Docket:
T-284-14
Citation: 2014 FC 222
Ottawa, Ontario, March 6, 2014
PRESENT: The Honourable Mr. Justice Russell
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BETWEEN:
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JOACHIM HENGERER, HENGERER FARMS LTD., CHARLENE FOX AND LOIS
FRANK
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Applicants
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and
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CHIEF AND COUNCIL OF THE BAND OF THE BLOOD INDIANS ON THE BLOOD
INDIAN RESERVE #148, HER MAJESTY THE QUEEN IN RIGHT OF CANADA AS REPRESENTED
BY THE MINISTER OF INDIAN AFFAIRS AND NORTHERN DEVELOPMENT, JOHN CHIEF MOON
SR., FLOYD MANY FINGERS, MILDRED MELTING TALLOW, JEFF MELTING TALLOW, OLIVER
RUSSELL SR., CHRIS SHADE, MELVIN WADSWORTH SR., CELINA GOOD STRIKER, KEVIN
SCOUT, AND IVAN MANY FINGERS
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Respondents
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REASONS FOR JUDGMENT AND JUDGMENT
APPLICATION
[1]
This is an application for judicial review of a
decision of the Chief and Council [Council or Band Council] of the Band of the
Blood Indians dated December 17, 2013 [Decision] not to request the renewal of Permits
that allow Hengerer Farms [Hengerer] to utilize Blood Reserve lands for
agricultural production purposes.
[2]
The Applicants seek an Order which:
(a) quashes the Decision; and
(b) directs Band Council to cause Agricultural and Grazing permits
[Permits] to be issued to Hengerer in relation to certain Reserve lands that
are referenced in the affidavit of Mr. Joachim Hengerer sworn February 5, 2014.
BACKROUND
[3]
The Council of the Band of the Blood Indians on
the Blood Indian Reserve #148 [Blood Tribe] are the elected representatives of
the Blood Tribe. Band Council is elected pursuant to the Kainaiwa/Blood
Tribe Election Bylaw, 1995, which is a custom election code.
[4]
The Blood Tribe is a Band duly established
pursuant to the Indian Act, R.S.C. 1985, c. I-6 and the amendments
thereto [Indian Act], and occupies and administers the Blood Reserve No. 148
and 148A [Reserve], in the Province of Alberta, all on behalf of the members of
the Blood Tribe.
[5]
The Blood Tribe is located in southern Alberta on the Blood Reserve, the largest Indian reserve in Canada at 518.5 square miles,
and has a population of approximately 11,500 members. The Blood Tribe’s primary
industry is agriculture. The Reserve is the largest agricultural Reserve in Canada. Other industry on the Reserve includes ammonite mining, house construction, oil and
gas development, and small business and tourism.
[6]
The Reserve has been set apart for the use and
benefit and held in common for all Blood Tribe members.
[7]
The Blood Tribe holds its lands under a land
regime that is based on custom and traditional land use and occupation. A Lands
Registry is maintained by the Blood Tribe Land Management Department as the
authoritative document that identifies the existing use and occupation of
individual Blood Tribe members [Occupants] on Reserve lands.
[8]
The Blood Tribe members are not allocated lawful
possession of land pursuant to section 20 of the Indian Act, and no Blood Tribe
members have Certificates of Possession or Occupation. The Blood Tribe has
historically rejected the idea of individual land allotments through
Certificates of Possession but the Tribe does have a Land Use and Dispute Resolution
policy that recognizes and sets out the current privileges enjoyed by
Occupants.
[9]
The Blood Tribe has not made application for, or
been granted, powers pursuant to section 60 of the Indian Act which would grant
the Blood Tribe the statutory power to exercise control and management over the
Blood Reserve lands.
[10]
As the demands for farm assistance for Occupants
increased over time and individual Blood Tribe members were having a difficult
time being successful in the farming business, Council decided to allow the
land previously allocated to individuals to be farmed by non-Indian farmers
under Permits on a 1/3 – 2/3 crop share basis. The Occupant who was originally
allocated the land received the payments from the permittee. The 1/3 crop share
was then taken by the Blood Tribe to retire the debts of the individual
Occupant.
