Judgments

Decision Information

Decision Content

T-1762-73
The Queen on the information of the Deputy Attorney General (Plaintiff)
v.
Gilbert A. Smith (Defendant)
Trial Division, Dubé J.—Newcastle, New Bruns- wick, September 7 and 8, 1976, May 16, 17, 18 and 19, 1977; Ottawa, September 9, 1977.
Indians — Information by Crown— Reserve lands — Lands allegedly surrendered to Crown to be sold for Band's benefit — Not sold and no benefit received — Lands occupied by defendant and predecessor in title since 1838 — Whether or not lands vested in Province at surrender in 1895 — Whether or not defendant validly holds lands in adverse possession — Indian Act, R.S.C. 1970, c. I-6, s. 31.
This information under section 31 of the Indian Act claims on behalf of the Red Bank Band of Indians the right of possession as against the defendant of a parcel of land allegedly located on their Reserve. Plaintiff claims the lands were surren dered to the Crown to be sold for the benefit of the Band and alleges that the land had neither been sold, nor had any benefit been received. Defendant, however, claims that he bought the land, supporting his allegation with registered indentures of deed. Defendant argues that the land became vested in the Province at surrender in 1895, and alternatively claims the lands by adverse possession.
Held, the action is dismissed. The 1895 surrender was not a definite, final surrender by the Red Bank Band to the Crown, but merely a conditional surrender which became absolute only upon completion of the sale and the placing of the monies to the credit of the Band. The 1958 Canada-New Brunswick Agree ment settles all outstanding problems concerning Indian lands, including vesting, vis-à-vis Canada and the Province, and enables the Queen in right of Canada to deal effectively with reserve land. To do so, the Queen in right of Canada may properly file a claim before this Court on behalf of the Indians under the Indian Act. But to succeed, a claim must rest on a right which has not been extinguished. Unexercised rights of occupancy do not necessarily last forever. From 1838 to the date of the information in 1973, adverse possession has not been effectively interrupted by any of the parties entitled to do so, namely the Province of New Brunswick from 1838 to 1958, the Government of Canada from 1958 to 1973, and the Red Bank Band with reference to their own rights of occupancy throughout the period.
ACTION.
COUNSEL:
J. M. Bentley, Q.C., and Robert R. Anderson
for plaintiff.
James E. Anderson, John D. Harper and
William J. McNichol for defendant.
SOLICITORS:
Deputy Attorney General of Canada for
plaintiff.
Anderson, MacLean & Chase, Moncton, for
defendant.
The following are the reasons for judgment rendered in English by
DUBS J.: This is an information exhibited by the Deputy Attorney General of Canada under section 31 of the Indian Act', claiming on behalf of the Red Bank Band of Indians the right of possession, as against the defendant of a parcel of land allegedly located in the Red Bank Indian Reserve No. 7, Northumberland County, Province of New Brunswick.
The plaintiff claims that the parcel of land lies within the portion of the Reserve which was sur rendered to the Crown in 1895 to be sold for the benefit of the Band. It is alleged that this particu lar parcel was in fact never sold and that the Band never received any benefit from it.
On the other hand, defendant claims that he purchased the parcel of land from one Isaac Mutch and has three registered indentures of deed, dated September 26, 1952, September 8, 1958 and July 16, 1959 to support his allegation.
Filed as Crown exhibits were early nineteenth century surveys, plans and acts tracing the record of Indian reserve land on the Little Southwest Miramichi River, one of several branches of the Miramichi River. The surrender document itself, dated June 6, 1895, transferred to the Queen inter alia lots 1, 2, 3, 5, 6, 7 and 17 on the north side of the Little Southwest Miramichi River. An accom panying report to the Superintendent General, Indian Affairs, dated July 30, 1896, states that the lots "are occupied by squatters, the object of the surrenders being to enable the Department of Indian Affairs to sell the lots to the parties in occupation".
' R.S.C. 1970, c. I-6.
A letter dated July 15, 1898, from the Depart ment of Indian Affairs agent to the "Secretary, Department of Indian Affairs, Ottawa" reports that "in obedience to instructions. ..1 have visited this reserve". The agent found that lots 6, 7 and 8 were occupied by James Mutch.
