Docket: T-378-14
Citation:
2014 FC 1247
Ottawa, Ontario, December 19, 2014
PRESENT: The Honourable Mr. Justice Mandamin
BETWEEN:
|
CYNTHIA KNEBUSH
|
Applicant
|
and
|
RUTH MAYGARD, CLARISSA MCARTHUR,
GAYLENE MCARTHUR AND KATHLEEN
MCARTHUR, IN THEIR PERSONAL
CAPACITIES AND IN THEIR CAPACITY AS
THE BAND COUNCIL OF THE PHEASANT
RUMP NAKOTA FIRST NATION AND
THE PHEASANT RUMP NAKOTA FIRST
NATION
|
Respondents
|
ORDER AND REASONS
I.
Introduction
[1]
This matter involves a question of a costs award
where the parties settled the underlying judicial review application concerning
a First Nation governance issue. As such it provides an opportunity to review
costs awards in the resolution of First Nations’ disputes through settlement as
opposed to litigation.
II.
Background
[2]
The Pheasant Rump Nakota First Nation is located
in south-eastern Saskatchewan. Its members have chosen to govern themselves by
their own legislation, the Custom Electoral System. The Chief of the Pheasant
Rump Nakota First Nation had resigned his position on August 1, 2013. The
Custom Electoral System addresses that situation and requires a by-election for
chief within two months of the vacancy in the chief’s office. More
specifically, paragraph 2(6)(iv) of the governance law requires a by-election
to be held “on the last Friday in the second month
which follows the month that the vacancy of Chief and/or Band Council member
was created ...”.
[3]
Because of delays in scheduling a by-election,
Ms. Cynthia Knebush, the Applicant, filed an application on February 10, 2014
seeking a mandamus order compelling the Respondents in their capacity as
members of the Council to hold a by-election for the office of chief.
[4]
The Applicant was represented by legal counsel.
The Respondent Councillors, Ms. Ruth Maygard, Ms. Gaylene McArthur and Ms.
Kathleen McArthur (the Respondent Councillors), jointly retained legal counsel.
The Respondent Ms. Clarissa McArthur, a Councillor at odds with the other
Council members, retained separate legal counsel.
[5]
The Federal Court’s practice guideline for First
Nations Governance Disputes provide for alternative dispute resolution approach
by way of case management coupled with either informal or formal dispute
resolution dialogue. In keeping with these guidelines, on March 7, 2014 I
conducted a case management hearing in Winnipeg with all of the parties’ legal
counsel and some, though not all, parties present either in person or by
teleconference.
[6]
The parties reached an agreement on a resolution
to the Pheasant Rump First Nation governance dispute. The settlement called for
the general election for chief and all councillors to be moved forward several
months to June 27, 2014. Prothonotary Roger Lafrenière confirmed the terms of
the settlement by way of the March 19, 2014 Consent Order that set the general
election for June 27, 2014.
[7]
I agreed that I would be seized with the
question of costs to be decided following written submissions from the parties.
III.
Issue
[8]
The central issue is whether costs can flow from
the settlement of a judicial review of a First Nation governance dispute. If
yes, the Court must determine whether the Applicant or the Respondent McArthur
are entitled to costs and in what amount.
IV.
Legislation
[9]
The Court has discretionary power to award costs
having regard to factors provided in Rule 400 of the Federal Courts Rules,
SOR/98-106 which provides:
PART II
COSTS
400. (1) The Court shall have full discretionary power over the
amount and allocation of costs and the determination of by whom they are to
be paid.
…
(3) In exercising its discretion under subsection (1), the Court
may consider
(a) the result of the proceeding;
…
(e) any written offer to settle;
…
(g) the amount of work;
…
(h) whether the public interest in having the proceeding litigated
justifies a particular award of costs;
(i) any conduct of a party that tended to shorten or unnecessarily
lengthen the duration of the proceeding;
…
(o) any other matter that it considers relevant.
(4) The Court may fix all or part of any costs by reference to
Tariff B and may award a lump sum in lieu of, or in addition to, any assessed
costs.