[11]
To be a land Occupant became a means for some
Band members to have an assured income. There were increasing demands on
Council to allocate more land and to arbitrate disputes on land which had been
allocated. Many of the disputes remained unresolved and continue through
generations of families and through changes in terms of Council.
[12]
To assist in resolving the disputes, Council
established a Land Use & Occupation Dispute Resolution Policy on
July 7, 2007 and further amended it on May 21, 2013. This Dispute Resolution
Policy recognizes the land regime of customary and traditional land use and
occupation and the fact that the Blood Reserves No. 148 and 148A have been set
apart for the use and benefit and held in common for all Blood Tribe members.
[13]
Hengerer is a 63-year-old farmer who has farmed
his whole life. He operates Hengerer Farms which is located three miles north
of the Reserve. Farming is Hengerer’s sole occupation. From the period of 1966
through 1972, Hengerer farmed with his father. Since that time, he has farmed
on his own. Hengerer has been farming on the Reserve since 1981.
[14]
In 2013, Hengerer and Hengerer Farms farmed
approximately 56,000 acres of land on the Reserve. Four thousand eight hundred
acres of this land are irrigated. The crops farmed on these lands consist of
barley, wheat and canola. There is also a cattle operation on these lands
consisting of approximately 400 cow-calves.
[15]
Charlene Fox and Lois Frank are members of the
Blood Indian Band and are Registered Occupants of Reserve lands.
[16]
On or about December 20 or 21, 2013, Hengerer
received a letter which advised him that all Permits allowing him to farm on
the Reserve would expire on or before March 31, 2014 and no future Permits
would be issued.
REASONS FOR
DECISION
[17]
The alleged reasons for the Decision that
Permits would expire and no future Permits would be issued to Hengerer are
contained in a document entitled “Land Management Committee Recommendation (12172013-14)
for Regular Chief and Council Meeting Holiday Inn, Lethbridge – December 17,
2013” [Recommendation].
[18]
In brief, the allegations were that Hengerer
had:
(a) disregarded directions from the Band’s Land Management Department
regarding the planting of winter wheat;
(b) disregarded survey markers;
(c) failed to report “Buck Shea” arrangements to Land Management;
(d) failed to submit a crop report to Land Management for 2013;
(e) failed to maintain fences in 2013;
(f) not remitted payment of crop rental fees for the invoice amounts in
2013;
(g) made racists remarks against Band members.
ISSUES RAISED
[19]
The parties raise the following issues:
(a) Whether the Decision is subject to judicial review;
(b) If the Decision is reviewable, what is the standard of review;
(c) Was procedural fairness denied;
(d) If a reviewable error occurred, what relief should be granted?
ARGUMENT
The Applicants
[20]
The Applicants say that the Decision is
reviewable by the Court because Council acted as a federal board, commission or
other tribunal as defined by the Federal Courts Act and the governing
jurisprudence.
[21]
Hengerer denies any of the alleged infractions
and says that Council entered into agreements with registered Occupants
(Agreements or MOUs) that provided that Council would cause Permits to be
issued to Hengerer to allow Hengerer to farm approximately 56,000 acres of
Reserve Lands from March 31, 2013 to March 31, 2016. Council’s failure to renew
Permits for Hengerer, or to cause the Permits to be renewed, is a breach of
legally binding contracts between the Band and Occupants.
[22]
The Applicants say that the breach of
contractual obligations by Council occurred in a manner that, given the whole
context and representations made by Counsels, resulted in a breach of
procedural fairness to the Applicants and which obviated their legitimate
expectations.
[23]
The Applicants say that the appropriate relief
in this case is to quash the Decision and for the Court to direct that Band
Council fulfill its obligations under the Agreements. Specifically, the Band
Council should be directed to cause Permits to be issued to Hengerer and
Hengerer Farms until March 31, 2016, with respect to the lands described in
Exhibit “A” to the February 5, 2014 Hengerer Affidavit. Alternatively, they say
the Court should direct the Decision to be reconsidered by an independent panel
(an arbitration panel appointed pursuant to the Dispute Resolution Policy
attached as Exhibit “A” to Elliot Fox’s February 2014 Affidavit is one possible
option) or the Chief and Council excluding the Land Management Committee
members, who they say are biased.