A memorandum dated August 12, 1898 to the Secretary after an investigation into "the question of Squatters on the Red Bank Indian Reserve" reports as follows with reference to lot 6, north of the Little Southwest River:
Lot Occupant Remarks
6 James Mutch Occupant wishes to purchase and
will pay part of purchase money next Fall.
In a letter dated July 5, 1901, to the Deputy Minister of Justice, Ottawa, the Secretary writes:
I am directed to enclose a statement of facts regarding squatters on the Red Bank Indian Reserve, County of North- umberland, N.B., and to request that steps be taken to compel the squatters to make payment for the lands.
The statement of facts listed the names of "the occupants on the undisposed" lots, including the name of James Mutch for lot 6, north of Little Southwest River.
In a letter dated March 14, 1919, from H. G. Buoy, Timber Inspector, to a Mr. Orr, it is recom mended "that Mr. Isaac Mutch be given the op portunity of purchasing this land at the rate of $2.00 per acre", referring to the "east half of lot no. 6 on the north side of the Little South West Miramichi River in the Redbank Reserve".
In a subsequent letter between the same parties dated June 10, 1919, Buoy concludes "I agreed with him (Mutch) that $2.00 per acre over the whole lot would be an excessive price and that in my opinion a fair and reasonable price would be $1.50 per acre".
A memo dated March 16, 1960, from the Super intendent of the Miramichi Indian Agency reveals
that "lots 6 and 17 were previously surrendered for sale but have never been sold".
The metes and bounds description of the subject property appearing in the statement of claim was prepared in 1973 by W. D. McLellan, a land surveyor, who testified extensively at the trial and established to my satisfaction that the subject property is truly the same parcel of land retraced to the surrender of 1895.
The affidavit of H. R. Phillips, Registrar of Indian Lands and Officer in charge of the Surren dered Land Register, filed as an exhibit, confirms that there appears in the register no document to transfer the said lands to the defendant or to any one.
The two main grounds of defence raised by the defendant are firstly that as a result of the surren der of 1895, the land became vested in the Queen in right of New Brunswick, not Canada, and secondly that the defendant holds the subject prop erty in adverse possession against the whole world.
In St. Catherine's Milling and Lumber Com pany v. The Queen 2 , the Privy Council held that section 109 of The British North America Act, 1867 gives to each province the entire beneficial interest of the Crown in all lands within its bound aries, which at the time of the union were vested in the Crown, subject to such rights as the Dominion can maintain under sections 108 and 117. By the 1763 Royal Proclamation 3 possession to the lands in question in Ontario had been granted to certain Indian tribes. In 1873 by formal treaty with cer tain Indian tribes these lands were surrendered to the Government of the Dominion for the Crown, subject to a certain qualified privilege of hunting and fishing.
2 (1866) 10 O.R. 196, affirmed (1886-87) 13 O.A.R. 148, affirmed (1887) 13 S.C.R. 577 (1889) 14 App. Cas. 46.
3 (R.S.C. 1970, Appendix II.) Under The Royal Proclama tion King George erected four separate governments, styled Quebec, East Florida, West Florida and Grenada. It did not apply to Nova Scotia which at the time included New Brunswick.
The Privy Council said that by force of the proclamation, the tenure of the Indians was a personal and usufructuary right dependent on the goodwill of the Crown and that by virtue of the surrender the entire beneficial interest in the lands, subject to the hunting and fishing privilege, was transmitted to the province in terms of section 109 of The British North America Act, 1867.
Defendant submits that the St. Catherine's deci sion is applicable to the instant case and is au thority of the highest order for holding that, upon surrender of the lands by the Red Bank Band in 1895, the beneficial interest and title in the subject property vested in the Crown in right of the Prov ince of New Brunswick free of any Indian burden or interest. The Queen in right of Canada would therefore, defendant alleges, have no standing to maintain this action.
