Judgments

Decision Information

Decision Content

A-368-85
Chief Garnet Boyer, on behalf of himself and all other members of the Batchewana Indian Band (Appellants)
v.
The Queen in right of Canada and 488619 Ontario Inc. carrying on business as Alcor Developments (Respondents)
INDEXED AS: BOYER v. R. (F.C.A.)
Court of Appeal, Heald, Marceau and MacGuigan JJ.—Toronto, March 4; Ottawa, March 26, 1986.
Native peoples — Lands — Lease of reserve land between Crown and Ontario corporation pursuant to s. 58(3) Indian Act
— S. 58(3) authorizing Minister to lease reserve land upon application by Indian lawfully in possession — Minister not required to secure Band consent before executing s. 58(3) lease
— Lands set apart for use by Band or members — Limitations on right in allotted land not governing use to which land put
— Allotment shifting right to use and benefit from collective to individual right — No fiduciary obligation on Crown toward Band — Interest of Band "suspended" — Right tem porarily transferred being right to use belonging to individual Indian in possession — Indian Act, R.S.0 1970, c. 1-6, ss. 2, 20, 25, 28, 29, 37, 58, 81.
Constitutional law — Indians — Whether lease of reserve land under s. 58(3) Indian Act requiring consent of Band — Collective right of Band versus individual right of locatee — Which has precedence — Resort to preamble to Constitution
— Canadian Constitution similar to United Kingdom's where "right to individual freedom part of constitution" — Where group rights exceptionnally given priority, Constitution so stating — Charter fundamental affirmation of rights and freedoms of individual — Indian Act, R.S.C. 1970, c. 1-6, s. 58
— Constitution Act, 1867, 30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 51 (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 1), ss. 93, 133 — Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.), ss. 15, 16 to 22, 23, 29.
This is an appeal from a decision of the Trial Division which dismissed an application for a declaration that a lease of reserve lands entered into by the Crown as lessor and an Ontario corporation as lessee, as a result of an application made under subsection 58(3) of the Indian Act, was null and
void. Subsection 58(3) gives the Minister the power to lease, for the benefit of any Indian upon his application for that purpose, the land of which he is lawfully in possession without it being surrendered. The question is whether the Minister was required to secure the consent of the Band or of its council before executing the lease.
Held, the appeal should be dismissed.
The appellants argue that paragraph 58(1)(b), which requires the consent of the Band when unused or uncultivated reserve lands are leased, is the applicable provision, and that subsection 58(3), by negative inference, only applies to devel oped and used land.
The land in question was clearly unused, the word "use" implying occupation, utilization or exploitation of some sort. The lease could only be executed under subsection 58(3). There was no need to resort to the concept of negative inference to determine the sphere of application of the two provisions. Subsection 58(3) applies when there is a request by the Indian in lawful possession of the land, while paragraph 58(1)(b) is concerned with situations where the lawful possessor of the land is indifferent to its use. The lease herein falls within the first category.
Alternatively, the appellants submit that consent is required under subsection 58(3) either by necessary implication result ing from the context or as an effect of the fiduciary obligation of the Crown toward the Band.
With respect to the first branch of the argument, it is contended that under the scheme of the Act, the interest of the locatee in his parcel of reserve land is subordinate to the communal interest of the Band itself. The right in a piece of land allocated to the Band member, although in principle irrevocable, is subject to many formal limitations, such as the prohibition from disposing of the right to possession or leasing the land to a non-member. However, those limitations have all the same goal: to prevent the purpose for which the lands have been set apart—the use of the Band and its members—from being defeated. None of those limitations concerns the use to which the land may be put or the benefit that can be derived from it. The allotment of a piece of land in a reserve shifts the right to the use and benefit thereof from being the collective right of the Band to being the individual and personalized right of the locatee. The interest of the Band, in the technical and legal sense, has disappeared or is at least suspended. The scheme of the Act would be defeated if the words "with the consent of the Band" were read into subsection 58(3).
