A forest fire caused by the negligence of Canadian Forest Products Ltd. damaged public lands in British Columbia.
The Province sued for suppression and restoration costs, which were agreed upon, as well as for lost stumpage revenue from harvestable trees and the value of non-harvestable trees in environmentally sensitive areas, including an environmental premium.
The Supreme Court of Canada held that the Province failed to prove a compensable financial loss for the harvestable trees because the Province's own Comparative Value Pricing system ensured revenue neutrality.
The Court also rejected the claim for the non-harvestable trees and the environmental premium, finding that the Crown had pleaded its case as an ordinary landowner rather than as parens patriae, and had failed to adduce sufficient evidence to quantify the environmental loss.