Judgments

Decision Information

Decision Content

A-777-77
The Queen (Appellant) (Plaintiff)
v.
Gilbert A. Smith (Respondent) (Defendant)
Court of Appeal, Urie and Le Dain JJ. and Kelly D.J.—Fredericton, November 7 and 8, 1979; Ottawa, June 24, 1980.
Indians — Information by Crown — Reserve lands — Appeal from decision of Trial Division dismissing action by the Queen for possession of surrendered land in an Indian reserve that has never been sold on the ground that respondent has title to the Land by virtue of a continuous adverse posses sion of at least sixty years — Whether, apart from adverse possession, the appellant has the right to possession — Whether the right to possession asserted by appellant could be extinguished by adverse possession — Whether in fact there was continuous adverse possession for at least sixty years — Appeal allowed — Indian Act, R.S.C. 1970, c. I-6, ss. 2, 31, 53(1), 88 — The British North America Act, 1867, 30 & 31 Vict., c. 3 (U.K.) /R.S.C. 1970, Appendix II, No. 51, s. 91(24) — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 38(2).
Appeal from a judgment of the Trial Division dismissing an action by the Queen for the possession of surrendered land in an Indian reserve that has never been sold or otherwise disposed of on the ground that the respondent has title to the Land by virtue of a continuous adverse possession of at least sixty years. The Land was part of a tract that was set aside by the Province as an Indian reserve. It was leased to Travis by the Indians from 1838. In 1841, he unsuccessfully petitioned the Crown for a grant of the Land. In 1867, the Indian reserves in New Brunswick came under the jurisdiction of the Dominion Gov ernment pursuant to section 91(24) of The British North America Act, 1867. The Land was surrendered to the Domin ion Government in 1895. By 1898, the Land was occupied by Travis' grandson, who, in 1901, had a survey made to provide the basis of a grant. The survey excluded the Land. The evidence shows that in 1904 or 1905 the Land was occupied by Mutch, but nothing suggests any connection or continuity between the occupation of Travis' grandson and its subsequent occupation by Mutch. Until 1960, Mutch or members of his family resided on the Land, using it for farming and cutting wood. Mutch wrote to the Department of Indian Affairs in 1919 requesting a grant of the Land, but a grant was never made to him. The respondent purchased the Land from Mutch without searching the title, and was unaware of any Indian claim to the Land. He built a camp on the Land and sold gravel from a pit on the Land. In 1958, the federal and provincial governments entered into an agreement, transferring all provin cial rights in reserve lands to the federal government. These proceedings were instituted in 1973. The Information alleges that the Land forms part of the Red Bank Indian Reserve, that it is vested in Her Majesty subject only to the conditions of a surrender of the Land that was made in 1895, that the Land
has never been disposed of pursuant to the surrender and is "surrendered lands" within the meaning of the Indian Act, that Her Majesty has the right to possession of the Land, that the Band claims that the respondent, a non-Indian is claiming adverse possession of the Land, but has no right to possession. The Information requests a declaration that the appellant has a right to vacant possession. The respondent claims that if the Land was part of the Reserve, it was, as a result of the surrender of 1895, vested in the Crown in right of the Province free of the burden of any Indian interest, and that the respond ent now has title by virtue of continuous adverse possession. The respondent denies that the Land constitutes "surrendered lands." Alternatively, he claims compensation for the improve ments made by him to the Land. The issues are whether, apart from adverse possession, the appellant has the right to posses sion; whether the right to possession asserted by the appellant could be extinguished by adverse possession, and whether in fact there was continuous adverse possession for at least sixty years.
Held, the appeal is allowed and the appellant is entitled to vacant possession upon payment of compensation for improve ments. The appellant's recourse cannot rest on section 31, both because the Land is not part of the Reserve within the meaning of the Act, and because the Band does not have a right to the occupation or possession of the Land. On the evidence, the Land was part of the Reserve that passed at Confederation under the jurisdiction of the federal government as land reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act. The federal government took the view, when it called for the surrender in 1895, that the ungranted lots on both sides of the river were still part of the Reserve. After the surrender o11895, the Indians could not claim a right to occupy the Land. Their interest thereafter in the Land was in its sale and the application of the proceeds of sale for their benefit. The Land falls within the definition of "surrendered lands." When the Indian Act uses the word "reserve" alone, as in section 31, it does not intend to refer to surrendered lands as well as to the unsurrendered part of a reserve. The title to the Land was not affected by the agreement of 1958. As a consequence, an action for possession of the Land by the Crown in right of Canada cannot be based on title to the Land. Whether or not surren dered lands remain part of the reserve as defined by the Indian Act, they remain, until finally disposed of, lands reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act, and as such within federal legislative jurisdiction. Because of the federal government's continuing responsibility for the control and management of such land until its final disposition in accordance with the terms of a surrender, surrendered land must remain within federal legislative and administrative juris diction. It is land that is held for the benefit of the Indians, although they have agreed to accept the proceeds of sale of it in place of their right of occupation. The Crown in right of Canada has, as an incident of this power of control and management, the right to bring an action to recover possession
of surrendered land. Since such land remains reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act and continues to be held by the Crown for the benefit of the Indians because of their financial interest in it, the application of the provincial statute of limitations so as to give a non-Indi- an a possessory title to the Land would destroy the status of the land under the Indian Act and defeat the terms of the trust upon which it had been surrendered. In any event, the evidence fails to establish a continuous adverse possession of the Land for at least sixty years. There is a gap between the Travis occupation and the Mutch occupation. The evidence concerning the combined occupation by Ebenezer Travis and his grandson from 1838 to 1901 is not clear as to when it became an occupation or possession that was adverse. None of the docu ments referred to shows the extent of the occupation by Travis and his grandson, so it is not clear that there was an actual possession. The activity carried out on the Land by Mutch and his family constituted an occupation of the character required for adverse possession, but a problem is created by the letter which he wrote in 1919, requesting a grant of the Land. The letter was an acknowledgment by Mutch of the Crown's title, and the appellant is therefore entitled to possession of the Land. This is a case in which the Crown must be held, as a result of its long inaction, particularly from 1919, with knowledge that the Land was being occupied by non-Indians, to have stood by and acquiesced in the improvements made by the respondent and his predecessor in occupation. Also, the respondent believed himself to be the owner of the Land at the time he made improvements to it. It would be unconscionable to permit the Crown to recover vacant possession of the Land without compensation for the improvements. The measure of compensa tion is the amount by which the value of the Land has been enhanced by lasting improvements.
Doe dem. Burk v. Cormier (1890) 30 N.B.R. 142, referred to. Warman v. Francis (1959-60) 43 M.P.R. 197, referred to. R. v. Isaac (1976) 13 N.S.R. (2d) 460, referred to. St. Catherine's Milling and Lumber Co. v. The Queen (1889) 14 App. Cas. 46, (1887) 13 S.C.R. 577, referred to. Attorney-General for the Dominion of Canada v. Attor- ney-General for Ontario [1897] A.C. 199, referred to. Ontario Mining Co., Ltd. v. Seybold (1900) 31 O.R. 386, [1903] A.C. 73, referred to. Dominion of Canada v. Province of Ontario [1910] A.C. 637, referred to. Attor- ney-General for the Province of Quebec v. Attorney-Gen eral for the Dominion of Canada [1921] 1 A.C. 401, referred to. R. v. Devereux [1965] S.C.R. 567, referred to. The Natural Parents v. The Superintendent of Child Welfare [1976] 2 S.C.R. 751, referred to. Sherren v. Pearson (1888) 14 S.C.R. 581, referred to. Hamilton v. The King (1917) 54 S.C.R. 331, referred to. Ramsden v. Dyson (1886) L.R. 1 H.L. 129, referred to. Montreuil v. The Ontario Asphalt Co. (1922) 63 S.C.R. 401, referred to. McBride v. McNeil (1913) 27 O.L.R. 455, referred to. R. v. Lady McMaster [1926] Ex.C.R. 68, followed. Eas- terbrook v. The King [1931] S.C.R. 210, aff g [1929] Ex.C.R. 28, applied. Corporation of Surrey v. Peace Arch
Enterprises Ltd. (1970) 74 W.W.R. 380, applied. Cardi nal v. The Attorney General of Alberta [1974] S.C.R. 695, applied. Construction Montcalm Inc. v. The Minimum Wage Commission [1979] 1 S.C.R. 754, applied. Four B Manufacturing Ltd. v. United Garment Workers of America [1980] 1 S.C.R. 1031, applied. Attorney-General to His Highness the Prince of Wales v. Collom [1916] 2 K.B. 193, applied. St. Ann's Island Shooting and Fishing Club Ltd. v. The King [1950] Ex.C.R. 185, [1950] S.C.R. 211, distinguished. Attorney-General for Canada v. Giroux (1916) 53 S.C.R. 172, considered. Mowat, Attor- ney-General for the Dominion of Canada & Casgrain, Attorney-General for the Province of Quebec (1897) 6 Que. Q.B. 12, agreed with. Fahey v. Roberts unreported decision of K.B.D. (N.B.S.C.), agreed with.
ACTION. COUNSEL:
E. Neil McKelvey, Q.C. and Robert R. Anderson for appellant (plaintiff).
Horace R. Trites, Q.C., William J. McNichol and James E. Anderson for respondent (defendant).
SOLICITORS:
Deputy Attorney General of Canada for appellant (plaintiff).
Anderson, MacLean, Chase, McNichol & Blair, Moncton, for respondent (defendant).
The following are the reasons for judgment rendered in English by
LE DAIN J.: This is an appeal from a judgment of the Trial Division [[1978] 1 F.C. 653] dismiss ing an action by Her Majesty the Queen for the possession of surrendered land in an Indian reserve that has never been sold or otherwise disposed of on the ground that the respondent has title to the land by virtue of a continuous adverse possession of at least sixty years.
The Pleadings
The action is by Information exhibited by the Deputy Attorney General of Canada on behalf of Her Majesty the Queen following an allegation by the Red Bank Band of Indians, purporting to be made pursuant to section 31 of the Indian Act, R.S.C. 1970, c. I-6, which reads:
31. (1) Without prejudice to section 30, where an Indian or a band alleges that persons other than Indians are or have been
(a) unlawfully in occupation or possession of,
(b) claiming adversely the right to occupation or possession of, or
(c) trespassing upon
a reserve or part of a reserve, the Attorney General of Canada may exhibit an Information in the Federal Court of Canada claiming, on behalf of the Indian or the band, the relief or remedy sought.
(2) An Information exhibited under subsection (1) shall, for all purposes of the Federal Court Act, be deemed to be a proceeding by the Crown within the meaning of that Act.
(3) Nothing in this section shall be construed to impair, abridge or otherwise affect any right or remedy that, but for this section, would be available to Her Majesty or to an Indian or a band.
In its allegation made on February 15, 1973, the Band states that the respondent, a person other than an Indian, is claiming adversely the right to possession of lands and premises forming part of lot 6 in the "surrendered portion" of Red Bank Indian Reserve Number 7 in Northumberland County, Province of New Brunswick, and requests "the Attorney General of Canada to exhibit an information in the Federal Court of Canada, claiming on behalf of the Red Bank Band of Indians, possession of the said lands and premises".
The lands and premises (hereinafter referred to as "the Land") are described in the allegation and Information as follows:
In the Province of New Brunswick, in Northumberland County, in surrendered portion of Red Bank Indian Reserve No. 7 all that part of Lot 6 more particularly described as follows:
Beginning at a point made by the intersection of the line of division between Lot 5A (Patent No. 18726) and Lot 6 with the northern bank of the Little Southwest Miramichi River. Such point being distant four hundred eight (408) feet on an astro nomic bearing referred to the meridian through monument IR 1 as shown on Canada Lands Survey Records Plan No. 52894, one hundred sixty-two degrees fifty-four minutes eighteen seconds (162° 54' 18") from a Canada Lands Surveys Stand ard Post marked L5, L6, 191, 1964, placed on the said line of division by W.D. McLellan, N.B.L.S. in 1964.
Thence along the said line of division on an astronomic bearing of three hundred forty-two degrees fifty-four minutes eighteen seconds (342° 54' 18") a distance of four hundred eight (408) feet to the said Canada Lands Surveys Post.
Thence continuing along the said line of division three hundred forty-two degrees fifty-four minutes eighteen seconds (342° 54'
18") a distance of one thousand four hundred ninety-seven and twenty-nine hundredths (1,497.29) feet to a Canada Lands Surveys Old Pattern Iron Post marked R on the southern boundary of the highway leading from Littleton to Halcomb.
Thence along the said boundary one hundred eleven degrees four minutes zero seconds (111° 04' 00") a distance of one hundred sixty-six and twenty-six hundredths (166.26) feet to a Canada Lands Surveys Old Pattern Iron Post marked R.
Thence continuing along the said boundary following a curve to the left having a radius of five hundred fifty-four and sixty-sev en hundredths (554.67) feet a distance of four hundred nine and thirty-four hundredths (409.34) feet to a Canada Lands Surveys "69" Post numbered 23.
Thence continuing along the said boundary sixty-eight degrees forty-seven minutes zero seconds (68° 47' 00") a distance of seven and twenty-two hundredths (7.22) feet to a Canada Lands Surveys "69" Post numbered 40.
Thence one hundred sixty-three degrees nineteen minutes eight seconds (163° 19' 08") a distance of one hundred sixty-five and fifty-two hundredths (165.52) feet to a Canada Lands Surveys "69" Post numbered 41.
Thence sixty-eight degrees forty-seven minutes zero seconds (68° 47' 00") a distance of one hundred thirty-two and zero hundredths (132.00) feet to a Canada Lands Surveys "69" Post numbered 39.
Thence one hundred sixty-three degrees nineteen minutes eight seconds (163° 19' 08") a distance of two hundred sixty-one and ten hundredths (261.10) feet to a Canada Lands Surveys "69" Post numbered 35.
Thence one hundred fifty-nine degrees forty-two minutes thirty-two seconds (159° 42' 32") a distance of seven hundred twenty-four and fifty-nine hundredths (724.59) feet to a Canada Lands Surveys "69" Post numbered 33.
Thence one hundred sixty-two degrees sixteen minutes thirty seconds (162° 16' 30") a distance of four hundred seventy-sev en and twenty-two hundredths (477.22) feet to a Canada Lands Surveys "69" Post numbered 31.
Thence one hundred sixty-two degrees sixteen minutes thirty seconds (162° 16' 30") a distance of eleven (11) feet to the northern bank of the Little Southwest Miramichi River.
Thence in a southwesterly direction along the northern bank of the Little Southwest Miramichi River to the place of the beginning.
As shown on Canada Lands Surveys Records Plan No. 57932.
In the Information it is alleged that the Land forms part of the Red Bank Indian Reserve Number 7, that it is vested in Her Majesty subject only to the conditions of a surrender of the Land that was made in 1895, that the Land has never been disposed of pursuant to the surrender and is "surrendered lands" within the meaning of the
Indian Act, that Her Majesty has the right to possession of the Land, that the Band has made the allegation referred to above, and that the respondent, a non-Indian, is claiming adversely the right to possession of the Land, but has no right to possession. The Information concludes for the fol lowing relief:
(a) a declaration that Her Majesty the Queen has the right to possession of the said lands and premises;
(b) vacant possession of the said lands and premises on behalf of the Red Bank Band of Indians or alternatively vacant possession of the said lands and premises;
In his defence, which was amended by leave in September, 1976, and again by leave at the trial in May, 1977, the respondent states that if the Land was part of the Red Bank Indian Reserve, which is not admitted but denied, it was, as a result of the surrender of 1895, vested in the Crown in right of the Province of New Brunswick free of the burden of any Indian interest, and that the respondent now has title to the Land by virtue of the "open, notorious, continuous and adverse possession" of the Land by himself and his predecessors in title, both before and after the surrender. The respond ent denies that the Land constitutes "surrendered lands" within the meaning of the Indian Act.
In her reply the appellant states that prior to the surrender the title of Her Majesty the Queen was "subject only to the personal and usufructuary right of the Red Bank Band of Indians and that after such surrender and its acceptance the title of Her Majesty the Queen was and continues to be subject only to the conditions of the said surren der", and the appellant denies that the Land was prior to or after the surrender in the open, contin uous, adverse and notorious possession of the respondent or his alleged predecessors in title.
Alternatively to his defence based on adverse possession, the respondent claims compensation for the improvements made by him to the Land.
The Issues
Apart from the question of compensation, the issues raised by the appeal may be summarized as follows:
1. Whether, apart from the question of adverse possession, the appellant has the right to posses sion of the Land;
2. Whether, as a matter of principle, the right to possession asserted by the appellant could be extinguished by adverse possession;
3. Whether there was in fact a continuous adverse possession of the Land for at least sixty years.
The Facts
The evidence shows that the Land, which con sists of some twenty-five acres on which the respondent has made improvements, was part of a tract that was recognized in the early 1800's by the Government of New Brunswick as having been set aside as a reserve on both sides of the Little Southwest Miramichi River in the County of Northumberland for the tribe of Micmac Indians known as the Julien or "Julian" tribe after the name of their chiefs. The tract, which was divided by the river, was some 10,000 acres in extent and five miles square, which caused it to be referred to locally as the "Five Mile Block".
