Joseph C. McArthur

Two Indian bands appealed dismissal of claims alleging that the Crown, as fiduciary, was obliged to invest oil and gas royalties held in the Consolidated Revenue Fund and had breached its obligations by paying interest under a long-term government bond formula.

The Court held that while the Crown owed fiduciary duties arising from the surrenders and trust-like relationship, the Indian Act, Financial Administration Act, and Indian Oil and Gas Act did not authorize the Crown to invest the royalties and instead required the funds to remain in the CRF subject to statutory payment mechanisms.

The Court further held that the chosen interest methodology was not imprudent, that the Crown was neither unjustly enriched nor unlawfully conflicted by the statutory arrangement, and that the money management provisions of the Indian Act did not violate s. 15(1) of the Charter.

The appeals were dismissed with costs.

Appeal in a major Aboriginal title claim involving hereditary chiefs asserting rights over a large area of British Columbia.

The Court held that Aboriginal title is a sui generis right in land protected by s. 35(1), conferring exclusive use and occupation for a variety of purposes subject to an inherent limit against uses irreconcilable with the group’s attachment to the land.

The Court also held that oral histories must be given due weight in Aboriginal litigation and that the trial judge erred in his treatment of such evidence, requiring a new trial.

On the cross-appeal, the Court held that the province lacked constitutional authority after 1871 to extinguish Aboriginal rights, either directly or through s. 88 of the Indian Act.