Judgments

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Decision Content

T-2283-86
Violet Johnson, Norman George, Arnold James and Wilfred Andrews, each on their own behalf and on behalf of all the members of the Muchalaht Indian Band, and the Muchalaht Indian Band and Benny Jack, Tony Dick, August Johnson, Nick Howard and Norman George, each on their own behalf and on behalf of all of the members of the Mowachaht Indian Band, and the Mowachaht Indian Band (Plaintiffs)
v.
Her Majesty the Queen, C.I.P. Inc. and Petro Canada Inc. (Defendants)
INDEXED AS: JOHNSON V. CANADA (T.D.)
Trial Division, Reed J.—Vancouver, August 29 and September 7, 1989.
Practice — Parties — Discontinuance — Action for dam ages resulting from trespass to Indian reserve lands — Application for leave to discontinue action by named plaintiffs in both individual and representative capacities — Review of case law revealing uncertainty as to whether band having authority to bind all members when suing in own name for trespass to reserve lands — Question need not be determined here — Court should not exercise discretion to allow discon tinuance where purpose to avoid discovery — Possibility of prejudice to defendants in light of uncertainty in case law.
This was an application by the individual plaintiffs for leave to discontinue their actions for damages due to trespass to reserve lands both as individuals and in their representative capacities, leaving only the two bands as plaintiffs. They hoped to avoid discovery under Federal Court Rule 465(1)(a) of the individuals and band members whom they represented. The defendants have not asserted that all such individuals are subject to discovery under Rule 465(1)(a), but have filed a motion for further and better discovery under Rule 465(19). The defendants objected to the discontinuance on the ground that it might affect the ability of any judgment to bind all members of the band.
Held, leave should be denied.
The practice has been to bring such actions as representative actions as well as in the name of the band itself, since there is some uncertainty as to when an Indian band can sue and be sued. An Indian band is not a corporate body, although it does have certain rights and obligations under the Indian Act. The status of a band under that Act is such as to give it a capacity to sue and be sued in a manner similar to that of other
unincorporated entities. A review of the case law leads to the conclusion that the question of the authority of a band to bind all band members remains unsettled, particularly when the question is one of trespass to reserve lands. That question need not, however, be decided in this application. The Court should not exercise its discretion to allow a discontinuance where the motive is to avoid discovery, and there is some uncertainty as to whether a discontinuance would prejudice the defendants. It may be that the judgment in an action framed in the name of the bands alone would not bind all band members.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
British Columbia Supreme Court Rules, RR. 5(11),
(12),(13), 27(8).
Canada Labour Code, R.S.C. 1970, c. L-I.
Federal Court Rules, C.R.C., c. 663, RR. 406(3),
465(1)(a),(b),(19).
Indian Act, R.S.C., 1985, c. 1-5, ss. 30, 31.
Ontario Supreme and District Courts Rules of Civil
Procedure, R. 31.03(8),(9).
CASES JUDICIALLY CONSIDERED
CONSIDERED:
Mintuck v. Valley River Band No. 63A, et al., [1976] 4 W.W.R. 543 (Man. Q.B.); affd. (1977), 75 D.L.R. (3d) 589; [1977] 2 W.W.R. 309; 2 C.C.L.T. 1 (Man. C.A.); International Brotherhood of Teamsters v. Therien, [1960] S.C.R. 265; 22 D.L.R. (2d) I; Mathias et al v. Findlay, [1978] 4 W.W.R. 653 (B.C.S.C.); Public Ser vice Alliance of Canada v. Francis et al., [1982] 2 S.C.R. 72; 139 D.L.R. (3d) 9; (1982), 44 N.R. 136; 82 C.L.L.C. 14,208; [1982] 4 C.N.L.R. 94; R. v. Peter Ballantyne Indian Band (1985), 45 Sask. R. 33 (Q.B.); Martin v. B.C. (Govt.) (1986), 3 B.C.L.R. (2d) 60; [1986] 3 C.N.L.R. 84 (S.C.); Kucey v. Peter Ballantyne Band Council, [1987] 3 W.W.R. 438; 16 C.P.C. (2d) 59; (1987), 57 Sask. R. 29 (C.A.); Oregon Jack Creek Indian Band Chief v. C.N.R. (1989), 56 D.L.R. (4th) 404; 34 B.C.L.R. (2d) 344 (C.A.).