Two years after the St. Catherine's decision or in 1890, the New Brunswick Court of Appeal in Burk v. Cormier 4 held that the title to land in the Province reserved for the Indians is in the Provin cial Government and not in the Dominion Govern ment. The Chief Justice said at page 149:
Here, again, it seems to me that the arguments used in favor of the provincial rights are stronger than in the St. Catherine's case, because, in this Province, the estate of the Crown in the land in dispute in this action is not encumbered (so far as appears by the evidence) by any Indian title.
and further down:
There never has been any doubt in this Province, that the title to the land in the Province reserved for the use of the Indians, remained—like all the other ungranted lands—in the Crown, the Indians having, at most, a right of occupancy.
In 1895, the Supreme Court of Canada in The Province of Ontario v. The Dominion of Canada and the Province of Quebec 5 held that by The British North America Act, 1867, the Dominion of Canada assumed the debts and liabilities of the Province of Canada and that section 109 of The British North America Act, 1867 provided that all lands belonged to the provinces in which they were situated "subject to any Trusts existing in respect thereof...." In 1850 the late Province of Canada had entered into treaties with some Indian tribes
4 (1890) 30 N.B.R. 142.
5 (1896) 25 S.C.R. 434.
wherein Indian lands were surrendered lands in consideration for annuities.
The Privy Council in 1902 in Ontario Mining Company, Limited v. Seybold 6 followed the St. Catherine's decision and held that lands in Ontario surrendered by the Indians by the Treaty of 1873 belong in full beneficial interest to the Province of Ontario. The Crown therefore can only dispose thereof on the advice and under the seal of the Province. Lord Davey said at page 82:
By s. 91 of the British North America Act, 1867, the Parlia ment of Canada has exclusive legislative authority over "Indi- ans and lands reserved for the Indians." But this did not vest in the Government of the Dominion any proprietary rights in such lands, or any power by legislation to appropriate lands which by the surrender of the Indian title had become the free public lands of the province as an Indian reserve, in infringement of the proprietary rights of the province.
Anglin J., of the Supreme Court of New Bruns- wick, in his 1958 decision in Warman v. Francis' quoted extensively from the St. Catherine's deci sion and added at page 207:
This view in 1888 of the nature of the Indian title was in effect that which prevailed in New Brunswick with respect of the Reserves which the Governor in Council "made" in New Brunswick shortly after its establishment as a Province in 1784. The volume of the Statutes of New Brunswick for 1838 con tains as an appendix a report by the Commissioner of Crown Lands enumerating the "Lands reserved for the use of the Indians in this Province ... the time such reserves were made. ..." At the foot thereof is the following:
Nature of Reserves—To occupy and possess during pleasure.
Defendant relies on these, and many other deci sions subsequent to the St. Catherine's decision, to submit that the Red Bank Band of Indians surren dered absolutely in 1895 the land in question which vested in the Province of New Brunswick free from the burden of any Indian interest.
On the other hand, plaintiff contends that the St. Catherine's decision is not applicable to the instant case. He submits that the 1895 surrender was not absolute but conditional and would not extinguish the Indian title until such time as the conditions or the terms of the trust were per
6 [1903] A.C. 73.
(1959-60) 43 M.P.R. 197.
formed. The habendum of the surrender reads: "To have and to hold ... in trust . .. and upon the further condition that all monies received from the sale thereof, shall ... be placed to our credit ..." . Since the subject property was never sold, plaintiff claims, they are still subject to the trust and the Indian title has not been extinguished.
In support of that proposition plaintiff relies on a 1950 Supreme Court decision St. Ann's Island Shooting and Fishing Club Ltd. v. The King' where it was held that there was not a total and definitive surrender to the Crown. What was intended was a surrender sufficient to enable a valid letting to be made to trustees "for such term and on such conditions" as the Superintendent General might approve.
The plaintiff relies also on a 1970 British Columbia Court of Appeal decision Corporation of Surrey v. Peace Arch Enterprises Ltd. and Surfside Recreations Ltd. 9 where it was held that the "surrender" was not final and complete, but merely conditional. It followed that the lands con tinued to be "lands reserved for the Indians" within the meaning of subsection 91(24) of The British North America Act, 1867 and that exclu sive legislative jurisdiction over the lands remained in the Parliament of Canada. Certain lands in the Semiahmoo Indian Reserve were surrendered under the following terms:
To Have And To Hold the same unto Her said Majesty the Queen, her Heirs and Successors in trust to lease the same to such person or persons, and upon such terms as the Govern ment of Canada may deem most conducive to our Welfare and that of our people.
