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T-3727-78
Palm Dairies Limited (Plaintiff) v.
The Queen in right of Canada, Attorney General of Canada, Minister of Indian Affairs and North ern Development, Registrar of Indian Lands of the Department of Indian Affairs and Northern De velopment and Sarcee Developments Ltd. (Defendants)
Trial Division, Primrose D.J.—Calgary, Septem- ber 12; Edmonton, September 27, 1978.
Practice — Application for mandamus and for order that builders' lien and lis pendens be registered by Registrar of Indian Lands, and counter-application to strike out — Indian lands — Debt due plaintiff on construction contract for work done on lands on Indian reserve surrendered to Crown and leased to firm — Application for registration denied by pro vincial Land Titles Office and by Registrar of Indian Lands in Ottawa — Whether or not order should issue and a writ of mandamus be granted that the Registrar of Indian Lands register the builders' lien and lis pendens — Whether or not an order should be granted to defendants striking out statement of claim — Indian Act, R.S.C. 1970, c. I-6, ss. 29, 37, 55, 88 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, ss. 17, 18 — The Builders' Lien Act, R.S.A. 1970, c. 35, ss. 25, 26 — Federal Court Rule 419(1)(a).
Plaintiff, and its predecessor in interest, constructed a water distribution system, a sewage collection system and a sewage lagoon on lands on an Indian reserve that had been surrendered to the Crown, and leased by the Minister to Sarcee Develop ments Ltd. for seventy-five years. The land is unpatented Crown land. It is claimed that defendant Sarcee Developments Ltd. owes plaintiff $2,096,438.85. After the provincial officials refused to register the documents plaintiff sent to the Registrar in Ottawa a builders' lien, for registration under section 55 of the Indian Act, pursuant to The Builders' Lien Act (Alberta) and a certificate of lis pendens claiming a lien upon the estate of Sarcee Developments Ltd. The builders' lien purports to attach the leasehold interest but not the land itself. Although the Registrar of Indian Affairs informed plaintiff that it was not possible to register the lien because Indian lands were not subject to seizure under the legal process, plaintiff maintains that the lien should be filed or accepted. Plaintiff seeks an order that a builders' lien and a certificate of lis pendens be regis tered in the Surrendered Land Registry and an interim and permanent order that the effective date of registration be on a suggested date. Further, plaintiff requests an interim and per manent writ of mandamus directing the Registrar of Indian Lands to register the builders' lien and the certificate of lis pendens. Defendants, other than Sarcee Developments Ltd. seek an order striking out the statement of claim as against those defendants.
Held, the statement of claim is struck out and the action is dismissed. The lands continue to be reserved for the Indians within the meaning of The British North America Act, 1867 and exclusive legislative jurisdiction remains in the Parliament of Canada, so that provincial legislation which might lay down rules as to how these lands are to be used is inapplicable. A builders' lien is a document which may be filed in the Land Titles Office pursuant to The Builders' Lien Act (Alberta) but the Registrar under the Indian Act cannot be directed to register a lien in the Federal Registry when there is no specific authority for any such registration. There is no au thority to grant the relief asked for in the pleadings. Further more, Sarcee Developments Ltd. is not a proper party to the action under sections 17 and 18 of the Federal Court Act. The plaintiff, however, may have a remedy in another jurisdiction.
Corporation of Surrey v. Peace Arch Enterprises Ltd. (1970) 74 W.W.R. 380, applied. Rossi v. The Queen [1974] 1 F.C. 531, applied. McNamara Construction (Western) Ltd. v. The Queen [1977] 2 S.C.R. 654, applied. Quebec North Shore Paper Co. v. Canadian Pacific Ltd. [1977] 2 , S.C.R. 1054, applied. Union Drilling and De velopment Co. Ltd. v. Capital Oil & Natural Gas Co. Ltd. [1931] 2 W.W.R. 507, distinguished. Stanolind Oil & Gas Co. v. Rempel Construction Ltd. [1959] S.C.R. 592, dis tinguished. Re Sun Life Assce Co. v. Widmer (1916) 9 W.W.R. 961, distinguished. C.P.R. v. District Registrar of Dauphin Land Titles Office (1956) 4 D.L.R. (2d) 518, distinguished.
