Federal Court - Christian Aboriginal Infrastructure Developments ...

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

22.01.2015 Views

Page: 86 [338] Mr. Kerr was part of the fabrication team. He was put to work with his electrical contractor skills to assist in the construction. He testified that the mill was fabricated in Vanderhoof under the experienced direction of Mr. Fehr and Mr. Spencer. [339] Mr. Kerr testified that the mill design and fabrication were overseen by Mr. Spencer and Mr. 2010 FC 495 (CanLII) Fehr who were very experienced in the field of sawmill design. Mr. Paul Heit, also from the B.I.D. Group, was responsible for sourcing the raw timber for the mill. Mr. Kerr was trained to be the manager of the mill and went to Vanderhoof during the construction of the mill. Although he had a good solid understanding of how sawmill machines worked, due to his background, Mr. Kerr had no background in sawmill management. Mr. Spencer had many years of such experience. Under the tutelage of Mr. Spencer, Mr. Kerr was trained to take over the management of the mill. [340] At the same time as SYFC, LPL and 391605 B.C. Ltd were proceeding with the design and construction of the sawmill, DIAND was continuing to address the failure of KFR to comply with the conditions of their THA and build a mill. A letter dated November 20, 1997, entered as Exhibit P-80, Tab 21, from Mr. Monty to Ms. Guscott, reflects DIAND’s position with respect to establishing a timeline for renewing the KFR THA. Mr. Monty states in this letter that “[a]s soon as Kaska Forest Resources have a ‘viable’ partner capable of producing a ‘viable’ mill, then we can address a firm timeline.”

Page: 87 D. 1998 [341] The first joint venture agreement was signed on January 30, 1998. It was entered as Exhibit D-11, Tab 108. The parties to this agreement are LPL and 391605 B.C. Ltd. This agreement manifested the intention of the parties to carry on the sawmill enterprise as a joint venture. It recognized that LPL had already taken numerous steps to toward the development of a wood manufacturing complex at Watson Lake. These steps included the “preliminary discussions with the 2010 FC 495 (CanLII) Government of Canada with a view to acquiring timber rights.” [342] I find that these preliminary discussions included the meeting with DIAND on July 15, 1997. I also find that the preliminary discussions included the commitment from DIAND that if a mill were built that a sufficient long-term supply of fibre would be made available. [343] In the first joint venture agreement, LPL’s contributions to the joint venture included “bringing the Project to the Corporation”, $625,000 cash, the mill site and any additional capitalization. The contribution of 391605 B.C. Ltd. included the supply and installation of sawmill equipment and the services of Mr. Spencer and Mr. Cliff Harrison for five months “to supply management training and marketing consultation.” [344] The services of Mr. Spencer and Mr. Harrison were provided under the terms of a separate management agreement for five months. This management agreement was schedule “C” to the joint venture agreement. It was signed on January 30, 1998.

Page: 87<br />

D. 1998<br />

[341] The first joint venture agreement was signed on January 30, 1998. It was entered as Exhibit<br />

D-11, Tab 108. The parties to this agreement are LPL and 391605 B.C. Ltd. This agreement<br />

manifested the intention of the parties to carry on the sawmill enterprise as a joint venture. It<br />

recognized that LPL had already taken numerous steps to toward the development of a wood<br />

manufacturing complex at Watson Lake. These steps included the “preliminary discussions with the<br />

2010 FC 495 (CanLII)<br />

Government of Canada with a view to acquiring timber rights.”<br />

[342] I find that these preliminary discussions included the meeting with DIAND on July 15,<br />

1997. I also find that the preliminary discussions included the commitment from DIAND that if a<br />

mill were built that a sufficient long-term supply of fibre would be made available.<br />

[343] In the first joint venture agreement, LPL’s contributions to the joint venture included<br />

“bringing the Project to the Corporation”, $625,000 cash, the mill site and any additional<br />

capitalization. The contribution of 391605 B.C. Ltd. included the supply and installation of sawmill<br />

equipment and the services of Mr. Spencer and Mr. Cliff Harrison for five months “to supply<br />

management training and marketing consultation.”<br />

[344] The services of Mr. Spencer and Mr. Harrison were provided under the terms of a separate<br />

management agreement for five months. This management agreement was schedule “C” to the<br />

joint venture agreement. It was signed on January 30, 1998.

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