And upon the further condition that all moneys received from the leasing thereof, shall be distributed 90% to the locatees and the remaining 10% deposited to the Revenue account of the Band.
Maclean J.A., said at pages 384-385:
In my view the surrender here, a surrender to Her Majesty "in trust to lease the same to such person or persons, and upon such terms as the Government of Canada may deem most conducive to our Welfare and that of our people" falls into the class of a qualified or conditional surrender.
Under this form of surrender, "in trust" and for a particular purpose that is "to lease the same" it seems to me that it cannot be said the tribal interest in these lands has been extinguished.
S [1950] S.C.R. 211.
9 (1970) 74 W.W.R. 380.
In my respectful opinion the learned Judge below was in error when he held that the surrender was an "unconditional" one.
And further down page 385, he quotes the St. Ann's Island Shooting and Fishing Club decision and adds:
In my view the "surrender" under the Indian Act is not a surrender as a conveyancer would understand it. The Indians are in effect forbidden from leasing or conveying the lands within an Indian reserve, and this function must be performed by an official of the Government if it is to be performed at all: See sec. 58(3) of the Indian Act. This is obviously for the protection of the Indians. Further, it is to be noted that the surrender is in favour of Her Majesty "in trust". This obviously means in trust for the Indians. The title which Her Majesty gets under this arrangement is an empty one.
Then he concludes at page 387:
It might well be (but it is not necessary for me to decide) that if an absolute surrender were made by the Indians under the Indian Act, and this surrender was followed by a convey ance from the Government to a purchaser the land would cease to be a reserve under the Indian Act and would also cease to be "lands reserved for the Indians" under sec. 91(24) of the B.N.A. Act, 1867, but that is not the case here.
My conclusion is that the exclusive legislative jurisdiction over the land in question remains in the Parliament of Canada, and that provincial legislation (including municipal bylaws) which lays down rules as to how these lands shall be used, is inapplicable.
In my view the 1895 surrender was not a defi nite, final surrender by the Red Bank Band to the Crown, but merely a conditional surrender which became absolute only upon completion of the sale and placing of the monies to the credit of the Band. In any event the question whether New Brunswick Indian lands are now vested in right of the Province, or the right of Canada, was settled in 1958 by the Canada-New Brunswick Agreement of that year. (An Act to Confirm an Agreement between Canada and New Brunswick respecting Indian Reserves, S.N.B. 1958, c. 4.)
The agreement settles all outstanding problems relating to Indian reserves in that Province and transfers to Canada all rights of the Province in reserve lands which may be of interest in the instant case. The relevant provisoes read as follows:
NOW THIS AGREEMENT WITNESSETH that the parties hereto, in order to settle all outstanding problems relating to Indian reserves in the Province of New Brunswick and to enable Canada to deal effectively in future with lands forming part of
said reserves, have mutually agreed subject to the approval of the Parliament of Canada and the Legislature of the Province of New Brunswick as follows:
1. In this agreement, unless the context otherwise requires,
(b) "reserve lands" means those reserves in the Province referred to in the appendix to this agreement;
3. New Brunswick hereby transfers to Canada all rights and interests of the Province in reserve lands except lands lying under public highways, and minerals.
And the appendix includes:
[RESERVE NO. 7] In the Parish of Southesk with a small part
RED BANK in the northeast corner in the Parish of Northesk. North of the Little Southwest Miramichi River opposite Red Bank Indian Reserve No. 4.
The twofold purpose of the agreement was first ly to settle all outstanding problems relating to the reserves and secondly to enable Canada to deal effectively in future with lands forming part of said reserves, including, of course, untransferred surrendered land. In order to deal effectively with those lands the Queen in right of Canada may properly file a claim before this Court on behalf of Indians under the Indian Act. But to succeed, a claim must rest on a right which has not been extinguished. Unexercised rights of occupancy do not necessarily last forever.
I now turn to the defence of adverse possession.