REFERRED TO:
Markt & Co., LW. v. Knight Steamship Company; Sale & Frazar v. Knight Steamship Company, [1910] 2 K.B. 1021 (C.A.); Regina v. Cochrane, [1977] 3 W.W.R. 660 (Man. Co. Ct.).
COUNSEL:
J. Woodward for plaintiffs.
J. Raymond Pollard for defendant, Her
Majesty the Queen.
J. W. Marquardt for defendants C.I.P. Inc. and Petro Canada Inc.
SOLICITORS:
J. Woodward, Victoria, for plaintiffs. Richards, Buell & Co., Vancouver, for defendant, Her Majesty the Queen.
Campney & Murphy, Vancouver, for defen dants C.I.P. Inc. and Petro Canada Inc.
The following are the reasons for order ren dered in English by
REED J.: The plaintiffs, Violet Johnson, Norman George, Arnold James, Wilfred Andrews, Benny Jack, Tony Dick, August Johnson and Nick Howard bring a motion pursuant to Rule 406(3) [Federal Court Rules, C.R.C., c. 663] for leave to discontinue their actions against the defendants. Rule 406(3) provides:
Rule 406... .
(3) ... a plaintiff may not discontinue an action without leave of the Court; but the Court may, before or after any hearing, upon such terms as to costs, as to bringing any subsequent action, or otherwise, as may seem just, order the action to be discontinued, or any part of the alleged cause of complaint to be struck out.
The individual plaintiffs seek to discontinue their actions as named plaintiffs and to discontinue their representative actions on behalf of all other mem bers of the Muchalaht and Mowachaht Indian bands. The Muchalaht Indian Band and the Mowachaht Indian Band would thereby become the only plaintiffs in this action.
The named plaintiffs seek to discontinue their action as individuals and as representatives of the other band members to avoid the possibility that discovery might be sought against them. The named plaintiffs are also concerned that discovery might be sought against some of the band mem bers which they represent on the ground that such individuals are parties to this action. Rule 465(1)(a),(6) provides:
Rule 465. (1) ... a party may be examined for discovery ...
(a) if the party is an individual, by questioning the party himself,
(b) if the party is a corporation or any body or group of persons empowered by law to sue or to be sued, either in its own name or in the name of any officer or other person, by questioning any member or officer of such corporation, body or group,
While the Federal Court Rules do not expressly deal with discovery rights in representative actions, it may very well be that the individuals "represent- ed" by the named plaintiffs are subject to discov ery as parties. Or the so-called gap rule (Rule 5) might result in the application of the provisions of the British Columbia Supreme Court Rules: see Rules 5(11), (12) and (13) and 27(8)' of the British Columbia Rules. Alternatively, the dicta in Markt & Co., Ld. v. Knight Steamship Company; Sale & Frazar v. Knight Steamship Company, [1910] 2 K.B. 1021 (C.A.), at page 1039, which was cited to me by counsel, may be relevant to the situation. In any event that question does not have to be decided for the purpose of disposing of this application.
The defendants have not sought to obtain dis covery against the individual plaintiffs or from any of the other band members on the ground that all such individuals are parties to this action. The defendants have not asserted that all such individuals are subject to discovery under Rule 465(1)(a). Nor have the defendants applied under the gap rule for the adoption of provisions similar to those which pertain in the British Columbia Supreme Court. The defendant C.I.P. Inc. has filed a motion for further and better discovery pursuant to Rule 465(19) of the Federal Court Rules. Rule 465(19) provides:
Rule 465... .
' 27(8) Subject to subrule (1l), a person for whose immedi ate benefit an action is brought or defended may be examined for discovery.
For comparison purposes reference can also be made to the Ontario Supreme And District Courts Rules of Civil Proce dure, Rule 31.03 (8) and (9), which contain express provisions respecting discovery in representative actions.
(19) The Court may, for special reason in an exceptional case, in its discretion, order a further examination for discovery after a party or assignor has been examined for discovery under this Rule.