The Respondents
[24]
The Respondents say that the Decision is not
subject to judicial review and, even if it is, Council had the discretion not
to renew the Permits and acted properly in the circumstances and there was no
breach of procedural fairness. In fact, the Respondents say that there was no
action that required Council to observe the principles of natural justice and
procedural fairness. The Decision was simply to not enter into further
commercial activity with Hengerer.
[25]
The Respondents point out that the Applicants
Fox and Frank have no interest in the Reserve Lands in question and, even if
they did, Council’s Decision not to renew Permits for Hengerer has no effect
upon such rights. This is because Occupants, including the Applicants, Fox and
Frank, have little to no direct contact with permittees and it is the Land
Management Department employees who work with the permittees and monitor their
practices in accordance with the requirements of the Permits. If the permittees
do not comply with the terms of the Permit it is Blood Tribe Land Management Department
employees who contact the permittee; the Council would contact the Minister if
there are any defaults under the Permits or initiate any legal action, including
injunction applications, if there is interference with the Permits. The Blood
Tribe Land Management Department has taken significant steps to ensure that the
resources of the Blood Tribe are protected and that there will be no disruption
to the farming and ranching practices on the Reserve. Occupants, including the
Occupant Applicants, will be expecting land proceed payments on April 1, 2014,
and all efforts are being made to ensure that this expectation is met.
[26]
The Respondents also argue that even if the
Applicants’ rights were affected and Council owed a duty to consult with the
Applicants, Fox and Frank, that duty has been fulfilled through the community
meeting held on January 20, 2014, the communications through letter dated
January 31, 2014 and the Public Notices to the community through social media
which provided information with respect to the decision regarding Hengerer, the
steps that Counsel was taking and which gave an opportunity to the Applicants,
Fox and Frank, to have input into the future permittees on the lands they
occupy.
[27]
Finally, the Respondents say that the relief
sought by the Applicants should not be granted for a variety of reasons,:
(a) A writ of certiorari setting aside the Decision
Even if the decision
to not renew Hengerer’s Permits is set aside, this does not mean that he would
be granted new Permits.
The Council has yet to
make a decision regarding consenting to Permits pursuant to section 28(2) of
the Indian Act. There is no public law duty that has been breached.
(b) A declaration that Council is obliged to cause Grazing and
Agricultural Permits to be issued to Hengerer or Hengerer Farms for the
remaining term of each of the Agreements, including the Agreements with the
Band members
The Applicants have
based their arguments on a misunderstanding of what the MOUs are and it needs
to be stated that the Band Council has not executed such agreements and even if
they had, they would be void pursuant to subsection 28(1) of the Indian Act if
they purported to permit a person other than a member of the Blood Band to
occupy or use the Reserve or to reside or otherwise exercise any rights on the
Reserve.
The MOUs do not
purport to provide Hengerer with any rights to Permits but rather state that
the Occupant has requested that Council cause Permits to be granted. The
MOU itself does not make that request.
(c) A writ of mandamus directing that Band Council cause Grazing and
Agricultural Permits to be issued to Hengerer or Hengerer Farms for the
remaining term of each of the Agreements, including the Agreements with the
Band members
Council cannot “cause”
Permits to be issued to Hengerer. The Minister has the discretion to grant Permits
and may not do so for more than a year unless Council consents to the Permits
being issued.
There is no public law
duty that requires Council to consent to Permits being issued to Hengerer.
[28]
Although the Applicants refer to rights of all
of the Occupants listed in Exhibit “A” of the Hengerer Affidavit sworn February
5, 2014, the Respondent points out that the only two Occupants are actually
Applicants. The Applicants have not named as Respondents all of the potential
Occupants who may be affected by any decision arising out of this Judicial
Review application and in fact have only named a very small minority. None of
these individuals filed a Notice of Appearance. Some of these named individuals
have come forwards to express their preference with respect to a new farmer.
