Citation:

British Columbia (Minister of Forests) v. Jules

Date: 20011105

2001 BCCA 647

Docket:

CA027594
CA027595

Registry: Vancouver

COURT OF APPEAL FOR BRITISH COLUMBIA

CA027594
BETWEEN:

HER MAJESTY THE QUEEN in Right of the Province
of British Columbia as represented by the
Minister of Forests

PETITIONER
(RESPONDENT)

AND:

CHIEF RONNIE JULES, in his personal capacity and as representative of the ADAMS LAKE BAND, CHIEF STUART LEE,
in his personal capacity and as representative of the SPALLUMCHEEN INDIAN BAND, CHIEF ARTHUR MANUEL,
in his personal capacity and as representative of the NESKONLITH INDIAN BAND, and DAVID ANTHONY NORDQUIST,
in his personal capacity and as representative of the
ADAMS LAKE INDIAN BAND, THE SPALLUMCHEEN INDIAN BAND
and the NESKONLITH INDIAN BAND and ALL OTHER PERSONS
engaged in the cutting, damaging or destroying of
Crown Timber at Timber Sale Licence A38029, BLOCK 2

RESPONDENTS
(APPELLANTS)

- and -

CA027595
BETWEEN:

HER MAJESTY THE QUEEN in Right of the Province
of British Columbia as represented by the
Minister of Forests

PETITIONER
(RESPONDENT)

AND:

CHIEF DAN WILSON in his personal capacity and as representative of the OKANAGAN INDIAN BAND and ALL OTHER PERSONS engaged in the cutting, damaging or destroying of Crown timber at Timber Sale Licence A57614

RESPONDENTS
(APPELLANTS)

 

Before:

The Honourable Madam Justice Prowse

 

The Honourable Mr. Justice Donald

 

The Honourable Madam Justice Newbury

M.L. Mandell, Q.C. and
R.M. Mogerman

Counsel for the Appellants

T.P. Leadem, Q.C. and
R.J.M. Fyfe

Counsel for the Respondent

Place and Date of Hearing:

Vancouver, British Columbia

September 12, 2001

Place and Date of Judgment:

Vancouver, British Columbia

November 5, 2001

Written Reasons by:
The Honourable Madam Justice Newbury

Concurred in by:
The Honourable Madam Justice Prowse
The Honourable Mr. Justice Donald

Reasons for Judgment of the Honourable Madam Justice Newbury:

 

[1] This is the second interlocutory order to be appealed in these proceedings, in which the Adams Lake, Spallumcheen, Neskonlith and Okanagan Bands challenge the constitutionality and applicability to them of ss. 96 and 123 of the Forest Practices Code of British Columbia, R.S.B.C. 1996, c. 159 (the "Code"). (A companion case, British Columbia (Ministry of Forests) v. Westbank [1999] B.C.J. No. 2161 (Q.L.), has recently been settled.) I understand that these cases will be the first to try aboriginal claims to title and other rights in respect of logging in the Province. As noted by Hall J.A. for this court in the earlier appeal (see infra), such rights are a "new or largely unexplored domain" in British Columbia.

[2] The proceedings originated in the fall of 1999, when members of the Bands purported to log Crown land without authorization under the Code, but instead with authorization from their respective tribal councils. The Minister of Forests served the appellants with stop-work orders under the Code and brought proceedings in the form of petitions to enforce the stop-work orders. The appellants filed a Notice of Constitutional Question challenging ss. 96 and 123 of the Code on the basis that they did not accommodate the Bands' asserted title to the Crown lands, and their asserted right to log the lands. The Minister sought an interim injunction to halt the logging and to preserve the status quo pending judicial determination of the matter. The Chambers judge (see British Columbia (Ministry of Forests) v. Okanagan Indian Band (1999) 37 C.P.C. (4th) 224) granted the injunction, stating:

What is important on this interim application is that although the respondents assert aboriginal title and a right to log, that is still not a proven right. It will be if it is so determined by a court after hearing evidence and rendering a decision applying the principles in Delgamuukw [v. British Columbia [1997] 3 S.C.R. 1010], and Van der Peet,[1996] 2 S.C.R. 507 (S.C.C.). The purpose of the stop work order which the petitioner seeks to enforce is to maintain the status quo until the validity of the respondents' asserted right to log is determined. [para. 57]
 

The injunction was upheld by this court for reasons now reported at (2000) 187 D.L.R. (4th) 664. The appellants have sought leave in the Supreme Court of Canada to appeal that ruling.