In this regard the defendant C.I.P. Inc. seeks to examine some band members who are described as having been personally involved in the events sur rounding the surrender of the reserve land to which this litigation relates. This motion, pursuant to Rule 465(19), was heard and decided contem poraneously with the present motion.
The defendants do not object to the plaintiffs' request for a discontinuance because of any con cern that such discontinuance would affect the scope of their discovery rights. They object, how ever, because they are concerned that any such discontinuance might affect the ability of any judgment which is rendered to bind all members of the band(s).
The statement of claim alleges that certain reserve lands belonging to the band(s) were not legally surrendered and that consequently the defendants are liable for damages as a result of trespass to those lands. There is no doubt that the practice in actions such as the present has been to bring them in the form of representative actions as well as in the name of the band itself. There is in the jurisprudence, as it presently exists, some uncertainty as to when and whether an Indian band can sue or be sued. There is uncertainty as to the effectiveness of any action brought in the name of, or against a band to bind all members of that band. This is especially the case when the action involves trespass to reserve lands.
An Indian band is not a corporate body although it does have certain rights and obligations by virtue of the provisions of the Indian Act, R.S.C., 1985, c. I-5. It seems clear that the status of an Indian Band under that Act (or at least the status of the Indian band council under the Act) is such as to give that entity a certain capacity to sue and be sued in a manner similar to that in which other unincorporated entities have been held to have the capacity to sue and be sued. The extent to which an action brought or defended in the name
of a band alone binds all members of that band, however, particularly when the question in issue is one of trespass against reserve lands is not clear. A review of the jurisprudence is necessary.
In Mintuck v. Valley River Band No. 63A, et al., [1976] 4 W.W.R. 543 (Man. Q.B.), Solomon J. heard an action in tort brought against an Indian band and four personal defendants. The action was successful and damages were awarded against those parties. The four individuals were the chief and council of the Indian band. These individuals had passed a council resolution pur porting to cancel a lease the plaintiff held on certain reserve lands, a lease which a former band council had approved. The lease itself was with the Crown as is required by the Indian Act. The actions of passing the council resolution purported ly cancelling the lease rights and other actions taken by the chief and the council members were held to constitute interference with the contractual rights of the plaintiff. Their actions in this regard were also held to have constituted encouragement to other band members to harrass the plaintiff in his use of the leased lands. After the case had proceeded through discovery and trial, Solomon J. had to determine whether or not the band was a suable entity under the Manitoba Queen's Bench Rules or whether an order should have been obtained from the Court requiring the defendants to defend in a representative capacity on behalf of all members of the band. An order requiring a defendant to defend in a representative capacity could have been obtained under Rule 58 of the Manitoba Queen's Bench Rules. Solomon J. was not convinced that the Indian band in question was a suable entity under the Manitoba rules but he cited Rule 156 which allows pleadings to be amended at any time. He issued a nunc pro tunc order requiring the four named defendants to be defendants in a representative capacity. They were to be considered as having defended the action, both on their own behalf and on behalf of all other band members, except the plaintiff. On appeal, (1977), 75 D.L.R. (3d) 589; [1977] 2 W.W.R. 309; 2 C.C.L.T. 1 (Man. C.A.), Solomon J.'s decision was upheld although Guy J.A. by way of dicta expressed the view that an Indian band might very well be a suable entity without the
necessity for a representative order under Rule 58 being made. He cited the Supreme Court decision in International Brotherhood of Teamsters v. Therien, [1960] S.C.R. 265; 22 D.L.R. (2d) 1 at pages 277-278 S.C.R. That case dealt with the liability of a labour union in a tort claim. Part of the Therien decision [at page 278 S.C.R.] quoted by Guy J.A. reads as follows:
The legislature, by giving the right [to the union] to act as agent for others and to contract on their behalf, has given them two of the essential qualities of a corporation in respect of liability for tort since a corporation can only act by its agents.
... In the absence of anything to show a contrary intention— and there is nothing here—the legislature must be taken to have intended that the creature of the statute shall have the same duties and that its funds shall be subject to the same liabilities as the general law would impose on a private individual doing the same thing. [Underlining added.]
