Dianne G. Corbiere

Ontario appealed from the Court of Appeal's decision concerning the Robinson Treaties of 1850, which contained an Augmentation Clause providing for periodic increases to annual payments to the Anishinaabe of Lake Huron and Lake Superior contingent on economic conditions.

The annuities had been frozen at $4 per person since 1875.

The Supreme Court of Canada held that treaty interpretation is reviewable on a correctness standard, and adopted the fourth interpretation of the Augmentation Clause: the annuity is a single payment to the 'Chiefs and their Tribes', with mandatory increases to $4 per person where economic conditions permit, and discretionary increases beyond $4.

The Crown's discretion is not unfettered; it must be exercised diligently, honourably, liberally, and justly, consistently with the honour of the Crown.

No specific fiduciary duties arose in respect of the Augmentation Clause, but the duty of diligent implementation did.

The breach of treaty claims were not statute-barred.

The appeals were allowed in part, cross-appeals dismissed, and a declaration issued directing the Crown to engage in time-bound negotiations with the Superior plaintiffs regarding compensation for past breaches.

The plaintiffs brought a motion on consent for a partial judgment to give effect to a settlement agreement regarding past annuities payable under the Robinson Huron Treaty of 1850.

The settlement resolves claims that the Crown failed to fulfill its promise to augment the annuity over time.

Under the agreement, the federal and provincial Crowns will pay $10 billion to the plaintiffs.

The court approved the settlement agreement and granted the partial judgment.

The Ontario Court of Appeal remitted the issue of the Huron plaintiffs' Stage One trial costs to the Superior Court for reconsideration, questioning the substantial difference in hours claimed compared to the Superior plaintiffs.

The court found the Huron plaintiffs' costs to be fair and reasonable, noting the added complexity of representing 21 First Nations, the extensive evidence led on the Anishinaabe perspective, the incorporation of Anishinaabe Ceremony and protocol, and the necessary creation of the Robinson Huron Trust to manage the litigation.

The court concluded that the costs were proportionate and within the reasonable expectations of the parties given the historical significance and complexity of the treaty claims.

The Crown appealed the Stage One and Stage Two decisions regarding the interpretation of the Robinson-Huron and Robinson-Superior Treaties of 1850.

The trial judge found that the Treaties' augmentation clause imposed a mandatory obligation on the Crown to increase the perpetual annuities if the economic circumstances of the ceded territories warranted it, without a hard cap of $4 per person.

The Court of Appeal unanimously upheld the trial judge's conclusion that the Crown has an obligation under the honour of the Crown to diligently implement the augmentation promise and that its discretion is not unfettered.

The Court unanimously set aside the trial judge's finding of an ad hoc fiduciary duty and her specific remedial directives regarding a 'fair share' of net resource revenues.

The Court also unanimously dismissed the Crown's limitations defence.

The Court split on the standard of review for historical treaties and whether the trial judge made extricable errors of law in her interpretation, but the majority upheld her core interpretation of the augmentation clause.

Following Stage Two of a complex treaty rights trial, the plaintiffs sought costs against Ontario.

Ontario disputed the quantum and the partial indemnity rate, arguing the plaintiffs expended an unreasonable amount of time compared to the defendants.

The court found the plaintiffs' time expenditure was reasonable given the complexity of the issues, including Crown immunity and limitations, and the risks involved.

The court awarded costs to the plaintiffs on a partial indemnity basis at a rate of 65%, taking into account an offer to settle made by the Superior plaintiffs and the unique nature of the Anishinaabek-Crown treaty relationship.

Ontario brought a motion to reopen Stage One of the trial to admit newly discovered evidence, specifically the Fort William Jesuit Mission Diary and a September 30, 1850 entry, along with expert opinion evidence.

The court dismissed the motion, finding that the evidence would not probably have changed the result of the trial and could have been discovered with reasonable diligence.

The court also ruled that the expert opinion evidence was inadmissible on the motion as it was not necessary and its prejudicial effect outweighed its probative value.

The Anishinaabe beneficiaries of the Robinson Huron and Robinson Superior Treaties of 1850 brought actions seeking declarations regarding the interpretation of the annuity augmentation clause in the Treaties.

The Treaties provided for a perpetual annuity that the Crown promised to increase if the ceded territory produced an amount enabling the Crown to do so without incurring loss, provided the amount paid to each individual did not exceed £1 ($4) per year, or such further sum as Her Majesty may be graciously pleased to order.

The Court held that the Crown has a mandatory obligation to increase the collective annuities when economic circumstances warrant, and that the $4 cap applies only to individual distributions, not the collective entitlement.

The Court also found that the Crown owes an ad hoc fiduciary duty to the beneficiaries to engage in the process of determining whether the economic circumstances warrant an increase.