[3] In January 2000, the Minister applied in Supreme Court under R. 52(11)(d) to have its petition remitted to the trial list and to have pleadings filed, as later occurred in the Westbank case: see (2000) 75 B.C.L.R. (3d) 250. The Bands opposed the motion, arguing that the Court should exercise its discretion under the Rules or pursuant to its inherent jurisdiction by refusing to order a trial or alternatively, by requiring the Province to pay the Bands' legal fees and disbursements (referred to as "costs" in the Bands' factum), in any event of the cause, should a trial be ordered. They were unsuccessful. For reasons now reported at [2000] B.C.J. No. 1536 (Q.L.), the Chambers judge (who is the designated case management judge) ordered a trial but declined to order that the Province pay the Bands' fees and disbursements of the trial in advance. The Bands now appeal both rulings.

The Factual Context

[4] Before considering the Chambers judge's reasoning and conclusions, I should make reference to the affidavit evidence regarding the financial position of the four Bands. There can be little doubt that their situations make the funding of complex litigation difficult. Chief Dan Wilson of the Okanagan Band deposes, for example, that:

19. The Okanagan Band is already on the verge of bankruptcy, and have to run up significant debts in order to finance our day to day operations at the end of the fiscal year. If we had the money, we would not allow our elders to live in deplorable housing conditions. If we had the money, we would participate in economic development programs so that our people would not be unemployed. We do not have the money, so our people continue to live in poverty. In these circumstances, the Band does not have the resources to fund an aboriginal title case.

and further, in connection with the Band's need for housing and timber:

11. As a Chief, I could not look at the social conditions that my people live in, which are far below the national average, and do nothing. The province continues to authorize extraction of resources on Okanagan territory while we wait for reconciliation of Crown and Okanagan title. Each day that we wait, means one more day where the Okanagan people live in poverty.
. . .
13. One of the main reasons that the Band is currently carrying a 7.8% deficit is that we have a very large arrears in our Canada Mortgage and Housing Commission ("C.M.H.C.") program. The Band has to guarantee the mortgages from C.M.H.C. to build social housing on reserve. When individual home owners do not pay their rents, the Band is still liable to pay the C.M.H.C. As of August 31, 1999 the arrears in the Band's C.M.H.C. housing account was $262,588.89. With so many of our people living in poverty, we cannot simply evict them when they cannot afford their rent payment. They will have no place to go, no home.
14. As of this month, the Okanagan Band has an unemployment rate of 42%. The Social Assistance file is one of the largest expenditures of Band revenue each year.
15. At present, the Okanagan Band has a housing waiting list of approximately 130 families. Approximately 600 out of a total of 1500 Band members live off reserve. On August 16, 1999, the Band received a letter from C.M.H.C. informing us that we would not be receiving funding to build new social housing for the upcoming year. After some discussion with C.M.H.C. and the Department of Indian and Northern Affairs, we have since been informed that we may be eligible for six housing units. The Band is still left with a very long waiting list of people who need homes.
16. Right now there are Okanagan Band members living in Saskatoon, Vancouver, Kamloops, and Merritt who would all like to live at home, but cannot because there are no jobs or houses for them here. The longer that people have to live away from home, the more they lose in terms of culture and a connection to their identity as Okanagan people.
17. The Okanagan Band plans to use the timber harvested from the Browns Creek area to build homes.
 