The appellants referred to Guerin et al. v. The Queen et al., [1984] 2 S.C.R. 335 as authority for there being a fiduciary obligation on the Crown. However, the circumstances sur rounding the grant of a lease under subsection 58(3) are altogether different from those which gave rise to a fiduciary duty in Guerin. In that case, the Minister had been entrusted, as a result of the surrender of unallotted reserve lands to the Crown, with the interest of the Band and it was that interest he was dealing with in alienating the lands. In the present
instance, no alienation is contemplated, and the right tem porarily transferred is the right to use which belongs to the individual Indian in possession. No interest of the Band is affected. The duty of the Minister is, under subsection 58(3), only toward the law, not toward the Band. Given the structure of the Act and the clear wording of subsection 58(3), it cannot be said that the Minister is required to secure the consent of the Band before executing a lease such as that in question. Under the Act, the individual Band member is given a certain autono my when it comes to the exercise of his entrepreneurship and development of his land.
Per MacGuigan J.: The cases relied upon by the appellants are not determinative of the point in issue. In The Queen v. Devereux, [1965] S.C.R. 567, subsection 58(3), described as an "exception" to the generally communal approach, was used to grant a lease for land cultivated and used, so that it cannot be considered as a binding precedent. Guerin et al. v. The Queen et al. (supra) and Kruger v. The Queen, [1986] 1 F.C. 3 (C.A.) both support the notion of a fiduciary duty but in the context of preventing exploitation of Indians by third parties.
In the absence of any clear guide from statutes or from authorities as to whether analogy should be drawn to the community principle or to the personal principle, resort must be had to the preamble of the Constitution Act, 1867 whereby Canada is to have "a Constitution similar in principle to that of the United Kindgom" where "the right to individual freedom is part of constitution". The freedom of the individual person in Canada has precedence over the exigencies of the community. Where group rights are, exceptionally, given priority, the Canadian Constitution so provides specifically. The Canadian Charter of Rights and Freedoms is itself a fundamental affir mation of the rights and freedoms of the individual. In the absence of legal provisions to the contrary, the interests of individual persons will be deemed to have precedence over collective rights.
CASES JUDICIALLY CONSIDERED
DISTINGUISHED:
Guerin et al. v. The Queen et al., [1984] 2 S.C.R. 335; (1985), 55 N.R. 161.
CONSIDERED:
The Queen v. Devereux, [1965] S.C.R. 567; Kruger v. The Queen, [1986] 1 F.C. 3; (1985), 17 D.L.R. (4th) 591 (C.A.); Saumur v. City of Quebec, [1953] 2 S.C.R. 299; Switzman v. Elbling and Attorney-General of Quebec, [1957] S.C.R. 285.
REFERRED TO:
R. v. Smith, [1981] 1 F.C. 346 (C.A.).
COUNSEL:
W. B. Henderson for appellants.
W. J. A. Hobson, Q.C. for respondent the Queen.
T. F. Baxter for respondent 488619 Ontario Inc.
SOLICITORS:
LaForme, Henderson, Jones, Toronto, for appellants.
Deputy Attorney General of Canada for respondent the Queen.
Henry M. Lang, Q.C., Sault Ste. Marie, Ontario, for respondent 488619 Ontario Inc.
The following are the reasons for judgment rendered in English by
MARCEAU J.: This appeal arises from a judg ment of the Trial Division [Cullen J., T-846-84, March 25, 1985, not yet reported] which dismissed an application, brought by an Indian Chief and the other members of his Band, for a declaration that a lease of reserve land entered into between Her Majesty and an Ontario corporation, purportedly under the authority of the Indian Act, R.S.C. 1970, c. I-6, was void and of no effect. Its scope and difficulty are not immediately apparent since it presents no real problem as to the facts and involves the construction of only one short subsec tion of the Act. It so happens, however, that the provision contained in that subsection is not only fundamental from a practical point of view, but it concerns one of the main features of the legislative scheme adopted in the Act and quite surprisingly it has, apparently, never been scrutinized yet by any judicial authority.