[29]
As of the time of execution of Elliot Fox’s
Affidavit on February 20, 2014 the Blood Tribe Land Management Department had
written indications from 101 Occupants with respect to their approval of the
new farmer selected for them. A further 25 other individuals had verbally
committed to coming in to the offices to provide written consent and there were
a further 37 Occupant listings that are administered from the Blood Tribe Land
Management office and therefore have been designated accordingly. The
Respondents believe that there would be a larger number but for the
misinformation that has been circulated in the community with respect to this
matter.
[30]
The Respondents say that the Applicants are
challenging the decision of Council to not have commercial dealings with
Hengerer in 2014 and this is causing a great deal of disruption in the Blood
Tribe community. It is essentially a challenge to Council’s inherent authority
to make decisions with respect to lands on the Blood Reserve, the customary
occupation system and the historical administrative practices of the Blood
Tribe Land Management Department.
[31]
The Respondents believe that the Applicant,
Hengerer, has shown disrespect for the process and for the leadership of the
Blood Tribe by failing to follow directions in accordance with the Permits and
requests to meet the terms of the Permits. In addition, he continues to make
arrangements with Occupants that are outside of the requirements of the Indian
Act. There is potential that if arrangements for Permits are not made on a
timely basis the lands would lie fallow for a year. This would be an extreme
hardship to be Blood Tribe as a whole, and specifically to those Occupants who
are not represented by the Applicants and have had no part in attempting to undermine
the governing structure.
[32]
The granting of any of the Orders sought by the
Applicants in this application would jeopardize the 2014 farming season and the
interests of all Blood Tribe members.
[33]
Any Order directing the Council to “cause”
permits to be issued to Hengerer would, in fact, be an Order affecting the
Minister’s authority pursuant to section 28(2) of the Indian Act. The Applicants
have not sought any Order against Canada. Although the Minister has not taken a
position on the substantial points in issue in this application the Respondents
believe that he would be interested in ensuring that no Order issued would bind
him to any particular course of action.
[34]
The Respondents also believe that any Order
referring this matter back for reconsideration would delay the requesting and
granting of Permits for the 2014 season, and would negatively impact all Blood
Tribe members and cause chaos in the administration of the largest agricultural
Reserve in Canada.
RELEVANT
LEGISLATION
[35]
The following provisions of the Federal
Courts Act, R.S.C., 1985, c. F-7 are relevant to this application
Definitions
2. (1) In this
Act,
[…]
“federal
board, commission or other tribunal”
“federal board,
commission or other tribunal” means any body, person or persons having,
exercising or purporting to exercise jurisdiction or powers conferred by or
under an Act of Parliament or by or under an order made pursuant to a
prerogative of the Crown, other than the Tax Court of Canada or any of its
judges, any such body constituted or established by or under a law of a
province or any such person or persons appointed under or in accordance with
a law of a province or under section 96 of the Constitution Act, 1867 ;
[…]
Application
for judicial review
18.1 (1) An
application for judicial review may be made by the Attorney General of Canada
or by anyone directly affected by the matter in respect of which relief is
sought.
Time limitation
(2) An application for judicial review in respect of a decision or
an order of a federal board, commission or other tribunal shall be made
within 30 days after the time the decision or order was first communicated by
the federal board, commission or other tribunal to the office of the Deputy
Attorney General of Canada or to the party directly affected by it, or within
any further time that a judge of the Federal Court may fix or allow before or
after the end of those 30 days.
Powers of
Federal Court
(3) On an
application for judicial review, the Federal Court may
(a) order a
federal board, commission or other tribunal to do any act or thing it has
unlawfully failed or refused to do or has unreasonably delayed in doing; or
(b) declare
invalid or unlawful, or quash, set aside or set aside and refer back for
determination in accordance with such directions as it considers to be
appropriate, prohibit or restrain, a decision, order, act or proceeding of a
federal board, commission or other tribunal.