[5] Similarly, Chief Ron Christian of the Spallumcheen Band deposed:

5. Although the Band's funding has been either decreased or frozen since 1996, costs have continued to climb. As of March 31, 1999, the Band had incurred a $300,000.00 overdraft with our Bank in order to be able to meet the operating expenses and needs of our membership. All Band spending has to be accounted for to the Department of Indian and Northern Affairs ("D.I.A.N.D."). Currently, the Band is in a deficit situation. If the Band incurs a total overall deficit in excess of -8%, under our funding contract with D.I.A.N.D., we are liable to having outside management imposed of our finances. The Band has had D.I.A.N.D. impose outside financial management in the past. If we incurred further debt by bringing an aboriginal title case (which we would need to borrow money in order to do) the imposition of a financial receivership situation is a near certainty for the Spallumcheen Band.
6. At present, one of the Band's biggest concerns is housing for our membership. Many current Band houses are in a state of disrepair, far below acceptable standards. Other Band members do not have any housing at all, and several families share one house, or people have to live off the reserve because we cannot house them at home.
7. The amount of funds required to renovate existing Band housing to acceptable living standards is over $1,000,000.00, of which the Band would have to provide an equity of $200,000.00. The Band does not have the required capital to fund the renovations, and so these houses continue to deteriorate.
8. Spallumcheen Band has an approximate housing shortage, per our D.I.A.N.D. approved Physical Development Plan, of fifty (50) units for those members living on reserve or in the adjacent town. Our housing needs are predicted to increase by approximately 10 units per year as our membership continues to grown, without accounting for those members who would like to return to the reserve if there was housing available.
9. The Spallumcheen Band, as outlined in the affidavit sworn by Chief Ron Jules on November 26, 1999, would like to use the logs that have been felled in Harpers Lake to construct houses and reduce the growing backlog of houses, and reduce the Band's financial liability for future construction.
10. Given our current financial situation, the Band does not have the money to do many things that we would like in order to uplift the social conditions of our people. Even though the issue of aboriginal title, and our right to harvest timber from our Seewepeme title lands is very important to our Band, we simply do not have the money to fund aboriginal title litigation. The Band even has trouble funding small and simple cases. For example, we required a legal opinion in the past year about internal Band business. The legal opinion cost us around $4,000.00 and that was for a couple of letters, and not even a small trial. That $4,000 expenditure hurt the band, and we felt it. Funding for legal fees comes out of or "Band Support" funding portfolio, which also has to cover the costs of operating the Band's administration.

[6] I did not understand the Minister to take issue with the contention that the Bands are in dire financial circumstances, especially with regard to housing; nor that resort to a contingency fee arrangement with a lawyer would be unrealistic in the context of this case, which does not involve a claim for damages or a dispute about a fund of money. There is evidence that the appellants had applied to the federal Test Case Funding Program to fund their litigation, but the Program does not fund litigation at the trial level. Ms. Mandell's letters to Indian and Northern Affairs Canada requesting funding have gone without any positive response. There was no evidence of the position of the Legal Services Society of British Columbia with respect to cases such as this.

[7] Ms. Mandell has advised her clients that her firm's fees for the trial, including pre-trial motions and procedures, document disclosure, experts, preparation, etc. plus disbursements, would amount to some $814,010. No attempt was made to calculate what the Bands' costs (in the sense of that word as it is used in the Supreme Court Rules) would be.

[8] This brings me to a point about terminology. As I have already indicated, the Bands sought an order that the Province pay their "interim costs" as a condition of ordering a trial. But there were also references in the factum to the Bands' "legal fees" and in their oral argument, counsel referred to a "funding order". Following the hearing of the appeal, we sought clarification from Ms. Mandell, who confirmed that the Bands are indeed seeking "advance payment of actual legal fees and disbursements from the Province." Ms. Mandell's letter also referred to court orders for "costs on a full indemnity basis payable forthwith and in any event of the cause." In this regard, she cited the decision of Mr. Justice Lambert in Chambers in Redfearn v. Elkford (District) (1999) 37 C.P.C. (4th) 141, in which he allowed an application to reinstate an appeal on the condition that the plaintiff's special costs be paid in any event of the outcome of the appeal. That was a case, however, in which special costs (as distinct from legal fees and disbursements) were ordered because of the conduct of the appellant in delaying the bringing of the appeal. The order made was consistent with the normal rule that special costs are generally reserved for situations where they are necessary to redress the conduct of the parties to the litigation: see Fullerton v. District of Matsqui (1992) 12 C.P.C. (3d) 310 (B.C.C.A.) at 328-9.