This provision of the Act, on the proper under standing of which the solution of the whole contro versy herein depends, is contained in subsection 58(3). It needs to be seen and analysed in relation with the provisions contained in the remainder of the section, so I reproduce it in its entirety:
58. (1) Where land in a reserve is uncultivated or unused, the Minister may, with the consent of the council of the band,
(a) improve or cultivate such land and employ persons therefor, and authorize and direct the expenditure of so much of the capital funds of the band as he considers necessary for such improvement or cultivation including the
purchase of such stock, machinery or material or for the employment of such labour as the Minister considers necessary;
(b) where the land is in the lawful possession of any individu al, grant a lease of such land for agricultural or grazing purposes or for any purpose that is for the benefit of the person in possession; and
(c) where the land is not in the lawful possession of any individual, grant for the benefit of the band a lease of such land for agricultural or grazing purposes.
(2) Out of the proceeds derived from the improvement or cultivation of lands pursuant to paragraph (1)(b), a reasonable rent shall be paid to the individual in lawful possession of the lands or any part thereof, and the remainder of the proceeds shall be placed to the credit of the band, but if improvements are made on the lands occupied by an individual, the Minister may deduct the value of such improvements from the rent payable to such individual under this subsection.
(3) The Minister may lease for the benefit of any Indian upon his application for that purpose, the land of which he is lawfully in possession without the land being surrendered.
(4) Notwithstanding anything in this Act, the Minister may, without a surrender
(a) dispose of wild grass or dead or fallen timber, and
(b) with the consent of the council of the band, dispose of sand, gravel, clay and other non-metallic substances upon or under lands in a reserve, or, where such consent cannot be obtained without undue difficulty or delay, may issue tempo rary permits for the taking of sand, gravel, clay and other non-metallic substances upon or under lands in a reserve, renewable only with the consent of the council of the band,
and the proceeds of such transactions shall be credited to band funds or shall be divided between the band and the individual Indians in lawful possession of the lands in such shares as the Minister may determine.
It will be recalled that under the Indian Act a reserve is "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" (section 2); that, although the management of the reserve and moneys arising therefrom is the con cern of the Minister of Indian Affairs (hereinafter referred to as "the Minister"), the elected council of the Band for whose benefit it was set apart, has broad by-law powers to regulate the use of land and life within the reserve, in more or less the same way as a municipal council (section 81); that only members of the Band are entitled to reside on the reserve (section 28). It will also be recalled that in principle "lands in a reserve shall be sold, alienated, leased or otherwise disposed of until they have been surrendered to Her Majesty by the
Band for whose use and benefit in common the reserve was set apart" (section 37); but that an Indian may be "lawfully in possession of land in a reserve" if, "with the approval of the Minister, possession of the land has been allotted to him by the council of the band" (section 20).
To understand and address the issue to be deter mined on this appeal, there is no necessity to be aware of all of the particular circumstances in which it arose. The case proceeded in the Trial Division on the basis of an agreed statement of facts in which detailed information can easily be found, but I think I can very well limit myself here to an overall review of the factual context, even if I have to add some further details later in the course of dealing which the various submissions of the parties.
John Corbière is a member of the Batchewana Indian Band for the benefit of which Rankin Loca tion Indian Reserve No. 15A was set apart. He has even been the Chief of the Band for many years and it is said that under his leadership, conditions on the reserve have considerably improved. Cor- bière is in "lawful possession" of a piece of land located within the reserve. It was allotted to him, in 1973, by the Band council with the approval of the Minister, and a certificate of possession was then issued confirming his rights thereon. At the time of the allotment, the land was wild and swampy, but its location alongside the St. Mary's River was ideal for development. This indeed was the intention of Corbière from the outset, and, in 1980, he applied to the Band council for permis sion to lease the land, for purpose of development, to a corporation in which he and his wife owned all the outstanding shares. That corporation, the num bered company respondent herein, had been formed by him in order to facilitate financing. A resolution granting permission was adopted at the time; however, Corbière's project was still vague and a lot had to be done before it could proceed. Various feasibility and other studies were required, financing had to be arranged, decisions had to be made as to the extent and type of development. [For the next two years, Corbière worked on his project, keeping in constant contact with officials
of the Department of Indian Affairs (hereinafter sometimes referred to as "the Department"), and, finally, in April 1982, feeling he was at last ready, he applied to the Minister for a lease of the land to his company pursuant to subsection 58(3) of the Act. A lease was drafted and sent to the Band council for comment. The Band responded by dis puting the Minister's authority to enter into such a lease without its formal consent, adding a few objections regarding some aspects of the develop ment project. Corbière decided thereupon to modify his plans by replacing a housing complex with a full service marina, and in September 1983, a revised lease giving effect to the new plans was sent to the Band council, with a request that further comment, if any, be made before Decem- ber 1. On November 24, the council passed a resolution again disputing the Minister's authority and formally disapproving the lease and then, through its solicitor, it requested a further exten sion of time in which to respond. The Department felt it was not proper to delay any longer and the lease was executed on December 9, 1983. It was in April 1984, that the proceedings herein were commenced.