The precise date and basis on which the Reserve on the Little Southwest Miramichi River should be taken as having been established is not too clear, but it was unquestionably recognized to be a reserve before the non-Indian occupation of the Land on which the respondent bases his defence in part is alleged to have begun about 1838.
The Crown does not rely for the foundation of the Reserve on The Royal Proclamation of Octo- ber 7, 1763 (R.S.C. 1970, Appendix II, No. 1). There has been difference of opinion as to whether the Proclamation, in so far as Indian rights are concerned, applied to the territory that was sepa rated from Nova Scotia to become the Province of New Brunswick in 1784. See Doe dem. Burk v. Cormier (1890) 30 N.B.R. 142, at page 148, in which Sir John C. Allen C.J. expressed the opinion that it did not apply; Warman v. Francis (1959- 60) 43 M.P.R. 197, at pages 205 and 211, where Anglin J. held that it did apply; La Forest, Natu ral Resources and Public Property under the Canadian Constitution, c. 7, "Property in Indian Lands", pages 111, 125-126, who disagrees with this view; and R. v. Isaac (1976) 13 N.S.R. (2d)
460, at pages 478 and 497, in which MacKeigan C.J.N.S. and Cooper J.A. of the Nova Scotia Court of Appeal both held that the Proclamation applied to Nova Scotia. In the present case the learned Trial Judge expressed a contrary view. I propose to consider this question later, to the extent that it appears to be necessary for the disposition of the appeal.
The records of the Government of New Bruns- wick in the early 1800's, as will appear, give August 13, 1783 as the date that a reserve of some 10,000 acres on both sides of the Little Southwest Miramichi River was established. The precise nature of what was done in 1783 is not disclosed by the evidence, although Professor W. D. Hamil- ton, who was accepted by the Trial Judge as an expert on the history of the Little Southwest Miramichi region and its people, is recorded in the transcript as having said, apparently with refer ence to the year 1783, that there had been a "list [sic] of occupation" without survey or boundaries. It is possible that this was the reserve that was referred to by Anglin J. in Warman v. Francis, supra, at page 202, where, speaking of the situa tion at the time the Province of New Brunswick was established in 1784, he said: "There was then only one Reserve for Micmacs which had been established on the Northwest Branch of the Miramichi River by a `Licence of Occupation' issued by Governor Parr of Nova Scotia in 1783." It may be noted that the Department of Indian Affairs and Northern Development in its corre spondence concerning the Land in 1973 referred to the reserve as having been established in the late 1700's.
In any event, on September 27, 1804, Dugald Campbell, Deputy Surveyor, certified (Exhibit Pa-2) that he had surveyed for "Francis Julien and the Indians of the Little Southwest River" a "Tract of Land commencing at the mouth of the said River, and extending five miles up that stream". The plan accompanying the return of survey (Exhibit Pa-1) has written on it the words "Lands claimed by the Tribe of Indians of which Francis Julien is the head". Below the Deputy Surveyor's certificate is the following statement by
George Sproule, Surveyor General, dated Septem- ber 10, 1805: "The Tract of Land above described is not to be encroached on nor applied for by any person until the allotment proposed for the Indians is made and confirmed in Council." By a declara tion on July 13, 1806, which appears on the same document, Francis Julien expressed the wish that in the event of his death the tract should go to his two sons, Mitchell and Barnaby. This may reflect one view of the dispute, which Professor Hamilton said had existed from 1783 until the early 1840's, as to whether the right of occupation had been given to the Julien family or to the Indians of the Little Southwest as a whole.
On February 28, 1807, the survey made by Dugald Campbell was laid before the Executive Council and approved (Exhibit Pa-3), and on Sep- tember 24, 1808, the Executive Council (Exhibit Pa-4) approved a report of the Surveyor General concerning the Indian lands on the Miramichi and ordered that a licence of occupation be given to the Indians, in accordance with the report, for the tract on the Little Southwest. This act of the executive government of New Brunswick may have been merely a confirmation, based on the survey by Campbell, of a claim which had its origin in some form of recognition in the year 1783, but it appears to be the act by which the reserve, with defined boundaries, was formally established.
On January 24, 1838, the New Brunswick House of Assembly resolved (Exhibit Pa-5) "That information should be laid before this House of all tracts of Land reserved for the use of the Indians in this Province, where situated, the time such reserves were made, the nature of the reserves and the particular Tribes of Indians for whose benefit such reserves were respectively made." Pursuant to this resolution, a "Schedule of Indian Reserves in New Brunswick" dated January 31, 1838 (Exhibit Pa-6) prepared by the Commissioner of Crown Lands and Surveyor General was laid before the House, and printed in the Appendix to the Jour nals of the House of Assembly for the period December 28, 1837, to March 9, 1838. The Schedule describes the following reserves, among others, in the County of Northumberland: "10,000
acres on both sides of the Little South West, at its confluence with the North West Miramichi, 13th August 1783; 3,033 acres on the north side of the North West Miramichi, commencing opposite the lower end of Beobcar's point, and running up; 10th January, 1789; for John Julian and the Miramichi Tribe of Indians." At the end of the Schedule is the notation: "Nature of the Reserves—To occupy and possess during pleasure."
It would appear that a few years after receiving the licence of occupation for the Little Southwest tract the Julien family entered into various arrangements to earn revenue from the land. On August 10, 1820 (Exhibit D-39), Francis Julien and others leased the grass on "the Indian allot ment in the Little South West" to Richard McLaughlin for a period of six years at an annual rent of £50. The Juliens also purported to sell or lease homestead-size lots of land along both sides of the river to non-Indian settlers. What came to be known as lot 5 on the north side of the river (and in which the Land was located until the boundaries of lots 5 and 6 were altered around 1904) was occupied by one Ebenezer Travis, with the consent of the Indians, from about 1838.
Travis paid rent to the Indians for some time, but on October 25, 1841 he petitioned the Crown for a grant of the land which he occupied. The petition (Exhibit D-20) reads as follows:
TO His Excellency Lieutenant Colonel Sir William McBean George Colebrook Lieutenant Governor of the Province of New Brunswick
The Petition of Ebenezer Travis of Northesk in the County of Northumberland Farmer Most Humbly Showeth
That Your Petitioner is a British Subject and a native of the Province of New Brunswick and resides on a piece of the Indian Reserve situate on the north side of the Little South West between lands leased by the Indian Band John McAllister and Robert Emerson and extending in the rear to the full extent of the said Indian Reserve and containing about two hundred acres.
That Your Petitioner went on the said lands without any Lease but with the express consent of the said Indians and has yearly paid a rent of forty shillings argent to the Julien tribe of Indians and has built a house and a small barn on the said lands and has cleared about four acres of the said Land.
That Your Petitioner is a very poor man and has a wife and six children and is labouring hard to support them, and at the same time to improve the land thus obtained from the said Indians and is most anxious to have the title of the said Land confirmed to Your Petitioner.
Your Petitioner would humbly pray your Excellency to take his Case into Consideration and to order a grant to issue to him or to do in the premises as Your Excellency in Your wisdom may think just and right, and on such Terms as may lie within Your Petitioner's power to accomplish.
And as in duty bound will ever pray
Ebenezer Travis
In 1841, Moses H. Perley, Commissioner of Indian Affairs, made several reports on the condi tion of the Indians in New Brunswick, extracts from which were published as an Appendix (Exhibit D-21) to the Journal of the Legislative Assembly in 1842. At pages xcviii to xcix of the Appendix there are the following passages:
On the 30th we proceeded up the North West Miramichi to Red Bank, at the mouth of the Little South West. Some families are settled at Red Bank, and some on the Reserve upon the opposite side; they amount to 50 souls.
Barnaby Julien resides at Red Bank, where he has a tolerable house and barn. He succeeded his brother Andre Julien as Chief of the Micmac Nation, and he obtained a Commission in regular form, under the hand and seal of His Excellency Sir Archibald Campbell, countersigned by the Provincial Secre tary, dated 20th September, 1836, appointing him Chief of the Micmac Indians of Miramichi and its dependencies and requir ing them to obey him as their Chief. Under this Commission Barnaby Julien assumed the right of selling and leasing the greater part of the Reserve of 10,000 acres on the Little South West, and I regret to state, that from the best information I could obtain, he has since then received nearly two thousand pounds in money and goods from various persons, as consider ation for deeds and leases, and for rents. His rent roll this year amounts to a very considerable sum; 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. His own family have alone benefitted by the money which came to his hands, none of the other Indians receiving the smallest portion. In consequence of this misconduct, the Micmacs, at their last annual meeting at Burnt Church Point, on Saint Anne's Day, (26th July) solemnly deposed Barnaby Julien from his situation as Head Chief, and declared that he had no further authority as such. Nicholas Julien, who was second in rank to his brother Barnaby, then became principal Chief of the Micmacs, but had been so short a time in authority before my visit, that he had not made any change in the management of affairs.
At page cxi of the Appendix, with reference to the "Reserve on the Little South West Mirami- chi", which the report states to be a tract of some 10,000 acres divided by the Little South West, it is said:
This is the tract over which Barnaby Julien has for some years past exercised sole control, selling and leasing nearly the whole of it, and squandering the money, as stated in the first part of this Report. There are a great number of persons on this Reserve, under lease, and paying rent regularly, who have made extensive and valuable improvements. They have in general conceived that if theirs was not a legal title, yet still it gave them a good and equitable claim upon the Government, and that any improvements they might make would be secured to them. They are in general far above the squatters on the last mentioned Tract both in character and circumstances. 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. The superior air and manner of the latter, the greater degree of comfort in their houses, and the respectable appearance of their families, were evident proofs of the advantages of living in obedience to the Laws, and of the great moral and social superiority of those who did so, over those who were leading a lawless life.
A report (Exhibit D-21) on Indian reserves by the Surveyor General dated June 29, 1841 and printed at page cxxvi of the Appendix containing the Perley Report described the Reserve on the Little Southwest Miramichi River as follows: "10,000 acres on both sides of the Little South West, at its confluence with the North West Miramichi-13th August, 1783." Under the head ing "Return of the Number of Persons who have settled upon and occupy portions of the Indian Reserves in the Province of New Brunswick, 1841", the report shows 49 on the "Little South West Reserve". A "Schedule of Reserved Indian Lands in the Province of New Brunswick" (Exhib- it Pa-8), dated April 19, 1842 and printed in an Appendix to the Journals of the House of Assembly for the period January 31, 1843, to April 11, 1843, shows a reserve in Northumber- land of 10,000 acres on "both sides of the Little Southwest Miramichi River at its mouth".
In 1844, by.7 Vict., c. 47, the Legislature enact ed "An Act to regulate the management and
disposal of the Indian Reserves in this Province". The concern that gave rise to the Act was set out in its preamble as follows: "Whereas the extensive Tracts of valuable Land reserved for the Indians in various parts of this Province tend greatly to retard the settlement of the Country, while large portions of them are not, in their present neglected state, productive of any benefit to the people, for whose use they were reserved: And whereas it is desirable that these Lands should be put upon such a footing as to render them not only beneficial to the Indians but conducive to the settlement of the Country ...." The Act provided for the survey of reserves and for the sale or lease of parts of them for settlement, as well as for the appointment of Commissioners in each county in which reserves were situated "for the purpose of looking after the Reserves in their respective Counties, and superin tending the survey and sale thereof, or such part or parts thereof as may from time to time be directed by the Lieutenant Governor to be sold under the provisions of this Act, and also to look after the interest of the Indians generally of the Counties in which such Reserves are situate, and to prevent trespassing thereon." The Act of 1844 was replaced by chapter 85 of the Revised Statutes of New Brunswick of 1854, which was entitled "Of Indian Reserves" and was essentially to the same effect.
It was apparently pursuant to the Act of 1844 that a survey was carried out in 1845 and 1847 by David Sadler, Deputy Surveyor, of the part of the Reserve on the north side of the Little Southwest Miramichi River. The resulting plan and report are Exhibit Pa-9. Another version of the plan is found in Exhibit Pa-10. The plan shows 21 lots on the north side of the river. Lot 5 is shown as "Vacant", 35 chains in width, and containing 323 acres. In the report, entitled "Plan and Survey of part of the Tract of Land reserved for Julian Tribe of Indians situate on the North side of the Little South West, a Branch of the North West Branch of Miramichi River", there is the following description of lot 5:
Lot No.5 is Vacant the Land in front of it is very poor and mostly unfit for cultivation—it contains 323 acres there are about 3 acres improved on it occupied by Ebinezer Travis who has built a camp on it in which he resides.
In the years following the Sadler survey, steps were apparently taken to have the settlers pur chase the lots occupied by them in the Reserve. Professor Hamilton is recorded in the transcript as having stated that the land was "put up for option [sic] in Newcastle in 1849". The record suggests that certain lots were sold, but that letters patent were not issued for them pending full payment of the price. A letter dated September 16, 1898 (Exhibit Pa-19) from the Secretary of the Depart ment of Indian Affairs confirmed that several of the lots in the reserve on the north and south sides of the Little Southwest Miramichi River had been "patented" by the Government of New Brunswick in the 1850's and 1860's. Lot 5 on the north side of the river was never granted to Ebenezer Travis. It was not until 1901, or some time shortly thereaf ter, that part of the original lot 5 was granted to his grandson, Ebenezer A. Travis, but the Land was not included in this grant.
The New Brunswick Census Returns for 1851, 1861 and 1871 (Exhibit D-27) contain record of Ebenezer Travis during that period. The returns of 1851 show that he was residing in the area but do not show the land occupied by him. The agricul tural schedule to the census returns of 1861, under the heading "Acres of Land owned or occupied", shows Ebenezer Travis as having 8 acres of improved land and 300 acres of unimproved land. Schedule No. 3 to the census returns of 1871, under the heading "Grand total of acres of land owned", shows a total of 325 acres for Ebenezer Travis.
In 1867, the Indian reserves in New Brunswick came under the jurisdiction of the Dominion Gov ernment by virtue of the legislative jurisdiction conferred on Parliament with respect to "Indians, and Lands reserved for the Indians" by section 91(24) of The British North America Act, 1867, 30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5]. In 1868, by 31 Vict., c. 42, Parliament enacted the first Indian Act, which was entitled "An Act providing for the organization of the Department of the Secretary of State of Canada, and for the management of Indian and Ordnance Lands". It vested the control and management of
the lands reserved for the Indians in the Secretary of State as Superintendent General of Indian affairs. Section 32 of the Act repealed the New Brunswick legislation respecting Indian reserves (R.S.N.B. 1854, c. 85) and provided for the trans fer of jurisdiction over the lands and monies held for the Indians in New Brunswick as follows:
32. The eighty-fifth chapter of the Revised Statutes of New Brunswick respecting Indian Reserves is hereby repealed, and the Commissioners under the said chapter, shall forthwith pay over all monies in their hands arising from the selling or leasing of Indian Lands or otherwise under the said chapter, to the Receiver General of Canada, by whom they shall be credited to the Indians of New Brunswick, and all such monies now in the hands of the Treasurer of New Brunswick shall be paid over to the Receiver General of Canada, to be credited to the said Indians. And all Indian lands and property now vested in the said Commissioners, or other person whomsoever, for the use of Indians, shall henceforth be vested in the Crown and shall be under the management of the Secretary of State.
In response to a letter dated October 26, 1867, from the Secretary of State requesting certain information concerning the Indian lands in New Brunswick, including the extent of land in the reserves that had been granted or sold and the amounts owing on the prices of sale, the Crown Land Office of the Province, by letter dated December 2, 1867 (Exhibit Pa-11), stated that it was furnishing a "Return of all the lands yet ungranted which are held for the Indians, and A Return showing what Lots have been sold, but are not yet granted". Included in the return was a list of "Indian Lands in New Brunswick" dated November 12, 1867, which showed the reserve on both sides of the Little Southwest Miramichi River as consisting now of 8,124 acres. At the bottom of the list, which shows a total of 58,594 acres for all the reserves, it is written, "3,235 1 / 2 acres of the above have been sold to `White' settlers but are not yet granted (See Return herewith)". A similar list of reserves dated May 19, 1870 (Exhibit Pa-12) shows the same acreage for the reserve on both sides of the Little Southwest.