[9] Ms. Mandell also cited an order made by a five-member panel of the Supreme Court of Canada recently in Law Society of British Columbia v. Mangat [1999] S.C.C.A. No. 43, after the panel had refused an application to have the appeal dismissed as moot:

The appellant, the Law Society of British Columbia shall pay the fair and reasonable costs of the respondent Mangat for the motion heard today and for the appeal in the Supreme Court of Canada; in the event of no such agreement, the party shall return to the court for an order.
 

Ms. Mandell says this is an example of an award of "interim costs at a full indemnity level payable forthwith and in any event of the cause." However, it appears from the final order (see para. 77, 2001 SCC 67) that the Court granted "solicitor-client costs" and did not depart from the usual principles governing costs.

[10] In any event, in the balance of these Reasons, I will use the word "costs" in the way it is usually used in the Supreme Court Rules and in litigation parlance - i.e., taxable costs described in R. 57. As noted by this court in Ridley Terminals Inc. v. Minette Bay Ship Docking Ltd. (1990) 45 B.C.L.R. (2d) 367, "costs" in British Columbia "have a traditional meaning unless qualified by statute or by agreement of the parties. That traditional meaning is governed by the provisions of Rule 57 of the Supreme Court Rules." (at 372.) Rule 57(1) provides that costs "shall be assessed as party and party costs under Appendix B, unless the Court orders that they be assessed as special costs." (My emphasis.) I will use the phrase "legal fees" to refer to actual legal fees and disbursements. There is no doubt that the Chambers judge below appreciated the distinction, although he said at para. 7 of his Reasons that he would refer to actual fees and disbursements as "costs in advance" or "interim costs."

The Chambers Judge's Ruling

[11] The Chambers judge began his Reasons by briefly summarizing the evidence of the Bands' financial circumstances, having described much of it in greater detail in his previous judgment granting the interim injunction. Turning to the question of whether the Bands' claims could be tried summarily or required a full trial, he noted his earlier reasoning in British Columbia (Minister of Forests) v. Westbank First Nation [1999] B.C.J. No. 2546 (Q.L.), and adopted it in the case at bar (at para. 22):

Furthermore, the affidavit...indicates that the underlying facts surrounding aboriginal title will not only require extensive investigation by the Crown, but will also be the subject of examinations for discovery given that the respondents rely on oral histories to establish their claim. Also, the nature of the evidence likely involves some assessment of credibility. As such, the parties, particularly the Crown, will require discovery and the opportunity to cross-examine at trial for a proper determination of the extent and scope of the respondents' alleged aboriginal title.
These words in [Taku River Tlinglit First Nation v. Tulsequah Chief Mine Project [1999] B.C.J. 984 (Q.L.)], at para. 19, have application to the case at hand:
It is clear that any determination of the existence and scope of aboriginal rights or title will require a detailed and rigorous examination of historical, anthropological, and archaeological evidence as well as evidence of aboriginal history and conventional documentary historical evidence. Given the complexities described in Van der Peet and Delgamuukw, it is difficult to see how such evidence can be properly assessed and synthesized without the benefit of a trial.
 

The Chambers judge continued:

Notwithstanding the fact that there is substantially more evidence filed on this application by the respondents than was the case in Westbank, I have concluded that to justly resolve this dispute there will have to be a trial and pleadings. I would therefore make an order similar to the one that is set out in para. 8 of the reasons of Hall J.A. in British Columbia (Minister of Forests) v. Westbank First Nation [(2000), 75 B.C.L.R. (3d) 250]. [para. 23]
 

[12] Before going on, however, to make such an order, the Chambers judge turned to consider the Bands' alternative submission that if the Minister's application under R. 52(11)(d) was granted, the Court should order the Province pay the Bands' legal fees and disbursements of the trial in advance. He summarized the Bands' constitutional arguments:

First, they argue that the court's discretion under Rule 52(11)(d) must be exercised in accordance with constitutional norms under s. 35 of the Constitution Act, 1982, being Schedule B to the Canada Act 1982 (U.K.), 1982, c. 11 and s. 15 of the Canadian Charter of Rights and Freedoms, Part I of the Constitution Act 1982, supra. This, in their submission, should either result in a dismissal of the petitioner's application or an order that the petitioner pay the respondents' legal costs for the trial. To not do so, they argue, would violate s. 15 of the Charter by denying their equality before the law.
Second, they argue that if the court exercises its discretion to order a trial, a combination of the injunction preventing logging, the bands' poverty and the trial costs will deny the respondents effective access to justice because, as their counsel put it, "they can not vindicate their position".
Third, the bands argue that the honour of the Crown is always at stake in dealing with aboriginal peoples. In particular, the respondents refer to s. 35 of the Constitution Act. The respondents say that the petitioner owes the respondents a fiduciary duty that guarantees access to justice yet the denial of access to lawyers has historically been a tool used by the Crown. They contend that the indigent status of aboriginal peoples results, in large part, from the conduct of the Crown. They say the province should not be allowed to employ a litigation tactic that effectively denies the respondents the constitutional challenge contemplated by the inclusion of s. 35.
These considerations, individually and collectively, the respondents argue, support an order that costs be paid in advance. They say the court has jurisdiction to make such an order from the following: the court's inherent jurisdiction; the court's ability to attach conditions to the exercise of a discretionary power, such as the Rule 52(11)(d) power; and, the requirement that when the court exercises its discretion, it does so in accordance with constitutional norms. [paras. 26-9]
 

[13] In response, the Minister argued below that the Court had no jurisdiction (whether inherent, statutory, or under the Rules of Court) to order interim costs or the payment of trial costs in advance. Further, the Minister said, "the right to access to justice is not a right for payment of solicitor-client fees on either a constitutional or a non-constitutional basis" and no violation of s. 15 of the Canadian Charter of Rights and Freedoms or any other constitutional principle would occur if the Bands' application were refused. (paras. 31-2.)

[14] The Chambers judge first considered whether the Court had inherent jurisdiction to award costs in advance or on an interim basis, and whether such jurisdiction was curtailed by the Rules, as argued by the Minister. He noted various Ontario cases that stand for the proposition that "costs normally follow the event once the outcome is determined except that there is an inherent jurisdiction to order interim costs in certain narrow circumstances." (para. 44.) In Organ v. Barnett (1992) 11 O.R. (3d) 210 (Ont. Ct. G.D.), the Court cited Jones v. Coxeter (1743) 26 E.R. 642, in which the Lord Chancellor confirmed the general principle that costs follow the event, but added that where the poverty of a litigant will not allow her to carry on with the cause unless the court directs the defendants to pay something to the plaintiff, costs are to be awarded. The Court in Organ continued:

Having reviewed the authorities submitted to me by counsel for the plaintiffs, I am satisfied that the court does have a general jurisdiction to award interim costs in a proceeding, and that such a jurisdiction is not limited exclusively to matrimonial cases. In my view, however, such an exercise of jurisdiction is limited to very exceptional cases and ought to be narrowly applied, especially when the court is being asked to essentially pre-determine an issue, in addition to be asked to provide funding for an anticipated legal costs to the end of the trial. [at 215]
 

[15] The Chambers judge also referred to the well-known decision of this court in Stiles v. British Columbia (W.C.B.) (1989) 38 B.C.L.R. (2d) 307, where it was said that the power to award costs arises from s. 3 of the Supreme Court Act, which confirms that judges of the Supreme Court have the inherent powers of a superior court of record in England. Lambert J.A. commented that decisions as to costs are "governed by a wide measure of discretion", although the power "must be exercised judicially, that is, not arbitrarily or capriciously, and in accordance with principles consistently applied." (at 310.) Southin J.A. emphasized the need of the court to know "where the right lies" before it can determine costs. In her words:

I have never heard of a plaintiff obtaining costs forthwith on an application for an interlocutory injunction. The essence of such proceedings is that the court is not deciding where the right lies and, until one knows where the right lies, how can the question of costs be determined? The cause is the dog; the motion is the tail. [at 317]
 

