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.