APPLICATION. COUNSEL:
W. D. Goodfellow for plaintiff.
I. G. Whitehall, Q.C. and B. J. Delong for defendants the Queen in right of Canada, Attorney General of Canada, Minister of Indian Affairs and Northern Development, Registrar of Indian Lands of the Department of Indian Affairs and Northern Development.
D. P. McGuire for defendant Sarcee Develop ments Ltd.
SOLICITORS:
Goodfellow MacKenzie, Calgary, for plain tiff.
Deputy Attorney General of Canada for defendants.
The following are the reasons for judgment rendered in English by
PRIMROSE D.J.: This is a motion dated August 16, 1978 on behalf of the plaintiff for an order that a builders' lien and a certificate of lis pendens be registered in the Surrendered Land Registry, which is a registry in Ottawa in the Department of Indian Affairs and Northern Development, pursu ant to section 55(1) of the Indian Act, R.S.C. 1970, c. I-6, which reads:
55. (1) There shall be kept in the Department a register, to be known as the Surrendered Lands Register, in which shall be entered particulars in connection with any lease or other dispo sition of surrendered lands by the Minister or any assignment thereof.
(2) A conditional assignment shall not be registered.
(3) Registration of an assignment may be refused until proof of its execution has been furnished.
(4) An assignment registered under this section is valid against an unregistered assignment or an assignment subse quently registered.
and for an interim and permanent order that the effective date of registration of the builders' lien shall be December 16, 1977. In addition, an interim and permanent writ of mandamus is requested directing the Registrar of Indian Lands to register the builders' lien and certificate of lis pendens, and an order that the date of registration of the said items be the date of the said builders' lien and the certificate of lis pendens were received by the Registrar of Indian Lands.
A motion was filed on the 6th day of September 1978 on behalf of the defendants other than Sarcee Developments Ltd. which I agreed to hear along with the plaintiff's motion, for an order pursuant to Rule 419(1)(a), striking out the state ment of claim in the action as against those defendants. The two matters were heard together.
The dispute relates to land in an Indian reserva tion of the Sarcee Band of Indians, southwest of the City of Calgary. Lands in a reserve cannot be sold, alienated, leased or otherwise disposed of until they have been surrendered to Her Majesty by the band of whose use and benefit in common the reserve was set apart, under section 37 of the Indian Act. Surrendered lands may be leased in
accordance with section 53(1) of the Indian Act, and pursuant to this provision with the consent of the Band a lease of the land in question was entered into between the Minister and Sarcee De velopments Ltd. for a period of seventy-five years, for a project to be known as Redwood Meadows, to run from the 6th of September A.D. 1974 to the 5th of September A.D. 2049. Apparently the Indian Band receives benefits from the lease pur suant to the development agreement. Palm Dairies Limited and its predecessor in interest Western Industrial Contractors Ltd. pursuant to contract constructed a water distribution system, a sewage collection system on the lands in question and a sewage lagoon, the contract being entered into in June 1976 for the sum of $1,271,245.38. Addition al services were provided so that by 1976 a total of $3,314,505.16 was expended. The defendant Sarcee Developments Ltd. paid $1,218,066.31 on the account and it is claimed there is a balance of $2,096,438.85.
The land is unpatented Crown land. The plain tiff sent to the Registrar in Ottawa for registration under section 55(1) of the Indian Act a builders' lien pursuant to The Builders' Lien Act of Alberta, R.S.A. 1970, c. 35, and a certificate of lis pendens claiming a lien upon the estate of Sarcee Develop ments Ltd. pursuant to its lease instrument No. 41168 dated September 6, 1974 for seventy-five years as aforesaid on the land in question, being lot 6 plan 57814 CLSR. It is to be noted that this builders' lien purports to attach the leasehold in terest of Sarcee Developments Ltd. but not the land itself.