[16] The Chambers judge concluded that the court's inherent jurisdiction to grant interim costs or costs in advance is a "narrow one that must be exercised judicially" and "in light of provisions such as Rule 57(9) . . . that costs normally follow the event. In most cases that event cannot be predetermined." (para. 58.) Similarly, he said, the jurisdiction to impose a condition as to costs in making an order under R. 52(11)(d) is akin to an advance payment and requires extraordinary circumstances. At paras. 128-9 of his Reasons, he summarized his ruling on this point:

The authorities indicate that I have that jurisdiction both under my inherent jurisdiction and under the power [to] impose terms on the granting of a discretionary order. I think the authorities indicate that those circumstances are quite narrow, particularly given the principle set out in the Rules that costs generally follow the event. To make an order of interim costs effectively involves prejudging the outcome of the case. The authorities also indicate that although I have jurisdiction in appropriate circumstances to order costs in advance as a condition of making a discretionary order, that jurisdiction is also narrow and restricted to exceptional cases.
I find that the respondents' argument that its trial costs be paid in advance must fail. The issue of liability is very much in dispute and the trial costs are substantial. To order the payment of trial costs would require prejudging the case on the merits which, of course, I cannot do. Although I have a limited discretion in appropriate circumstances to award interim costs this case falls far outside that area. [Emphasis added.]
 

[17] The Chambers judge next turned to the Bands' constitutional arguments described at para. 12 above. He began by enunciating the Bands' argument concerning "access to justice" as follows:

They argue that if the court exercises its discretion to order a trial under Rule 52(11)(d) the respondents will be deprived of the benefit of their constitutional right to defend (or assert their position) because they cannot afford to do so. Therefore, they argue that the court must exercise its discretion in a way to ensure that right to defend. They argue that the combination of the injunction and a trial order effectively denies their right of access to the court. Therefore, they say that the court should exercise its discretion, if it orders a trial, to ensure that the respondents are given the resources necessary to defend themselves with proper access to the court. [para. 69]
 

The Chambers judge concluded, however, that it could not be said that the exercise of the court's discretion to order a trial without ordering the Crown to pay the appellants' fees in advance resulted in a denial of access. He emphasized that he had exercised his discretion to order a trial because the case could not be justly determined without the full panoply of pre-trial and trial procedures. The action might just as easily have come forward as an action by the Bands for a declaration of aboriginal title or rights to the logging areas in question, and in those circumstances it could not be said that without a funding order, a breach of the Bands' right to access to justice would result. In the Court's words:

I think that it is the financial circumstances of the respondents and the nature of the dispute between the parties, not the exercise of the court's discretion or any governmental action, that creates the possible impediment to the bands' access to court. Contingent fee agreements and an award of costs in the usual fashion after the fact provide some access to the courts; nevertheless, I recognize it is extremely difficult for litigation of this sort to be conducted by counsel who are not experienced and properly retained. However, the respondents have not demonstrated that the exercise of the court's discretion to order a trial in these circumstances, without requiring the payment of the respondents' costs in advance, has resulted in a denial of access to justice that is a constitutional violation. I touch upon this issue again when I discuss the respondents' s. 15 argument. [para. 81]
 

[18] Next, the Court turned to s. 35 of the Constitution Act, 1982, which provides:

35(1) The existing aboriginal and treaty rights of the aboriginal peoples of Canada are hereby recognized and affirmed.

The Bands argued that this provision "guaranteed" them access to justice, that such access has historically been denied to aboriginal peoples and their claims (witness s. 141 of the Indian Act, R.S.C. 1927, c. 98, repealed in 1951), and that their indigent status was in large part due to conduct of the Crown. Further, the Minister's application to remit the matter to trial was said to amount essentially to a breach of fiduciary duty which in the Bands' submission "should not be countenanced." The Minister responded that it was the exercise of discretion by the court, not an act of the Province, that would result in the remitting of this proceeding to the trial list and cited Chippewas of Nawash First Nations v. Canada (Minister of Indian and Northern Affairs) [1997] 1 C.N.L.R. 1. (F.C.T.D., varied at [1999] F.C.J. No. 1822 (Q.L.)) for the proposition that "although there may be fiduciary obligations in certain circumstances, they do not lie in all circumstances." (para. 86.)