As I indicated at the outset, the relief sought in the action is a declaration that the lease entered into, on December 9, 1983, between Her Majesty the Queen as represented by the duly authorized representative of the Minister of Indian Affairs and Northern Development and 488619 Ontario Inc., a corporation carrying on business as Alcor Developments, is void and of no effect. The lease would be so void and of no effect, in the plaintiffs- appellants' submission, because neither the Band nor the Band council has consented to it. The defendants-respondents dispute the contention that consent was required and in the alternative argue that such consent was, in any event, given.
It may be appropriate, so as to focus on the real issue, to dispose immediately of this alternative position taken by the respondents that consent was in fact given. It is, of course, the 1980 resolution passed by the Band council purporting to give Corbière, then still Chief of the Band, permission to lease his land to his company, which is invoked and relied upon. The position, in my view, is untenable. This 1980 resolution was, at the most, one of principle which may be taken as a sort of consent to the land being leased, but obviously not a consent to a particular lease. If a consent is required, it can certainly not be one limited to principle, it must be an informed and particula rized one. The 1980 resolution cannot be seen as an approval of the lease executed on December 9, 1983. I have no doubt that the only question that has to be determined in order to dispose of the case is whether or not the validity of this lease depend ed on the consent of the Band or its council.
In support of their contention that consent was indeed required, the appellants advance two alter native arguments which must be considered in turn.
(1) Their first argument is that the only provi sion of the Act under which a lease such as the 'one here in question can be executed by the Minister is that contained in paragraph 58(1)(b), which makes the consent of the Band a formal and express requirement. Subsection 58(3) pursuant to which the Minister purported to be acting in fact had no application.
For convenience, I reproduce again the relevant portions of section 58:
58. (1) Where land in a reserve is uncultivated or unused, the Minister may, with the consent of the council of the band,
(b) where the land is in the lawful possession of any individu al, grant a lease of such land for agricultural or grazing purposes or for any purpose that is for the benefit of the person in possession; and
(3) The Minister may lease for the benefit of any Indian upon his application for that purpose, the land of which he is lawfully in possession without the land being surrendered.
Paragraph 58(1)(b) and not subsection 58(3) would be the operative provision, according to the argument, because the land to be leased was unused and subsection 58(3), by a sort of negative inference, only applies to developed and used land. I fully agree that the land was unused; I do not share the view of the learned Trial Judge that the clearing work done on part of the land and the feasibility studies conducted thereon constituted use within the meaning of the section; I under stand the word "use" therein as implying occupa tion or utilization or exploitation of some sort. However, I see no reason here to resort to such an extraordinary means of interpretation as a so-called negative inference. There is absolutely no need to look behind the words to find the respec tive sphere of application of the two provisions. Indeed, subsection 58(3) only governs when there is a request by the Indian who is in lawful posses sion of the land, while paragraph 58(1)(b) is obvi ously concerned exclusively with situations where the lawful possessor of the land is indifferent to its use, which is why subsection 58(2) on the one hand contemplates the possibility that improve ments on the land be made by the Minister himself and on the other provides that in all cases only part of the proceeds, to be calculated on the basis of a reasonable rent, will go to the Indian in lawful possession. I have no hesitation in saying that paragraph 58(1)(b) was not applicable here: the lease could only be executed under subsection 58(3).
(2) The second argument relied on by the appel lants in the event that subsection 58(3) would be found to be applicable is twofold: consent is required under that provision, they say, either by necessary implication resulting from the context or as an effect of the fiduciary obligation of the Crown toward the Band.