In Mathias et al v. Findlay, [1978] 4 W.W.R. 653 (B.C.S.C.), Berger J. granted an interlocutory injunction requiring a member of an Indian band to cease trespassing on lands held in common by the band. The application for an injunction was sought by the chief and band council members suing in a representative capacity on behalf of all members of the band. Berger J., at page 655, wrote:
Thus the band has the right to bring an action. The appropri ate way of proceeding is by a representative action brought by members of the band council. Lindley v. Derrickson, B.C., Anderson J., 30th March 1976 (not yet reported). See also Mintuck v. Valley River Band No. 63A .. .
In Public Service Alliance of Canada v. Francis et al., [1982] 2 S.C.R. 72; 139 D.L.R. (3d) 9; (1982), 44 N.R. 136; 82 C.L.L.C. 14,208; [1982] 4 C.N.L.R. 94, it was held that an Indian band council was an employer under the Canada Labour Code [R.S.C. 1970, c. L-1]. The Court stated, at page 78 S.C.R.:
The Band Council is a creature of the Indian Act. It is given power to enact by-laws for the enforcement of which it is necessary to employ staff. In fact, the Council does engage employees to do work for it and it pays them. In view of these circumstances, for the purposes of the Code, it is my opinion that the Council could properly be considered to be an employ er within the meaning of that Act. 1 am fortified in that conclusion by the provision contained in s. 27(7) of the Inter pretation Act, R.S.C. 1970, c. 1-23, that words in the singular include the plural. The word "person" in the Code therefore includes "persons". The Council is a designated body of persons which is given a specific role under the provisions of the Indian Act.
In R. v. Peter Ballantyne Indian Band (1985), 45 Sask. R. 33 (Q.B.) an Indian band was held liable for a traffic violation as "owner" of a motor vehicle. The Court held that the Indian Act makes it clear that an Indian "band" is a statutory entity consisting of specifically defined "persons" with wide powers of ownership and regulation over its members. Thus it was conceded that the "Peter Ballantyne Band" was clearly an entity that could own property including motor vehicles. The Court held that since the band had applied as "owner" for motor vehicle registration and the consequent authorization to operate the vehicle on the road it could not, on conviction for a traffic violation, hide behind the argument that it was not a suable person.
In Martin v. B.C. (Govt.) (1986), 3 B.C.L.R. (2d) 60; [ 1986] 3 C.N.L.R. 84 (S.C.), Mr. Justice McEachern refused an amendment to pleadings which would have had one named plaintiff suing on behalf of two Indian bands. The litigation in question was brought by the plaintiffs to establish aboriginal or other rights over Meares Island. At pages 65-66 B.C.L.R., Mr. Justice McEachern stated:
It is an open question whether Indian bands are juridical persons capable of suing and being sued even though bands are recognized by the Indian Act, R.S.C. 1970, c. 1-6: Calder v. A.G.B.C., supra; Mintuck v. Valley River Band No. 63A, [1977] 2 W.W.R. 309, 2 C.C.L.T. 1, 75 D.L.R. (3d) 589 (Man. C.A.); Mathias v. Findlay, [1978] 4 W.W.R. 653 (B.C.S.C.); Cache Creek Motors Ltd. v. Porter (1979), 14 B.C.L.R. 13 (Co. Ct.); and King v. Gull Bay Indian Band (1983), 38 C.P.C. 1 (Ont. Dist. Ct.).
Mr. Plant's problem with all this is that these amendments, if made, delete the individual members of the bands, tribes or nations from the litigation and, if the action should fail on any ground, it may have to be litigated again in order to settle the rights of the individual members. In my view, all necessary steps must be taken to ensure the members will be bound by the result of this litigation.
As I said to counsel during the hearing, we are in a problem- solving exercise on these applications and I have the view that the best that can be done is to cover all bases by ensuring that all proper interests are represented and to leave it to the trial judge to decide on the evidence whether the rights asserted in the action, if any, belong to the bands or to some other entities or to the members. I therefore suggest, subject to the agree ment of counsel and to the consent of the plaintiffs' representa tives, a style of cause as follows:
MOSES MARTIN, suing on his own behalf and on behalf of the CLAYOQUOT BAND OF INDIANS and on behalf of all other members of the said band, its tribes and nations.