In 1895, there were two surrenders purporting to affect lots in the Big Hole, Indian Point and Red Bank reserves, one on April 10, 1895 (Exhibit Pa-15) and one on June 6, 1895 (Exhibit Pa-14). They are in virtually identical terms, except for the persons who signed. They may also be found in Indian Treaties and Surrenders, Vol. III, Nos. 366A and 366B, pages 156-160. The affidavits attesting to the compliance with the formalities required for a surrender by section 39 of The Indian Act, R.S.C. 1886, c. 43, indicate, and, indeed, I understood it to be common ground on the appeal, that the surrender of June 6, 1895 was the one by which the lots in the Red Bank Reserve were surrendered. The surrender included lot 5 on the north side of the Little Southwest Miramichi River, in which, the experts agree, the Land was then located. The terms of the surrender, with reference to the lots in the Red Bank Reserve, are as follows:
KNOW ALL MEN BY THESE PRESENTS, THAT WE, the under signed Chief and Principal men of the Indians owning the Big Hole, Indian Point and Red Bank Reserves resident on our Reserves aforesaid in the County of Northumberland in the Province of New Brunswick and Dominion of Canada, for and acting on behalf of the whole people of our said Band in Council assembled, Do hereby release, remise, surrender, quit claim and yield up unto Our Sovereign Lady the Queen, her Heirs and Successors forever, ALL AND SINGULAR, that certain parcel or tract of land and premises, situate, lying and being in the Parish of North Esk in the County of Northumberland and Province of New Brunswick containing by admeasurement
be the same more or less and being com posed of Lots Number Three, Six, Seven, Fourteen, Sixteen, Eighteen, Twenty, Twenty Two, Twenty Three on the South side of the Little South West Miramichi River and Lots One, Two, Three, Five, Six, Seven, Seventeen on the North side of the Little South West Miramichi River, all of the above Lots being in the Red Bank Indian Reserve (so called) ....
TO HAVE AND TO HOLD the same unto Her said Majesty The Queen, her Heirs and Successors forever, in trust to sell the same to such person or persons, and upon such terms as the Government of the Dominion 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 sale thereof, shall, after deducting the usual propor tion for expenses of management, be placed to our credit and the interest thereon paid to us and our descendants as to the Department of Indian Affairs may seem right.
AND WE, the said Chief and Principal men of the said Bands of Indians do on behalf of our people and for ourselves, hereby ratify and confirm, and promise to ratify and confirm, whatever the said Government may do, or cause to be lawfully done, in connection with the sale of the said lands and the disposal of the said money.
The surrender was accepted by the Governor in Council on July 25, 1895. A comparison of the lot numbers in the surrender with those indicated in the letter of September 16, 1898 (Exhibit Pa-19) as having been patented by the Government of New Brunswick before Confederation shows that the intention was to surrender the ungranted lots along the river in the Red Bank Reserve. The report of the Committee of the Privy Council recommending the acceptance of the surrenders (Exhibit Pa-15) stated that the lots surrendered were "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".
In 1898, W. D. Carter, Indian Agent, acting on the instructions of the Department of Indian Affairs, investigated the question of "Squatters on the Red Bank Indian Reserve", and his report to the Secretary of the Department on July 15, 1898 (Exhibits Pa-17 and Pa-18) shows the occupation of lots on both sides of the Little Southwest Miramichi River by non-Indians. The report con tains the following statement with respect to Lot 5 on the north side of the river:
Lot No. 5. Occupied by Stephen Johnson (away) and Ebenezar Travis. Mrs. Travis stated to me that they got their possession from Jared Tozer who got possession of it from the Indians over 60 years ago. Claim it as theirs of right.
The Ebenezer Travis referred to in this statement would have been Ebenezer A. Travis, the grandson and successor in occupation of the original Ebenezer Travis who began the occupation about 1838.
It appears that at this time the Department of Indian Affairs was exerting pressure on the "squatters" to purchase the land they occupied. The Secretary's letter of September 16, 1898 to W. D. Carter (Exhibit Pa-19) contained the fol lowing statement:
As regards the price which the Squatters should be called upon to pay for the land occupied by them on this Reserve, I beg to inform you that in view of a strong petition received from the Squatters and of your report in regard to the price to be charged, the Department has consented to reduce the upset price to 80 cents per acre and you will be good enough to notify the Squatters of this fact and call upon them to make payment of, at least, one fifth of the purchase money this Fall.
A letter dated July 5, 1901 (Exhibit Pa-20) from the Secretary of the Department to the Deputy Minister of Justice stated in part as follows:
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.
In 1901, William E. Fish, Deputy Surveyor, made a survey of lot 5 for Ebenezer A. Travis to serve as the basis of a grant to him. The "Plan of a lot of land surveyed for Ebeneazer Travis in the Little South West Miramichi Indian Reserve" dated November 28, 1901 (Exhibit Pa-21), that was prepared by him shows a lot of 140 acres, 15 chains in width, marked off for Travis and adjoin ing it, to the east, a strip, in which the Land was located, marked "Unoccupied Indian land".
In 1904, Fish carried out a survey of the lots on the north and south sides of the river which result ed in a realignment of the boundaries of lots 5 and 6 on the north side to form three lots which became lots 5, 5A and 6. The new boundaries are shown on a "Plan of Squatter Claims Surveyed in the Little South West Miramichi Indian Reserve" dated April 13, 1904 (Exhibit Pa-24). The lots between lots 4 and 8 on the north side of the river are shown on this plan as unnumbered. The num bers are shown on the "Plan of Red Bank Indian Reserve" dated March 4, 1905 (Exhibit Pa-26), which appears to have been based on the Fish survey. On these two plans the new lot 5, 10 chains in width, is shown as occupied by Stephen John- ston, the new lot 5A, 15 chains in width and 144 acres in extent, is shown as occupied by Ebenezer Travis, and the new lot 6 is shown as "unoc- cupied." The result of the Fish survey of 1904 may be summed as follows: the westerly 10 chains of the old lot 5 of some 35 chains in width shown on the Sadler plan of 1845-47 became the new lot 5 occupied by Stephen Johnston; the middle 15 chains of the old lot 5 became the new lot 5A of 144 acres that was granted to Ebenezer A. Travis; and the easterly 10 chains of the old lot 5, which had been shown in the Plan of 1901 (Exhibit Pa-21) as "Unoccupied Indian land", became the westerly part of the new lot 6. It is thus that the Land, which had formerly been part of lot 5, now became part of lot 6.
It is necessary now to consider the occupation of lot 6 by the Mutch family. In the Carter report of 1898 (Exhibit Pa-17), the old lot 6 on the north side of the river is shown as "claimed" by James Mutch. He is also shown as the occupant of lots 7 and 8 on the south side where he is said to have lived. In 1904 or 1905, Isaac Mutch, his grandson, moved an old schoolhouse to the westerly half of the new lot 6 and set it up there as his home north of the highway running from Red Bank to Hal - combe. It was assumed by Isaac's son and others who had known him for many years that he had received the property he occupied from his father, Edmund, who is supposed to have received it from James. According to local tradition, James got the property he occupied in the old lot 6 from one "Moses". It is clear, however, that in 1898 James could not have been in occupation of the 10-chain strip, which was still in the old lot 5 and was only excluded by the Fish plan of 1901 from the land to be granted to Ebenezer A. Travis. This was the property that was occupied by Isaac Mutch, begin ning in 1904 or 1905. The easterly half of the new lot 6 was later occupied by his brother, William Mutch. This eastern half would have been part of the old lot 6 on the Sadler plan of 1847 and presumably the land claimed by James Mutch according to the Carter report. Professor Hamilton expressed the opinion that the Isaac Mutch prop erty had been created by the Fish survey of 1901. This is no doubt true in a manner of speaking, but the evidence is silent as to the occupation of this land between 1901, when it was excluded by the Fish survey from the land to be granted to Travis, and 1904 or 1905, when Isaac Mutch moved onto it. There is nothing to suggest any connection or continuity between the occupation of this land by Ebenezer A. Travis and its subsequent occupation by Isaac Mutch.
There was considerable testimony concerning the nature of the occupation by Isaac Mutch of the west half of the new lot 6, and particularly of the Land, which is that part of the west half of lot 6
between the highway and the river. The witnesses included his son, Weldon, his brother William's son, Vaughan, and several older members of the community who had known Isaac Mutch for most of the time that he had been in occupation of lot 6. The evidence shows that Isaac Mutch was a farmer and lumberman. He did some farming and cutting of wood on the land occupied by him north of the highway. The part of the land between the highway and the river was mostly wooded but there was an "interval" or clearing, sometimes referred to as a meadow, near the river and just above the present site of the respondent's camp. A road, said to have been made by Mutch, crossed the land from the highway to the river and pro vided access to Hay Island, which lies opposite the Land. Mutch farmed on Hay Island and also on the "interval" or clearing. Both were enclosed by a fence. He and his family cut wood on the Land. He cut pulpwood and some logs for sale, as well as firewood for his own use. His sons also cut Christ- mas trees. At one time the road across the Land was used to bring horses to and from the river where rafts were towed down to Red Bank. In the 1940's Mutch and his family operated a small sawmill north of the highway in connection with their cutting operations. The evidence shows that Isaac Mutch paid taxes on the part of lot 6 occupied by him.
On February 24, 1919, Isaac Mutch wrote the following letter (Exhibit Pa-27) to the Department of Indian Affairs:
Dear Sirs
I am living on a piece 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. I remain yours truly
Isaac N. Mutch
Lyttleton south Esk P.O.
Northumberland Co.
N.B.
I would like to get it as soon as it is possible if you please.
A memorandum dated March 14, 1919 (Exhibit Pa-28) from H. J. Bury, Timber Inspector, to a Mr. Orr in the Department of Indian Affairs with reference "to the application hereunder from Mr. Isaac Mutch to purchase the East half of lot No. 6 on the north side of the Little South West Mirami- chi River in the Redbank Reserve", recommended that Mutch be given an opportunity to purchase the land for $2 an acre and concluded: "I am of the opinion that this application is one of the results of the recent inquiry into trespassing on the Reserve by whites and that these settlers are real ising now they must restrict their timber opera tions to land of their own."
Mutch was required to provide a metes and bounds description of the land for which he sought a grant, and a survey was made and a plan pre pared by William E. Fish. The plan (Exhibit Pa-33) is dated June 6, 1919, and is entitled as follows:
I.R. No. 7 (Part of Red Bank)
Little South West Miramichi River N.B.
Indian Reserve
Return of Survey of 107.64 acres in said Reserve
Made for Isaiah N. Mutch
In his letter to the Department, Isaac Mutch had referred to the "East side" of lot 6, but it is clear from the Fish plan that what was intended and what was surveyed for him was the west half of lot 6, bounded on the west by the lot surveyed for Ebenezer A. Travis in 1901, and on the east by the other half of lot 6 occupied by William Mutch.
Isaac Mutch expressed the view (Exhibits Pa-31 and Pa-32), apparently based on something that had been said to him by Bury, that $2 per acre was too high and that $1.50 per acre would be a reasonable price. In any event, a grant was never made to him for the land.
Mutch lived in the house he had erected on lot 6 until some time in the early 1920's. From then until 1960 he lived on a property he had bought nearby called Summers' Farm. During this period the house on lot 6 was occupied by members of his family, but he continued to use the property, including the Land, for farming and the cutting of wood.
The Land was conveyed by Isaac Mutch and his wife to the respondent in three parcels by deeds dated September 26, 1952, September 8, 1958 and July 16, 1959. The respondent paid Mutch a total of $1,600 for the Land. When he purchased it, he did not know of any Indian claim to the Land, but he did not have the title searched. In 1953, he built a camp on the Land at a cost of over $8,000. It consists of a main camp building joined by a breezeway to a cookhouse or kitchen building. The respondent and his family have used the camp as a seasonal dwelling and he has rented it from time to time to others. There is a gravel pit on the Land from which the respondent sold gravel for several years. There is reason to believe that the sale of the gravel may have provoked the proceedings of the appellant.
On March 25, 1958, the Governments of Canada and New Brunswick entered into an agreement respecting the Indian Reserves in the Province which was ratified and confirmed by provincial and federal legislation: S.N.B. 1958, c. 4; S.C. 1959, c. 47. Its purpose is set out in the recitals as follows:
WHEREAS since the enactment of the British North America Act, 1867, certain lands in the Province of New Brunswick set aside for Indians have been surrendered to the Crown by the Indians entitled thereto;
AND WHEREAS from time to time Letters Patent have been issued under the Great Seal of Canada purporting to convey said lands to various persons;
AND WHEREAS two decisions of the Judicial Committee of the Privy Council relating to Indian lands in the Provinces of Ontario and Quebec lead to the conclusion that said lands could only have been lawfully conveyed by authority of New Brunswick with the result that the grantees of said lands hold defective titles and are thereby occasioned hardship and inconvenience;
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:
Paragraphs 2, 3 and 6 of the agreement provide as follows:
2. All grants of patented lands are hereby confirmed except in so far as such grants purport to transfer to the grantees any minerals and said minerals are hereby acknowledged to be the property of the Province.
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.
6. (1) Canada shall forthwith notify New Brunswick of any surrender and New Brunswick may within thirty days of receiv ing such notification elect to purchase the surrendered lands at a price to be agreed upon.
(2) If New Brunswick fails to elect within such thirty-day period, Canada may dispose of the surrendered lands without further reference to New Brunswick.
(3) Where a surrender is made under the condition that the surrendered lands be sold to a named or designated person at a certain price or for a certain consideration, New Brunswick shall exercise its election subject to that price or consideration.
(4) Subject to subparagraph (3) of this paragraph, should Canada and New Brunswick be unable, within thirty days of the date of an election to purchase being made, to reach agreement on the price to be paid by New Brunswick for any surrendered lands, the matter shall be referred to arbitrators as follows:
(a) Canada and New Brunswick shall each appoint one arbitrator, and the two arbitrators so appointed shall appoint a third arbitrator;
(b) the decision of the arbitrators as to the price to be paid by New Brunswick for the surrendered lands shall be final and conclusive; and
(c) the costs of arbitration shall be borne equally by Canada and New Brunswick.
Paragraph 1 of the agreement contains the fol lowing definitions of "reserve lands", "patented lands" and "surrender":
t....
(b) "reserve lands" means those reserves in the Province referred to in the appendix to this agreement;
(c) "patented lands" means those tracts of land in the Province in respect of which Canada accepted surrenders of their rights and interests therein from the Indians entitled to the use and occupation thereof and in respect of which grants were made by Letters Patent issued under the Great Seal of Canada;
(J) "surrender" means the surrender for sale of reserve lands or a portion thereof pursuant to the Indian Act but does not include a surrender of rights and interests in reserve lands for purposes other than sale;...
The list of reserves in the Appendix to the agreement includes the Red Bank Indian Reserve No. 4 and the Red Bank Indian Reserve No. 7, the locations of which are described respectively as follows:
In the Parish of Southesk, approximately one mile west of the Village of Red Bank, and South of the Little Southwest Miramichi River near its confluence with the Northwest Miramichi River.
In the Parish of Southesk with a small part in the northeast corner in the Parish of Northesk. North of the Little Southwest Miramichi River opposite Red Bank Indian Reserve No. 4.
In 1963 and 1964, W. D. McLelland, land surveyor in the federal Department of Mines and Resources, carried out a survey and prepared a plan (Exhibit Pa-41) entitled "Field Notes of Resurvey of Artificial Boundaries of Part of Red Bank Indian Reserve No. 7 and Surrendered Lots 6 and 17, Northumberland County, New Brunswick". In February, 1973, he prepared a description (Exhibit Pa-38) and a plan (Exhibit Pa-43) of lot 6-1, which he described as being a portion of surrendered lot 6, Red Bank Indian Reserve No. 7. This purported to be a description and plan of the Land and was apparently prepared for purposes of the proceedings instituted by the appellant. Mr. McLelland testified as to the loca tion of the Land on the various plans prepared over the years. He confirmed that the Land was in the southeast corner of the old lot 5 shown on the Sadler plan of 1847 and in the southwest corner of the new lot 6 shown on the Fish plans of 1904 and 1919.
The respondent testified that no one had said anything to him about the Land being Indian land when he built his camp in 1953. He apparently learned that there might be some claim to the Land when McLelland made his survey in 1964, but he heard nothing further. In 1971, the Red Bank Band objected to the exploitation of the gravel pit and threatened to obtain an injunction. The respondent agreed to close the pit as soon as existing commitments had been met and to place the money received from sale of the gravel in a trust account pending settlement of the Indian claim. At a meeting with the respondent about this time, representatives of the federal government proposed that he lease the Land from the govern ment, but he refused. On February 15, 1973, the Red Bank Band of Indians made its allegation that the respondent was claiming adversely the right to possession of the Land and requested the Attorney General of Canada to exhibit an Information in the Federal Court to claim possession of the Land
on behalf, of the Band. On February 23, 1973, a demand was made upon the respondent on behalf of the Crown to deliver up vacant possession of the Land. The respondent refused to do so. The appel lant's proceedings were instituted on May 11, 1973.
The Judgment of the Trial Division
The Trial Division dismissed the action on the ground that the Crown's title to the Land, as well as the Indian right and interest therein, had been extinguished by a continuous adverse possession of more than sixty years, and that the respondent had accordingly a right to possession of the Land. The conclusions of the learned Trial Judge on the question of adverse possession are contained in the following passages from his reasons for judgment [at pages 670-671]:
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 barring prescrip tion, 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 Southwest Mirami- chi River lies the present day non-Indian community of Lyttle- ton 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 posses sion 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 predecessors have established adverse possession on the subject property as against anyone and I dismiss plaintiff's action with costs.