The plaintiff presented the builders' lien and certificate of lis pendens to the Registrar of the Land Titles Office in Calgary for registration, but the Registrar declined to register the said lien, which under normal circumstances would be regis tered pursuant to section 25 of The Builders' Lien Act.
The plaintiff alleges that it is entitled to have its builders' lien registered and that it should have been forwarded by the Registrar of the Land Titles Office to the Registrar in Ottawa for regis-
tration pursuant to section 26(4) of The Builders' Lien Act which provides:
26. ...
(4) The Registrar shall, in accordance with The Land Titles Act, register the lien as an encumbrance against the estate or interest in the land affected, or if the land affected has not been registered under The Land Titles Act and subsection (5) does not apply thereto, he shall make a record of the lien in a book or such other manner as he considers advisable.
The plaintiff's solicitor wrote to the Registrar of Indian Affairs by letter of January 13, 1978 and was informed that it was not possible to register the builders' lien. He pointed out to the plaintiffs solicitor that pursuant to section 29 of the Indian Act, Indian lands are not subject to seizure under legal process, although one might wonder if filing a builders' lien would constitute seizure under legal process. The plaintiff takes the position that the lien should be filed, or accepted in the surren dered lands register pursuant to section 55 of the Indian Act and relies on authorities which appear to give a Registrar discretion or even a duty in certain circumstances. In Union Drilling and De velopment Company Limited v. Capital Oil & Natural Gas Company Limited [1931] 2 W.W.R. 507 it was held that a mechanics' lien which does not require to be registered with the Minister of Mines and Minerals under section 48 of The Mechanics' Lien Act can be properly registered under section 19 of the Act with the Registrar of the Land Titles Office even though it relates to unpatented lands.
In Stanolind Oil & Gas Company v. Rempel Construction Limited [1959] S.C.R. 592 the Supreme Court of Canada approved of the deci sion in the Union Drilling case (supra) and it was held that under The Mechanics' Lien Act, in Alberta, liens could properly be registered with the Registrar at the Land Titles Office. In that case, where the liens should properly be filed was in issue and the Act provided that a claim for lien on mines and minerals could be filed with the Minis ter in certain circumstances. The Court held that they were properly filed with the Registrar of the Land Titles Office against the land.
In Re Sun Life Assurance Co. v. Widmer (1916) 9 W.W.R. 961 an application was made under the provisions of The Land Titles Act (Alberta) to the Registrar for directions for the sale of mortgaged land. The Registrar required the furnishing of certain material, which the mort gagee contended he had no right to call for and there was a reference to the Court as to whether the Registrar was within his right. It was held that one of the duties of the Registrar was to fix, or at least he was entitled to require, the production of certain affidavits, and a statement of the amount due under the mortgage, and a reserve bid form etc. and the Court held that it was the right and duty of the Registrar to fix the reserve bid and settle the conditions of sale. By analogy the plain tiff contends that pursuant to section 55 of the Indian Act the Registrar should have some discre tion and should register a builders' lien such as is tendered here.
Reference was also made to C.P.R. v. District Registrar of Dauphin Land Titles Office (1956) 4 D.L.R. (2d) 518. The headnote reads:
A Registrar of Land Titles under the Real Property Act, R.S.M. 1954, c. 220, has a duty, not a discretion, to file a caveat which is proper in form. He may not refuse on the basis that he believes the claim asserted to be invalid. That is a question for the Courts after and not before the filing of the caveat which is merely notice of a claim which may or may not be valid and which operates simply as a warning to those who might deal with the property. A caveat is used for the protec tion of alleged as well as proved interests and creates no new rights but only protects existing ones. A proper remedy in case of refusal by the Registrar is mandamus as the alternative procedure under the Act is neither as convenient, beneficial or effective as mandamus.
Here, as in the C.P.R. case, the plaintiff is applying for mandamus to compel the registration of the builders' lien. In Bejko v. Robson [1934] 2 W.W.R. 366 it was held the District Registrar has no jurisdiction to decide whether any particular piece of land or any portion of it, whether in area or in value, is or is not exempt from judgments under the Manitoba Exemptions Act. He would have no authority for instance to enter upon an inquiry whether in a given case a mechanics' lien existed. He could not adjudicate upon claims to exemptions.
