Federal Court - Christian Aboriginal Infrastructure Developments ...

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

22.01.2015 Views

Page: 388 [1426] I have made a finding upon the basis of the evidence that was before me, that the commitment was to supply an adequate supply of wood over a long term which I have found to be a 20 year period. [1427] The existence of a contract gave rise to legal obligations. 2010 FC 495 (CanLII) [1428] The Defendant breached the contract by failing to provide the adequate timber supply in the volume of 200,000 m 3 per year, over a 20 year term. That failure to provide the necessary timber supply caused the mill to close down. [1429] The Defendant’s breach of contract was a direct result of the negligence and bad faith of her servants and agents in the Yukon Regional Office. I have set out my findings in that regard above. [1430] The breach of contract caused direct financial loss to the Plaintiffs. [1431] The Defendant’s promise to provide an adequate supply of timber for the mill was not only the foundation of a contract between LPL, SYFC and the Defendant, it was also a negligent misrepresentation vis à vis LPL. The negligent misrepresentation is a cause of action advanced and established by LPL.

Page: 389 [1432] The commitment, otherwise called a “promise”, was made during the scheduled “due diligence” meeting of July 15, 1997. The commitment was made to LPL. [1433] The Defendant’s promise was intended to induce the construction of the mill. That promise, or commitment, was negligently made by the Defendant’s servants who knew, at the time, that the representation was untrue and would be relied upon. I have addressed earlier the constituent 2010 FC 495 (CanLII) elements of negligent misrepresentation and my findings in that regard. [1434] In closing submissions, Counsel for the Plaintiffs argued that the Defendant’s own documents proved the case for the Plaintiffs. I agree. By the “Defendant’s own documents”, I mean the documents created by the Defendant, including those documents that she did not produce. I refer in that regard to the documents obtained by the Plaintiffs pursuant to access requests, and otherwise. [1435] Those documents plainly show that DIAND wanted to have a mill built in southeast Yukon. The Defendant’s policy decisions, as expressed in the Regulations that I mentioned earlier, required a mill. The statutory mandate of DIAND required promotion of economic development in the Yukon Territory. The mill fund had been established for the purpose of building a mill. [1436] I refer, once again, to the decision in Carrier Lumber where the Court commented that the issues had been clouded by an overly technical approach. [1437] The same can be said here.

Page: 388<br />

[1426] I have made a finding upon the basis of the evidence that was before me, that the<br />

commitment was to supply an adequate supply of wood over a long term which I have found to be a<br />

20 year period.<br />

[1427] The existence of a contract gave rise to legal obligations.<br />

2010 FC 495 (CanLII)<br />

[1428] The Defendant breached the contract by failing to provide the adequate timber supply in the<br />

volume of 200,000 m 3 per year, over a 20 year term. That failure to provide the necessary timber<br />

supply caused the mill to close down.<br />

[1429] The Defendant’s breach of contract was a direct result of the negligence and bad faith of her<br />

servants and agents in the Yukon Regional Office. I have set out my findings in that regard above.<br />

[1430] The breach of contract caused direct financial loss to the Plaintiffs.<br />

[1431] The Defendant’s promise to provide an adequate supply of timber for the mill was not only<br />

the foundation of a contract between LPL, SYFC and the Defendant, it was also a negligent<br />

misrepresentation vis à vis LPL. The negligent misrepresentation is a cause of action advanced and<br />

established by LPL.

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