…
(6) Notwithstanding any other provision of these Rules, the Court
may
…
(c) award all or part of costs on a solicitor-and-client basis;
…
|
PARTIE II
DÉPENS
400. (1) La Cour a le pouvoir discrétionnaire de déterminer le
montant des dépens, de les répartir et de désigner les personnes qui doivent
les payer.
…
(3) Dans l’exercice de son pouvoir discrétionnaire en application
du paragraphe (1), la Cour peut tenir compte de l’un ou l’autre des facteurs
suivants :
a) le résultat de l’instance;
…
e) toute offer ecrite de reglement;
…
g) la charge de travail;
…
h) le fait que l’intérêt public dans la résolution judiciaire de
l’instance justifie une adjudication particulière des dépens;
i) la conduite d’une partie qui a eu pour effet d’abréger ou de
prolonger inutilement la durée de l’instance;
…
o) toute autre question qu’elle juge pertinente.
(4) La Cour peut fixer tout ou partie des dépens en se reportant
au tarif B et adjuger une somme globale au lieu ou en sus des dépens taxés.
…
(6) Malgré toute autre disposition des présentes règles, la Cour
peut:
…
c) adjuger tout ou partie des dépens sur une base avocat-client;
…
|
V.
Submissions
A.
Submissions by the Applicant Cynthia Knebush
[10]
The Applicant seeks a cost award, inclusive of
disbursements, in the amount of $10,000, from the Respondent Councillors,
excluding the Respondent Clarissa McArthur, either jointly or severally.
[11]
The Applicant incurred costs to prepare, serve
and file the notice of application, prepare a supporting affidavit, and write
to the Court requesting case management, as well as service expense related to
obtaining legal services for a remote rural community. The Applicant’s
disbursements were $794.90, and her legal fees were calculated as follows:
$19,000.00 solicitor and client costs, or using the tariff chart, $5,880.00
under column III, or $10,220.00 under column V. The average of all three
amounts is $11,700.00.
[12]
The Applicant advances three arguments for a
cost award:
a.
the application was a “public
interest case” which preserves the rule of law in First Nations custom
governance; the Applicant does not benefit directly;
b.
the Applicant successfully obtained an expedited
election for chief;
c.
the Respondent Councillors likely have costs
paid by the First Nation and therefore would not be personally responsible for
their legal expenses. The Applicant submits her counsel acted pro bono
or low bono [sic] but nevertheless she has incurred a personal
expense having already advanced a retainer; and
d.
a cost award would address the imbalance between
the Applicant and the Respondent Councillors whose legal expenses are presumed
covered by the First Nation.
B.
Submissions of the Respondent McArthur
[13]
The Respondent McArthur submits that there is a division
between herself and the other Councillors and seeks full solicitor and client
costs against the First Nation. She submits her request for solicitor client
costs is based on public interest.
[14]
The Respondent McArthur advances three arguments
for considering this application for costs in the public interest:
a.
public interest in this case is grounded in
access to justice. This dispute has affected all members of the First Nation
equally. The application was for benefit of community as a whole;
b.
she states she is impecunious, and submits that
the application was necessary and required intervention of lawyers to require
the Respondent Councillors to call an election; to not grant costs gives tacit
approval to the Respondent Councillors’ inaction;
c.
she also submits, as a Councillor, she is in the
same position as the other Councillors and should be indemnified by the First
Nation in the same way as the Respondent Councillors.
[15]
The Respondent McArthur submits that the
Respondent Councillors stripped her of power, and she was not part of the decision
to not call an election as required by the Custom Election System. She states
her salary as a councillor was reduced, compromising her ability to engage
legal counsel. As a respondent she was exposed to the same liability as the
other respondents. She consented to the relief sought by the Applicant and
submits there is therefore no principled reason why she should not be fully
compensated for legal expenses.
[16]
The quantum of costs requested by Respondent
McArthur is uncertain. At paragraph 9 of her written submissions the request is
for full solicitor client costs in the amount of $4,845.65. However, the relief
sought at paragraph 45, are for costs in the amount of $5,985.65.
[17]
Finally, Respondent McArthur submits the costs
should rest with the Pheasant Rump First Nation which benefited by the outcome
of the application.
C.
