director. (Refer Exhibit 986 D)
There were no reservations, limitations, provi sions or conditions contained or expressed in the title held by the Director. Paragraph 14 above is a complete answer to the argument of plaintiffs' counsel to the effect that, until the deeds in fee simple were actually delivered to the veterans, the Director could have somehow repossessed the lands for the benefit of the Indians. Sales by agreements for sale to veterans were made as follows: 1948: 19; 1949: 13; 1950: 2; 1951: 1; 1956: 1. Thus, by the end of 1950 all but two of the lots were in the possession of veterans who had a contractual right to an absolute title in fee simple.
Four of the lots which were in surplus to the Director's requirements were disposed of by the Director in 1952 by public auction in accordance with the terms of the statute.
In any event, all of the above allegations regard ing subsequent dealings with the land by the Director are of no real help to the plaintiffs. As I have already held, from March 30, 1948 the plain tiffs were no longer entitled to any part of I.R. 172 and the Director, who then held the lands in fee simple, could not in the circumstances and because of the provisions of the Veterans' Land Act, be considered a fiduciary or a trustee, constructive or otherwise, for the benefit of the Indians.
The plaintiffs have failed to establish any practi cal requirement for further reserves, even up to the time of trial. The question of trap lines has already been dealt with. The Department, many years ago, secured numerous registered trap lines for their exclusive use and there is a lack of evidence as to the requirement for any additional lines or for large hunting and fishing areas reserved for their exclusive use as now claimed by the plaintiffs.
The evidence contained in the Band council resolutions which were filed together with annual budgets deposited in evidence, points to the fact that the funds received from the sale were duly retained for the benefit of the plaintiffs and that all accrued interest thereon was duly credited to their account. Payments from this account plus additional monies from the general appropriations of the Department of Indian Affairs were, from time to time throughout the years, spent for their benefit. There is no evidence whatsoever that any of such monies were misappropriated as claimed. On the contrary, the evidence indicates that all disbursements from those monies and accrued in terest were made for the benefit of the plaintiffs, who also received additional monies to which they were not contractually entitled, for their various undertakings, projects, social and collective requirements, etc.
To summarize with regard to alleged breaches since 1948, I find that the onus of proof resting upon the plaintiffs has not been satisfied but that, on the contrary, whatever credible and admissible evidence which does exist regarding these issues would tend to lead one to conclusions contrary to those which they seek.
LIMITATIONS
a) Application
Pursuant to section 38 of the Federal Court Act [R.S.C. 1970 (2nd Supp.), c. 10] the law to be applied regarding prescriptions and limitations in this action is clearly that of British Columbia (Kruger v. The Queen, [1986] 1 F.C. 3; (1985), 58 N.R. 241 (C.A.)).
Because counsel were unaware of what my ulti mate findings might be regarding various claims and allegations of fraud and of continuing breaches of fiduciary responsibilities, considerable argument was addressed to the Court and numer ous authorities were quoted and statutory provi sions referred to on the question of limitations, in order to cover all possibilities. Since I have found that there was but a non-fraudulent breach of fiduciary duty which related to the sufficiency of the amount received by the Department of Indian Affairs on March 30, 1948 and have found no continuing negligence, breaches of trust or other
breaches of duty, whether fiduciary or statutory, the issues regarding limitations are considerably simplified.
The cause of action must therefore be held to have arisen on the 30th of March 1948. The statement of claim was issued on September 19, 1978, i.e. five and one half months beyond thirty years from the time the cause of action arose.
b) Sections 8 and 9 of the B.C. Limitations Act
British Columbia is apparently the only province in Canada with a statute providing for what is termed an ultimate limitation period. The new Limitation Act was enacted in 1975 [Limitations Act, S.B.C. 1975, c. 37] and may be found in the 1979 Revised Statutes, R.S.B.C. 1979, c. 236. The relevant portions of section 8 of that Act read as follows:
8. (1) Subject to section 3 (3), but notwithstanding a confir mation made under section 5 or a postponement or suspension of the running of time under section 6, 7 or 12, no action to which this Act applies shall be brought after the expiration of 30 years from the date on which the right to do so arose.....
(2) Subject to subsection (1), the effect of sections 6 and 7 is cumulative.
Subsection 3(3) refers to special classes of action, none of which are applicable to the findings in the case at bar. Section 6 mentioned in subsec tion (2) above provides for the postponement of the running of time in certain specific instances and section 7 deals with persons under disability. Section 12 is not applicable. It seems clear that, on reading section 8, although the effects of sections 6 and 7 are cumulative, those sections are not to be taken into account in calculating the 30 year period mentioned in subsection (1). Thus, neither disability nor knowledge come into play with respect to the 30 year ultimate limitation.
The Court of Appeal of B.C. dealt with the effect of section 8 in the case Bera v. Marr (1986), 1 B.C.L.R. (2d) 1. In that case Esson J.A., with whom Cheffins J.A. concurred, stated at page 27:
A significant part of the "balance" created by ss. 6, 7 and 8 is that the 30-year ultimate limitation is long enough so that no action by an infant can be barred before he comes of age and other actions falling within ss. 6 and 7 cannot be ultimately barred for more than a generation.