(a) In the first branch of this second argument, the appellants again plead for a construction of the provision that would disregard the apparent mean-
ing of Parliament's words. There are, it is true, in the cases, a few examples where a court has taken upon itself to correct the wording of a provision by reading into it something missing or deleting some thing redundant. But these examples are quite rare and present instances where the drafting mistakes were quite obvious and the context made it clear that the words used did not convey accurately or completely what was intended (see: E. A. Dried- ger, Construction of Statutes, 2nd ed., pp. 128 et seq.). There is nothing to suggest that a drafting mistake may have been made here. If one looks at the strict context in which the provision was enact ed, one is certainly not easily led to believe that failure to refer to the consent of the Band in subsection 58(3) was due to an oversight. As noted above, three of the four subsections of section 58 deal with various situations where the Minister is empowered to enter into agreements affecting reserve lands, the first, third and fourth, the second being only an addition to the first, and a reference to the consent of the Band is made in two of them: the contrast is so striking that it could not have passed unnoticed. And if one looks at the broader context there is, in my view, no more reason to think that the provision, taken as it is, does not fit into the scheme of the Act, which leads me to the appellants' main point.
Under the scheme of the Indian Act, say the appellants, the interest of a locatee, such as Cor- bière, in his or her parcel of reserve land, is subordinate to the communal interest of the Band itself, and the allocation of possessory rights to Band members does not suppress the recognized interest of the Band in the development of allotted lands; besides, the rule is that non-Indians cannot have possession of reserve lands unless these lands have been surrendered by the Band and except for a few limited purposes set out in the Act, the Minister is unable to authorize non-Indian use or occupation of reserve land without consent of the Band or its council. If, they say, subsection 58(3) was construed literally and made applicable to any land developed or undeveloped, those principles could be disregarded and the scheme of the Act
itself would thereby be defeated, which is precisely the case here since the lease is made in favour of a corporation which is a non-Indian entity notwith standing the status of its shareholders.
I am afraid my understanding of the scheme of the Indian Act does not correspond totally with that of the appellants. I have already referred to a few sections of the Act where the words and expressions used in subsection 58(3) are defined. It is in fact in these sections and a few others that the basic features of the legislation, with respect to reserve lands, are to be found. I see them as follows. The Band for whose use and benefit a "tract of land" has been set apart by Her Majesty no doubt has an interest in those lands, since it has the right to occupy and possess them. It is an interest which belongs to the Band as a collectivi- ty, and the right to occupy and possess, of which it is comprised, is a collective right. This interest can be extinguished by a voluntary surrender by the Band to the Crown or by expropriation for a public purpose, but it cannot be alienated. The Band, however, acting through its council, has the power to allot, with the approval of the Minister, parcels of the land in its reserve to Band members. The right of a Band member in the piece of land which is allotted to him and of which he has lawful possession, although in principle irrevocable, is nevertheless subject to many formal limitations. The member is not entitled to dispose of his right to possession or lease his land to a non-member (section 28), nor can he mortgage it, the land being immune from seizure under legal process (section 29), and he may be forced to dispose of his right, if he ceases to be entitled to reside on the reserve (section 25). These are all undoubtedly limitations which make the right of the Indian in lawful possession very different from that of a common law owner in fee simple. But it must nevertheless be carefully noted that all of those limitations have the same goal: to prevent the purpose for which the lands have been set apart, i.e., the use of the Band and its members, from being defeated. None of them concerns the use to which the land may be put or the benefit that can
be derived from it. The land being in the reserve, its use will, of course, always remain subject to provincial laws of general application and the zoning by-laws enacted by the Band council, as for any land in any municipality where zoning by-laws are in force, but otherwise I do not see how or why the Indian in lawful possession of a land in a reserve could be prevented from developing it as he wishes. There is nothing in the legislation that could be seen as "subjugating" his right to another right of the same type existing simultaneously in the Band council. To me, the "allotment" of a piece of land in a reserve shifts the right to the use and benefit thereof from being the collective right of the Band to being the individual and personal ized right of the locatee. The interest of the Band, in the technical and legal sense, has disappeared or is at least suspended. This being my understanding of the scheme of the Act, not only do I disagree with the contention that the principles embodied therein require that the words "with the consent of the band" be read into the provision of paragraph 58(3), I think that those principles would be frus trated by doing so. (On the nature of a locatee's right to possession and the scheme of land tenure under the Act, see the comments of both Judson J. and Cartwright J. in The Queen v. Devereux, [1965] S.C.R. 567 and also those of Le Damn J. in R. v. Smith, [1981] 1 F.C. 346 (C.A.), at page 406, a decision reversed in appeal but on very different grounds.)