I distinguish these cases in that in each decision mentioned there is authority given to a Registrar under a statute, to register a document. He is only an administrative official and not in a position to make judicial decisions as to whether or not a document is valid and may be registered. Here, the difficulty is to find in the Indian Act a provision that makes valid the registration of the builders' lien proposed to be filed, and the plaintiff's dif ficulty is to bring itself within the provisions of section 55(1) of the Act aforesaid.
The plaintiff submits that the Court has a right to correct an error if the Registrar has failed in his legislative duty as was the case in Re Land Titles Act: Bank of Hamilton v. McAllister (1912) 3 W.W.R. 141; also Re Land Titles Act and in re Continental Explosives Ltd. (1964) 49 W.W.R. 762, Lawrie v. Rathbun (1877) 38 U.C.Q.B. 255; also Peter Leitch Construction Ltd. v. Aquativity Ltd. [1971] 2 O.R. 666. This was a case where a local Master of Titles refused to register a claim for a mechanics' lien against the title of unpatent- ed Crown land but did allow registration of a "caution against first registration" in lieu thereof. This case refers to a number of Alberta cases dealing with The Mechanics' Lien Act and the possibility of registering mechanics' liens against unpatented land and was held that the mechanics' lien was properly filed, as of the date taken to the Land Titles Office.
The plaintiff relies on Cardinal v. Attorney General of Alberta [1974] S.C.R. 695; (1974) 40 D.L.R. (3d) 553, where an Indian while on an Indian reserve sold a piece of moose meat, and was charged under The Wildlife Act of Alberta with trafficking in big game. The question arose as to the validity of this legislation. It was held by Martland J. [vide headnote 40 D.L.R. (3d) "at p. 554]:
Although s. 91(24) of the British North America Act, 1867 gives exclusive legislative authority to the federal Parliament to legislate in relation to Indians and lands reserved for Indians, thereby preventing a Province from enacting laws in relation thereto, the effect of s. 91(24) is not to create enclaves within a
Province within the boundaries of which provincial legislation of general application, and which is otherwise valid, can have no application. Consequently, s. 37 of the Wildlife Act, as it is of general application and does not relate to the Indians, qua Indians, is not ultra vires the Province.
The plaintiff's argument is that The Builders' Lien Act in Alberta is for the purpose of protecting builders' lien generally and should apply although the lands where the work was done or the material furnished happens to be under the Indian Act of Canada. The plaintiff says that it is liening only the leasehold interest of his client and therefore does not impinge on any provision in the Indian Act and that the Registrar should have registered it.
Counsel for the defendants dealing with the applicability of provincial laws to Indians take the position that section 88 of the Indian Act relates only to Indians and not to lands. Section 88 reads as follows:
88. Subject to the terms of any treaty and any other Act of the Parliament of Canada, all laws of general application from time to time in force in any province are applicable to and in respect of Indians in the province, . except to the extent that such laws are inconsistent with this Act or any order, rule, regulation or by-law made thereunder, and except to the extent that such laws make provision for any matter for which provi sion is made by or under this Act.
This section does make provincial laws applicable to Indians, which was the position taken by Mart- land J. in the Cardinal case, but the section does not purport to deal with the situation where Indian lands are in question. The Crown says even if the Province can legislate in regard to lands The Land Titles Act is applicable, and of course the Regis trar of the Land Titles Office declined to register the builders' lien when it was submitted to him.