The onus of proving adverse possession is upon the party raising that defence. The defendant must show that he has been in actual, open, visible, exclusive, continuous and undisturbed possession. The possession necessary to gain title by adverse possession must be such as in the nature of the land would be considered suitable and reasonable. It must be considered in every case according to the peculiar circumstances of that case.
In the Province of New Brunswick, no person shall take proceedings to recover land but within
twenty years 10 and no claim for lands by the Crown after a continuous adverse possession of sixty years ". Under the federal Public Lands Grants Act 12 no right or interest in or to public lands is acquired by any person by prescription. Under the Nullum Tempus Act' 3 the right of the Crown is barred after sixty years. Both parties agree that if adverse possession is a defence in the instant case the sixty year rule applies whether the Nullum Tempus Act or the New Brunswick Act Respecting Limitation of Actions in respect to Real Property applies.
The defendant himself having acquired the sub ject property only in 1952 cannot of course estab lish a sixty-year period of adverse possession. Then, adverse possession, if any, must have been established by Mutch, or his predecessors in occu pation, or a continuous combination of them and the defendant, uninterrupted by the title holder.
Possession of land has always been a cornerstone of the law; if the rightful owner does not come forward and claim his right within the prescribed period, his right is extinguished and the title goes to the possessor and his successors. Adverse posses sion is at times difficult to determine and the rightful owner compounds the problem when he allows years to go by before asserting his title.
In the case at bar, oral evidence was allowed in an attempt to assess the broad historical back ground of the area with a view to determine what specific acts of possession were carried out with reference to the subject property.
It is significant that while the documentary evidence leads inescapably to Indian legal rights of occupancy, the oral testimony reveals that the Little Southwest Miramichi River area, or the land on both banks thereof, including the subject property, was occupied and developed by non-Indi- ans for more than a century. According to Profes-
10 Act Respecting Limitation of Actions in respect to Real
Property, R.S.N.B. 1903, c. 139, s. 3.
" Act Respecting Limitation of Actions in respect to Real
Property, R.S.N.B. 1903, c. 139, s. 1.
12 R.S.C. 1970, c. P-29, s. 5.
13 9 Geo. III, c. 16.
sor W. D. Hamilton of the University of New Brunswick, a witness with extensive knowledge of the local history, the "tract", so called, was settled by non-Indian settlers in the 1830-1840 period.
Professor Smith has carried out considerable research and study of the history and genealogy of the people of the settlement, and in particular of the Isaac Mutch and Ebenezer Travis property, which has been affected by the following events subsequent to the creation of the Province of New Brunswick in 1784.
In 1808 the New Brunswick Executive Council granted a licence of occupation to "the Indians of the County of Northumberland in general".
On August 10, 1820, members of the Julian family of Indians leased the wild grass on a parcel of land, including the subject property, to one Richard McLaughlin, a lumberman, for a six-year period. Then in the 1830's the Julians leased the property in homestead-size lots to non-Indian set tlers, and more particularly to one Ebenezer Travis (c1794-f1871) from about 1838.
A petition of Ebenezer Travis dated October 25, 1841, shows that he was claimant to the land which now includes the subject property.
In his "Reports on Indian Settlements", Journal of Assembly, Fredericton, 1842, Moses H. Perley, Indian Commissioner, reports his 1841 visit to the area he described as the "Little South West Tract". He writes that Barnaby Julian, Chief of the Micmac Nation, residing at the village of Red Bank, under a Commission from His Excellency Sir Archibald Campbell, dated September 20, 1836, assumed the right to sell and lease the greater part of the reserve of 10,000 acres on the Little South West and "has since then received nearly two thousand pounds in money and goods from various persons, as consideration for deeds and leases, and for rents. . . yet I found him so embarrassed in his pecuniary affairs, that he dare not come into Newcastle, save on Sunday, for fear of being arrested by the Sheriff."
The report then deals with the non-Indian set tlers. "They are in general far above the squatters ... [at Indian Point] both in character and cir cumstances. It was not a little curious to contrast these persons, who supposed they had fair title, with those who had not a shadow of claim, and to mark the difference between the lawless squatter and the honest industrious settler."
From an extensive study and analysis of the documents relating to all of the properties along both sides of the Little Southwest Miramichi River, Professor Hamilton claims that the Isaac Mutch property as such came into being as a result of the 1901 survey of William E. Fish which reduced the size of the original Ebenezer Travis family property of which it had been a part for approximately 63 years.