(b) In the second branch of their argument that consent of the Band was required for a lease under subsection 58(3), the appellants speak of "an inci dent of the Crown's fiduciary obligations arising out of the inherent nature of Indian title", and they quote the Supreme Court decision in Guerin
et al. v. The Queen et al., [1984] 2 S.C.R. 335 as their authority.
I will say first that I have some difficulty in understanding how that submission can have a real role to play in the context of the action as institut ed. The relief sought is not damages but a declara tion that the lease is null and of no effect. I fail to see how the breach of a fiduciary duty on the part of the Minister in entering into a contract could have the effect of nullifying the contract itself when all legal requirements for its execution have been complied with. But in any event, I simply do not think that the Crown, when acting under subsection 58(3), is under any fiduciary obligation to the Band. The Guerin case was concerned with unallotted reserve lands which had been surren dered to the Crown for the purpose of a long term lease or a sale under favourable conditions to the Band, and as I read the judgment it is because of all of these circumstances that a duty, in the nature of a fiduciary duty, could be said to have arisen: indeed, it was the very interest of the Band with which the Minister had been entrusted as a result of the surrender and it was that interest he was dealing with in alienating the lands. When a lease is entered into pursuant to subsection 58(3), the circumstances are different altogether: no alienation is contemplated, the right to be trans ferred temporarily is the right to use which belongs to the individual Indian in possession and no interest of the Band can be affected (I repeat that of course I am talking about interest in a technical and legal sense; it is obvious that morally speaking the Band may always be concerned by the behaviour and attitude of its members). In my view, when he acts under subsection 58(3), the duty of the Minister is, so to speak, only toward the law: he cannot go beyond the power granted to him, which he would do if, under the guise of a lease, he was to proceed to what would be, for all practical purposes, an alienation of the land (cer- tainly not the case here, the lease being for a term of 21 years with no special renewal clause); and he cannot let extraneous consideration enter into the exercise of his discretion, which would be the case if he was to take into account anything other than the benefit of the Indian in lawful possession of the
land and at whose request he is acting. The duty of the Minister is simply not toward the Band.
The conclusion to me is clear. Bearing in mind the structure of the Indian Act and the clear wording of subsection 58(3) thereof, there is no basis for thinking that the Minister is required to secure the consent of the Band or the Band council before executing a lease such as the one here in question. It seems that the Act which has been so much criticized for its paternalistic spirit has nevertheless seen fit to give the individual member of a Band a certain autonomy, a relative indepen dence from the dicta of his Band council, when it comes to the exercise of his entrepreneurship and the development of his land.
This appeal has, in my view, no merit and should be dismissed with costs.
HEALD J.: I concur.
* * *
The following are the reasons for judgment rendered in English by
MACGUIGAN J.: I agree with the disposition of this appeal proposed by my colleague, Mr. Justice Marceau, and also with his reasons for that dispo sition. My comments are therefore of a supplemen tary nature.
This case embodies a new version of the age-old problem of the person and the state, as particula rized in the microcosm of an Indian community under the Indian Act ("the Act").
The appellants challenge the validity of a lease entered into between the Crown as lessor and a numbered Ontario corporation as lessee, made for the benefit of the Indian lawfully in possession of the land in question ("the locatee") and upon his application under subsection 58(3) of the Act. Although the sole shareholders of the numbered corporation are the locatee and his wife, the case was argued on the basis that subsection 58(3) of the Act allows the Minister to grant a lease to a non-Indian. The challenge to the lease was based
solely on whether the Crown was entitled to grant such a lease without the consent of the Indian Band, which had not been obtained here.