There will have to be a similar description for the Ahousaht band when a representative is nominated and a similar descrip tion of such plaintiffs. Then, as I have said, the trial judge will have to specify to whom the benefits of any judgment will accrue.
In Kucey v. Peter Ballantyne Band Council, [1987] 3 W.W.R. 438; 16 C.P.C. (2d) 59; (1987), 57 Sask. R. 29 (C.A.), it was held that since band councils are given significant rights to contract and to incur legal obligations, they may sue and be sued in their own name. The Court held that such entities have an existence in law which is beyond that of their individual members. The report of that case does not indicate the nature of the suit against the band council.
I have not made any reference to Regina v. Cochrane, [1977] 3 W.W.R. 660 (Man. Co. Ct.), which was cited to me, because I do not think it advances the analysis of the issue in any way.
Lastly, the issue was raised again in Oregon Jack Creek Indian Band Chief v. C.N.R. (1989), 56 D.L.R. (4th) 404; 34 B.C.L.R. (2d) 344 (C.A.). In that case, the plaintiffs allege that the defendants are liable for trespasses committed on Indian lands and against Indian fisheries. The plaintiffs, who are thirty-six Indian chiefs, com menced the action by suing on their own behalf and on behalf of all the members of their respec tive bands. The plaintiffs then sought to broaden the style of cause so as to include not only a claim on behalf of all of the members of each band but
also a claim on behalf of all the members of three nations as well. The Chambers Judge held that the proper plaintiff under the Indian Act was the band and that the proper plaintiff in the case of an aboriginal claim was the nation. He held that such claims were derivative in nature and could only be advanced under the authority of the band or nation respectively. There was no evidence that the plaintiffs had the authority of either the band or the nation. The Chambers Judge would appear to have held that the plaintiffs' action could not succeed unless they could establish that the nation on whose behalf they purported to sue still existed. The Court of Appeal overruled the Chambers Judge and allowed both claims to be proceeded with in the representative fashion in which the plaintiffs sought to bring them. The Court, stated at pages 348-349 B.C.L.R.:
Central to this question is whether the rights, which it is said the C.N.R. will violate, are vested in the bands and in the nations, or whether they are held for the benefit of the mem bers of the bands and of the nations. The chambers judge held, and the defendants submit, that if rights exist they must be vested in the bands and in the nations, and can only be enforced in a derivative action with the authority of the legal entity which holds the rights.
It is necessary to consider the difference between a class action which is derivative in nature, and a representative action by persons having the same interest in the subject of the litigation. Derivative type class actions are those in which a wrong is done to the entity to which the members belong. Such an action may be brought by a member or members, but it is brought on behalf of the entity. A representative action can be brought by persons asserting a common right, and even where persons may have been wronged in their individual capacity. A detailed discussion of the concept of the representative action is found in Naken v. Gen. Motors of Can. Ltd., [1983] 1 S.C.R. 72, 32 C.P.C. 138, 144 D.L.R. (3d) 385, 46 N.R. 139 [Ont.], commencing at p. 78.
It is common ground that the rights being asserted are commu nal in nature. In Joe v. Findlay, 26 B.C.L.R. 376, [1981] 3 W.W.R. 60, 122 D.L.R. (3d) 377 at 379, this court held that the statutory right of use and benefit of reserve lands was a collective right in common conferred upon and accruing to the band members as a body and not to the band members individually.
In Twinn v. Can., [1987] 2 F.C. 450, 6 F.T.R. (T.D.), the plaintiffs sued on their own behalf and on behalf of all other members of their respective bands. The motion to strike out the statement of claim on the basis that the plaintiffs were not
entitled to bring the action as a class action was dismissed. Strayer J. said at p. 462:
Basically, aboriginal rights are communal rights and it is therefore appropriate that those persons who claim to belong to the relevant community to which the right adheres should be joined as plaintiffs in an action to vindicate those rights: see Attorney General for Ontario v. Bear Island Foundation et al. (1984), 15 D.L.R. (4th) 321 (Ont. H.C.), at pages 331-332.
