Federal Court - Christian Aboriginal Infrastructure Developments ...

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

22.01.2015 Views

Page: 246 [936] The Defendant can avoid this prima facie duty of care by policy considerations such as indeterminate liability; see Hercules Managements. Further, there is no liability for the policy decisions of government; see Premakumaran, at para. 20. [937] As I have discussed above, there are no policy considerations that should exempt the Defendant from the prima facie duty of care. There was no indeterminate liability as this was a 2010 FC 495 (CanLII) specific representation made at a scheduled meeting, to two specific parties. [938] The Defendant had a policy of encouraging economic development in the forest industry. The decision to have a system of long-term tenure is also a policy decision. This action is not a challenge to a political or legislative decision. On the facts of this case, I find that the representation made on July 15, 1997 was the implementation of the Defendant’s policies, and was not a policy decision in and of itself. The implementation of a policy is an operational decision and not exempt from a duty of care. (ii) The Representation [939] The Plaintiffs claim that the Defendant made a representation that if a mill were built, an adequate supply for the operation of that mill would be made available. [940] According to the evidence adduced, this representation was made at the “due diligence” meeting held on July 15, 1997 when Mr. Alan Kerr and Mr. Brian Kerr, on behalf of LPL, and Mr. Spencer and Mr. Fehr went to Whitehorse to meet with representatives of DIAND to discuss the

Page: 247 proposed mill project. Mr. Monty and Mr. Gladstone attended this meeting on behalf of DIAND. Only Mr. Monty testified at trial about this meeting, on behalf of DIAND. [941] The representation at that time, that is July 15, 1997, was made to LPL. SYFC was not incorporated until some months later. However, the relationship between LPL and the Defendant had begun in April 1996, with the first meeting between LPL and employees of DIAND in 2010 FC 495 (CanLII) Whitehorse on April 18, 1996. As I have said before, that relationship was encouraged and nourished over the ensuing months by DIAND. It is unnecessary for me to find any “consummation” of the relationship, it was a continuing relationship with a deepening alignment of interests between LPL and the Defendant. [942] While the letter of March 13, 1997 to LPL from Mr. Irwin, then the Minister, figures as part of the background and context, the meeting in July 1997 was critical. It was on the basis of that meeting that Mr. Spencer and Mr. Fehr, on behalf of the B.I.D. Group, decided to participate. [943] Mr. Spencer testified that by this time, he had already looked at business pro formas to see if the project was worth the time and investment. In his opinion, there were two critical benchmarks that had to be met in deciding to go forward. They were log supply and price, and lumber recovery and market. Although the B.I.D. Group was interested in the project, there was lingering concern about the security of fibre.

Page: 246<br />

[936] The Defendant can avoid this prima facie duty of care by policy considerations such as<br />

indeterminate liability; see Hercules Managements. Further, there is no liability for the policy<br />

decisions of government; see Premakumaran, at para. 20.<br />

[937] As I have discussed above, there are no policy considerations that should exempt the<br />

Defendant from the prima facie duty of care. There was no indeterminate liability as this was a<br />

2010 FC 495 (CanLII)<br />

specific representation made at a scheduled meeting, to two specific parties.<br />

[938] The Defendant had a policy of encouraging economic development in the forest industry.<br />

The decision to have a system of long-term tenure is also a policy decision. This action is not a<br />

challenge to a political or legislative decision. On the facts of this case, I find that the representation<br />

made on July 15, 1997 was the implementation of the Defendant’s policies, and was not a policy<br />

decision in and of itself. The implementation of a policy is an operational decision and not exempt<br />

from a duty of care.<br />

(ii)<br />

The Representation<br />

[939] The Plaintiffs claim that the Defendant made a representation that if a mill were built, an<br />

adequate supply for the operation of that mill would be made available.<br />

[940] According to the evidence adduced, this representation was made at the “due diligence”<br />

meeting held on July 15, 1997 when Mr. Alan Kerr and Mr. Brian Kerr, on behalf of LPL, and Mr.<br />

Spencer and Mr. Fehr went to Whitehorse to meet with representatives of DIAND to discuss the

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!