Grounds of
review
(4) The Federal
Court may grant relief under subsection (3) if it is satisfied that the
federal board, commission or other tribunal
(a) acted
without jurisdiction, acted beyond its jurisdiction or refused to exercise
its jurisdiction;
(b) failed to
observe a principle of natural justice, procedural fairness or other
procedure that it was required by law to observe;
(c) erred in law
in making a decision or an order, whether or not the error appears on the
face of the record;
(d) based its
decision or order on an erroneous finding of fact that it made in a perverse
or capricious manner or without regard for the material before it;
(e) acted, or
failed to act, by reason of fraud or perjured evidence; or
(f) acted in any
other way that was contrary to law.
Defect in
form or technical irregularity
(5) If the sole
ground for relief established on an application for judicial review is a
defect in form or a technical irregularity, the Federal Court may
(a) refuse the
relief if it finds that no substantial wrong or miscarriage of justice has
occurred; and
(b) in the case
of a defect in form or a technical irregularity in a decision or an order,
make an order validating the decision or order, to have effect from any time
and on any terms that it considers appropriate.
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Définitions
2. (1) Les
définitions qui suivent s’appliquent à la présente loi.
[…]
« office fédéral »
« office
fédéral » Conseil, bureau, commission ou autre organisme, ou personne ou
groupe de personnes, ayant, exerçant ou censé exercer une compétence ou des
pouvoirs prévus par une loi fédérale ou par une ordonnance prise en vertu
d’une prérogative royale, à l’exclusion de la Cour canadienne de l’impôt et
ses juges, d’un organisme constitué sous le régime d’une loi provinciale ou
d’une personne ou d’un groupe de personnes nommées aux termes d’une loi
provinciale ou de l’article 96 de la Loi constitutionnelle de 1867.
[…]
Demande de
contrôle judiciaire
18.1 (1)
Une demande de contrôle judiciaire peut être présentée par le procureur
général du Canada ou par quiconque est directement touché par l’objet de la
demande.
Délai de
présentation
(2) Les
demandes de contrôle judiciaire sont à présenter dans les trente jours qui
suivent la première communication, par l’office fédéral, de sa décision ou de
son ordonnance au bureau du sous-procureur général du Canada ou à la partie
concernée, ou dans le délai supplémentaire qu’un juge de la Cour fédérale
peut, avant ou après l’expiration de ces trente jours, fixer ou accorder.
Pouvoirs de
la Cour fédérale
(3) Sur
présentation d’une demande de contrôle judiciaire, la Cour fédérale peut :
a) ordonner à
l’office fédéral en cause d’accomplir tout acte qu’il a illégalement omis ou
refusé d’accomplir ou dont il a retardé l’exécution de manière déraisonnable;
b) déclarer
nul ou illégal, ou annuler, ou infirmer et renvoyer pour jugement
conformément aux instructions qu’elle estime appropriées, ou prohiber ou
encore restreindre toute décision, ordonnance, procédure ou tout autre acte
de l’office fédéral.
Motifs
(4) Les
mesures prévues au paragraphe (3) sont prises si la Cour fédérale est
convaincue que l’office fédéral, selon le cas :
a) a agi sans
compétence, outrepassé celle-ci ou refusé de l’exercer;
b) n’a pas
observé un principe de justice naturelle ou d’équité procédurale ou toute
autre procédure qu’il était légalement tenu de respecter;
c) a rendu une
décision ou une ordonnance entachée d’une erreur de droit, que celle-ci soit
manifeste ou non au vu du dossier;
d) a rendu une
décision ou une ordonnance fondée sur une conclusion de fait erronée, tirée
de façon abusive ou arbitraire ou sans tenir compte des éléments dont il
dispose;
e) a agi ou
omis d’agir en raison d’une fraude ou de faux témoignages;
f) a agi de
toute autre façon contraire à la loi.
Vice de
forme
(5) La Cour
fédérale peut rejeter toute demande de contrôle judiciaire fondée uniquement
sur un vice de forme si elle estime qu’en l’occurrence le vice n’entraîne
aucun dommage important ni déni de justice et, le cas échéant, valider la
décision ou l’ordonnance entachée du vice et donner effet à celle-ci selon
les modalités de temps et autres qu’elle estime indiquées.
