Federal Court - Christian Aboriginal Infrastructure Developments ...
Federal Court - Christian Aboriginal Infrastructure Developments ... Federal Court - Christian Aboriginal Infrastructure Developments ...
Page: 270 [1024] I find that highly relevant information, that is the Department’s concern that the timber inventory was too high, should have been disclosed to LPL at the July 15, 1997 meeting. It was not. [1025] The evidence is clear that the joint venturers were aware that there were concerns with the timber supply. It was for that exact purpose that this July 1997 “due diligence” meeting occurred. However, as a result of the assurances given at this meeting the decision was made to proceed with 2010 FC 495 (CanLII) the Watson Lake sawmill project. [1026] In considering the evidence, I find that the Plaintiffs became aware in 1998 of the proposed reduction in the harvest ceiling for Y02 and Y03 from 350,000 m 3 per year to 128,000 m 3 per year; see the Response to the Request to Admit and there is other evidence to that effect. I conclude that this state of knowledge is consistent with the failure of the Defendant to reveal their concerns about the inventory. [1027] It is also important to remember that, as I have previously discussed, the Defendant had publicly relied upon the impugned inventory. This public reliance makes the Defendant’s failure to disclose highly relevant information within the exclusive control even more egregious. [1028] Considering that the very purpose of the July 1997 meeting was to determine if timber would be provided to a proposed mill, given the significant investment proposed, and the continually developing proximate relationship with LPL, the Defendant was obliged to have informed LPL that the Department believed that the inventory was too high. The information that
Page: 271 was withheld addressed the nature and extent of the timber inventory. It was insufficient that LPL knew that the inventory could change. [1029] On the facts of this case, I find that there was a concern within the Regional Office that the inventory, as produced in the Sterling Wood report, was too high. As such the Regional Office should have informed LPL of this fact at the July 15, 1997 meeting. The failure to do so breached 2010 FC 495 (CanLII) the standard of care. [1030] This finding is not based on the fact that the Defendant might change the AAC, which is a discretionary policy decision in the authority of the Defendant. My finding is based on the fact that the Defendant had exclusive knowledge that she believed that the inventory was too high. The inventory was relied upon by LPL in formulating its business plans. Just because the AAC is derived from the inventory does not mean that a change in the inventory is a “policy decision” which may be immune from review. [1031] Moreover, I note that Mr. Monty, the only witness for the Defendant who attended the July 1997 meeting, testified that he did not have the authority to make the representation that was made. In light of my findings, that the reliance was foreseeable, that there would be reliance, and that the Defendant knew that LPL was basing its planned business plans on the existing inventory, I find that on the facts of this case that the standard of care was breached.
- Page 219 and 220: Page: 219 [831] Of particular impor
- Page 221 and 222: Page: 221 [840] Mr. Madill appeared
- Page 223 and 224: Page: 223 evidence of the Defendant
- Page 225 and 226: Page: 225 an inference of causation
- Page 227 and 228: Page: 227 [860] The Defendant drew
- Page 229 and 230: Page: 229 [869] This conduct, inclu
- Page 231 and 232: Page: 231 [878] In the result, I fi
- Page 233 and 234: Page: 233 [887] Unfortunately, for
- Page 235 and 236: Page: 235 [897] As I understand the
- Page 237 and 238: Page: 237 [905] Throughout 1998, th
- Page 239 and 240: Page: 239 James Moore. That meeting
- Page 241 and 242: Page: 241 391605 B.C. Ltd. was give
- Page 243 and 244: Page: 243 (3) The representor must
- Page 245 and 246: Page: 245 [932] For the reasons not
- Page 247 and 248: Page: 247 proposed mill project. Mr
- Page 249 and 250: Page: 249 [949] Mr. Fehr’s eviden
- Page 251 and 252: Page: 251 commitments and they’ve
- Page 253 and 254: Page: 253 observations of his manne
- Page 255 and 256: Page: 255 [973] As well, the fact t
- Page 257 and 258: Page: 257 all of its commitments. T
- Page 259 and 260: Page: 259 JUSTICE: Mr. Nault is not
- Page 261 and 262: Page: 261 [996] Moreover, the evide
- Page 263 and 264: Page: 263 (b) Was the representatio
- Page 265 and 266: Page: 265 Thus, where an advising p
- Page 267 and 268: Page: 267 Q. And you understood tho
- Page 269: Page: 269 considering the balance o
- Page 273 and 274: Page: 273 [1037] Was that reliance
- Page 275 and 276: Page: 275 build a mill was consider
- Page 277 and 278: Page: 277 [1052] As a result, I fin
- Page 279 and 280: Page: 279 servants. That was a subj
- Page 281 and 282: Page: 281 [1068] As I understand th
- Page 283 and 284: Page: 283 contract. Liability can a
- Page 285 and 286: Page: 285 [1084] Mr. Alan Kerr and
- Page 287 and 288: Page: 287 [1093] Given the nature o
- Page 289 and 290: Page: 289 [1096] The Plaintiffs sub
- Page 291 and 292: Page: 291 decision in Daulia Ltd. v
- Page 293 and 294: Page: 293 which are commonly endeav
- Page 295 and 296: Page: 295 [1115] The Defendant reli
- Page 297 and 298: Page: 297 [1123] With respect to th
- Page 299 and 300: Page: 299 adequate supply of timber
- Page 301 and 302: Page: 301 In the circumstances of t
- Page 303 and 304: Page: 303 4. Breach of Fiduciary Du
- Page 305 and 306: Page: 305 place the Crown in the un
- Page 307 and 308: Page: 307 to injure the plaintiff.
- Page 309 and 310: Page: 309 There are no special dama
- Page 311 and 312: Page: 311 two, which I propose to p
- Page 313 and 314: Page: 313 MR. WHITTLE: I am satisfi
- Page 315 and 316: Page: 315 items thereof may be inac
- Page 317 and 318: Page: 317 [1188] It is not disputed
- Page 319 and 320: Page: 319 …The difficulty in fixi
Page: 271<br />
was withheld addressed the nature and extent of the timber inventory. It was insufficient that LPL<br />
knew that the inventory could change.<br />
[1029] On the facts of this case, I find that there was a concern within the Regional Office that the<br />
inventory, as produced in the Sterling Wood report, was too high. As such the Regional Office<br />
should have informed LPL of this fact at the July 15, 1997 meeting. The failure to do so breached<br />
2010 FC 495 (CanLII)<br />
the standard of care.<br />
[1030] This finding is not based on the fact that the Defendant might change the AAC, which is a<br />
discretionary policy decision in the authority of the Defendant. My finding is based on the fact that<br />
the Defendant had exclusive knowledge that she believed that the inventory was too high. The<br />
inventory was relied upon by LPL in formulating its business plans. Just because the AAC is<br />
derived from the inventory does not mean that a change in the inventory is a “policy decision”<br />
which may be immune from review.<br />
[1031] Moreover, I note that Mr. Monty, the only witness for the Defendant who attended the July<br />
1997 meeting, testified that he did not have the authority to make the representation that was made.<br />
In light of my findings, that the reliance was foreseeable, that there would be reliance, and that the<br />
Defendant knew that LPL was basing its planned business plans on the existing inventory, I find<br />
that on the facts of this case that the standard of care was breached.