Craig J.A., who dissented on another point, was of the same view regarding section 8 (refer pages 11 and 12 of the above-mentioned report).
Subsection 9(1) is also of some importance since it provides that on expiration of a limitation period in an action to recover a debt, damages or for an accounting, etc., not only is the right to sue pre scribed but the cause of action itself is extin guished. This is clearly a provision of substantive law of general application throughout the Prov ince. The statute also provides (section 14) that no cause of action that was statute barred on July 1, 1975, is revived and also that the statute applies to prescribe an action that arose before that date, by July 1, 1977, at the latest, if the limitation period under the 1975 Act would expire by that date and is shorter than the former limitation.
The 30 year period, after the right to sue for whatever damages might have resulted from the insufficiency of the sale price, expired on March 30, 1978. Since the statement of claim was only filed on September 19, 1978, unless some other legislation either statutory or constitutional could lead to a different conclusion, the right of action would have already been prescribed under section 8 of the Act and, by virtue of section 9, the cause of action itself would also have been extinguished.
c) Other Legislation
Insofar as other legislation is concerned, subsec tion 2(11) of the former Laws Declaratory Act, R.S.B.C. 1948, c. 179, declared that, except as provided in the Trustee Act, [R.S.B.C. 1948, c. 345], no claim of a cestui que trust against his trustee, held upon an express trust, could be barred by any statute of limitations. On the other hand, subsection 93(1) of the Trustee Act in 1948 [s. 86(1)] which may be found in R.S.B.C. 1960, c. 390, provided that, unless the claim was founded upon a fraud to which the trustee was a party or
was for the recovery of trust property, the trustee would enjoy all the rights and privileges of the limitation statutes of the Province. Even if it could have been argued that, contrary to the majority finding of the Supreme Court of Canada in the Guerin case (supra), the surrender created an express trust, the claim could not be considered as one of recovery of trust property and, more impor tantly, limitations provisions of these two statutes were repealed by the 1975 Act, which now deals in some considerable detail with trust property and breaches of trust. Finally, the wording of the sec tions of the 1975 Act, to which I have referred, make it quite clear that the provisions of section 8 would prevail.
d) Charter of Rights
The plaintiffs sought to challenge the validity of section 8 also under the Canadian Charter of Rights and Freedoms [being Part I of the Consti tution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.)] and paragraphs 1(a) and 1(b) of the Canadian Bill of Rights [R.S.C. 1970, Appendix III]. In arguing that section 8 of the B.C. Limitations Act infringed the Charter, and more particularly section 7 which protects the right not to be deprived of one's life, liberty and security of the person, against the principles of fundamental justice, counsel for the plaintiffs referred to recent decisions such as R. v. Antoine (1983), 5 C.C.C. (3d) 97 (Ont. C.A.); Re McDon- ald and The Queen (1985), 51 O.R. (2d) 745 (C.A.); R. v. Konechny (1983), 10 C.C.C. (3d) 233 (B.C.C.A.) and several other such cases. I find however that these cases are not applicable and that none of the plaintiffs' Charter arguments can be sustained for two very simple reasons, the first one being that the Charter relates to the protection of the person and to personal rights and freedoms and does not apply to interest in or damages pertaining to the disposal of property. The second one is that the Charter, generally speaking, is not retrospective. It was held, in cases such as the ones cited above, to be applicable where there has been a continuing injustice following the date of pro mulgation of the Charter such as cases where
incarceration of a person continued beyond that date, where the law pursuant to which he was incarcerated at the time now infringes the Charter. This has been characterized as a prospective application of the Charter as opposed to a retro spective one. There is no question of prospective application here as the source of the complaint arose in 1948 and does not constitute a cause of action continuing beyond that time.
Two recent decisions of the B.C. Court of Appeal, namely Grabbe v. Grabbe and Davidson v. Davidson Estate, both reported in [1987] 2 W.W.R., at pages 642 and 657 respectively have held that section 15 of the Charter does not oper ate retrospectively.
I also subscribe to the argument that the equal ity rights provided for in subsection 15 (1) of the Charter merely guarantee that persons similarly situated should receive similar treatment. They do not provide for identical treatment for all regard less of circumstances (Smith, Kline & French Laboratories Limited v. Attorney General of Canada, [1986] 1 F.C. 274 (T.D.)).
In the recent case of R. v. Hamilton (1986), 57 O.R. (2d) 412, which was referred to at trial, the Court of Appeal of Ontario found that section 15 of the Charter had been infringed because the equal application of criminal law, which is exclu sively within federal jurisdiction, once enacted, cannot depend on the acquiescence of Provincial Attorneys General. That same case, however, recognizes the validity of the principle insofar as civil law is concerned in any event that section 15 of the Charter does not require each Province to enact the same laws within its own jurisdiction, as this would constitute a denial of federalism and would be destructive of the federal system itself. The Supreme Court of Canada in R. v. Burnshine, [1975] 1 S.C.R. 693; (1974), 15 C.C.C. (2d) 505, although dealing with the Bill of Rights and not
with the Charter, came to the same conclusion regarding the nature of federalism.