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[36]
The following provisions of the Indian Act are
relevant to this application
Grants,
etc., of reserve lands void
28. (1) Subject to subsection (2), any deed, lease, contract,
instrument, document or agreement of any kind, whether written or oral, by
which a band or a member of a band purports to permit a person other than a
member of that band to occupy or use a reserve or to reside or otherwise
exercise any rights on a reserve is void.
Minister may
issue permits
(2) The
Minister may by permit in writing authorize any person for a period not
exceeding one year, or with the consent of the council of the band for any
longer period, to occupy or use a reserve or to reside or otherwise exercise
rights on a reserve.
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Nullité
d’octrois, etc. de terre de réserve
28. (1) Sous réserve du paragraphe (2), est nul un acte, bail,
contrat, instrument, document ou accord de toute nature, écrit ou oral, par
lequel une bande ou un membre d’une bande est censé permettre à une personne,
autre qu’un membre de cette bande, d’occuper ou utiliser une réserve ou de
résider ou autrement exercer des droits sur une réserve.
Le ministre
peut émettre des permis
(2) Le ministre
peut, au moyen d’un permis par écrit, autoriser toute personne, pour une
période maximale d’un an, ou, avec le consentement du conseil de la bande,
pour toute période plus longue, à occuper ou utiliser une réserve, ou à
résider ou autrement exercer des droits sur une réserve.
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ANALYSIS
Introduction
[37]
The farming season is fast approaching. Because
both sides have urged me to provide a fairly immediate response to this
application following the hearing on March 5, 2014 in Calgary, I will be as
succinct as possible.
[38]
There are a few collateral issues, but the
essence of this application requires the Court to answer three basic questions:
a)
Is the Decision subject to judicial review by
this Court?
b)
If the Decision is subject to judicial review,
have the Applicants (or any one of them) suffered a breach of procedural
fairness?
c)
If a breach of procedural fairness has occurred,
what is the appropriate remedy?
Jurisdiction
[39]
The Band Council says it has severed a private
business relationship with Hengerer in accordance with its inherent powers to
contract and mange the use of lands on the Reserve. Hence, the Court has no
jurisdiction to hear this matter.
[40]
Section 18.1 of the Federal Courts Act
allows for judicial review of a decision or order of a federal board or
commission or other tribunal, and section 2 of that Act tells us that a federal
board, commission or other tribunal “means any body, person or persons having,
exercising or purporting to exercise jurisdiction or powers conferred by or
under and Act of Parliament….”
[41]
We know that a band council can act as a federal
board, commission or tribunal but that not all band council decisions are
subject to judicial review. See Provost v. Canada (Minister of Indian
Affairs and Northern Development), [2009] F.C.J. No. 1505 at para 34.
[42]
We also know that reviewable actions must not
only find their source in federal law but must also be of a public nature and
that all of the circumstances of the case must be considered when determining if
a federal board, commission or other tribunal is acting in a manner which
brings it within the purview of public law (see Air Canada v. Toronto Port
Authority, [2011] F.C.J. No. 1725 at para 60. [Toronto Port Authority])
[43]
In the present case, I am persuaded that, in
making the Decision, Band Council exercised, or purported to exercise,
jurisdiction and powers conferred by or under the Indian Act, and that it did
so in such a way that brought Council within the purview of public law.
[44]
The evidence before me shows that, in
terminating the Band’s relationship with Hengerer, Band Council regarded itself
as acting under subsection 28(2) of the Indian Act and that, although the
issuance of Permits is a power granted to the Minister and not Band Council,
the de facto situation in this case is that Band Council controls who
receives Permits by using its consent powers under subsection 28(2), and by
refusing to request Permits or renewals if it decides to terminate a
relationship with a farmer.
[45]
In particular, the Band Council resolution of
March 19, 2013 requesting Permits for named individuals, including Hengerer,
refers to Council’s powers under the Indian Act and specifically bases the
request upon subsection 28(2) of the Indian Act. Likewise, the letter from
Council to Hengerer of December 18, 2013 specifically says that the Permits
were issued “pursuant to subsection 28(2) of the Indian Act.”
[46]
It is telling that the wording of the MOUs
suggests that it is the Band who grants the Permits. In law, this is not the
case, but the Band’s own documentation assumes de facto control over the
issuance of Permits under the Indian Act.