It seems that at the time the Government of Canada was pressuring residents to purchase their property at a per-acre price and that they resisted. Ebenezer Travis in particular who had lived on that land all his life, objected, as revealed in an 1898 Department of Indian Affairs document, which reads in part: "Mr. Travis stated to me that they got their possessions from Jared Tozer who got possession of it from the Indians over 60 years ago. Claim it theirs of right."
Tradition has come down to Professor Hamil- ton, a native of the area, whose grandfather was a brother-in-law of Isaac Mutch and who also worked as a chainman for surveyor Fish, that an altercation occurred between the latter and Travis, from which Fish stomped away in a rage, leaving his equipment on the line, but returning the follow ing day to have his way and to create the Isaac Mutch property in the process.
Professor Hamilton's opinion is that there was a locally-acknowledged Indian interest, and that of an absentee and indefinite character, in these lands for only about 40 years, or roughly the first half of the 19th century. He contrasts that interest with non-Indian occupancy from the 1830's onward.
Most witnesses on adverse possession were non- Indians called by the defendant. The only Indian, called by the plaintiff on that score (brought to the
Court by bench warrant) admitted under cross- examination that, as far back as he could remem ber, that strip along the river had never been occupied by Indian people. The witness is 66 years of age and has lived at the village of Red Bank, the Indian community, since the age of three.
From the oral evidence, it is abundantly clear that the tract of land between the two Indian reserves, Red Bank Reserves No. 7 and No. 4, was peacefully settled by non-Indians in the past cen tury, and was treated by Indians and non-Indians alike as a non-Indian settlement. Some witnesses testified that they saw no Indians in that area in their lifetime. Indians live at the village of Red Bank, an organized community on the south side, whereas the land in question lies in the non-Indian community of Lyttleton on the north side of the Little Southwest Miramichi River, some 5 1 / 2 miles upriver from Red Bank.
From 1952, the defendant himself has undoubt edly occupied the land in adverse possession with colour of title. He has obtained a deed in good faith and paid for it. He has built a lodge shortly after purchase and has lived there with his family most summers. He has purchased two additional lots from Mutch to enlarge his initial acquisition, paying the total sum of $1,600 for the three par cels. He has spent money on improving the build ing, sold gravel from a gravel pit located between the lodge and the main road. He has paid taxes to the Province every year, about $100 yearly on land and building. Although not an angler himself he has had guests at the lodge to fish the public salmon pool near the property. He intends to retire there. Neighbours regard the subject property as being his land.
According to the evidence, Isaac Mutch pur chased the old nearby Sillekars schoolhouse in July 1904 and moved it to where it is today, on the north side of the main road, directly across the property he purported to sell to the defendant in 1952. I-Ie converted the schoolhouse into a home where he lived and raised a family. He had a barn and animals on that northerly side of the road.
On the south side of the main road and extend ing down to the river lie the 26 acres of land deeded to the defendant. Defendant's lodge stands on a bluff near the bank of the river and there is a gravel road from the lodge to the main road. That road was used by Mutch to get to the river where he carried out some log driving in the spring. Mutch was a lumberman who at times cut trees on both sides of the main road. According to his son there were spruce and fir on the south side which were sold as pulp wood. Some Christmas trees were also felled in the area where defendant's lodge presently stands.
Mutch was also a farmer. He grew hay, potatoes, oats, on a small island called Hay Island which lies in the river in front of the subject property. He had to traverse the subject property to get to the island. He also at times cultivated a small fenced-in area called the "interval" lying, at times partly submerged, near the shore on the subject property. He ran his horses and trucks from his barn across the main road, down the gravel road, to the "interval" and over onto the island. He paid taxes to the Province on these lands throughout his life. For a number of years before 1960, Mutch lived in another farm house, called Sommer's Farm, about half a mile distant. During that period the Mutch home was rented to other parties. He died in 1965, leaving the prop erty to his wife who deeded it to their son Weldon Vincent Mutch.