Where, in situations such as the present one, to the extent that federal legislation is silent on the matter, the liability of the Crown as well as the quantum and nature of damages which would be recoverable are to be determined by provincial law, it cannot logically be argued that it is discrimina tory in a pejorative sense for the Crown to be subject to and to also enjoy the benefit provincial limitation provisions to the same extent as ordi nary citizens of the province.
Insofar as section 7 of the Charter is concerned it has also been held in several cases, including Smith, Kline & French (supra) that life, liberty and security of the person mentioned therein refers to the bodily wellbeing of a person: it does not extend to the protection of property. Furthermore, a 30 year ultimate limitation period applicable to all residents of a province does not offend against the principles of fundamental justice.
e) Bill of Rights
The plaintiffs also submit that section 8 of the new Limitation Act violates paragraph 1(b) of the Canadian Bill of Rights and is, to the extent of that inconsistency, of no force or effect. The text of that legislation on which they rely is as follows:
1. It is hereby recognized and declared that in Canada there have existed and shall continue to exist without discrimination by reason of race, national origin, colour, religion or sex, the following human rights and fundamental freedoms, namely,
(b) the right of the individual to equality before the law and the protection of the law;
As in the case of the Charter, there is no requirement under the Bill of Rights for Parlia ment to enact uniform laws throughout the coun try. The plaintiffs are subject to, section 8 of the Limitation Act in the same manner as are all other British Columbia litigants. In its as yet unreported decision in the case of Algonquin Mercantile Corp. v. Dart Industries Canada Ltd., judgment dated June 17, 1987, Federal Court file A-692-86, our
Court of Appeal approved and applied the princi ple that even where the matter falls within federal jurisdiction, the provincial law where the cause arose and is being litigated, is to be exclusively applied in determining the rights of the litigants, where federal law is silent on the subject. The decision dealt with rates of interest to be applied and recognizes that the mere fact that the result would have been different had the law of some other province been applicable, is not to be taken into account.
Section 38 of the Federal Court Act meets the test that those who are similarly situated should receive similar treatment. The mere fact that liti gants in other Provinces are not subject to an ultimate 30 year limitation does not constitute discrimination against paragraph 1(b) of the Bill of Rights any more than it does under sections 7 or 15 of the Charter. Although the Bill of Rights has been in effect for over 27 years, counsel for the plaintiffs were unable to cite one authoritative case capable of supporting this territorial argument for civil cases.
The plaintiffs also argued that paragraph 1(a) of the Bill of Rights which protects their right to "life, liberty, security of the person and enjoyment of property, and the right not to be deprived thereof except by due process of law" would render inoperative section 8 of the (B.C.) Limita tion Act by reason of the overriding provisions of section 2 of the Bill of Rights.
In support of this proposition, counsel for the plaintiffs referred to a statement of Laskin C.J., speaking for the minority in the case of Morgen- taler v. The Queen, [ 1976] 1 S.C.R. 616, at page 633; (1975), 20 C.C.C. (2d) 449, at page 462, and to another statement of Ritchie J. in Curr v. The Queen, [1972] S.C.R. 889. Neither of these state ments support the proposition advanced by the plaintiffs.
Reliance by the courts on limitation provisions of general application does not constitute a denial of due process nor does the legislation itself consti tute such a denial. An ultimate limitation period
does not deny the plaintiffs the right to litigate nor the right of access to the court. It merely imposes a time limitation within which the action must be commenced. Thus it does not, as argued by the plaintiffs, fall within the situation which was before the Supreme Court of Newfoundland in Piercey v. General Bakeries Ltd.; The Queen in right of Newfoundland et al., Intervenors (1986), 31 D.L.R. (4th) 373.
f) Conclusion re: limitations
I conclude that the claim for insufficiency of the sale price to the Director in 1948 is statute barred and also extinguished pursuant to sections 8 and 9 of the 1975 B.C. Limitation Act, R.S.B.C. 1979, c. 236.
LACHES AND OTHER LIMITATION PROVISIONS
Counsel for the defendant raised the defence of laches and also relied upon other sections of the B.C. Limitation Act and also the former Act to be found in R.S.B.C. 1960, c. 370. Considerable argument was advanced and numerous authorities referred to by both counsel on these subjects.
In view of my finding regarding the 30 year ultimate limitation provisions, no useful purpose would be served in referring to these arguments nor to my findings of fact pertaining to them. I will however add that, after taking into account the saving provisions of sections 6 and 7 and the transitional provision of section 14 of the 1975 Act, I would have concluded that the action was in any event, also barred by reason of the former Limitations Act and also by reason of section 3(4) of the new Act.
FINDING
For the above reasons, judgment will issue dis missing the action. Costs will follow the event.
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