Federal Court - Christian Aboriginal Infrastructure Developments ...

Federal Court - Christian Aboriginal Infrastructure Developments ... Federal Court - Christian Aboriginal Infrastructure Developments ...

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Page: 186 Protect yourself and the director’s position, I do not feel we presently deserve, through inaction, the same. Take care. (Emphasis added) [729] In a memorandum written by Ms. Guscott on June 8, 1998, entered as Exhibit P-79, Tab 72, she expressed frustration with the criticisms of her staff. She also acknowledged that by the time SYFC gets its CTP it will have been a four month process. In her signed handwritten notes she states: 2010 FC 495 (CanLII) In an effort to move forward, we decided to have a public meeting so the company etc could address ‘significant’ concerns of public, gov’t, FN’s, key stakeholders etc. I have a meeting with Justice at 2:30 pm to again have them give me their best legal advice on our process, should we be subject to ‘any’ challenge. (Emphasis in original) [730] This foresight of liability continued as can be seen in Exhibit P-44. In this memorandum Mr. Ballantyne, in commenting on the availability of wood supply, questions when SYFC should be informed and says: Given that South Yukon Forest Corporation is planning a $17 million upgrade, you should prepare a strategy in the short term for how we should break the news to them, that there isn’t enough wood. You might also consider with Justice the ramifications of not advising the company prior to their planned expansion. (Emphasis added) [731] Acknowledgement of the risk of legal liability for the Department’s conduct was also expressed in a report completed by KPMG on July 18, 2000 for DIAND. This report was titled “Yukon Timber Permit Process” (the “KPMG Report”) and was entered as Exhibit P-47.

Page: 187 [732] Similarly, Mr. Loeks advised the Department that there would be “vicious recriminations if they [SYFC] collapse because government takes another half-year to provide planning certainty”. This warning illustrates that the Department knew that there was a possibility of SYFC failing as a result of the inordinate delay in implementing long-term tenure. This warning also demonstrates that the Department had notice that there would be consequences if such a collapse occurred. 2010 FC 495 (CanLII) [733] It is my finding that throughout the course of this relationship, there was reasonable foreseeability of harm, or actual foresight of harm, flowing to the Plaintiffs if CTPs were issued negligently or if the implementation of the long-term tenure was inordinately delayed. (c) Conclusion on Prima Facie Duty of Care [734] I am satisfied that the Plaintiffs have shown that the Defendant owed them a prima facie duty of care, arising from the close relationship and foreseeability of harm. The relationship was direct and proximate. The mill needed wood to be successful. The Department needed a mill to provide economic development of a forest industry and the Department controlled access to the wood supply. The evidence I have mentioned proves the relationship. There is further evidence in the record which supports this conclusion. [735] The duty of care arose in relation to LPL in 1997 following the “due diligence” meeting in Whitehorse in the summer of 1997 and I so find.

Page: 186<br />

Protect yourself and the director’s position, I do not feel we presently<br />

deserve, through inaction, the same. Take care.<br />

(Emphasis added)<br />

[729] In a memorandum written by Ms. Guscott on June 8, 1998, entered as Exhibit P-79, Tab 72,<br />

she expressed frustration with the criticisms of her staff. She also acknowledged that by the time<br />

SYFC gets its CTP it will have been a four month process. In her signed handwritten notes she<br />

states:<br />

2010 FC 495 (CanLII)<br />

In an effort to move forward, we decided to have a public meeting so<br />

the company etc could address ‘significant’ concerns of public,<br />

gov’t, FN’s, key stakeholders etc. I have a meeting with Justice at<br />

2:30 pm to again have them give me their best legal advice on our<br />

process, should we be subject to ‘any’ challenge.<br />

(Emphasis in original)<br />

[730] This foresight of liability continued as can be seen in Exhibit P-44. In this memorandum Mr.<br />

Ballantyne, in commenting on the availability of wood supply, questions when SYFC should be<br />

informed and says:<br />

Given that South Yukon Forest Corporation is planning a $17 million<br />

upgrade, you should prepare a strategy in the short term for how we<br />

should break the news to them, that there isn’t enough wood. You<br />

might also consider with Justice the ramifications of not advising the<br />

company prior to their planned expansion.<br />

(Emphasis added)<br />

[731] Acknowledgement of the risk of legal liability for the Department’s conduct was also<br />

expressed in a report completed by KPMG on July 18, 2000 for DIAND. This report was titled<br />

“Yukon Timber Permit Process” (the “KPMG Report”) and was entered as Exhibit P-47.

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