The appellants claimed that lands set aside for the Ross River Band in the Yukon Territory constituted a reserve under the Indian Act, entitling them to a tax exemption.
The Supreme Court of Canada held that no reserve was legally created because there was no intention to create a reserve on the part of Crown agents with the authority to bind the Crown.
The Court found that while lands were set aside for the band's use, the statutory framework and royal prerogative require both an act of setting apart and a clear intention to create a reserve, which was absent in this case.