The locatee received a notice of entitlement to the lands in 1973 and since that time had them cleared and surveyed, and also arranged for feasi bility studies for the development of a full service marina. Ministry officials having suggested that a corporate lease was the most appropriate vehicle for his development purposes, he made an applica tion for a 21-year lease on April 6, 1982, which was approved by the Minister on December 9, 1983.
The appellants admitted in argument that there are two plausible interpretations of subsection 58(3): the first, for which they contended on the basis of the overall context of the statute, is that, since subsection 58(1), which requires the consent of the Band council, deals with reserve land that is uncultivated or unused, the powers of the Minister in the absence of consultation under subsection 58(3) must needs be limited to reserve land that is cultivated or used; the second, which was adopted by Cullen J. at trial, is that subsection 58(3) has application in any situation where the locatee makes application as opposed to the ministerially initiated situations covered by subsection 58(1).
In my view, the appellants are entirely right in contending that the words of section 58 cannot be interpreted outside of the context of the Act as a whole. Turning to the scheme of the Act, then, as the appellants view it, we encounter the fundamen tal principle that a reserve must be preserved intact for the whole Band, regardless of the wishes of any individual Indian as to the disposition of the allotment of which he is a locatee. The Crown has a fiduciary duty with respect to the whole Band, which could not be fulfilled if the effect of subsec tion 58(3) were to allow the Crown and the locatee
to by-pass the Band council in all circumstances. Such an unlimited power would fail to protect the Indian collectivity. The appellants also argued that, increasingly, it is accepted that the spirit of native culture is a communal rather than an individualistic one, and that the Act should be interpreted to this effect as fully as possible.
The limitations on individual Indians, in favour of the collectivity, are well set out by Judson J. for the majority in The Queen v. Devereux, [1965] S.C.R. 567, at page 572 a decision on which the appellants rely:
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.
Reserve lands are set apart for and inalienable by the band and its members apart from express statutory provisions even when allocated to individual Indians. By definition (s. 2(1) (o)) "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.
By s. 2(1) (a), "band" means a body of Indians
(i) for whose use and benefit in common, lands, the legal title to which is vested in Her Majesty, have been set apart...
By s. 18, reserves are to be held for the use and benefit of Indians. They are not subject to seizure under legal process (s. 29). By s. 37, they cannot be sold, alienated, leased or otherwise disposed of, except where the Act specially provides, until they have been surrendered to the Crown by the band for whose use and benefit in common the reserve was set apart. There is no right to possession and occupation acquired by devise or descent in a person who is not entitled to reside on the reserve (s. 50, subs. (1)).
One of the exceptions is that the Minister may lease for the benefit of any Indian upon his application for that purpose, the land of which he is lawfully in possession without the land being surrendered (s. 58(3)). It was under this section that the
Minister had the power to make the ten-year lease to the defendant which expired on November 30, 1960. [Emphasis added.]
However, even in the course of this analysis, which might otherwise support the appellants' case, Judson J. describes the subsection in question here, 58(3), as an "exception" to the generally communal approach. Admittedly, it was used in the Devereux case to grant a lease for land that had been cultivated and used, so that the conclu sion, which I take to be a judgment on fact and law together, is not a binding precedent; but its reasoning is nevertheless not helpful to the appel lants in the final analysis, nor is the scheme of the statute itself in any way decisive in the appellants' favour.
Moreover, the other cases cited by the appel lants are not determinative of the point in issue. Guerin et al. v. The Queen et al., [1984] 2 S.C.R. 335; (1985), 55 N.R. 161 and Kruger v. The Queen, [1986] 1 F.C. 3; (1985), 17 D.L.R. (4th) 591 (C.A.) both support the notion of an equitable or fiduciary duty in the Crown to deal with Indian lands for the benefit of Indians. But, as words of Dickson J. (as he then was) in the Guerin case supra, at pages 383 S.C.R.; 174-175 N.R., make clear, this is in the context of preventing exploita tion of Indians by others:
The purpose of this surrender [in section 37] is clearly to interpose the Crown between the Indians and prospective pur chasers or lessees of their land, so as to prevent the Indians from being exploited.
Is there such a danger of exploitation of Indians in a lease for Indian lands, for the benefit and at the request of an Indian locatee, to a corporation with exclusively Indian shareholders that the Crown alone, as opposed to the Crown with the consent of the Band council, cannot adequately safeguard against it?