The Grounds of Appeal
The appellant attacks this judgment on two grounds: (a) the provincial law respecting limita tion of actions could not validly apply to extinguish the right to possession asserted by the appellant; and (b) in any event, the evidence does not support a finding that there was a continuous adverse possession of the Land for at least sixty years.
The Appellant's Right to Possession
It is first necessary to consider the nature and basis of the right to possession asserted by the appellant. I have found this to be a question of considerable difficulty because of the particular circumstances of the case, the allegations and con clusions of the Information, the terms of the Indian Act with respect to reserve lands and sur rendered lands, and the judicial decisions bearing on the nature of the Indian interest and the rights of the federal and provincial governments in respect of such lands. A consideration of this initial question is essential for two reasons: (a) it has an obvious bearing on the question whether the provincial law respecting limitation of actions for the recovery of land applied during the relevant period to the right of possession asserted by the appellant; and (b) it has an obvious bearing on the respondent's contention that, quite apart from whether the provincial law applied during the rele vant period, the appellant's action should fail because she cannot show a superior right to posses sion. It involves, in particular, a consideration of the effect of the surrender of 1895 and the agree ment of 1958 on the various rights and interests in the land.
It seems desirable to begin with a reference to certain general principles concerning the nature of the various rights and interests in land in Indian reserves that have been recognized by judicial authority, notably the decisions of the Privy Coun cil in the following cases: St. Catherine's Milling and Lumber Company v. The Queen (1889) 14 App. Cas. 46; Attorney-General for the Dominion of Canada v. Attorney-General for Ontario [1897] A.C. 199; Ontario Mining Company, Limited v. Seybold [ 1903] A.C. 73; Dominion of Canada v. Province of Ontario [1910] A.C. 637; Attorney- General for the Province of Quebec v. Attorney- General for the Dominion of Canada (the Star
Chrome case) [1921] 1 A.C. 401. The legal title to land in an Indian reserve is in the Crown, with the beneficial interest, in the absence of an agreement such as that which was entered into in the present case in 1958, belonging to the province in which the land is located by virtue of section 109 of the B.N.A. Act. The Crown's title is subject to the Indian right or interest (sometimes referred to as the "Indian title") which has been characterized as personal and usufructuary in nature. When the Indian title is extinguished, the beneficial interest in the land reverts to the province in the absence of an agreement that has transferred that interest to Canada. The exclusive federal legislative jurisdic tion with respect to "Indians, and Lands reserved for the Indians" under section 91(24) of the B.N.A. Act does not confer on the Government of Canada a right of property in the reserves or a power to appropriate the provincial interest in land in a reserve, but it carries by implication a power of control and management of the reserves. The continuing jurisdiction of the federal government with respect to surrendered land, the title to which remains in the Crown, is a question of some uncer tainty, which will require further analysis in view of the facts of the present case, but the effect of the Privy Council's decisions in the St. Catherine's Milling and Star Chrome cases, supra, was that the federal government could not, without the intervention of the provincial authorities, cause the Crown to convey a good title to surrendered land. These are, of course, the decisions and the practi cal difficulty referred to in the recitals of the federal-provincial agreement of 1958.
The question, then, is what, in the light of these various rights, interests and relationships, is the nature and basis of the right to possession that is asserted by the appellant's action? It is assumed that the appellant's action is based, at least in part, on section 31 of the Indian Act, which was quoted at the beginning of these reasons. This is a neces sary inference from the fact that it was instituted at the instance of the Band, following an allegation purporting to be made pursuant to section 31, that the Information refers to the allegation by the Band, and that the prayer for relief contains a claim for vacant possession on behalf of the Band.
In his memorandum, counsel for the appellant stated that the Information was exhibited in the Federal Court pursuant to section 31, and at the hearing, in response to a question from the Court, he reaffirmed that the action was based on section 31. Yet the allegations and conclusions of the Information give rise, as I read them, to some ambiguity as to the extent to which the action is to be considered as entirely based on section 31. The Information alleges that the Land is vested in Her Majesty and that Her Majesty is entitled to the possession of it. It does not allege that the Band is entitled to possession. It prays for a declaration that Her Majesty is entitled to possession, and while it claims vacant possession on behalf of the Band, alternatively it claims vacant possession purely and simply. As I read these allegations and conclusions, bearing in mind the surrender of 1895 and the agreement of 1958, they raise a serious question as to whether, in addition to a claim for possession on behalf of the Band, there is not a claim by Her Majesty for possession in her own right.
In so far as the action must be considered to be one based on section 31, it is necessary to consider the essential conditions and nature of such an action. The section provides that, where an Indian or a band makes an allegation of an encroachment by a non-Indian of the kind described in the section on a reserve or part of a reserve, the Attorney General of Canada may by Information in the Federal Court claim relief on behalf of the Indian or the band. Section 31 provides a right of action at the instance of an Indian or the band. It is an action to assert the rights of the Indian or the band. The nature of the interest asserted by this special recourse was more explicit in the corre sponding provision of section 39 of the Indian Act, R.S.C. 1927, c. 98 (first introduced as section 37A of the Indian Act, R.S.C. 1906, c. 81, by S.C. 1910, c. 28, s. 1, and amended by S.C. 1911, c. 14, s. 4) as follows:
39. If the possession of any lands reserved or claimed to be reserved for the Indians, or of any lands of which the Indians or any Indian or any band or tribe of Indians claim the possession
or any right of possession, is withheld, or if any such lands are adversely occupied or claimed by any person, or if any trespass is committed thereon, the possession may be recovered for the Indians or Indian or band or tribe of Indians, or the conflicting claims may be adjudged and determined or damages may be recovered in an action at the suit of His Majesty on behalf of the Indians or Indian or of the band or tribe of Indians entitled to or claiming the possession or right of possession or entitled to or claiming the declaration, relief or damages.
2. The Exchequer Court of Canada shall have jurisdiction to hear and determine any such action.
3. Any such action may be instituted by information of the Attorney General of Canada upon the instructions of the Superintendent General of Indian Affairs.
4. Nothing in this section shall impair, abridge or in anywise affect any existing remedy or mode of procedure provided for cases, or any of them, to which this section applies.
The nature of the recourse provided by section 31 was considered by the Supreme Court of Canada in The Queen v. Devereux [1965] S.C.R. 567. An action was brought to recover the posses sion of land in a reserve on behalf of a Band which had made the necessary allegation pursuant to the section. The Exchequer Court of Canada, [1965] 1 Ex.C.R. 602, dismissed the action on the ground that the Band did not have the right to possession of the land in question because possession of it had been allotted, in accordance with the provisions of the Indian Act, to an individual Indian. Thurlow J. (as he then was), applying the general principles governing an action to recover possession of land, said the issue was [at pages 604-605] "whether the Six Nations Indian Band, on whose behalf the action has been brought, is entitled to the posses sion claimed on its behalf". In his conclusion he said [at page 611]:
It was also submitted that s. 31(1) confers on a band a statutory right to the relief claimed in an action brought by the Attorney General at its request pursuant to the section. As I read it, however, this subsection confers no new substantive right but simply provides a procedure for the enforcement of existing rights of an individual Indian or of a band. In the present case the action is to enforce a right of possession asserted by the band and on the facts it has not been estab lished that the band has any such right in the land in question.
This judgment was reversed by the Supreme Court of Canada. Cartwright J. (as he then was),
dissenting, agreed with Thurlow J. He said at page 574: "It will be observed that possession is not claimed by Her Majesty in her own right but only on behalf of the Band. This is in accordance with the provisions of s. 31 of the Indian Act ..."; and, after quoting the section, he said: "I can find no ambiguity in this section. It contemplates, as do many other provisions of the Act, that the right to possession of a parcel of land in a reserve may belong to the Band or to an individual Indian. The claim for possession is to be made either on behalf of the Band if it is entitled to possession or on behalf of the individual Indian if he is so entitled." Judson J., who delivered the judgment of the majority, said at pages 571-572:
The Exchequer Court, in dismissing the action, held, in effect, that in respect of land allocated to an individual Indian, an action under s. 31 above quoted would lie only at the instance of the individual Indian locatee and not at the instance of the band. In so holding I think there was error. I do not think that s. 31 requires that an action to put a non-Indian off a reserve can only, in respect of lands allocated to an individual Indian, be brought on behalf of that particular Indian. The terms of the section to me appear to be plain. The action may be brought by the Crown on behalf of the Indian or the band, depending upon who makes the allegation of wrongful posses sion or trespass.
The judgment under appeal involves a serious modification of the terms of s. 31(1). Instead of reading "Where an Indian or a band" alleges unlawful possession by a non-Indian, it should be understood to read "Where an Indian in respect of land allocated to him or a band in respect of unallocated land" makes the allegation of unlawful possession. I think that this interpretation is erroneous and that its acceptance would under mine the whole administration of the Act by enabling an Indian to make an unauthorized arrangement with a non-Indian and then, by refusing to make an individual complaint, enable the non-Indian to remain indefinitely.
The scheme of the Indian Act is to maintain intact for bands of Indians, reserves set apart for them regardless of the wishes of any individual Indian to- alienate for his own benefit any portion of the reserve of which he may be a locatee. This is provided for by s. 28 (1) of the Act. If s. 31 were restricted as to lands of which there is a locatee to actions brought at the instance of the locatee, agreements void under s. 28(1) by a locatee with a non-Indian in the alienation of reserve land would be effective and the whole scheme of the Act would be frustrated.
In the Devereux case, the action was for the possession of unsurrendered land in a reserve.
Here it is the contention of the respondent that, if the Land was land reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act at Confederation, which is not conceded, it ceased, as a result of the surrender of 1895, to be part of the reserve within the meaning of the Indian Act, and the Band's right to occupation or possession of the Land was, to the extent that it still existed at all, extinguished by the surrender. It is necessary now to consider these submissions as they bear on the right of action conferred by section 31.
I am satisfied on the evidence that the Land was part of the Reserve that passed at Confederation under the jurisdiction of the federal government as land reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act. It was identi fied by the expert testimony as being in lot 5 on the north side of the river which was shown on the Sadler plan as part of the Reserve. Although the Indians had not exercised or asserted their right to occupy the Land for many years, their right of occupation had not been extinguished. Their con sent to the occupation by Ebenezer Travis could not have that effect. On the assumption that The Royal Proclamation of 1763 applied to the territo ry of New Brunswick, which, in my respectful opinion, appears to be the conclusion supported by the weight of judicial opinion to which I referred earlier in these reasons, such an agreement would be void under the following provisions of the Proc lamation (R.S.C. 1970, Appendix II, No. 1 at pages 127-128):
And We do hereby strictly forbid, on Pain of our Displeas ure, all our loving Subjects from making any Purchases or Settlements whatever, or taking Possession of any of the Lands above reserved, without our especial leave and Licence for that Purpose first obtained.
And, We do further strictly enjoin and require all Persons whatever who have either wilfully or inadvertently seated them selves upon any Lands within the Countries above described, or upon any other Lands which, not having been ceded to or purchased by Us, are still reserved to the said Indians as aforesaid, forthwith to remove themselves from such Settle ments.
It was on the basis of these provisions that the Exchequer Court of Canada held in The King v. Lady McMaster [ 1926] Ex.C.R. 68, that a lease of reserve land made by Indians in 1817 was void and the Crown in right of Canada was entitled to recover possession of the land. In Easterbrook v.
The King [1931] S.C.R. 210, all . ' g [1929] Ex. C.R. 28, it was held on the basis of the same provisions in the Proclamation that a lease made by the same tribe in 1821 was void and the federal Crown entitled to recover possession.
Admittedly, the question of the application of the Proclamation is a difficult one, but my own view is that its terms, although not free from uncertainty at several places, are on the whole broad enough to include the territory that became New Brunswick. The Proclamation reserved for the use of the Indians "all the Lands and Territo ries not included within the Limits of Our said Three new Governments, or within the Limits of the Territory granted to the Hudson's Bay Com pany, as also all the Lands and Territories lying to the Westward of the Sources of the Rivers which fall into the Sea from the West and the North West as aforesaid." In the St. Catharine's Milling case, it was held by Strong J. ((1887) 13 S.C.R. 577 at page 628) that the words "all the Lands and Territories" in this provision must, in view of the words in the preamble of the Proclamation, refer to the territory "ceded and confirmed" by the Treaty of Paris. Even on this narrow view of the words "all the Lands and Territories", there are two observations to be made with respect to Nova Scotia: the first is that while Nova Scotia was a British colony, by Article IV of the Treaty of Paris (Shortt & Doughty, Documents relating to the Constitutional History of Canada, Pt. I, p. 115) France expressly renounced any claim it might have to Nova Scotia, which would appear to include it in territory "confirmed" to Great Britain by the Treaty. Cape Breton, the part of Nova Scotia involved in the Isaac case, supra, was ceded by the Treaty, so the opinion expressed in that case as to the application of the Proclamation to Nova Scotia was, in so far as Cape Breton was con cerned, securely based on the terms of the Procla mation even if one adopts the narrow view of the words "all the Lands and Territories". The second observation with respect to Nova Scotia is that part of the territory that was ceded by the Treaty was placed outside the boundaries of the new Government of Quebec and added to Nova Scotia (Shortt & Doughty, op. cit., pp. 127 ff., 149). It is my impression that this would be the territory that
later became New Brunswick. Moreover, in many of its provisions the Proclamation refers in quite general terms to the British colonies in North America and to the territory under British sover eignty, as well as to the Indians under British protection. In the St. Catherine's Milling case, supra, Lord Watson referred to the Proclamation [at page 54] as having established the rights of "all Indian tribes then living under the sovereignty and protection of the British Crown". These other provisions directed to the protection of Indian rights reflect what must have been intended by the actual declaration of reservation in the Proclama tion. They contain such expressions as "our other Colonies or Plantations in America", "the Security of our Colonies" (not "our said Colonies"), "the several Nations or Tribes of Indians with whom We are connected, and who live under our Protec tion", "the Possession ... of Our Dominions and Territories as, not having been ceded to or pur chased by Us, are reserved to them, or any of them, as their Hunting Grounds", "upon any Lands whatever, which, not having been ceded to or purchased by Us as aforesaid, are reserved to the said Indians, or any of them". From these provisions I conclude that it was the intention of the Proclamation to recognize the rights of Indians in all territory under British sovereignty in North America that had not been ceded to or purchased by the Crown, with the exceptions specified, namely, the territory included within the limits of the new Governments of Quebec, East Florida and West Florida, and the territory granted to the Hudson's Bay Company. Additional to all the territory so specified as subject to Indian rights in the East were "all the Lands and Territories lying to the Westward of the Sources of the Rivers which fall into the Sea from the West and North West as aforesaid". The "aforesaid" refers to the earlier reference to "Lands beyond the Heads or Sources of any of the Rivers which fall into the Atlantic Ocean from the West and North West".
In any event, as was observed in the Lady McMaster and Easterbrook cases, the provisions in the first federal Indian Act of 1868 (31 Vict., c. 42) to essentially the same general effect as those which have been quoted from the Proclamation were really of a declaratory nature. Section 17 of the Act of 1868 provided that "all leases, contracts and agreements made or purporting to be made, by any Indians or any person intermarried with Indians, whereby persons other than Indians are permitted to reside upon such lands, shall be abso lutely void." Section 6 of the Act provided that "no such lands shall be sold, alienated or leased until they have been released or surrendered to the Crown for the purposes of this Act", and section 10 provided that "Nothing in this Act shall con firm any release or surrender which would have been invalid if this Act had not been passed; and no release or surrender of any such lands to any party other than the Crown, shall be valid."
The Indian right to occupy the Land, which was a right of occupation at the pleasure of the Crown, could undoubtedly have been extinguished by the Crown, but I can find nothing in the acts of the Government of New Brunswick before Confedera tion that would have that effect. Undoubtedly a grant would have had that effect, and did with respect to several of the lots on the north and south sides of the river, but the mere adoption of the policy reflected in the Act of 1844 that land in the Reserve should be sold to settlers would not by itself extinguish the Indian right of occupation, where, as in the case of the Land, a sale and issue of letters patent did not in fact take place. There is nothing to suggest in the contemporary documen tation that all the ungranted land in the Reserve, including the old lot 5 on the north side of the river, did not pass to the jurisdiction of the Domin ion Government at Confederation by virtue of section 91(24) of the B.N.A. Act as land reserved for the Indians, and by section 6 of the Act of 1868, which provided: "All lands reserved for Indi- ans or for any tribe, band or body of Indians, or held in trust for their benefit, shall be deemed to be reserved and held for the same purposes as before the passing of this Act, but subject to its provisions ...." The correspondence between the
Department of the Secretary of State and the provincial Crown Land Office in 1867 shows the assertion of federal jurisdiction with respect to all ungranted land in the Reserve. The record does not indicate why the original area of 10,000 acres was reduced to 8,124 acres, but it is a reasonable assumption that it was as a result of the grants that had been made of lots on both sides of the river. In any event, the federal government clearly took the view, when it called for the surrender of 1895, that the ungranted lots on both sides of the river were still part of the Reserve. It is to be noted that the Reserve on the Little Southwest Mirami- chi River is referred to in the surrender as one Reserve—"The Red Bank Indian Reserve (so called)".
