David M. Stack

This appeal concerned whether records generated under the Independent Assessment Process in the Indian Residential Schools Settlement Agreement were subject to federal access, privacy, and archiving legislation, and whether they could be ordered destroyed.

The Court held the supervising judge had authority under the settlement framework to direct disposition of the records and found no palpable and overriding error in concluding the agreement contemplated confidentiality, limited retention, claimant choice, and eventual destruction.

The Court also upheld the modified order requiring a 15-year retention period with a notice program so claimants could elect archival preservation.

The appeal was dismissed with costs to the Independent Counsel.

A motion sought to add the National Centre for Truth and Reconciliation as a party, or alternatively as an intervenor, to a request for directions brought by the Truth and Reconciliation Commission concerning document production obligations under the Indian Residential Schools Settlement Agreement.

The moving party argued that because the Commission’s mandate was nearing expiry, it might become responsible for receiving and archiving documents produced under any order.

The court held that the repository’s role under the settlement agreement was distinct from the Commission’s document‑collection mandate and that its presence was not necessary for the court to adjudicate the issues.

The court further held that the moving party had not demonstrated a direct interest or that its participation would enhance the court’s determination of the request for directions.

Both joinder and intervention were refused.

The Minister of National Revenue appealed a decision holding that accounts receivable factored to a third party were not subject to a deemed trust for unremitted payroll deductions.

The Supreme Court of Canada held that while the deemed trust under s. 227(4.1) of the Income Tax Act attaches to property acquired by a tax debtor after a default, it does not continue to attach to property once it has been sold to a third-party purchaser for value in the ordinary course of business.

The appeal was dismissed.