[47]
As regards the public dimension of the Decision,
and bearing in mind the factors and guidance referred to by the Federal Court
of Appeal in para 60 of Toronto Port Authority, above, I am convinced
that Band Council, in making this Decision, has brought itself within the
purview of public law. In particular, I note that Council expressly engages
subsection 28(2) of the Indian Act and exercises de facto control over
the allocation of Permits. There is a large number of MOUs and the whole Permit
system and the customary and traditional rights of band members are here brought
into play in a way that affects the whole Blood Reserve community and, as the
actions of Council in calling meetings has shown, has already affected the
whole community. This is a situation that cannot be confined to the private and
internal severing of a business relationship but needs to be dealt with by way
of public law remedies.
[48]
It is clear that the Applicants have been
directly affected by the Decision. The evidence indicates that Hengerer will
suffer severe financial prejudicial effects and Occupants have at least some
rights – as evidences by the current Dispute Resolution Policy – that are
prejudicially affected. The MOUs and the evidence of Charlene Fox indicate
that, although Council may have the ultimate say over which farmer receives a
Permit, it has been customary to allow Occupants to designate the farmer they
want. In fact, the MOUs designating Hengerer for a three-year term from April
1, 2013 to March 31, 2016 are clearly intended to be contractual documents and
not mere memoranda of understanding intended for purely internal purposes as
alleged by Band Council. Band Council does not sign the MOUs (they are
witnessed by a Land Management employee) but their terms are clearly endorsed
and accepted by Council by way of resolution, so that, in effect, Council has
agreed with the Occupants who designated Hengerer to exercise its powers under
the Indian Act to request and acquire Permits for a term that runs until March
31, 2016.
[49]
If Council wishes to avoid the contractual
consequences of its own documentation, then Council should change that
documentation to reflect the relationship it wants. It is not sufficient to
tell the Court that Council has decided to interpret clear contract documents
as not giving rise to contractual consideration.
[50]
All in all, then, I think the Applicants have
established that they have suffered prejudice (Hengerer obviously in a way that
is different from Occupant Applicants) as the result of a Decision made, or
purportedly made, by Council in accordance with powers under the Indian Act,
and which has the kind of public dimension that lends itself to public law
remedies. In other words, it is my view that the Court does have the
jurisdiction to deal with this application.
Procedural
Fairness
[51]
I agree with the Respondents that the
procedural fairness issues are different for Hengerer and the Occupant
Applicants. However, the Decision does affect the rights, interests and
privileges of Hengerer and the Occupant Applicants as well as other Occupants
who designated Hengerer.
[52]
There is no statutory authority, under the
Indian Act or otherwise, to suggest that procedural fairness should not apply
to this Decision.
[53]
It is well-established that the extent of
procedural fairness owed is flexible, variable and dependant upon the context
of each case. See Baker v Canada (Minister of Citizenship and Immigration),
[1999] 2 S.C.R. 817 and its numerous progeny [Baker].
[54]
It is also well established that in reviewing
this matter I should apply the standard of correctness and that no deference is
owed to the decision-maker. See Sketchley v. Canada (Attorney General),
2005 FCA 404 at para 53.
[55]
When I apply the Baker factors to the
present situation, it is clear to me that, as far as Hengerer is concerned,
this Decision was of immense importance to his farming business and that he had
legitimate expectations that Council would secure the Permits he needed to farm
the Lands until March 31, 2016. The whole history if his long association with
the Blood Tribe and the particular arrangements entered into to take the relationship
to 2016 required Council to provide him with adequate notice of the case he had
to answer before a decision was made not to seek renewal Permits for him, and
to give him the opportunity to be heard by Council on the serious allegations
that were made against him and which were set out in the Land Management
Committee recommendation and accepted by Council and used as the reasons for
terminating the relationship.
[56]
This does not mean that Council’s ultimate
powers to determine who farms on Reserve Lands are curtailed in any way.
Council might well wish to terminate even long-standing relationships from time
to time for any number of legitimate reasons. But when, as in this case,
Council decided to terminate the relationship with Hengerer for very specific
reasons and to such drastic effect for Hengerer, Council should have provided
Hengerer the opportunity to know the case against him and be heard.