The Effect of the Surrender of 1895
It is necessary now to consider the effect of that surrender on the Indian interest and the status of the land as land reserved for the Indians.
The surrender was made necessary by the provi sion in section 38 of The Indian Act, R.S.C. 1886, c. 43 (to the same effect as section 6 of the Act of 1868) that "No reserve or portion of a reserve shall be sold, alienated or leased until it has been released or surrendered to the Crown for the pur poses of this Act ...." As the report recommend ing the acceptance of the surrender indicated, the purpose was to permit the sale of the surrendered lots to the "squatters" who were in occupation of them. It was made pursuant to section 39 of the Act which stipulated the formalities by which the will of the Band was to be expressed. There is no issue as to compliance with these formalities. The issue is the effect of a surrender of this kind on the Indian title to the Land and on the status of the Land under the Indian Act.
The Trial Judge held that the surrender of 1895 was conditional, and by implication, that it would not have extinguished the Indian title to the Land, although, as appears from the passage that has been quoted from his reasons for judgment, he was
of the opinion that the Indian title had already been extinguished by adverse possession. He put the argument of the respondent as to the effect of the surrender as follows [at page 657]: "Defendant submits that the St. Catherine's decision is appli cable to the instant case and is authority 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 Province 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." After reviewing certain of the authorities he concluded as follows [at page 660]: "In my view 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 placing of the monies to the credit of the Band."
The conclusion of the Trial Judge on this point was based essentially on what was said by Rand J., delivering the judgment of himself and Estey J. in St. Ann's Island Shooting and Fishing Club Lim ited v. The King [1950] S.C.R. 211, and what was said by Maclean J.A., delivering the judgment of the British Columbia Court of Appeal in Corpora tion of Surrey v. Peace Arch Enterprises Ltd. (1970) 74 W.W.R. 380. In both of these cases there was a surrender of land in an Indian reserve for the purpose of lease rather than sale. In the St. Ann's case the issue was whether a lease made by the Superintendent General of Indian Affairs was invalid in the absence of a direction by the Gover nor in Council as required by section 51 of the Indian Act, R.S.C. 1906, c. 81. In the Exchequer Court [1950] Ex.C.R. 185, Cameron J. had expressed the opinion that the surrender was an absolute one. With reference to this question, Rand J. said at page 219:
I find myself unable to agree that there was a total and definitive surrender. What was intended was a surrender suffi cient to enable a valid letting to be made to the trustees "for such term and on such conditions" as the Superintendent General might approve. It was at most a surrender to permit such leasing to them as might be made and continued, even though subject to the approval of the Superintendent General, by those having authority to do so. It was not a final and irrevocable commitment of the land to leasing for the benefit of the Indians, and much less to a leasing in perpetuity, or in the
judgment of the Superintendent General, to the Club. To the Council, the Superintendent General stood for the government of which he was the representative. Upon the expiration of the holding by the Club, the reversion of the original privileges of the Indians fell into possession.
That there can be a partial surrender of the "personal and usufructuary rights" which the Indians enjoy is confirmed by the St. Catherine's Milling Company Limited v. The Queen ((1888) 14 App. Cas. 46), in which there was retained the privilege of hunting and fishing; and I see no distinction in principle, certainly in view of the nature of the interest held by the Indians and the object of the legislation, between a surren der of a portion of rights for all time and a surrender of all rights for a limited time.
But I agree that s. 51 requires a direction by the Governor in Council to a valid lease of Indian lands.
In the Peace Arch case, lands in a Reserve were surrendered in 1963 by the Band to the Crown "in trust" for the purpose of leasing them, and they were in fact leased to Peace Arch Enterprises Ltd. The issue was whether municipal zoning and building by-laws and provincial health regulations applied to the leased land. The Trial Judge held that as a result of the surrender and leasing the land had ceased to be part of the "reserve" as defined by section 2 of the Indian Act, R.S.C. 1952, c. 149, and as a consequence had also ceased to be "Lands reserved for the Indians" within the meaning of section 91(24) of the B.N.A. Act. He accordingly concluded that the municipal by-laws and provincial health regulations applied to the land. In the British Columbia Court of Appeal, Maclean J.A., basing himself in part on what was said by Rand J. in the St. Ann's case and on section 38(2) of the Indian Act, which provides that "A surrender may be absolute or qualified, conditional or unconditional", held that the sur render was a qualified or conditional one, that it did not extinguish the Indian title, and that it did not have the effect of making the land cease to be land reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act. He held that, since the municipal zoning by-laws and provincial health regulations would restrict the use of land reserved for the Indians, they could not validly apply to such land.
In characterizing the effect of the surrender, Maclean J.A. emphasized the words "in trust" and
the particular purpose of the surrender. At pages 384-385 he said:
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. In my respectful opinion the learned Judge below was in error when he held that the surrender was an "unconditional" one.
After quoting the passage from the judgment of Rand J. in the St. Ann's case, which is quoted above, he said further at page 385:
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.
Expressing the view that the land remained land reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act, he said at page 386:
This land was reserved for the Indians in 1887, and the Indians still maintain a reversionary interest in it.
At page 387 there are these words:
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.
Although I confess to considerable perplexity on this issue, I strongly doubt that the conclusion in the Peace Arch case as to the effect of the surren der on the Indian title is applicable to a surrender in trust for the purpose of sale rather than lease. The whole purpose of such a surrender is to permit title to the land to be conveyed free of the burden of the Indian title. Whereas it is possible to speak of a reversionary interest in the case of a surrender for the purpose of lease, since upon termination of
the lease the Indian right of occupation will revive, the same cannot be said, in my opinion, of a surrender for the purpose of sale. After the surren der of 1895 I do not see how the Indians could at any time claim a right to occupy the Land. Their interest thereafter in the Land was in its sale and the application of the proceeds of sale for their benefit. It was a financial interest. The surrender of 1895 appears to have been the form of surren der for the purpose of sale generally used in the 1880's and 1890's: see Indian Treaties and Sur renders, Vol. II, pages 96, 122, 170, 229, 258, 264; Vol. III, pp. 31, 163, 175, 180, 209, 227, 250, and 303, for examples of surrenders "in trust" for the purpose of sale and the application of the proceeds for the benefit of the Band. If that form of surren der did not have the effect of extinguishing the Indian title then I am unable to conceive of one that would have that effect. The whole point of the Privy Council decisions in the St. Catherine's Milling case and in the Star Chrome case was that the surrender had the effect of extinguishing the Indian title before any further disposition of the property. It was not the subsequent disposition, the validity of which was in issue, that extinguished the Indian interest.
In St. Catherine's Milling the surrender was by treaty in return for certain monetary consideration and undertakings by the Crown, including an undertaking to set aside certain reserves and an agreement that the Indians should continue to have the right to hunt and fish on the surrendered land, subject to certain conditions. It was the reservation of the privilege of hunting and fishing that apparently led Rand J. in the St. Ann's case to refer to the surrender as a partial one, but subject to this qualification there was no question that the Privy Council held the Indian title to have been extinguished and the beneficial interest in the land to have vested in the Province. As Lord Watson put it at page 55—"there has been all along vested in the Crown a substantial and para mount estate, underlying the Indian title, which became a plenum dominium whenever that title was surrendered or otherwise extinguished." The issue was the right of the Dominion Government to appropriate the beneficial interest in the timber on the surrendered land, and Lord Watson said at page 60: "The treaty leaves the Indians no right whatever to the timber growing upon the lands
which they gave up, which is now fully vested in the Crown, all revenues derivable from the sale of such portions of it as are situate within the bound aries of Ontario being the property of that Prov ince. The fact, that it still possesses exclusive power to regulate the Indians' privilege of hunting and fishing, cannot confer upon the Dominion power to dispose, by issuing permits or otherwise, of that beneficial interest in the timber which has now passed to Ontario."
In the Star Chrome case there was a surrender "With the object of the lands in question being sold for the benefit of our said Band, and the money received from the sale being expended for the purchase of land in a more suitable locality, or the money otherwise invested for our benefit": see Indian Treaties and Surrenders, Vol. II, page 108. Duff J., who delivered the judgment of the Privy Council, said at page 406: "On the other hand, if the view advanced by the Province touching the nature of the Indian title be accepted, then it follows from the principle laid down by the deci sion of this Board in St. Catherine's Milling and Lumber Co. v. The Queen ... that upon the sur render in 1882 of the Indian interest the title to the lands affected by the, surrender became vested in the Crown in right of the Province, freed from the burden of that interest." The provincial con tention based on St. Catherine's Milling was upheld, with the consequence that the Dominion Government could not convey a valid title to the surrendered land. The surrender of 1882 did not contain the words "in trust", but I cannot think, given its declared purpose, which was essentially the same as that of the surrender of 1895, that that circumstance can make a difference.
In the Seybold case, supra, which held that the Dominion Government did not have the power by virtue of its legislative jurisdiction under section 91(24) of the B.N.A. Act to appropriate provincial land for the purposes of a reserve, Lord Davey said at page 79 that in the St. Catherine's Milling case it had been decided "that prior to that surrender the province of Ontario had a proprietary interest in the land, under the provisions of s. 109 of the British North America Act, 1867, subject to the burden of the Indian usufructuary title, and upon
the extinguishment of that title by the surrender the province acquired the full beneficial interest in the land subject only to such qualified privilege of hunting and fishing as was reserved to the Indians in the treaty." A part of the Indian Reserve 38B that had been set apart by the Dominion Govern ment to carry out the terms of the treaty had been subsequently surrendered by the Indians to the Crown in trust for the purpose of sale and the application of the proceeds for the benefit of the Indians. In the Ontario High Court, (1900) 31 O.R. 386, Chancellor Boyd had expressed the opinion that this surrender had again extinguished the Indian title in the land. He said at pages 395-396: "The treaty land was, in this case, set apart out of the surrendered territory by the Dominion: that is to say, the Indian title being extinguished for the benefit of the Province, the Dominion assumed to take of the Provincial land to establish a treaty reserve for the Indians. Grant ed that this might be done, yet when the subse quent surrender of part of this treaty reserve was made in 1886, the effect was again to free the part in litigation from the special treaty privileges of the land and to leave the sole proprietary and present ownership in the Crown as representing the Province of Ontario. That is the situation as far as the title to the lands is concerned." In the Privy Council Lord Davey said at page 84 with reference to this opinion: "It is unnecessary for their Lordships, taking the view of the rights of the two Governments which has been expressed, to discuss the effect of the second surrender of 1886. Their Lordships do not, however, dissent from the opinion expressed by the Chancellor of Ontario on that question."
In The Attorney-General for Canada v. Giroux (1916) 53 S.C.R. 172, the issue was whether land in a reserve that had been surrendered could be validly sold to an Indian. The Supreme Court of Canada held that it could. The surrender was to the Crown in trust for the purpose of sale and the application of the proceeds for the benefit of the Band. Duff J., with whom Anglin J. concurred, said at page 197: "The surrender of that ownership in trust under the terms of the instrument of 1868 cannot be held, without entirely defeating the intention of it, to have the effect of destroying the beneficial interest of the Indians." But that conclu-
sion was based on the view that under the legisla tion with respect to Indian reserves that was appli cable in Lower Canada before Confederation the interest of the Indians in the reserves was one of beneficial ownership. Duff J. distinguished that interest from the right under The Royal Proclama tion of 1763 that had been characterized in St. Catherine's Milling as a personal and usufructu- ary one dependent upon the goodwill of the Crown. That view of the nature of the Indian interest created by the pre-Confederation legislation in Lower Canada would appear to have been rejected by the Privy Council in the Star Chrome case. With reference to the nature of the right created by the pre-Confederation legislation the Privy Council said—"their Lordships think the conten tion of the Province to be well founded to this extent, that the right recognized by the statute is a usufructuary right only and a personal right in the sense that it is in its nature inalienable except by surrender to the Crown." In my respectful opinion it is a clear implication of the decision in the Star Chrome case that what was said by Duff J. in Giroux concerning the nature of the Indian inter est and the effect of the surrender on it is not to be taken as expressing the law.
In view of the conclusion in the Star Chrome case, I do not see how it is possible to hold that the surrender of 1895 did not have the effect of extin guishing the Indian right of occupation or posses sion in respect of the Land. Although on the appeal the appellant understandably adopted the view that was taken by the Trial Judge on this point, it will be recalled that in the reply to the defence the position that was taken was that prior to the surrender the title of the Crown was subject only to the personal and usufructuary right of the Red Bank Band of Indians "and that after such surrender and its acceptance the title of Her Majesty the Queen was and continues to be sub ject only to the conditions of the said surren der ...". In the result, it is my conclusion that in so far as the appellant's action purports to assert the Band's right to possession of the Land it is without foundation.
Further to the application of section 31 of the Indian Act, there is also in my opinion a serious question as to whether the Land remains part of the Reserve as defined by the Act, or put another way, whether the word "reserve" in section 31 includes "surrendered lands" within the meaning of the Act. The relevance of this question is that section 31 contemplates an encroachment on the "reserve" and by implication the recovery of possession of land in a reserve.
From 1876 the federal Indian legislation has distinguished between the "reserve", as defined by the Act, and surrendered land in a reserve, former ly known as "Indian lands" and now known as "surrendered lands". The definitions of "reserve" and "Indian lands" in The Indian Act, 1876, S.C. 1876, c. 18, section 3(6) and (8), were as follows:
3....
6. The term "reserve" means any tract or tracts of land set apart by treaty or otherwise for the use or benefit of or granted to a particular band of Indians, of which the legal title is in the Crown, but which is unsurrendered, and includes all the trees, wood, timber, soil, stone, minerals, metals, or other valuables thereon or therein.
8. The term "Indian lands" means any reserve or portion of a reserve which has been surrendered to the Crown.
These were the definitions of "reserve" and "Indi- an lands" in The Indian Act, 1880 (43 Vict., c. 28, section 2(6) and (8)). In The Indian Act, R.S.C. 1886, c. 43, which applied when the surrender of 1895 took place, the express exclusion of surren dered land was removed from the definition of "reserve" in section 2 (k.) which read as follows:
2....
(k.) The expression "reserve" means any tract or tracts of land set apart by treaty or otherwise for the use or benefit of or granted to a particular band of Indians, of which the legal title is in the Crown, and which remains a portion of the said reserve, and includes all the trees, wood, timber, soil, stone, minerals, metals and other valuables thereon or therein;
The express exclusion of surrendered land was restored to the definition of "reserve" in the Indian Act, R.S.C. 1906, c. 81, section 2(i) which read as follows:
2....
(i) `reserve' means any tract or tracts of land set apart by treaty or otherwise for- the use or benefit of or granted to a particular band of Indians, of which the legal title is in the Crown, and which remains so set apart and has not been surrendered to the Crown, and includes all the trees, wood, timber, soil, stone, minerals, metals and other valuables thereon or therein;
This was the definition of "reserve" in the Indian Act, R.S.C. 1927, c. 98, section 2(j), which remained in force until the present Indian Act was adopted in 1951.
The expression of opinion, express or implied, in the Giroux case, supra, at pages 176, 199 and 201, that the surrendered land had ceased to be part of the reserve was based on the definition of "reserve" in the Act of 1876. In the St. Ann's case, at pages 212 and 215 there was a similar expres sion of opinion based on the definition of "reserve" in the Act of 1906.
The definitions of "reserve" and "surrendered lands" in section 2 of the present Act are as follows:
2. (1) ...
"reserve" means a tract of land, the legal title to which is vested in Her Majesty, that has been set apart by Her Majesty for the use and benefit of a band;
"surrendered lands" means a reserve or part of a reserve or any interest therein, the legal title to which remains vested in Her Majesty, that has been released or surrendered by the band for whose use and benefit it was set apart.
There is no doubt that the Land falls within the definition of "surrendered lands". It will be noted that the definition of "reserve" does not expressly exclude surrendered land as it did until 1951. This might appear to decide the question. Moreover, the definition of reserve might be read so as to mean that, so long as land has in the past been set aside for the use and benefit of a band and the legal title to it remains vested in Her Majesty, it remains part of the reserve as defined by the Act. "Surren- dered lands", which are defined as "a reserve or part of a reserve . .. the legal title to which remains vested in Her Majesty ..." would in effect be merely a particular part of a reserve as defined by the Act. This view is, however, exclud ed in my opinion by other provisions of the Act which indicate that when the Act uses the word "reserve" alone, as in section 31, it does not intend
to refer to surrendered lands as well as to the unsurrendered part of a reserve. I draw this con clusion from the provisions of the Act in which the words "surrendered lands" are used in addition to the words "reserve" or "reserve lands". See, for example, section 2(2)—"The expression `band' with reference to a reserve or surrendered lands means the band for whose use and benefit the reserve or the surrendered lands were set apart"; section 4(2)(b)—"any reserve or any surrendered lands or any part thereof"; section 57(a) — "authorizing the Minister to grant licences to cut timber on surrendered lands, or, with the consent of the council of the band, on reserve lands"; section 59(a)—"reduce or adjust the amount pay able to Her Majesty in respect of a sale, lease or other disposition of surrendered lands or a lease or other disposition of lands in a reserve ..."; section 64(b)—"... water courses on the reserves or on surrendered lands"; section 64(i)—"... the man agement of lands on a reserve, surrendered lands and any band property"; section 87(a)—"the in terest of an Indian or a band in reserve or surren dered lands ...." The administrative authority with respect to reserve and surrendered lands is separately provided for in the Act: see sections 18 and 53. Section 21, under the heading "Possession of Lands in Reserves", provides that "There shall be kept in the Department a register, to be known as the Reserve Land Register, in which shall be entered particulars relating to Certificates of Possession and Certificates of Occupation and other transactions respecting lands in a reserve." Section 55(1), under the heading "Management of Reserves and Surrendered Lands", provides that "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 disposition of surrendered lands by the Minister or any assignment thereof." In view of this use of the expressions "reserve" and "surrendered lands" in the Act, I find the conclu sion unavoidable that when the Act uses the word "reserve" in section 31 it does not include surren dered lands.