Submissions of the Respondent Councillors Ruth
Maygard, Gaylene McArthur and Kathleen McArthur
[18]
The Respondent Councillors submit that the
agreement of the parties was reached in the interests of not only saving the
First Nation the cost of litigating the issues but also in the interests of
resolving disputes between members of the First Nation.
[19]
They submit that the Applicant was not
successful, and emphasize that the agreement reached was a settlement based on
compromise by all parties. For example, the Respondent Councillors are missing
out on income they would have earned as councillors but for the earlier June 27
election date.
[20]
The Respondent Councillors state that the First
Nation Council has functioned in the past without a Chief in office for
extended periods and there were legitimate factors causing delay in setting a
date for the election. They submit they acted properly and not in bad faith. If
costs are awarded against them, the Respondent Councillors submit they should
be nominal and not be against them personally.
[21]
The Respondent Councillors submit the costs
claimed by the Applicant are excessive in the circumstances given they made
efforts to resolve the matter.
[22]
With respect to the Respondent McArthur’s
solicitor and client costs claim, the Principal Respondents submit costs were
not necessary, as her only involvement was attendance by her counsel at the
case management hearing. The Respondent Councillors submit the Respondent
McArthur should bear her own costs.
VI.
Analysis
[23]
Rule 400 of the Federal Court Rules sets
out the basic principle that the Court has full discretion in awarding costs. Rule
400(3) sets out factors that Court may consider in awarding of costs, but the
Court can consider further additional factors, as noted in Rule 400(3)(o). The
Court has full discretion over the amount of costs to be awarded having regard
to the factors delineated in Rule 400(3). (see Francosteel Can. Inc. v “African Cape”, [2003] FCA 119 at para 20.)
A.
Costs on Settlement
[24]
In a litigated proceeding, the general rule is
costs follow the event, that is, the successful party is awarded costs unless
there is reason for otherwise. The result of the proceeding carries significant
weight in the Court’s consideration of a cost award. (see paragraph 400(3)(a);
see also Merck & Co v Novopharm Ltd, [1998], FCJ No 1185 at para
24.)
[25]
In contrast, costs usually have not been awarded
where settlements have been reached through agreement. However, Rule 400 does
not preclude a costs award upon settlement and jurisprudence recognizes the
possibility for such awards.
[26]
In RCP Inc. v Minister of National Revenue,
[1986] 1 FC 485 (TD), Justice Paul Rouleau considered whether costs could be
awarded in absence of an order or determination of issues. He decided there was
no bar to a costs award where an applicant obtained the relief sought by way of
settlement. He decided to award costs because equity required the respondents
should not be allowed to avoid costs by settling the matter when it became
apparent the applicant would be successful at trial.
[27]
In Mohawks of Akwesasne v Canada (Minister of Human Resources and Social Development), 2010 FC 754 [Mohawks of
Akwesasne], Justice François Lemieux observed:
26 This was a case where the parties
voluntarily came to the mediation table and settled. Generally, in such cases
there are no losers only winners. Judicial comment, which I endorse, is to the
effect, unless the parties agree otherwise, each party should bear its own
costs in mediation unless the conduct of the parties during litigation suggests
otherwise.
[28]
Similarly, in Wahta Mohawk First Nation v Hay,
2014 FC 213 [Wahta Mohawk First Nation], Justice Douglas R. Campbell
opined:
9 A unique factor, which militates
towards the settlement of a First Nations governance dispute, is motivation to
adhere to the cultural value that balance must be restored to the community.
Thus, given the application of this higher principle, to maintain a dispute
beyond a settlement reached by a request for costs is counter-indicated because
the governance dispute just settled is, in fact, not settled and balance will
not be achieved.
10 Thus, because of the unique nature
of a First Nations governance dispute, in my opinion where a settlement is
reached, whether by mediation or direct negotiation, each party should bear
their own costs unless a clear serious reason exists to ground an award for
costs. As found in Mohawk of Akwensasne a serious reason can be found across a
range: unreasonable actions and mistakes in the course of the litigation at one
end to unacceptable reprehensible behavior at the other.
B.
Agreement for Court Consideration of Costs
[29]
While the process of settlement may address the
question of court awarded costs, there are constraints to including such
provisions in settlement agreements.