[57]
This does not mean, as counsel for the Band argues,
that the system will be thrown into chaos by disgruntled farmers. Procedural
fairness is contextual and case specific. All I am saying is that, on the facts
of this case, Hengerer was not dealt with in a procedurally fair way.
[58]
As for the Occupants Applicants, the Baker
factors I think require a different result. The impact of the Decision falls
mainly on Hengerer. The Occupants were deprived of the opportunity to have
their designated farmer as permittee. But they are not likely to suffer
economic consequences and I think the system and the community at the Reserve
recognize that, although in the usual case Council will endorse their chosen
permittee, Council must have ultimate say in this matter because Council is
fixed with the ultimate power and responsibility of ensuring that Reserve lands
are managed for the economic and other benefits of the community as a collective.
It seems to me that whatever procedural fairness is owed to Occupants cannot be
separated from the fairness that might be owed to the designated farmer in each
case. In the present case, I don’t think the Applicant Occupants, or indeed
other Occupants who designated Hengerer to farm the Reserve lands they
occupied, could expect more than that Hengerer be afforded procedural fairness before
a decision was made to terminate the relationship with him.
Other Matters
[59]
The Respondents have raised a few peripheral
matters but I don’t think they need impact my findings and conclusions on the
central issue. In particular, I don’t think that the failure to comply strictly
with Rule 303(1)(a), should affect the outcome. The whole Blood Reserve is
affected by the Orders sought and, in particular, the 500 or so Occupants who
designated Hengerer. Given the exigencies on both sides, joining all of them would
simply have been unmanageable and would have resulted in a severe detriment to
both sides because of the inevitable delay. Likewise, joining the Band Council
as an affected party, even though Council is also the tribunal who made the
Decision, was the only manageable way of dealing with this matter in my view
and I think that if the Respondents wished to raise this issue it should have
been dealt with before the hearing. Band Council has appeared and conducted
this application as though the Band Council is a proper party. Clearly, given
the needs of the situation and the Minister’s decision not to become involved,
I can understand why both sides felt compelled to address the situation in this
way and, although I can find no Federal Court jurisprudence on point, I note
that in Lam v University of British Columbia, 2013 BCSC 2142, the B.C. Supreme
Court used a rule identical to the Court’s Rule 3 to remedy similar problems to
the ones that arise in this case from a strict application of Rule 303.
Remedy
[60]
The Court believes that Council has the ultimate
power to decide who should farm on Reserve lands. Hengerer has demonstrated to
me in this application that he has representations to make to Council
concerning the reasons for the Decision that are highly material and that he
should have been given the opportunity to present before the Decision was made.
This does not mean that Council has to accept his position. In particular,
although Hengerer denies making racist remarks, which particularly disturbed Council,
this matter is still not clear on the evidence before me. Band Council should,
however, bear in mind, that it agreed with Occupants that Hengerer would
receive Permits through to March 31, 2016, so that there must be sufficient
justification not to follow through on these obligations and expectations that
go with this commitment. But the decision is for Council to make after
following due process and ensuring that procedural fairness is afforded to
Hengerer.
[61]
The Applicants argue that no useful purpose will
be served if the matter is remitted to Band Council because Band Council has
displayed bias towards Hengerer. While bias may have occurred, I do not think
it has been sufficiently established in this case. Band Council simply followed
the recommendations of the Land Management Committee, a committee composed of
Council members. Hengerer can raise the issue of bias with Band Council, and I
leave it to the good sense and fair play of Council to review this matter and
decide who should participate in the final vote on a new decision, bearing in
mind that bias could invalidate any such decision and exacerbate the problems
of resolving this dispute and getting down to the real business of farming in
the interest of the Blood Tribe. The Court is here to review decisions, not to
make them for the tribunal, except in truly exceptional circumstances that have
not been established in this case. I think that Band Council is now fully aware
that if this dispute drags on it could have a severe impact upon the Band and
its finances. The way to ensure that it does not continue is for Band Council
to be meticulous about procedural fairness and I have no reason to think they
will not be.