The result is that the appellant's recourse cannot rest on section 31, both because the Land is not part of the Reserve within the meaning of the Act, and because the Band does not have a right to the
occupation or possession of the Land. It remains to be considered whether the appellant's recourse can exist apart from that section. Section 31 is not intended to limit the recourses of the Crown in respect of land governed by the Act, as appears from subsection (3) thereof which provides, "Nothing in this section shall be construed to impair, abridge or otherwise affect any right or remedy that, but for this section, would be avail able to Her Majesty or to an Indian or a band."
The Information alleges that the Land is vested in Her Majesty. I read this not as an indication that the action is based on title to the Land being in the Crown in right of Canada, but as an indica tion that the Land meets one of the essential conditions of the definitions of "reserve" and "sur- rendered lands" in the Act—that the legal title to it remains vested in Her Majesty. But in so far as the action could be based on title to the Land it would have to rest on the effect of the agreement of 1958 between New Brunswick and Canada. The effect of that agreement, in so far as the Land is concerned, must be considered now.
Effect of the Agreement of 1958
The agreement has a bearing not only on the basis of the appellant's action but on the question whether title to the Land could be acquired by adverse possession after 1958. If the agreement transferred the provincial right and interest in the Land to Canada the Land would fall within the definition of "public lands" in section 2 of the Public Lands Grants Act, R.S.C. 1970, c. P-29 and would be subject to section 5 of the Act which reads:
5. No right, title or interest in or to public lands is acquired by any person by prescription.
The relevant provisions of the agreement were quoted earlier in these reasons. The issue is wheth er it was intended in paragraph 3 to transfer all right and interest of the Province in land in a reserve that had been surrendered for the purposes of sale but never sold or otherwise disposed of. The paragraph transfers the right and interest of the Province in "reserve lands", which are defined by the agreement as "those reserves in the Province referred to in the appendix to this agreement."
The Appendix, as indicated earlier, contains refer ence to the Red Bank Indian Reserve No. 4, the location of which is described as being "South of the Little Southwest Miramichi River", and to the Red Bank Indian Reserve No. 7, the location of which is described as being "North of the Little Southwest Miramichi River". The respondent points out that these descriptions show the two Reserves as not being bounded by the river and not being contiguous. He also points out that these descriptions generally conform to the location of the Reserves shown on contemporary government maps, such as Exhibit D-1. This was conceded by Mr. McLelland in his testimony. The respondent contrasts the descriptions of the location of the two Red Bank Reserves with the descriptions of the location of other Reserves in the Appendix to the agreement which show them as having a boundary on a river: No. 3—Eel River; No. 10—St. Basile; No. 15—Richibucto; No. 16—Buctouche; No. 2— Eel Ground; No. 8—Big Hole Tract; No. 9— Tabusintac; No. 14—Burnt Church; and No. 12— Renous. From these circumstances the respondent argues that the Red Bank Indian Reserve Number 7, in which the Province intended to transfer its right and interest, did not include the lots that extend to the river, and in particular, lot 6, which includes the Land. There is in my opinion much force in this contention.
It is quite clear that at some point in time the original Reserve, which was divided by the river and which was referred to in the surrender of 1895 as a single Reserve—"The Red Bank Indian Reserve (so called)"—became two distinct and separate Reserves: the Red Bank Indian Reserve Number 4 and the Red Bank Indian Reserve Number 7. The land between them, consisting of the lots that had been occupied by settlers on both sides of the river, had either been granted or was surrendered land that had not been sold. The southern boundary of what came to be known as the Red Bank Indian Reserve Number 7 was the northern boundary of the lots on the north side of the river, known to local residents as the "Indian line" or "base line". The surrendered land that had not been sold fell between 1895 and 1951 within the definition of "Indian lands" and after wards within the definition of "surrendered lands" in the Indian Act. Although a part of what had
originally been set aside as the Reserve, and thus for some purposes still referred to as being in the Reserve (as in the Carter Report of 1898 and the Fish survey plans of 1901, 1904 and 1919), it was no longer part of what was meant by "reserve" in the Act.
The purpose of the agreement of 1958 was twofold: to confirm the title to surrendered land that had been conveyed by federal letters patent in the past; and to permit the federal government in the future to convey good title to surrendered land. Its purpose was to resolve the practical problem that had been created by the decisions of the Privy Council in the St. Catherine's Milling and Star Chrome cases. In the words of the agreement, the parties entered into it "to settle all outstanding problems relating to Indian reserves in the Prov ince of New Brunswick and to enable Canada to deal effectively in future with lands forming part of said reserves ...." It was this avowed purpose that led the learned Trial Judge to conclude that there was an intention to transfer the provincial right and interest in surrendered land that had not been sold.
There is, of course, much force in this position from a practical point of view. On the other hand, the agreement specifically provides in paragraph 6 for the disposition of surrendered lands. It is clear that it is referring there to land that is surrendered after the signing of the agreement since the Prov ince is to have the right to purchase such land. Surrendered land which the Province might elect to purchase is necessarily land in which the provin cial right and interest has been transferred by the agreement. In view of this special and limited provision for the disposition of land surrendered for the purpose of sale, I am unable to infer from the terms of the agreement as a whole, an inten tion to provide for the disposition of land that had been surrendered for sale but not yet sold before the agreement. In my view, it is a reasonable conclusion from the terms of the agreement and the description of the Red Bank Reserves, as well as the surrounding circumstances, that the govern ments did not intend to provide in the agreement for the disposition of the lots fronting on the river that were surrendered in 1895 but had not been
granted at the time of the agreement. Their future disposition, if any, was left in effect to special agreement or cooperation between the two govern ments. Indeed, there is no reason to conclude from the circumstances of this case that at the time of the agreement in 1958 the two governments would be concerned about the disposition of land that had been surrendered in 1895 but never sold. In the result, the title to the Land was not in my opinion affected by the agreement of 1958. As a consequence an action for possession of the Land by the Crown in right of Canada cannot be based on title to the Land.
It remains to be considered whether the Crown in right of Canada may bring an action for the possession of surrendered lands based on the con tinuing jurisdiction and responsibility of the feder al government with respect to such lands under the Indian Act. In my opinion, the answer to this question must be in the affirmative. I agree with the conclusion of the British Columbia Court of Appeal in the Peace Arch case that, whether or not surrendered lands remain part of the reserve as defined by the Indian Act, they remain, until finally disposed of, lands reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act, and - as such within federal legislative jurisdic tion. The category of surrendered lands is a cate gory created by Parliament in the exercise of its exclusive legislative jurisdiction with respect to lands reserved for the Indians. Because of the federal government's continuing responsibility for the control and management of such land until its final disposition in accordance with the terms of a surrender, surrendered land must remain within federal legislative and administrative jurisdiction. It is land that is still held for the benefit of the Indians, although they have agreed to accept the proceeds of sale of it in place of their right of occupation. The continuing federal control and management of surrendered land has since 1876 been reflected in the provisions of the Indian Act. Section 41 of The Indian Act, R.S.C. 1886, c. 43, which applied to the surrender of 1895, read as follows:
41. All Indian lands, which are reserves or portions of reserves, surrendered or to be surrendered to Her Majesty, shall
be deemed to be held for the same purposes as before the passing of this Act; and shall be managed, leased and sold as the Governor in Council directs, subject to the conditions of surrender and the provisions of this Act.
Section 53(1) of the present Indian Act provides:
53. (1) The Minister or a person appointed by him for the purpose may manage, sell, lease or otherwise dispose of surren dered lands in accordance with this Act and the terms of the surrender.
I do not think there can be any question as to the constitutional validity, at least in so far as continuing control and management are con cerned, of section 53. The terms of the correspond ing provision in section 51 of the Indian Act, R.S.C. 1906, c. 81, were applied by the Supreme Court of Canada in the St. Ann's case, supra. There is, of course, a question as to the validity of the purported authority to sell where there has not been a transfer of the provincial interest in the land to Canada. Speaking of the result of the St. Catherine's Milling case Lord Davey said in Ontario Mining Company, Limited v. Seybold, supra, at page 79: "Their Lordships think that it should be added that the right of disposing of the land can only be exercised by the Crown under the advice of the Ministers of the Dominion or prov ince, as the case may be, to which the beneficial use of the land or its proceeds has been appropriat ed, and by an instrument under the seal of the Dominion or the province." But this issue does not affect the existence and validity of the continuing power of control and management of land that has been surrendered for sale and the application of the proceeds for the benefit of the band, but has not yet been sold.
There is authority to support the conclusion that the Crown in right of Canada has, as an incident of this power of control and management, the right to bring an action to recover the possession of surrendered land. The principle has been affirmed in decisions involving land in a reserve within the meaning of the Indian Act but, in my opinion, it must logically be equally applicable to surrendered lands within the meaning of the Act, since essen tially the same federal power and responsibility is involved.
The general principle that the Crown in right of Canada has the right to sue in respect of land in a reserve although the title to the land is in the Crown in right of a province was enunciated by the Quebec Court of Appeal in Mowat, Attorney- General for the Dominion of Canada & Casgrain, Attorney-General for the Province of Quebec (1897) 6 Que. Q.B. 12. The case involved an action by the Attorney General of Canada for arrears of seigneurial rent owing in respect of land reserved for the Indians. The Attorney General for Quebec intervened and contended that the rent could only be claimed by the Province. Wurtele J., who delivered the reasons of the Court of Appeal, said at page 24 that "the power and right of legislating respecting Indians and land reserved for the Indians entrusts the Government of the Dominion with the administration and control of the affairs and of the lands and property of the Indians", and at page 26 he said:
The question to be decided does not relate to the ownership of these constituted Seigniorial rents but is as to whom it appertains to sue for, recover, and collect the arrears? By the Union Act, the Government of the Dominion is entrusted with the administration of the affairs and property of the Indians in Canada, and under the Indian Act the control and management of their lands and property is confided to the department of Indian affairs, under the charge and direction of the Superin tendent General of Indian affairs, who is authorized, as was the Commissioner of Indian lands before Confederation, to collect and receive the rents, issues and profits of the lands and property appropriated for Indians and to apply the same to their use. The Government to which such control and manage ment is entrusted must necessarily have as a corollary the right to sue whenever the affairs of the trust require such action.
In The King v. Lady McMaster, supra, Maclean J. said at page 75:
The power of the Crown to manage and legislate in respect of Indian lands, surely implies the right to bring action to recover or protect any interest of the Indians in such lands. The Indian Act, chap. 81, R.S.C. 1906, sec. 4, states that the Minister of the Interior shall be Superintendent General of Indian Affairs and shall have the control and management of the land and property of the Indians in Canada. The corresponding legisla tion, in force at the time the defendant went into possession of Thompson's Island, contained a similar provision. To seek recovery of possession of the lands in question, believed to be improperly in the defendants, is incident to the control and management of such lands, and is not I think to be confused with a claim on the part of the Crown asserting title to such
lands either in the right of the Dominion or of a province. Mowatt, Attorney General v. Casgrain, Attorney General ... .
In conclusion, then, I am of the opinion that the right to possession of the Land which is claimed by the Crown in right of Canada in its own right is one which rests on the power of control and man agement of the Land which the Government of Canada has by virtue of the legislative jurisdiction conferred by section 91(24) of the B.N.A. Act and the terms of the Indian Act. It is necessary to consider now whether that right to possession can be validly affected by the provincial law with respect to the limitation of actions for the recovery of land.
Application of Provincial Statute of Limitations
The respondent invokes the provisions of the New Brunswick legislation with respect to the limitation of actions for the recovery of land by the Crown, which, as sections 1 and 26 of chapter 139 of the Revised Statutes of New Brunswick of 1854, entitled "Of the Limitation of Actions in Real Property", read as follows:
1. No claim for lands or rent shall be made, or action brought by Her Majesty, after a continuous adverse possession of sixty years.
26. At the determination of the period limited by this Chap ter to any person for making an entry or bringing an action or suit, the right and title of such person to the land for the recovery whereof such entry, action, or suit respectively might have been made or brought within such period, shall be extinguished.
The numbering of these sections was changed at one point, but the provisions remained unchanged throughout the period in question and may be traced through successive consolidations of the statutes of New Brunswick as follows: C.S.N.B. 1877, c. 84, ss. 1 and 26; C.S.N.B. 1903, c. 139, ss. 1 and 26; R.S.N.B. 1927, c. 145, ss. 1 and 26; R.S.N.B. 1952, c. 133, ss. 30 and 60; R.S.N.B. 1973, c. L-8, ss. 30 and 60. Prior to 1854 there was an Act of 1836 (6 William IV, c. 43) which established a twenty-year limitation period for actions for the recovery of land but it did not apply to actions by the Crown. Counsel for the appellant submitted that the Nullum Tempus Act of 1769 (9
Geo. III, c. 16), which provided a sixty-year period of limitation of actions by the Crown for the recovery of land, was not in force in New Bruns- wick. Based on the date which the Courts of New Brunswick have held to be the date of reception of English statutes in the Province, namely, 1660, this would indeed appear to be the case. See Scott v. Scott (1970) 2 N.B.R. (2d) 849. For the differ ence of opinion that has existed as to the correct date of reception in New Brunswick see Bell, "A Note on the Reception of English Statutes in New Brunswick" (1979) 28 U.N.B.L.J. 195. I note that in Emmerson v. Maddison [1906] A.C. 569, Sir Alfred Wills, delivering the judgment of the Privy Council, referred at page 574 to the applicable limitation of actions law in New Brunswick as the "Nullum Tempus Act", but that would appear to have been simply a general reference to the char acter of the legislation. There is no doubt, as that case indicates, that the earlier statute with respect to the recovery of land by the Crown, 21 Jac. 1, c. 14, was in force in the Province, but that statute is not in issue in the present case.
I should also observe that there was no reference in argument to section 38(2) of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, which pro vides that except as expressly provided by any other Act, the laws relating to prescription and limitation of actions in force in any province be tween subject and subject apply to any proceedings brought by the Crown. In effect, it is the conten tion of the respondent that the foundation of the appellant's action was removed by the application of the provincial law long before section 38 of the Federal Court Act took effect on June 1, 1971.
The respondent claims that he has title to the Land by virtue of a continuous adverse possession of at least sixty years by himself and his predeces sors in title. What this amounts to is a claim that the title to the Land of the Crown in right of the Province was extinguished by adverse possession, and with it the Indian title and the right to posses sion of the Crown in right of Canada, which are based on the status of the Land as reserve land or surrendered land under federal jurisdiction. If the
title of the Crown was extinguished then the Land ceased by definition to be reserve land or "Indian lands" or "surrendered lands" subject to the Indian Act. The issue, then, is whether this could validly take place by operation of the provincial statute of limitations.
The extent to which provincial laws of general application may apply within Indian reserves has been the subject of commentary by the Supreme Court of Canada in recent years, although the right to possession of land in a reserve was not in issue. In Cardinal v. The Attorney General of Alberta [ 1974] S.C.R. 695, Martland J., deliver ing the judgment of the majority of the Court, said at page 703:
A Provincial Legislature could not enact legislation in rela tion to Indians, or in relation to Indian Reserves, but this is far from saying that the effect of s. 91(24) of the British North America Act, 1867, was to create enclaves within a Province within the boundaries of which Provincial legislation could have no application. In my opinion, the test as to the application of Provincial legislation within a Reserve is the same as with respect to its application within the Province and that is that it must be within the authority of s. 92 and must not be in relation to a subject-matter assigned exclusively to the Canadi- an Parliament under s. 91. Two of those subjects are Indians and Indian Reserves, but if Provincial legislation within the limits of s. 92 is not construed as being legislation in relation to those classes of subjects (or any other subject under s. 91) it is applicable anywhere in the Province, including Indian Reserves, even though Indians or Indian Reserves might be affected by it. My point is that s. 91(24) enumerates classes of subjects over which the Federal Parliament has the exclusive power to legis late, but it does not purport to define areas within a Province within which the power of a Province to enact legislation, otherwise within its powers, is to be excluded.