[30]
After settlement of the issues in Mohawks of
Akwesasne, Justice Lemieux choose to consider the submissions on costs on
the basis of an arbitrator whose determination would be binding on the parties
and not subject to appeal. However, he cautioned:
27 The other important factor which
weighs in the court’s mind is the chilling effect of awarding costs against a
party after the successful conclusion of mediation even though the agreement
contemplates that possibility of a cost award as it does here.
[31]
In Wahta Mohawk First Nation, Justice
Campbell accepted the question of cost following settlement of that First
Nation’s governance dispute. While the settlement agreement provided for costs
payable to the respondent to be determined by the Court, Justice Campbell
significantly qualified the question of costs, stating:
4. Given the Agreement was
accomplished, no findings were made on the merits of the Application. At the
hearing the terms of the Agreement were read into the record, one term being
that “the Application will be dismissed with costs to
be determined by the Court”. For clarification, it is agreed that the
Agreement misstates this fact with in the phrase “the
application is dismissed with costs payable to the Respondents to be determined
by the Court”. The point of difference is that whether any costs are
payable are within my discretion.
C.
Outcomes
[32]
In Randall v Caldwell First Nation of Point
Pelee, 2006 FC 1054 at paragraph 18 [Randall], Prothonotary Lafrenière
noted Courts should not be speculating on the likely outcome that might have
followed litigation:
18 Absent an acknowledgment by the
Claimants that the Band Council would have succeeded if the proceedings had
gone to hearing, the Court should not be speculating as to the likely outcome.
Costs can be awarded, however, on the basis of the conduct of the parties
during the course of the litigation, such as: (1) whether it was reasonable for
a party to raise, pursue or contest a particular allegation or issue; (2)
whether a party properly pursued or defended its case or a particular
allegation or issue; (3) whether a party exaggerated its claim or raised a
baseless defence; and (4) whether a party properly conceded issues or abandoned
allegations during discoveries.
[33]
The applicants had not sought costs in Randall.
Rather, the respondent First Nation Council sought costs against the applicants
following the settlement. Prothonotary Lafrenière stated:
22 The litigation between the Claimants
and the Band Council brought a number of festering issues to a head, and
resulted in negotiated settlement that will no doubt contribute to a better
environment and understanding in the community, to the credit of all parties.
23 Bearing in mind the entirety of
the record before the Court, I am not satisfied that it would be appropriate to
award costs against the Claimants who, in the end, were simply attempting to
have their voices heard. Moreover, a cost award would be counterproductive as
it would undermine the progress that has been achieved over the last six years
in bringing the community together.
[34]
Prothonotary Lafrenière, being mindful of the
benefits achieved in the ultimate outcome including a degree of success in
resolving community conflict achieved by the applicants, declined to exercise
discretion to award costs in favour of the respondent.
D.
Conduct
[35]
In Mohawks of Akwesasne the parties
quickly agreed to case management and judicial mediation. The negotiations,
however, took a significant period of time. After the main elements of a
settlement agreement were reached, the parties agreed costs could be determined
by the Court based on written submissions. The applicant then sought costs from
the respondent.
[36]
Justice Lemieux was well aware and approved of
the decision in Randall stating:
14 Finally, the comments made by
Prothonotary Lafreniere about costs and settlements resonate in the
jurisprudence of other courts. I cite paragraph 19 of the supplementary reasons
of Justice R.A. Blair (then a judge of the Commercial Court – Ontario, Court of
Justice, General Division) in Nameff v. Con-crete Holdings Ltd. [1993
O.J. No. 1756:
19. I do so principally for the
following reason. The parties engaged in a lengthy mediation process before
Farley J. they made a genuine effort to settle. They are to be commended for
this effort withstanding that, in the end, it was unsuccessful. In my view
the costs of mediation process – which is a voluntary effort to find a suitable
out of court resolution – should be borne equally by the parties engaging in
it. Otherwise, parties will be discouraged from engaging in what can be in many
instances be a fruitful exercise leading to a self made result, for fear that
at the end of the day, if it is not successful and the proceedings are
consequently lengthened, they will bear more costs. (My emphasis [Justice
Lemeiux])
…
29 Clearly, in the Court's view, the
applicants obtained in this mediation much more than they could, had the matter
been litigated. For example, much of the Settlement Agreement rests on the
exercise of the Minister's discretion in remissions. The Court, in judicial
review, cannot dictate the exercise of discretion only its legality. This
factor is important.