The appellants' analysis of the scheme of the Act can just as easily be turned around. The limitation on alienation by locatees of allotted lands is itself limited to alienation strictly under stood. It does not extend to one-year permits to non-Indians "to occupy or use a reserve or to
reside or otherwise exercise rights on a reserve" (subsection 28(2)). It is also common ground that it does not extend to longer leases under subsection 58(3) where the land is cultivated and used. The most that can be said for the appellants' argument is that the limitation on individual alienation might be extended by analogy. But so might the absence of limitation in the opposite instances. In plain matter of fact, neither the scheme of the Act nor the case law is decisive.
Should analogy then be drawn to the community principle or to the personal principle? In the absence of any clear guide from statute or prece dent, a court must I believe look for guidance to the words in the preamble of the Constitution Act, 1867 [30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5] (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 1)] that Canada is to have "a Constitution similar in Principle to that of the United Kingdom".
Rand J. made bold to say in Saumur v. City of Quebec, [1953] 2 S.C.R. 299, at page 329 that:
Strictly speaking, civil rights arise from positive law; but freedom of speech, religion and the inviolability of the person, are original freedoms which are at once the necessary attributes and modes of self-expression of human beings and the primary conditions of their community life within a legal order. It is in the circumscription of these liberties by the creation of civil rights in persons who may be injured by their exercise, and by the sanctions of public law, that the positive law operates. What we realize is the residue inside that periphery.
Abbott J. went further in obiter dicta in Switzman v. Elbling and Attorney-General of Quebec, [1957] S.C.R. 285, at page 328:
Although it is not necessary, of course, to determine this question for purposes of the present appeal, the Canadian constitution being declared to be similar in principle to that of the United Kingdom, I am also of opinion that as our constitu tional Act now stands, Parliament itself could not abrogate this right of discussion and debate.
This is similar in approach to the Western tradi tion succinctly expressed by the French philoso pher Jacques Maritain, in Man and the State, Chicago, the University of Chicago Press, 1951, at page 13, "man is by no means for the State. The State is for man."
However, even the more traditional and much more limited view of liberty espoused by A. V. Dicey would in this instance lead to the same result. Although for Dicey the extent of liberty depends upon what is left permissible by law, what is characteristic of the English Constitution is the way in which the courts maintain the traditional sphere of freedom, Introduction to the Study of the Law of the Constitution, 10th ed., 1959 (E. C. S. Wade), page 201:
Where ... [as in England] the right to individual freedom is part of the constitution because it is inherent in the ordinary law of the land, the right is one which can hardly be destroyed without a thorough revolution in the institutions and manners of the nation.
Even on this interpretation, the freedom of the individual person in Canada, with a Constitution similar in principle to that of the United Kingdom, is prior to the exigencies of the community.
In fact, where group rights are, exceptionally, given priority, the Canadian Constitution so pro vides specifically. Education rights possessed by "any Class of Persons ... in the Province at the Union" are maintained by section 93 of the Con stitution Act, 1867 and by section 29 of the Con stitution Act, 1982 [Schedule B, Canada Act 1982, 1982, c. 11 (U.K.)]. Language rights are protected by section 133 of the 1867 Act and under sections 16-22 of the 1982 Act. In the latter Act affirmative action programs are protected by section 15 and minority language education rights by section 23. The Canadian Charter of Rights and Freedoms [being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.)] is itself a fundamental affirmation of the rights and freedoms of the individual person. In sum, in the absence of legal provisions to the contrary, the interests of individual persons will be deemed to have precedence over collective rights.
In the absence of law to the contrary, this must be as true of Indian Canadians as of others.
The appellants' final argument was that the Indian Act must be interpreted in the light of the preference of Indian culture for group rights. Unfortunately for this contention, there is no evi dence in the record to establish it or indeed with respect to Indian culture at all, and it is not a matter of which a court could simply take judicial notice.
Finally, it is highly material that the valid con cerns of the Indian community against adverse land use are well protected by its powers under paragraph 81(g). The fact that the Band council did not choose to exercise its zoning powers and probably cannot now do so retroactively is no reason to create a broader alternative right.
 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.