In A.G. Ont. v. Bear Island Foundation; Potts v. A.G. Ont., 49 O.R. (2d) 353, 15 D.L.R. (4th) 321, [1985] 1 C.N.L.R. 1 (H.C.), a defence of aboriginal rights was advanced by three individual plaintiffs on behalf of themselves and on behalf of all other members of a tribe, and all other members of a registered band which constituted a sub-group of the tribe. Steele J. concluded that the registered band, not being an incorporated body, was properly represented by its chief and the other members. The tribe was properly represented by persons alleg ing themselves to be members thereof.
The Indian Act recognizes the communal nature of the rights protected by the Act. The band, by definition, is a "body of Indians ... for whose use and benefit in common, lands ... have been set apart" (s. 2(1) "band"(a)). Powers conferred upon a band are exercised with the consent of its members (s. 2(3)). A surrender of lands is void unless assented to by a majority of the members (s. 39). The right of an Indian or a band (a body of Indians) to seek a right or remedy in trespass is preserved by s. 31(3) of the Act. In short, the power rests with the membership.
It is not necessary in this case to decide in what situations the band may be regarded as a legal entity for the purpose of commencing an action. It is sufficent to observe that a repre sentative action may be brought by the members of the band council (Mathias v. Findlay, [1978] 4 W.W.R. 653 (S.C.)), or by a chief of a band for himself, and the majority of his band (Pap-Wee-In v. Beaudry, [1933] 1 W.W.R. 138 (Sask. K.B.)).
The question in this case is not whether a band, through the members of its council, can bring an action in trespass, but whether the chief of a band (a group of Indians) can bring a representative action on behalf of himself and all other mem bers of the band to enforce their communal rights. The rights of members of a band on behalf of themselves, and other members of the band to bring an action in trespass was upheld in Custer v. Hudson's Bay Co. Dev. Ltd., [1983] 1 W.W.R. 566 at 569, 141 D.L.R. (3d) 722, [1982] 3 C.N.L.R. 30, [1983] 1 C.N.L.R. 1, 20 Sask. R. 89 (Q.B.) (per Cameron J.A. relying on s. 31(3) of the Indian Act).
The Pasco decision is presently under appeal to the Supreme Court of Canada.
In the light of all this counsel for the plaintiffs now brings an application to have the individuals named removed as plaintiffs both in so far as they are suing on their own behalf and in so far as they are suing in a representative capacity. He does so for the purpose of avoiding a discovery application which is not now and never has been made. He argues that the jurisprudence has clearly left open the question as to whether or not a band can sue in its own name, alone, for trespass to reserve lands and thereby bind all band members. He argues that this is the point which should be decided in this application.
I do not agree. While I may agree that the jurisprudence has left open the question of the authority of a band (or band council) to bind all band members (which question has to be deter mined by reference to the relevant provisions of the Indian Act, particularly sections 30 and 31, and by reference to the particular rules of court, in this case the Federal Court Rules), I do not agree that that question need be answered for the pur pose of disposing of this application.
In my view the present situation is simply not a situation where the Court should exercise its dis cretion and allow discontinuance of an action by the plaintiffs. The motive and only motive in seek ing discontinuance is to seek to avoid discovery. The Court should not exercise its discretion in support of that endeavour. For that reason alone, I would refuse to grant the discontinuance sought in this case. There is, in addition, given the unsettled nature of`the jurisprudence, some uncertainty as to whether a discontinuance would prejudice the defendants. It is possible that a judgment given consequent upon an action framed in the name of the band(s) alone would not bind all band mem bers. As Mr. Justice McEachern said in the Martin case, supra, the object at this stage of proceedings should be to cover all bases. To adopt a procedure which is rife with uncertainty and which would increase rather than decrease the
potential for interlocutory litigation is not appro priate.
It is clear that the plaintiffs' claim, as presently framed, is not improper because it is brought both in the name of the band(s) and in the name of the Chief and council members suing in their own right and as representatives of the other band members. At most, the addition of the individual plaintiffs may be redundant. Whatever the out come of the Pasco appeal, the present action has been framed in accordance with a practice that is both appropriate and acceptable under the present law. For the reasons given, the plaintiffs' request to discontinue their individual and representative actions is denied.
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