There is evidence to the effect that Mutch's land came to him from his father Edmond who got it from James the grandfather. It is to be recalled that in 1898 the occupant of lot 6 was listed as James Mutch in the Indian Affairs agent's report. Much of this evidence was given by old time local residents whose memory reach as far back as 70 years ago. Throughout that period the farm next door was occupied by William Mutch, another son of Edmond and brother of Isaac.
The type of possession required to establish adverse possession varies with the type of land being possessed, the real test being that such acts be shown as would naturally be carried out by the true owner if he were in possession. Vide Jackson
v. Cumming'", Levy v. Logan 15 , Wallace v.
Potter 16 , Attorney General of Canada v. Krause 1 '.
What would constitute sufficient evidence of possession with reference to modern city lots, or village lands, or cultivated areas, is not required in order to show possession of semi-wilderness areas in the early years of the century. The acts carried out by Mutch before he deeded the subject prop erty to the defendant appear to me to be the type of acts that would normally and suitably be per formed by a lumberman farmer in those days on the Miramichi River.
As previously reported, the land in question was visited by the Indian Affairs agent in 1898. The price per acre was discussed in 1919 between Buoy, the timber inspector, and Isaac Mutch. Then, silence till the 1970's. Although not in issue, it would appear from the evidence of some of the witnesses that the recent interest in the subject property was aroused by the activation of the gravel pit, near defendant's lodge, and the reve nues it generated.
On February 24, 1919, Isaac Mutch had written to the Department of Indian Affairs to obtain the grant to his property. His letter reads:
I am living on a pice [sic] of Indian land which lies on the North side of the Lyttle South West River the East side of Lot No 6 x 42 Rods in width Bounded on the West by land claimed by Ebenezar Traviss And I would like to get the grant of it
Learned counsel for the plaintiff argues that the letter is, "the most poignant piece of evidence adduced as to the status of the land and the state of mind of Isaac Mutch and constitutes an acknowledgment of the Crown's title such as to interrupt the running of the limitation period".
The letter raises obvious difficulties. It seems clear from previous decisions (vide Hamilton v. The King' 8 , Sanders v. Sanders 19 ) that once a title is established under a statute and the right of a prior owner is extinguished, the title cannot be
'" (1917) 12 O.W.N. 278.
15 (1976) 14 N.S.R. (2d) 80.
16 (1913) 10 D.L.R. 594.
17 [1956] O.R. 472.
18 (1917) 54 S.C.R. 331, at p. 346.
19 (1881-82) 19 Ch. D. 373, at p. 382.
defeated by subsequent acknowledgment by those who have acquired this statutory title. But proper acknowledgment could interrupt incomplete adverse possession.
The Nullum Tempus Act contains no reference to acknowledgments, but it provides that an inter ruption by entry or rents shall stay the running of the period. In Hamilton v. The King the Supreme Court of Canada said at page 344 that "It would seem a bold step for the Court to add yet another fact or incident to those the Nullum Tempus stat ute expressly mentions as interrupting possession against the Crown."
In that same decision, Fitzpatrick C.J., also said at pages 339-340:
The Crown permitted the defendants or their predecessors in title to remain in undisturbed possession for fifty-eight years before taking action in 1890 and took no steps to enforce the judgment then obtained during the ensuing twenty-four years. During this long lapse of time all parties concerned have died. The form of government of the country has been repeatedly changed, and the then newly founded and insignificant By-town has become a great city, the capital of the Dominion of Canada. Under these circumstances, I think the courts need not hesitate to require the strictest proof of a claim to oust the defendants. Failing this, I think substantial as well as legal justice will have been done by leaving them undisturbed in the possession which they have so long held.
The New Brunswick Limitation of Actions Act, R.S.N.B. 1952, c. 133, however does include a provision respecting acknowledgment of title: the present section 45 appeared as section 14 of the Act Respecting Limitation of Actions in respect to Real Property, c. 139, Consolidated Statutes of New Brunswick 1903. It reads:
45. When an acknowledgment in writing of the title of a person entitled to any land is signed by the person in possession of the land or in receipt of the profits thereof, or by his agent in that behalf, and has been given to the person entitled or his agent prior to his right to take proceedings to recover the land having been barred under the provisions of this Act, then the possession or receipt of profits of or by the person by whom such acknowledgment was given shall be deemed, according to the meaning of this Act, to have been the possession or receipt of or by the person to whom or to whose agent such acknowl edgment was given at the time of giving the same, and the right of the last mentioned person, or of any person claiming through him, to take proceedings shall be deemed to have first accrued at, and not before, the time at which the acknowledgment, or the last of such acknowledgments, if more than one, was given.