[37]
Justice Lemieux emphasized that the applicant’s
success in the outcome rested in part on the respondent’s conduct, namely the
Minister’s willingness to exercise discretion to accommodate settlement of the
issues. Thus the parties’ conduct in negotiations was also a consideration.
[38]
The question of conduct arises in litigated
proceedings with respect to solicitor-client costs. The general principle was
stated in Mackin v New Brunswick (Minister of Finance), [2002] 1 SCR
405 [Mackin] at para 86:
It is established that the question of costs
is left to the discretion of the trial judge. The general rule in this regard
is that solicitor-client costs are awarded only on very rare occasions, for
example when a party has displayed reprehensible, scandalous or outrageous
conduct (Young v. Young, [1993] 4 S.C.R. 3, at p. 134). Reasons of
public interest may also justify the making of such an order (Friends of the
Oldman River Society v. Canada (Minister of Transport), [1992] 1 S.C.R. 3,
at p. 80).
[39]
Such conduct was a factor in the costs award in Rouseau River Anishinabe First Nation v Nelson, 2013 FC 180 [Rouseau
River Anishinabe First Nation]. Justice James Russell awarded costs against
the Nelson respondents, the former Chief and Councillors, in favour of the
Applicant and the other respondents, who were the current Chief and
Councillors.
[40]
Justice Russell found the evidence before the
Court established the Nelson respondents engaged in reprehensible, scandalous
and outrageous conduct that merited an award of solicitor client costs against
them. It must be noted Justice Russell had been addressing the conduct of the
respondents in the events leading to the judicial review application rather
than in the litigation in which the litigants were self-represented.
E.
Public Interest
[41]
As noted above, public interest may also justify
the making of a costs order. Friends of the Oldman River Society v Canada (Minister of Transport), [1992] 1 S.C.R. 3, at p 80 [Friends of the Oldman River
Society].
[42]
In awarding solicitor-client costs in Rouseau River Anishinabe First Nation [RRAFN] Justice Russell
further stated:
76. … There is also a strong public
interest component for solicitor /client costs in this case. If the
constitution of RRAFN is simply disregarded and thwarted for reasons of
political expediency, these disputes will never cease. This cannot be in the
interests of RRAFN.
F.
First Nations Governance Issues
[43]
First Nations are unique in that they may
establish their own governance laws in accordance with the Aboriginal right to
determine their governance structure “in accordance
with the custom of the band”. This unique Aboriginal right is confirmed
by the Indian Act R.S.A. 1985 c- I-5 in s. 2 which provides:
2. (1) In this Act
“council of the band” means
…
(b) in the case of a band to which section
74 does not apply, the council chosen according to the custom of the band, or,
where there is no council, the chief of the band chosen according to the custom
of the band;
[44]
The nature of this Aboriginal right was discussed
by Justice Robert Mainville in Elders of Mitchikinabikok Inik v Algonquins
of Barriere Lake Customary Council, 2010 FC 160 [Algonquins of Barriere
Lake] at para. 101:
101 The use [of] customary selection
processes is one of the few aboriginal governance rights which has been given
explicit federal legislative recognition through the Indian Act. The Mitchikanibikok
Anishinabe Onakinakewin is itself the contemporary manifestation of the
traditional customary governance selection system of the Algonquin of Barriere
Lake. That custom is explicitly recognized by this provision of the Indian
Act.
[45]
Questions of the legitimacy or compliance with
First Nations governance laws come before the Federal Court in applications for
judicial review of decisions or actions by First Nations chiefs, councils,
officers or tribunals. (see Gamblin v Norway House Cree Nation Band Council,
2012 FC 1536 at paras 55 – 61.)
[46]
The Federal Court, in considering the question,
usually decides the issue by interpretation of the First Nations’ governance
laws or by application of principles of procedural fairness. These decisions
assist in the clarification of First Nations governance laws and their proper
application. The result is that the First Nations laws are better understood by
the First Nation members, which promotes compliance and consistency with the
governance law. By this process First Nations’ governance legislation benefits
in the same way as does federal or provincial legislation when clarified by
judicial interpretation.