The Crown also takes the position that section 29 of the Indian Act which reads as follows:
29. Reserve lands are not subject to seizure under legal process.
precludes the filing of the builders' lien in any event. In this respect the plaintiff urges that any interest attached under The Builders' Lien Act does not attach "reserve lands" or the interest of the Sarcee Band of Indians, but attaches to the
leasehold interest of Sarcee Developments Ltd. The plaintiff has a number of authorities:
Macklem and Bristow, Mechanics' Liens in Canada (Third Edition) at page 31 states:
Where the tenant has requested the work done or ma terials furnished his interest is nonetheless subject to a lien even if the landlord may 15e exempt from the operation of The Mechanics' Lien Act. For example, the tenant of a Government Railway is still subject to the provisions of the Act. Therefore, where material was supplied to build a grain elevator which was situated on land leased from the C.N.R., it was held that the elevator was lienable only insofar as the leasehold interest was concerned, notwithstanding the C.N.R. was the owner of the land: Manitoba Bridge etc. Works Ltd. v. Gillespie (1914), 7 Sask. L.R. 208 (C.A.).
Provincial Municipal Assessor v. Rural Municipality of Har- rison [1971] 3 W.W.R. 735 (Man. Q.B.).
The Calgary and Edmonton Land Company v. Attorney-Gen eral of the Province of Alberta (1911) 45 S.C.R. 170 at 179, 185 and 191.
City of Montreal v. Attorney-General for Canada [1923] A.C. 136 (P.C.).
Bennett and White (Calgary) Limited v. Municipal District of Sugar City [1951] 3 W.W.R. (N.S.) 111 (P.C.).
The North West Lumber Co. Ltd. v. Municipal District of Lockerbie No. 580 [ 1926] S.C.R. 155.
Phillips v.. The Corporation of the City of Sault Ste. Marie [1954] S.C.R. 404.
Sammartino v. Attorney-General of British Columbia (1972) 22 D.L.R. (3d) 194 (B.C.C.A.).
Mintuck v. Valley River Band No. 63A (1978) 83 D.L.R. (3d) 324 (Man. Q.B.).
The defendants take the position that to the extent the plaintiff is endeavouring to enforce a provincial law, the Federal Court has no jurisdic tion to deal with it. I will deal with this argument later in the case.
The defendants point out that there is no lien apart from statute see McLean & Associates Ltd. v. Leth (1949) 4 D.L.R. 282. A mechanics' lien is a creation of statute and is founded in rem, and any declaration of lien pursuant to it attaches to the property, but if it is defective the Court has no jurisdiction to validate it. The defendants submit that although the land in question was leased, it remains Indian land, and refer to the relative sections namely section 18 dealing with reserves; section 37 which prohibits sales, leases etc. of the land until they have been surrendered to Her Majesty by the band for whose use and benefit in
common the reserve was set apart; section 38 which permits a band to surrender any right or interest of the band and its members in the reserve; section 41 dealing with the effect of sur render, and finally section 53 which authorizes the Minister or a person appointed by him for the purpose to manage, sell, lease or otherwise dispose of surrendered lands in accordance with the Act and the terms of the surrender. In Corporation of Surrey v. Peace Arch Enterprises Ltd. (1970) 74 W.W.R. 380, it was held [vide headnote at page 380]:
Where an Indian Band "surrendered" in trust to the Crown lands which formed part of their reserve, for the purpose of leasing them to the appellants, it was held that the "surren- der" was not final and complete, but merely conditional, and that the lands in question did not thereby cease to be "set apart by Her Majesty for the use and benefit of a band"; it followed that the lands continued to be "lands reserved for the Indians" within the meaning of sec. 91(24) of the B.N.A. Act, 1867, that exclusive legislative jurisdiction over the lands remained in the Parliament of Canada, and that the appellants as developers thereof were not subject to munic ipal bylaws or regulations made under the provincial Health Act, RSBC, 1960, ch. 170; St. Ann's Island Shooting & Fishing Club Ltd. v. Reg. [1950] SCR 211, at 219, [1950] 2 DLR 225, affirming [1949] 2 DLR 17, 18 Can Abr (2nd) 2759; St. Catherine's Milling & Lbr. Co. v. Reg. (1888) 14 App Cas 46, at 56, 58 LJPC 54, 4 Cart 107, affirming (1887) 13 SCR 577, 7 Can Abr (2nd) 164 applied.