In reviewing the cases with respect to the application of provincial laws to activity within a reserve, Martland J. referred to the decision of the British Columbia Court of Appeal in the Peace Arch case, supra. He said at pages 704-705:
In Corporation of Surrey v. Peace Arch Enterprises Ltd. ((1970) 74 W.W.R. 380), the situation was different. It involved lands in an Indian Reserve which had been "surren- dered" in trust to the Federal Crown for the purpose of leasing. The issue was as to whether the lands were subject, in their use by the lessees, who were non-Indians, to certain municipal by-laws and to regulations under the Provincial Health Act. The Court found that the lands in question were still "lands reserved for the Indians" and, that being so, only the Federal
Parliament could legislate as to the use to which they might be put. The Morley case is not mentioned in the judgment and I presume that this was so because the cases were not considered as parallel. Once it was determined that the lands remained lands reserved for the Indians, Provincial legislation relating to their use was not applicable.
Laskin J. (as he then was) said in the same case at page 715:
Apart entirely from the exclusive power vested in the Parlia ment of Canada to legislate in relation to Indians, its exclusive power in relation also to Indian Reserves puts such tracts of land, albeit they are physically in a Province, beyond provincial competence to regulate their use or to control resources there on. This is not because of any title vested in the Parliament of Canada or in the Crown in right of Canada, but because regardless of ultimate title, it is only Parliament that may legislate in relation to Reserves once they have been recognized or set aside as such.
In The Natural Parents v. The Superintendent of Child Welfare [1976] 2 S.C.R. 751, Laskin C.J.C., speaking of the kind of case in which exclusive federal legislative jurisdiction with respect to a particular subject-matter will exclude the application of provincial laws of general application, said at pages 759-760:
There was no challenge in this Court to the general and long-established proposition found in Union Colliery Co. of British Columbia Ltd. v. Bryden ([1899] A.C. 580), at p. 588 that "the abstinence of the Dominion Parliament from legislat ing to the full limit of its powers could not have the effect of transferring to any provincial legislature the legislative power which had been assigned to the Dominion by s. 91 of the Act of 1867". It cannot be said therefore that because a provincial statute is general in its operation, in the sense that its terms are not expressly restricted to matters within provincial compe tence, it may embrace matters within exclusive federal compe tence. Thus, to take an example, it has been held by this Court that general mechanics' lien legislation of a province could not be enforced against the property of an interprovincial pipe line: Campbell-Bennett Ltd. v. Comstock Midwestern Ltd. ([1954] S.C.R. 207). Again, provincial minimum wage legislation was held inapplicable to the employees of an interprovincial com munications enterprise: see Minimum Wage Commission v. Bell Telephone Co. of Canada Ltd. ([1966] S.C.R. 767), and, similarly, inapplicable to employees of a local contract post master: see Reference re Saskatchewan Minimum Wage Act ([1948] S.C.R. 248). This is because to construe the provincial legislation to embrace such activities would have it encroaching on an exclusive federal legislative area. On the other hand, provincial hours of work legislation was held applicable to employees of a hotel owned and operated by a railway company but not as an integral part of its transportation system: see
C.P.R. v. Attorney General of British Columbia ([1950] A.C. 122).
In the same case Martland J. spoke to similar effect at pages 774-775:
There have been cases in which it has been held that some provincial legislation of general application would not be appli cable to a corporation or institution subject to exclusive federal control. In Campbell-Bennett Limited v. Comstock Midwest- ern Ltd. ([1954] S.C.R. 207), it was held that a federally incorporated company which was incorporated for the purpose of transporting oil by means of interprovincial and international pipe lines, and thus was a work or undertaking within the exclusive jurisdiction of Parliament, was not subject to a mechanic's lien registered under provincial legislation, because such legislation would permit the sale of the undertaking piecemeal and thus nullify the purpose for which it was incorporated.
The case of Minimum Wage Commission v. The Bell Tele phone Company of Canada ([1966] S.C.R. 767), held that a company which had been declared to be a work for the general advantage of Canada was not subject to having its employer- employees relationships affected by a provincial minimum wage statute. Similarly, in Reference re Saskatchewan Minimum Wage Act ([1948] S.C.R. 248), it was decided that provincial minimum wage requirements would be inapplicable to an employee who was a part of the Postal Service.
McKay v. Her Majesty The Queen ([1965] S.C.R. 798) held that a municipal zoning regulation governing the erection of signs on residential properties could not preclude the erection of a sign to support a candidate in a federal election.
Each of these cases was concerned with a particular statute which had the effect of restricting an enterprise or activity within exclusive federal jurisdiction. The Adoption Act is not legislation of this kind. It does not restrict the rights of Indians.
In subsequent decisions the Court has empha sized that Indian reserves are not federal enclaves that are totally immune from the application of provincial law. In Construction Montcalm Inc. v. The Minimum Wage Commission [ 1979] 1 S.C.R. 754, Beetz J., delivering the judgment of the majority, said at pages 777-778:
The enumeration of exclusive federal powers in s. 91 of the Constitution, including the power to make laws in relation to the public debt and property, operates as a limitation ration materiae upon provincial jurisdiction, not as a territorial limita tion. The impugned provisions relate neither to federal property nor to any other federal subject but to civil rights and, in my view, they govern the civil rights of Montcalm and its employees on federal property. Federal Crown lands do not constitute extra-territorial enclaves within provincial bound-
aries any more than indian reserves. What Martland J. wrote for the majority of this Court in Cardinal v. Attorney General of Alberta ([1974] S.C.R. 695), at p. 703, with respect to indian reserves is equally applicable to federal Crown lands:
In my opinion, the test as to,the application of Provincial legislation within a Reserve is the same as with respect to its application within the Province and that is that it must be within the authority of s. 92 and must not be in relation to a subject-matter assigned exclusively to the Canadian Parlia ment under s. 91. Two of those subjects are Indians and Indian Reserves, but if Provincial legislation within the limits of s. 92 is not construed as being legislation in relation to those classes of subjects (or any other subject under s. 91), it is applicable anywhere in the Province, including Indian Reserves, even though Indians or Indian Reserves might be affected by it. My point is that s. 91(24) enumerates classes of subjects over which the Federal Parliament has the exclu sive power to legislate, but it does not purport to define areas within a Province within which the power of a Province to enact legislation, otherwise within its powers, is to be excluded.
In Four B Manufacturing Limited v. United Garment Workers of America [1980] 1 S.C.R. 1031, Beetz J., again delivering the judgment of the majority of the Court, said at pages 1049-1050:
Counsel for appellant has also stressed that the civil rights in issue are not only the civil rights of Indians, but Indian civil rights exercised on a reserve. The import of this submission, as I understand it, is that the exclusive character of federal jurisdiction is somehow reinforced because it is derived from two related heads of federal authority instead of one, federal authority over Indians and over Lands reserved for the Indians.
In my view, this submission is an attempt to revive the enclave theory of the reserves in a modified version: provincial laws would not apply to Indians on reserves although they might apply to others. The enclave theory has been rejected by this Court in Cardinal v. Attorney-General for Alberta ([1974] S.C.R. 695) and I see no reason to revive it even in a limited form. Section 91.24 of the British North America Act, 1867 assigns jurisdiction to Parliament over two distinct subject matters, Indians and lands reserved for the Indians, not Indians on lands reserved for the Indians. The power of Parliament to make laws in relation to Indians is the same whether Indians are on a reserve or off a reserve. It is not reinforced because it is exercised over Indians on a reserve any more than it is weakened because it is exercised over Indians off a reserve. (See Kenneth Lysyk, "The Unique Constitutional Position of the Canadian Indian" (1967), 45 Can. Bar Rev. 513, at p. 515).
None of these cases deals with the right to possession of a part of a reserve or surrendered lands within the meaning of the Indian Act so they
do not determine the issue before us, but the conclusion that I draw, with respect, from the observations I have quoted is that provincial laws of general application will apply to "lands reserved for the Indians" within the meaning of section 91(24) of the B.N.A. Act unless in such applica tion they would have an effect analagous to that found in the cases, such as Campbell-Bennett, referred to by Laskin C.J.C. and Martland J. in The Natural Parents case or would be in conflict with valid federal legislation.
Before considering the application of these prin ciples to the issue in the present case reference should be made to section 88 of the Indian Act which makes provincial law applicable to Indians 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.
It has been observed that in its terms this provi sion applies to Indians and not to lands reserved for the Indians: see, for example, Laskin J. (as he then was) in the Cardinal case, supra, at page 727; Lysyk, op. cit. at page 518; R. v. Isaac, supra. Since the issue in this case is the right to posses sion of land governed by the Indian Act, it relates to lands reserved for the Indians within the mean ing of section 91(24) of the B.N.A. Act rather than to Indians, as such, and section 88 need not, therefore, be considered.
The right to possession of land that forms part of a reserve or surrendered lands within the mean ing of the Indian Act falls in my opinion within exclusive federal legislative jurisdiction with respect to lands reserved for the Indians under section 91(24) of the B.N.A. Act. It is of the very essence of this jurisdiction. The so-called Indian title or right of occupation is really a right of possession. This is recognized by the provisions of the Indian Act (now sections 20 and following under the heading "Possession of Lands In Reserves") which prescribe the manner in which
"possession" of land in a reserve may be allotted to individual Indians and the circumstances under which the right to possession of land may revert to the band. The right of the Crown in right of Canada to claim the possession of land that is part of a reserve or of surrendered lands within the meaning of the Indian Act exists, as an incident of the federal government's power of control and management of such land, for the protection of the Indian interest in the land. While the land is under federal legislative and administrative jurisdiction, it is the Crown in right of Canada that must act for the protection of that interest, whether it con sists of the right of occupation or possession itself, or the "Indian moneys" (see section 62 of the Act) which are to be accepted in return for its surren der. Indeed, it would appear that so long as the land is under federal legislative and administrative jurisdiction, the Crown in right of the province in which the underlying legal title to the land is vested would not have the right to claim the possession of it. On this view of the matter, I am of the opinion that the provincial law respecting the limitation of actions for the recovery of land could not constitutionally apply so as to give the respondent or his predecessors in occupation a possessory title good against either the Indian right of occupation or the right of the federal Crown to claim possession for the protection of the Indian interest.
What is really involved is the existence of land as part of a reserve or surrendered lands within the meaning of the Indian Act. If provincial law respecting the limitation of actions could apply so as to have the effect of extinguishing the Indian title or the right of the federal Crown to recover possession of land for the protection of the Indian interest, it could have a dismembering effect analogous to that which was held in the Camp- bell-Bennett case to be beyond provincial legisla tive competence. It would have the effect of destroying or eliminating a part of the very subject-matter of federal jurisdiction. If provincial legislation of general application cannot constitu tionally apply to restrict the use of land reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act, as was held in the Peace Arch case (a conclusion that appears to have been
impliedly approved by the Supreme Court of Canada in the Cardinal case), then a fortiori must this be true of legislation that would have the effect of extinguishing the right to possession of such land.
Such an effect would also be in conflict with or repugnant to the legislative scheme which has existed from the earliest federal enactment for the protection of the Indian interest. There have been three fundamental features of this scheme: the provision that the Indian right of occupation or possession can only be validly given up or lost by surrender to the Crown in accordance with the formalities prescribed by the Indian Act; the provi sion that any agreement made by the Indians to permit the occupation of Indian land by non-Indi- ans is void; and the prohibition of the unauthorized occupation of or trespass on Indian land by non- Indians, with special recourses for its suppression. These provisions vary somewhat in their particular form or expression through the successive versions of the Indian Act but they remain in substance as a central feature of the legislation. They exhibit a special regime for the protection of the Indian interest from the impact of the ordinary law of contract and property. The Indians are not permit ted to become divested of their rights in a reserve by the ordinary legal methods applicable to other individuals. This characteristic of the legislation was emphasized by Judson J. in the Devereux case, supra, when he said [at page 572], "The scheme of the Indian Act is to maintain intact for bands of Indians, reserves set apart for them regardless of the wishes of any individual Indian to alienate for his own benefit any portion of the reserve of which he may be a locatee."
In Fahey v. Roberts, an unreported judgment of the King's Bench Division of the Supreme Court of New Brunswick on December 1, 1916, McKeown C.J. held that these provisions of the Act of 1868 (31 Vict., c. 42), in particular sections 6 and 17, prevented the provincial limitation of actions law from operating so as to permit a non-Indian to acquire title to land in a reserve by adverse posses sion. Sections 6 and 17 read as follows:
6. All lands reserved for Indians or for any tribe, band or body of Indians, or held in trust for their benefit, shall be deemed to be reserved and held for the same purposes as before the passing of this Act, but subject to its provisions; and no such lands shall be sold, alienated or leased until they have been released or surrendered to the Crown for the purposes of this Act.
17. No persons other than Indians and those intermarried with Indians, shall settle, reside upon or occupy any land or road, or allowance for roads running through any lands belong ing to or occupied by any tribe, band or body of Indians; and all mortgages or hypothecs given or consented to by any Indians or any persons intermarried with Indians, and all leases, contracts and agreements made or purporting to be made, by any Indians or any person intermarried with Indians, whereby persons other than Indians are permitted to reside upon such lands, shall be absolutely void.
Chief Justice McKeown held that the acquisi tion of a possessory title by operation of the pro vincial statute of limitations would be contrary to the prohibition against the unauthorized occupa tion of land in a reserve by a non-Indian. He further held that "the provisions of the New Brunswick statutes of limitations are not operative against the Crown, acting through the Dominion Government in its management of those Indian lands" and that "the Indians themselves being under disabilities and unable to convey, or even to surrender the land, except by the provisions of the statute, no possession can run against them."
These considerations apply equally in my opin ion to land in a reserve that has been surrendered to the Crown in trust for the purposes of sale and the application of the proceeds for the benefit of the band, but has not been sold. Since such land remains land reserved for the Indians within the meaning of section 91(24) of the B.N.A. Act and continues to be held by the Crown for the benefit of the Indians because of their financial interest in it, the application of the provincial statute of limitations so as to give a non-Indian a possessory title to the land would destroy the status of the land under the Indian Act and defeat the terms of the trust upon which it had been surrendered.
Whether There Was In Fact A Continuous Adverse Possession of Sixty Years
This conclusion is sufficient to dispose of the appeal, but assuming that the provincial statute of limitations could validly apply to extinguish the appellant's right to possession of the Land, I am of the opinion that in any event the evidence fails to establish a continuous adverse possession of the Land for at least sixty years.
There is first of all, as indicated in the statement of the facts earlier in these reasons, a gap or discontinuity between the alleged occupation of the Land by Ebenezer Travis and his grandson, Ebenezer A. Travis, and the occupation of the Land by Isaac Mutch and the respondent. As a result, the Travis occupation cannot be added or tacked to that of Mutch in order to establish the necessary sixty years. See Robinson v. Osborne (1913) 27 O.L.R. 248. The combined occupation by Travis and his grandson runs from 1838 to 1901, when, it is reasonable to conclude, the grandson abandoned the occupation of the Land since it was excluded by the Fish survey of 1901 from the property that was to be granted to him. In any event, the evidence does not show any connection between the occupation of the Land by Ebenezer A. Travis and its occupation by Isaac Mutch beginning around 1904 or 1905. Nor, for the reasons indicated earlier, is it logical to con clude that the occupation of the Land by Isaac Mutch was a continuation of the occupation of the old lot 6 begun by his grandfather, James. In my opinion, the Trial Judge was in error in assuming a continuity in the occupation of the Land by reason of the fact that James Mutch was shown in the Carter report of 1898 as claiming the old lot 6. He appears to have overlooked or misapprehended the relationship of the old lots 5 and 6 and the new lots 5A and 6, in so far as the location of the Land is concerned. The finding of the Trial Judge that the occupation of the Land by Travis and his successor was continued without interruption by the Mutch family is unsupported by the evidence. There is no evidence of a connection between the occupation by Ebenezer A. Travis of the ten chain strip that was formerly on the eastern side of the old lot 5, but became part of the western side of the new lot 6, and the occupation of the old lot 6 by the Mutch
family. There is no evidence that between 1901 and 1904 or 1905 there was occupation by the Mutch family of the ten chain strip. Indeed, the survey plans of 1904 and 1905 (Exhibits Pa-24 and Pa-26) show the new lot 6 as unoccupied. The testimony was that James Mutch and his son, Edmund, did not live on the old lot 6 but on the other side of the river. According to the same testimony Isaac did not trace his occupation to Travis but rather to his father, Edmund, and his grandfather, James. The gap between the Travis occupation and the Mutch occupation of the Land was conceded by counsel for the respondent at the hearing of the appeal. He acknowledged that the claim of adverse possession had to be based on two separate periods of occupation.