[47]
However, litigation of issues concerning First
Nations governance presents a unique difficulty for First Nations. A First
Nation is a community of members with long standing historical and familial
inter-relationships. The adversarial nature of the litigation process can
exacerbate community differences of opinion and harm ongoing relationships
between the First Nations members.
[48]
Further, litigation is becoming increasingly
costly. Awards for costs in closely litigated claims can amount to tens of
thousands of dollars. Such costs can divert First Nations resources away from
other important priorities such as educational, social and economic initiatives.
[49]
Finally, in my view, litigation runs counter to
First Nations’ sensibilities that promote agreements or consensus as a primary means
of resolving issues. Clearly, where the governance issue is the correct
interpretation of a First Nation law, the question requires judicial
determination. However, many of the issues turn on facts upon which the parties
disagree. In other instances, a resolution may be found by adopting a different
course of action. In such instances, a negotiated settlement is an alternative
to litigation. Parties usually have a good understanding of what would be an
outcome that is fair to all. Experienced counsel are knowledgeable and usually
able to assess likely outcomes. Settlements draw on these understandings and
knowledge and can resolve such issues without further litigation.
[50]
Alternative dispute resolution is available for
judicial review applications. The Federal Court Rules are flexible and also
enable judicial review matters to be addressed by way of case management and
dispute resolution. That is not to say dispute resolution is not without
commitment and effort. Achieving an agreement that is satisfactory and fair to
all parties takes work, flexibility and willingness to compromise.
[51]
The benefits of reaching a satisfactory
settlement in First Nations governance disputes are several: healing rifts in
First Nations communities, achieving positive outcomes beyond the scope
achievable on judicial review and more fundamental resolution of issues are of
significance.
[52]
The Federal Court has repeatedly observed
benefits to resolution of proceedings by agreements between the parties. To
recap:
The litigation between the Claimants and the
Band Council brought a number of festering issues to a head, and resulted in
negotiated settlement that will no doubt contribute to a better environment and
understanding in the community, to the credit of all parties. Randall
para. 22
This was a case where the parties
voluntarily came to the mediation table and settled. Generally, in such cases
there are no losers only winners. Mohawks of Akwesasne para. 26
A unique factor, which militates towards the
settlement of a First Nations governance dispute, is motivation to adhere to
the cultural value that balance must be restored to the community. Thus, given
the application of this higher principle, to maintain a dispute beyond a
settlement reached by a request for costs is counter-indicated because the
governance dispute just settled is, in fact, not settled and balance will not
be achieved. Wahta Mohawk First Nation para. 9
[53]
I would add my own observation that the process
of deciding important matters by agreement is a process that resonates in many
First Nation cultures. Agreements are means by which important matters are
decided and accepted by First Nations members with greater finality. This
characteristic is manifested in different ways. It may be at an elevated level
such as the reverence for Indian treaties as is described in R v Badger,
[1996] 1 S.C.R. 771 or it may be at an individual level as in First Nations’
justice initiatives involving peacemaking or circle sentencing.
[54]
On one hand, an award of costs implies one party
is a winner and the other party to be a loser in the proceedings. There is an
important balancing to be done in the process of considering costs. In Randall,
Prothonotary Lafrenière considered a cost award to be counterproductive as it
would undermine the progress achieved in the community. In Algonquins of
Barriere Lake, Justice Mainville declined to make a cost order because a
cost award would exacerbate the community tensions.
[55]
I consider such inferences about winners and
losers weigh against, and are a disincentive to, pursuing the benefits of
settling matters by agreement.
[56]
On the other hand, there is a public interest
aspect to be considered. The parties in the settlement process gain a better
appreciation of the First Nations governance under dispute as they work through
the process of reaching an agreement. (see e.g. Akwesasne at para 30). I
should think such understanding and appreciation advances observance of the
rule of law in respect of First Nations governance laws.