I accept the argument that the lands continue to be reserved for the Indians within the meaning of The British North America Act, 1867, and exclu sive legislative jurisdiction remains in the Parlia ment of Canada, so that provincial legislation which might lay down rules as to how these lands are to be used is inapplicable. See also Gauthier v. The King (1918) 56 S.C.R. 176.
The defendants emphasize that the Indian Act relates to Indians, whereas the lien sought is against the interest of Sarcee Developments Ltd. a body corporate; that the Indian Act must be strict ly interpreted and section 2(1) of the Act provides:
2. (1) ...
"Indian" means a person who pursuant to this Act is registered as an Indian or is entitled to be registered as an Indian;
and therefore any claim against the interest of Sarcee Developments Ltd. does not qualify for filing. Attorney General of Canada v. Lavell [1974] S.C.R. 1349 at 1367.
The defendants also submit that assuming The Builders' Lien Act might be available for the leasehold interest alleged, mandamus is not avail able against the federal officials.
In Rossi v. The Queen [1974] 1 F.C. 531 an inmate of a penitentiary sought mandamus against the Crown to show cause why the Court should not order them to furnish him with papers and infor mation pertaining to warrants outstanding against the inmate in the hands of authorities in the states of Florida and Connecticut in the U.S.A. It was held mandamus does not lie against the Crown. It does lie against the Crown officers named as representing the Crown, "to secure the perform ance of a public duty, in the performance of which the applicant has a sufficient legal interest." The Registrar of Indian lands of the Department of Indian Affairs and Northern Development is an officer of the Crown but one must point to some statutory or other duty compelling him to do what is demanded i.e. here to file a builders' lien. The Crown's argument is that section 55 of the Indian Act does not encompass any builders' lien and this is a compelling argument. A builders' lien is a document which may be filed in the Land Titles Office pursuant to the provisions of The Builders' Lien Act but can the Registrar under the Indian Act somehow be directed to register a lien in the federal Registry when there is no specific au thority for any such registration? The answer must be in the negative.
The constitutional limitations under section 101 of The British North America Act, 1867, to the exercise of jurisdiction by the Federal Court have also to be considered and were dealt with in McNamara Construction (Western) Limited v. The Queen [1977] 2 S.C.R. 654, and in Quebec North Shore Paper Company v. Canadian Pacific Limited [ 1977] 2 S.C.R. 1054. In the McNamara case the Court held:
Held: The appeal should be allowed.
It is a prerequisite under s. 101 of the B.N.A. Act to the exercise of jurisdiction by the Federal Court that there be existing and applicable federal law which can be invoked to support the proceedings before it. The common law rule that the Crown may sue in any Court having jurisdiction in the particular matter developed in unitary England, has no unlimit ed application to federal Canada where legislative and execu tive powers are divided between central and provincial levels of legislature and government and where there is a constitutional limitation on the power of Parliament to establish Courts. As there was neither a statutory nor a common law basis for the Crown's suit the Federal Court did not have jurisdiction in respect of the contract claims asserted by the Crown. It was not the Crown's liability that was involved but that of the other party to a bilateral contract.
Applying these authorities to the claim here for the builders' lien and for mandamus I find there is no authority to grant the relief asked for in the pleadings. I further find that Sarcee Developments Ltd. is not a proper party to this action under section 17 or section 18 of the Federal Court Act. However, the plaintiff may have a remedy in another jurisdiction, and it was drawn to the atten tion of the Court that an action was commenced in the Supreme Court of Alberta Judicial District of Calgary entitled Western Industrial Contractors Ltd. v. Sarcee Developments Ltd. in which an appeal is pending before the Appellate Division of the Supreme Court of Alberta. As noted the plain tiff is the successor to Western Industrial Contrac tors Ltd: and is claiming relief including a judg ment for the amount alleged to be owing under the contracts between the parties, so that the plaintiff may well have its remedy in the form of a judg ment and other relief, but for the reasons above stated, no order for mandamus or the right to file a builders' lien as requested in this action.
The statement of claim is struck out and the action is dismissed with costs.
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