In the Hamilton case, an 1871 letter had been introduced as an acknowledgment. In his judgment (46 years later), Idington J., was reluctant to attach much significance to the document. He said at page 350:
I should be loathe to attach much (if any) importance to such a document without the fullest information at least on the part of the Crown relative to the import of what such a claim as made therein implied, and how it could be treated as an acknowledgment taking away the rights acquired by the statute.
The Crown in the instant case having waited more than 50 years after the alleged acknowledg ment to launch this action is hard put to show now exactly what the 1919 letter meant. Bearing in mind that the land in question lies within a non- Indian community, the description "Indian land" used by the settler conceivably meant land outside the Indian reserve, land on which he lived and for which he wanted to "get" a Crown grant, an official paper to confirm his own title. The evi dence is that he did not pay for it, thus presumably did not attach much value to the legal document.
I cannot accept Mutch's letter as being an acknowledgment sufficient to extinguish the adverse possession already established at the time, which amounted to some 15 years in the case of Isaac Mutch on the specific piece of land, and to at least half a century more by his predecessors over the area, including lot 6. Moreover the letter was not addressed to the Province, the person then entitled, but to a federal department.
Had the Crown moved at the time and com menced entry proceedings, witnesses would have been available then, including Isaac Mutch, to determine with more certainty the import of the letter and the period of adverse possession. It would be manifestly unfair if one party's procrasti nation became the other party's downfall. "Long dormant claims have often more of cruelty than of justice in them." 20
Plaintiff also contends that the 1958 agreement transferring all Provincial rights and interests in the reserves to the Federal Government closes the prescription period against the defendant. The
20 A'Court v. Cross (1825) 3 Bing. 329 at p. 332, 130 E.R. 540 at p. 541, Best C.J.
Public Lands Grants Act, earlier referred to, pro vides that no right to public lands may be acquired by prescription but it cannot be inferred that the Act will retroactively extinguish adverse possession already established.
In short, after the creation of the Province of New Brunswick in 1784, the Indians were granted a licence of occupancy in 1808 by the Province, which they neglected to exercise over the tract of land along the Little Southwest Miramichi River. From the 1830's to the surrender of 1895 the Indians lost their right of occupancy through adverse possession. The 1895 surrender could not, of course, transfer to the Crown in the right of Canada what the surrenderers had already lost and adverse possession throughout that period ran against the Crown in the right of the Province, the person entitled, up to the agreement of 1958. The latter agreement could not affect adverse posses sion already established. The federal statute bar ring prescription, the Public Lands Grants Act could not, of course, apply to the land in question before the agreement of 1958 and by that time adverse possession had been established and the rights of prior owners extinguished.
Within that tract of land along the Little South west Miramichi River lies the present day non- Indian community of Lyttleton wherein is located the parcel of land possessed in 1838 by Ebenezer Travis. From that parcel, lot 6 was admittedly occupied by James Mutch in 1898. His grandson Isaac built on it in 1904 and sold from it to the defendant in 1952, 1958 and 1959, the property now being claimed in the present information.
During that whole period, from 1838 to the date of this information in 1973, or a period of 135 years, adverse possession has not been effectively interrupted by any of the parties entitled to do so, namely the Province of New Brunswick from 1838 to 1958, the Government of Canada from 1958 to 1973, and the Red Bank Band with reference to their own rights of occupancy throughout the period.
I therefore find that the defendant and his pre decessors have established adverse possession on
the subject property as against anyone and I dismiss plaintiff's action with costs.
Both parties adduced expert evidence at the hearing with a view to establish the market value of the subject property. In the event that my findings in the matter become useful in further proceedings, I find that the value of the Gilbert A. Smith property is as follows: land and site improvements $12,000; buildings $16,000; gravel reserves $8,000. Total, $36,000.
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