[57]
Certainty in First Nations governance law is an
important benefit for a First Nation community. In this respect, where the
result is a better appreciation and commitment to observance the First Nations
governance law, it is appropriate to consider whether that the costs ought to
be borne by the First Nation.
[58]
First, costs have been awarded against the First
Nation where the respondent in fact acts for the First Nation. Bellegarde v
Poitras, 2009 FC 1212. In that decision, Justice Russell Zinn was satisfied
the First Nation had paid for some of the costs of the legal fees of the
respondents. He found the Court had jurisdiction to award costs against a
non-party. (see para 9).
[59]
There is also the question of the imbalance
between an individual member of a First Nation who brings a judicial review to
have a First Nation’s laws be observed and the respondents who are the
governing body of the First Nation. Such respondents, usually chiefs and
councillors, are in a position to have their legal costs reimbursed by the
First Nation. If a judicial review application properly addresses a question of
the First Nation’s law, it seems to me that, on the basis of public interest,
individual applicants may be similarly entitled to look to the First Nation for
costs.
[60]
I should think a reasonable costs award on a
public interest basis against a First Nation that has benefited by having
clarity brought to its governance laws avoids any adverse inference of winners
and losers. The public interest served would be having the issue resolved in a
manner and form that is in keeping with the sensibilities of the First Nation.
[61]
Having regard to the foregoing, it is my view
that consideration of costs is appropriate in settlements of First Nations
governance judicial review applications rather than merely being an exception
to the general practice of not awarding costs in settlements.
VII.
Costs
[62]
In considering this matter of costs, I had
regard for:
a.
the Rules apply in respect of consideration of
costs awards following settlements;
b.
promoting compliance with First Nation
governance law and restoring relationships are important considerations;
c.
conduct of the parties in the course of
achieving resolution is a significant factor; and
d.
solicitor-client costs is reserved for cases of
reprehensive, scandalous, conduct and for cases that give rise to matters of
important public interest.
[63]
The Applicant Cynthia Knebush requested a cost
award on the higher end but not full solicitor client costs. She had been
seeking to have the Pheasant Rump Nakota First Nation law requiring a
by-election for the vacant office chief complied with. That objective was
realized by the scheduling of an earlier general election date.
[64]
Further, the Applicant did more than just file
her Notice of Application and supporting affidavit. She also completed the
Applicant’s Record including argument and was ready to proceed with a hearing
before the case management conference was held.
[65]
The Respondent McArthur was necessarily engaged
as a respondent councillor. However, she conflated her own issues with the
other Respondent Councillors with the issue in the proceeding at hand.
Moreover, the involvement by her and her legal counsel was minimal as the
issues were fully addressed by the Applicant and the principal Respondent
Councillors.
[66]
The Respondent Councillors, to their credit,
immediately entered into settlement discussions and agreed to a resolution that
involved giving up serving out their own full terms of office which had not
been at issue in the judicial review application.
[67]
Since the Respondent Councillors were sitting
members of the Pheasant Rump Nakota First Nation Council, I find the presumption
that their legal expenses were covered by the First Nation has not been
displaced by evidence to the contrary.
[68]
As the Respondent Councillors and the Respondent
McArthur are the councillors of the Pheasant Rump Nakota First Nation, I see no
reason not to consider the First Nation to be represented in this matter as if
it were a named party. All parties made reference to Pheasant Rump Nakota First
Nation directly or impliedly as if a party. Accordingly, I will treat it as a
party for purposes of this costs award.
VIII.
Conclusion
[69]
In light of the foregoing and in the exercise of
my discretion I conclude that:
a.
The Pheasant Rump Nakota First Nation is to be
added as a named party;
b.
costs in the amount of $10,000.00 inclusive of
expenses are awarded in favour of the Applicant Cynthia Knebush payable by the Pheasant
Rump Nakota First Nation;
c.
no costs are assessed personally against the
Respondent Councillors Ruth Maygard, Gaylene McArthur, and Kathleen McArthur;
and
d.
costs in a lump sum of $1,500.00 are awarded in
favour of the Respondent Clarissa McArthur also payable by the Pheasant Rump Nakota
First Nation.