The evidence concerning the combined occupa tion by Ebenezer Travis and his grandson from 1838 to 1901 does not establish that it was a continuous adverse possession of the Land for at least sixty years. The evidence is not clear as to when it became an occupation or possession that was adverse to that of the Crown, as well as the Indian right of occupation. The occupation began around 1838 under a kind of lease or permission from the Indians for which Travis paid rent for a few years. Such an occupation was clearly not adverse. The petition of Travis in 1841 for a grant of the land occupied by him was an acknowledg ment of both the Indians' right of occupation and the Crown's title. Although Travis said that he sought to have "the title of the said Land con firmed to" him, he obviously at that time could not claim to have a possessory title to the Land. The petition is inconsistent with a conclusion that he was at that time possessing the land as owner or adversely to the Crown. The census returns of 1851, 1861 and 1871 show that Travis continued to reside and occupy land in the Parish of North- esk, but they do not establish the nature of his claim to the land occupied by him. The fact that the return of 1871 shows the number of acres occupied by him under the general heading, "Grand total of acres of land owned", is not sufficient in my opinion to establish that his par ticular occupation was one that was adverse to the Crown. It is not until the Carter report of 1898 that the records show that Travis' grandson was
claiming to own the old lot 5 by virtue of adverse possession. Thus the evidence does not clearly establish a continuous period of sixty years in which the occupation by Travis and his grandson was adverse to the Crown.
Moreover, the evidence does not show, in my opinion, that there was an actual possession by Travis and his grandson of the Land, as distinct from other parts of the old lot 5. It shows that Travis was in occupation of some part of lot 5 but it does not show the extent of the occupation. In particular, it does not show that Travis occupied the southeast part of the lot that lay between the settlement road and the river. None of the docu ments in which the occupation by Travis is referred to—the petition for a grant in 1841, the Sadler return of survey of 1845 and 1847, the census returns of 1851, 1861 and 1871, the Carter report of 1898, and the Fish survey of 1901— shows the extent of the occupation by Travis and his grandson of the old lot 5. Professor Hamilton stated in his affidavit and oral testimony that the Land was part of the lot occupied by Travis from about 1838, but since his opinion was based on the documents referred to, it does not throw any fur ther light on the extent of the land actually occupied by Travis, and specifically, as to whether there was an actual physical occupation by him of the whole of the land for which adverse possession is claimed. With reference to the Sadler return of survey, which stated that there were three acres of improved land occupied by Travis on the old lot 5, Professor Hamilton testified that he could not determine the location of Travis' house on the lot.
For these reasons, I am of the view that the evidence does not establish a continuous adverse possession of at least sixty years by Ebenezer Travis and his grandson, Ebenezer A. Travis, which could extinguish the Crown's title to the Land.
The evidence is clearer as to the nature and extent of the occupation of the Land by Isaac Mutch. The appellant contended that Mutch's ac tivity on the Land consisted of mere isolated acts of trespass which could not be the basis of an adverse possession by which title could be acquired. He cited Doe d. Des Barres v. White, 1 Kerr N.B. 595, and Sherren v. Pearson (1888) 14 S.C.R. 581, in which the nature of the occupation required to constitute an adverse possession of wilderness land was considered. In the Sherren case, in which the decision in the earlier case was approved, Ritchie C.J. said at page 586:
The mere acts of going on wilderness land from time to time in the absence of the owner, and cutting logs or poles, are not such acts, in themselves, as would deprive the owner of his posses sion. Such acts are merely trespasses on the land against the true owner, whoever he may be, which any other intruder might commit. ... An entry and cutting a load of poles or a lot of wood, being itself a mere act of trespass, cannot be extended beyond the limit of the act done, and naked possession cannot be extended by construction beyond the limits of the actual occupation, that is to say, a wrongdoer can claim nothing in relation to his possession by construction.
In my opinion, the farming and lumbering, or cutting, activity carried out on the Land by Isaac Mutch and his family, which was described earlier in these reasons, went beyond mere isolated acts of trespass and constituted an occupation of the char acter required for adverse possession. I agree with the finding of the Trial Judge [at page 667] on this point when he said, "The acts carried out by Mutch before he deeded the subject property to the defendant appear to me to be the type of acts that would normally and suitably be performed by a lumberman farmer in those days on the Mirami- chi River." The appellant disputed the fact that Mutch was a lumberman, but I do not see how it can be denied in the face of the evidence that he engaged in driving operations, cut and sold logs and pulpwood, and at one time had a small saw mill. The evidence is not too clear as to the extent and regularity of the cutting, but it would appear that a significant amount was done over the years. It appears that the Trial Judge accepted the evi dence of Weldon Mutch as to the extent of the cutting and farming that was done on the Land, and I see no reason to differ from his conclusion.
The serious problem with respect to Mutch's occupation is that created by the letter which he wrote to the Department of Indian Affairs on February 24, 1919. The question is whether that letter was an acknowledgment of the Crown's title to the Land and would thus interrupt the adverse possession by virtue of section 14 of the Act Respecting Limitation of Actions in respect to Real Property, C.S.N.B. 1903, c. 139, which reads as follows:
14. When any acknowledgment of the title of the person entitled to any land shall have been given to him or his agent in writing, signed by the person in possession, or in receipt of the profits of such land, then such possession or receipt of or by the person by whom such acknowledgment shall have been given, shall be deemed, according to the meaning of this Chapter, to have been the possession or receipt of or by the person to whom or to whose agent such acknowledgment shall have been given, at the time of giving the same, and the right of such last mentioned person, or any person claiming through him, to make an entry or to bring an action to recover such land, shall be deemed to have first accrued at and not before the time at which such acknowledgment, or the last of such acknowledg ments, if more than one was given.
In the letter, which was quoted in full earlier in these reasons, Mutch said that he was "living on a piece 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 that he "would like to get the grant of it." Counsel for the respondent stressed the fact that the letter referred to the "East side" of lot 6, whereas the Land was on the west side, but, as I have indicated earlier, the plan dated June 6, 1919 prepared for Mutch by the surveyor Fish shows that what was intended and what was surveyed for him to serve as the basis of the grant he was seeking was the west half of lot 6. That was the part of lot 6 that was occupied by Isaac Mutch. It was bounded on the west by the lot that had been surveyed for Ebenezer A. Travis in 1901 and on the east by the other half of lot 6 which was occupied by Isaac's brother, William.
The Trial Judge held that the letter did not bar the defence based on adverse possession. He
appears to have disposed of this issue, at least to some extent, on the assumption that a title by adverse possession had already been acquired when the letter was written and the letter simply sought a grant to confirm that title. On this issue he said [at page 6691:
The Crown in the instant case having waited more than 50 years after the alleged acknowledgment 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 evidence 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 estab lished 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.
With respect, I am of the view that the letter cannot be regarded as other than an acknowledg ment by Mutch of the Crown's title to the land occupied by him. There is no doubt that if a possessory title to the Land had been acquired as a result of the occupation by Ebenezer Travis and his grandson the Crown's title could not be revived by a subsequent acknowledgment of title, as was held in Hamilton v. The King (1917) 54 S.C.R. 331, to which the Trial Judge made reference. But for the reasons I have indicated, a possessory title cannot be held to have been acquired as a result of the occupation by Travis and his grandson, nor could their occupation be tacked to that of Mutch. As I have already observed, there is nothing in the evidence to suggest that Isaac Mutch claimed at any time to be the successor of Ebenezer A. Travis in the occupation of the Land. There is nothing in the letter of 1919 nor in the surrounding circum stances to indicate that Mutch was claiming a possessory title to the Land and was merely seek ing a grant to confirm such a title. Although the evidence does not show precisely what prompted him to write the letter, the memorandum from H. J. Bury, Timber Inspector, states that in his opin ion the "application is one of the results of the recent inquiry into trespassing on the Reserve by
whites". The reasonable inference from the docu ments is that if Mutch did not obtain the grant he sought it was because of a difference of opinion as to the price that should be paid for the land and not because he did not attach importance to the grant. The testimony of his son, Weldon, tends to confirm the impression that at the time he wrote the letter he did not consider that he had title to the Land. The testimony is as follows:
Q. The letter is dated February 24, 1919. Have you ever
seen that letter before?
A. No.
Q. Your father never mentioned this to you?
A. He mentioned about him and Mr. Irving having some
dealing over the ground.
Q. What kind of a dealing?
A. Well, bargaining for the ground.
Q. In other words, you did know there some question as to the title of the land?
Q. In other words, you were aware there was some problem
as to the title?
A. There has to be a title.
Q. That's not what I asked you, are you aware definitely that there had been some problem with the title to the lands?
A. Oh, definitely, yes.
Q. And you have been for quite some time, isn't that so? A. Well, I know we didn't have a deed.
HIS LORDSHIP: Did you not just testify to the effect that you were under the impression that your father had obtained the land from your grandfather?
THE WITNESS: Yes.
HIS LORDSHIP: If that was the case why would there be a problem with reference to Indian land?
THE WITNESS: Well, I used to hear stories going back and forth once in a while and I know they didn't have no title.
The letter was addressed to the Department of Indian Affairs, which was charged with the control and management of the Land and was acting on behalf of the Crown in holding the Land as part of the Indian lands subject to the terms of the surren der of 1895. While the Indian lands remained under federal jurisdiction it was the federal authorities who had the right to make an entry on the Land or to bring an action to recover posses sion of it. For this reason, it is my opinion that the letter was an acknowledgment of title to an agent of the person entitled to the Land within the meaning of section 14 of the provincial statute of limitations.
Since the adverse possession of Isaac Mutch was interrupted in 1919, the respondent cannot claim a continuous adverse possession of the Land of at least sixty years before the institution of the appel lant's proceedings in 1973.
The appellant is, therefore, entitled to possession of the Land. It is necessary now to consider the respondent's claim for compensation by reason of the improvements made to the Land.
The Claim for Compensation
The right to compensation is raised in paragraph 11 of the defence where it is said that the respond ent has made improvements to the Land and the appellant would be "unjustly enriched" if given vacant possession of the Land. In reply the appel lant states that if the respondent made improve ments to the Land he did so at his own risk and that he knew or ought to have known that the title to the Land was at all times vested in Her Majesty the Queen. In paragraph 14 of his defence the respondent claims the market value of the property as a whole, and alternatively the value of the improvements. At the trial, evidence was adduced of the market value of the property, and the Trial Judge made the following findings as to value [at page 671] in his reasons for judgment:
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.
Although these findings were not part of the formal judgment, the respondent cross-appealed, asking that the value of the property be increased to $62,600, which was the value placed on it by the respondent's expert.
The issue is whether, in the circumstances of this case, the appellant should be required as a condition of obtaining vacant possession of the Land to compensate the respondent for the improvements which he has made to the Land, and if so, how the value of those improvements is to be determined.
The statute law of New Brunswick does not contain a provision concerning compensation for improvements to land under mistake of title such as that which is found in section 38(1) of the Ontario The Conveyancing and Law of Property Act, R.S.O. 1970, c. 85, which reads as follows:
38. (1) Where a person makes lasting improvements on land under the belief that it is his own, he or his assigns are entitled to a lien upon it to the extent of the amount by which its value is enhanced by the improvements, or are entitled or may be required to retain the land if the court is of opinion or requires that this should be done, according as may under all circum stances of the case be most just, making compensation for the land, if retained, as the court directs.
There is, however, a general principle of equity, referred to as estoppel by acquiescence, governing improvements made to the land of another which is set out in Halsbury's Laws of England, 4th ed., vol. 16, para. 1475, page 997 as follows:
Similarly, where a person who mistakenly believes that he has an interest in land, being ignorant of his want of title, expends money on it in buildings or other improvements or otherwise dealing with it, and the true owner, knowing of the mistaken belief and the expenditure, raises no objection, equity will protect the person who makes the expenditure, as by confirm ing that person's supposed title, or by requiring that he be compensated for his outlay, or by giving him such a charge or lien. This equity is available against the Crown.
This statement of the principle is based in part on the case of Ramsden v. Dyson (1866) L.R. 1 H.L. 129, in which Lord Cranworth L.C. said at pages 140-141:
If a stranger begins to build on my land supposing it be his own, and I, perceiving his mistake, abstain from setting him right, and leave him to persevere in his error, a Court of equity will not allow me afterwards to assert my title to the land on which he had expended money on the supposition that the land was his own. It considers that, when I saw the mistake into which he had fallen, it was my duty to be active and to state my adverse title; and that it would be dishonest in me to remain wilfully passive on such an occasion, in order afterwards to profit by the mistake which I might have prevented.
But it will be observed that to raise such an equity two things are required, first, that the person expending the money sup poses himself to be building on his own land; and, secondly, that the real owner at the time of the expenditure knows that the land belongs to him and not to the person expending the money in the belief that he is the owner. For if a stranger builds on my land knowing it to be mine, there is no principle of
equity which would prevent my claiming the land with the benefit of all the expenditure made on it. There would be nothing in my conduct, active or passive, making it inequitable in me to assert my legal rights.
The same principle was expressed by Lord Wensleydale at page 168 as follows:
If a stranger build on my land, supposing it to be his own, and I, knowing it to be mine, do not interfere, but leave him to go on, equity considers it to be dishonest in me to remain passive and afterwards to interfere and take the profit.
The application of this principle to an action by the Crown for the possession of land in an Indian reserve was considered in the Easterbrook case, supra. It was held that since the defendant and his predecessor occupied the land under a lease from the Indians they could not have believed that they owned the land, and that the Crown had not given them any reason by act or representation for such a belief. In the Exchequer Court Audette J. held that the doctrine of acquiescence did not apply to the Crown, but that view does not appear to have been adopted by the Supreme Court of Canada. As indicated in the passage from Halsbury quoted above, it was held in Attorney-General to His Highness the Prince of Wales v. Collom [ 1916] 2 K.B. 193, that the equitable doctrine of estoppel by acquiescence applies to the Crown. I do not read the decision of the Supreme Court in the Easterbrook case as taking a contrary position on this issue. The reverse, if anything, is implied by the judgment of Newcombe J., who said at page 219: "I agree with the learned judge that the defendant has entirely failed to establish any act or representation, for which the Crown is respon sible, whereby he was misled to believe that he had a title which could be vindicated in competition with that of the Crown." There was further con sideration by Newcombe J. as to whether there was representation by or on behalf of the Crown to the defendant's predecessor in title. It is my con clusion from the judgment of Newcombe J. that the equitable doctrine of estoppel by acquiescence was considered to be applicable in proper circum stances to a claim for the value of improvements to land in an Indian reserve.
Counsel for the appellant contended that the doctrine is not applicable to a case in which the plaintiff is not seeking equitable relief but is asserting his legal rights and cited in support of this contention the decision of the Supreme Court of Canada in Montreuil v. The Ontario Asphalt Company (1922) 63 S.C.R. 401. As I read the opinions in that case, and particularly the majority opinion of Anglin J., at pages 433 to 436, a distinction is drawn between the case where an improver relies on a "standing by", or what amounts to an acquiescence, by the owner and the case where he does not. In the latter case, apart from statute, the equitable defence can only be raised if the owner is himself seeking the aid of equity.
In the present case the respondent believed him self to be the owner of the Land at the time he made the improvements to it. In the first deed which he obtained from Isaac Mutch dated Sep- tember 26, 1952 the recital stated that the "Gran- tors herein have been in possession, open and undisputed, of the within described lands and premises for more than twenty (20) years", which is the ordinary period required for the acquisition of a possessory title. The respondent, as he testi fied, was not aware of any claim to the Land by or on behalf of the Indians. The respondent did not search the title to the Land, but while that would undoubtedly have been more prudent the failure to do so cannot in my opinion defeat his equitable claim for his improvements. In the Montreuil case, supra, at page 429 Anglin J. said:
Nor does the fact that they were undoubtedly careless in making such expenditure without a proper investigation of their lessor's title disentitle them to such relief. So long as the mistake was bona fide the fact that it may have been due in part to carelessness does not debar the defendants from redress.
In my opinion, this is a case in which the Crown must be held, as a result of its long inaction, particularly from 1919, with knowledge that the Land was being occupied by non-Indians, to have stood by and acquiesced in the improvements made by the respondent and his predecessor in occupation. The Crown, whether represented and advised by the provincial government or the feder al government, knew of the occupation of the Land
by non-Indians from 1838 but never took positive steps to regularize the situation one way or the other. In view of the Crown's conduct, it would be unconscionable to permit it to recover vacant possession of the Land without compensation for the improvements. If there were any doubt about the application of the equitable principle of estop- pel by acquiescence in the circumstances of this case, I would be prepared to rest the respondent's right to compensation for his improvements on the general basis of unjust enrichment or restitution.
The measure of compensation in a case such as this is the amount by which the value of the Land has been enhanced by lasting improvements. See Montreuil, supra, at pages 433, 434; McBride v. McNeil (1913) 27 O.L.R. 455 at page 457. As indicated above, the evidence was directed to determination of the market value of the property as a whole, and the Trial Division made a finding as to such value. In the circumstances, it is not possible for this Court to determine the amount by which the value of the Land has been enhanced by the improvements.
I would allow the appeal, declare that the appel lant is entitled to vacant possession of the Land upon payment to the respondent of the amount by which the value of the Land has been enhanced by the lasting improvements made by the respondent and his predecessors in occupation, and I would return the matter to the Trial Division for the determination of this amount, with power to order a reference for such purpose should it be deemed advisable, unless in the meantime the parties are able to come to agreement as to the amount. Because of the very special circumstances of the case there should be no costs in this Court and in the Trial Division.
* * * URIE J.: I concur.
* * * KELLY D.J.: I concur.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.