[19] The Chambers judge noted (at para. 91) the decision of the Ontario Court of Appeal in Ardoch Algonquin First Nation v. Ontario (1997) 148 D.L.R. (4th) 96, where the Court stated:

In our view, Sparrow [[1990] 1 S.C.R. 1075]] suggests and Adams [[1996] 3 S.C.R. 101] confirms that s. 35(1), including the government's fiduciary obligation implicit therein, is intended as a shield and not a sword. It is a restraint against regulation improperly affecting aboriginal rights, not an affirmative obligation to initiate negotiations with a view to such regulation. A law or regulation which infringes s. 35(1), and cannot be justified by the Crown, will not be enforceable in the circumstances. However, there is no positive duty on government to negotiate with aboriginal communities for the purposes of reaching agreement upon a set of game and fish enforcement measures. [at 124-5; emphasis added.]

Similarly here, the Chambers judge was not persuaded that s. 35 gave rise to a fiduciary obligation on the part of the Crown either to refrain from applying under R. 52(11)(d) or to agree to fund the litigation as a condition of doing so. Therefore, he said, he did not regard the concept of fiduciary obligation as an additional relevant factor to be considered in exercising his discretion. (para. 92.)

[20] The final constitutional argument considered by the Chambers judge was based on s. 15 of the Charter - the equality right. He stated the crux of the Bands' submission this way:

Mr. Mogerman argued that the aboriginal peoples would not be given equal treatment if an order remitting this proceeding to trial pursuant to Rule 52(11)(d) is made because it would fail to take into account the respondents' disadvantaged position with the result of denying them access to a legal forum, since they do not have sufficient resources to fund the litigation.
The respondents argue that non-aboriginal Canadians whose constitutional rights are represented through their governments can protect their interests while aboriginal Canadians cannot. Secondly, non-aboriginal Canadians represented through their government have not had the same historic discrimination and poverty imposed by the State and are in a much better position to fund litigation. Put another way the respondents say that they are denied access to justice in comparison with non-aboriginal Canadians.
The respondents say that the courts applying s. 15 of the Charter have held that the inflexible application of rules which limits access to the courts on the basis of financial resources may be discriminatory. They refer to the following cases which they say support this proposition: Kask v. Shimizu et al (1986), 28 D.L.R. (4th) 64 (Alta. Q.B.); Hunter v. Pittman (1988), 25 C.P.C. (2d) 145 (Ont. H.C.J.); Younggreen v. Mullaly (1988), 35 B.C.L.R. (2d) 24 (B.C. Co. Ct.); Polewsky v. Bank of Montreal, [1999] O.J. No. 2606 (Ont. Ct. (Gen. Div.)); R. v. Bob (1991), 3 C.R. (4th) 348 (Sask. C.A.). They argue that an exercise of discretion under s. 52(11)(d) to refer these matters to the trial list, in these circumstances, limits access to justice based on race and financial resources and therefore infringes s. 15 of the Charter. [paras. 98-100]
 

The Minister responded that the Bands had not identified any comparable group where the exercise of the court's discretion under R. 52(11)(d) resulted in differential treatment; and second, that the Bands' asserted grounds (poverty or a combination of poverty and race) did not satisfy the requirement for enumerated or analogous grounds under s. 15.

[21] After reviewing the most recent leading case on s. 15, Law v. Canada (Minister of Employment and Immigration) [1999] 1 S.C.R. 497, and an earlier case, Rudolf Wolff & Co v. Canada, [1990] 1 S.C.R. 695, dealing with comparisons between individuals and the Crown, the Chambers judge said he did not need to decide whether it was appropriate for purposes of a s. 15 analysis to consider the Crown as a representative of groups or individuals in society who might be compared with aboriginal persons. The Court found that the issue could be decided on the basis that, assuming race and poverty were a ground that could be invoked under s. 15, the Bands had not shown that if required to go to trial under R. 52(11)(d), "they [would] be treated differently in a manner that reflects the stereotypical application of presumed group or personal characteristics." (para. 118.) Again in the words of the Chambers judge:

The exercise of the court's discretion under Rule 52(11)(d) is based on whether a particular dispute that is brought to the court by petition can be justly determined between the parties in the more summary manner contemplated by such proceedings. A trial will involve pleadings, examinations for discovery and cross-examination of witnesses before the trial judge and thereby generally is more expensive than a more summary proceeding. The exercise of the court's discretion does not distinguish between the petitioners and the respondents and is not based on anything other than the nature of the dispute. It has nothing to do with the nature of the parties. Nor does the exercise of the court's discretion treat the respondents differently from other litigants. Any litigant who is party to a petition and is involved in complex litigation (including Charter litigation) may have his or her litigation remitted to the trial list and accordingly may be exposed to greater costs than if the matter could be resolved by petition.
The costs that are facing the litigants here are not essentially the product of the exercise of the court's discretion but, in my view, flow from the nature of the particular dispute. [paras. 119-20; emphasis added.]
 

[22] The Chambers judge also distinguished Eldridge v. British Columbia (Attorney General) [1997] 3 S.C.R. 624 on the basis that it had involved a government program which provided services to deaf persons but which failed to provide the services in a way that provided equal benefit to disabled persons, an historically disadvantaged group. He said that in the instant case, there was no law or program for the provision of the services sought by the Bands. Further, he said:

If the exercise of the court's discretion under Rule 52(11)(d) to remit complex matters to the trial list results in additional expense, it affects all litigants faced with complex petitions. There was no evidence that aboriginal people are inordinately impeded by this law. [para. 123]
 

[23] Accordingly, the Court concluded that the exercise of the court's discretion resulting in an order to remit the matter to the trial list without a "funding order" did not violate s. 15, and that the Bands had not been denied access to justice as a result of the exercise of that discretion. (para. 125.)

ON APPEAL

A Constitutional Right to Funding?

[24] In their factum and their oral argument in this court, the Bands advanced constitutional arguments aimed at obtaining a "funding order" as well as arguments concerning judicial discretion in respect of "costs", without differentiating between the two. In my respectful view, the discretion exercisable by a Supreme Court judge in connection with costs is something quite different from what was sought here by the Bands - a constitutional right to funding to ensure "access to justice." Counsel focussed on the former concept in their oral submissions, but it is necessary to deal with the latter argument, at least briefly.

[25] The Bands' constitutional arguments in this court were based on two premises - the existence of what they called a "free-standing constitutional right to access justice in the courts", and s. 35 of the Constitution Act. (The equality argument was not advanced on appeal.) Ms. Mandell found support for the existence of a right to access to the courts in the words of Chief Justice Dickson in B.C.G.E.U. v. British Columbia (Attorney General) [1988] 2 S.C.R. 214. There, the Court held that the Chief Justice of the Supreme Court of British Columbia had had the jurisdiction to enjoin picketing of the Law Courts building on his own motion and ex parte. In the course of his reasons, Dickson C.J.C. observed:

. . . it would be inconceivable that Parliament and the provinces should describe in such detail the rights and freedoms guaranteed by the Charter and should not first protect that which alone makes it in fact possible to benefit from such guarantees, that is, access to a court. As the Court of Human Rights truly stated: "The fair, public and expeditious characteristics of judicial proceedings are of no value at all if there are no judicial proceedings". And so it is in the present case. Of what value are the rights and freedoms guaranteed by the Charter if a person is denied or delayed access to a court of competent jurisdiction in order to vindicate them? How can the courts independently maintain the rule of law and effectively discharge the duties imposed by the Charter if court access is hindered, impeded or denied? The Charter protections would become merely illusory, the entire Charter undermined. [at 229]
 

The Chief Justice also endorsed the following passage from the judgment of the Court of Appeal (see (1985) 65 B.C.L.R. 113, 20 D.L.R. (4th) 399):

We have no doubt that the right to access to the courts is under the rule of law one of the foundational pillars protecting the rights and freedoms of our citizens. It is the preservation of that right with which we are concerned in this case. Any action that interferes with such access by any person or groups of persons will rally the court's powers to ensure the citizen of his or her day in court. Here, the action causing interference happens to be picketing. As we have already indicated, interference from whatever source falls into the same category. [at 406, quoted at S.C.R. 230]
 

[26] It will be recalled that in B.C.G.E.U., the injunction was granted against picketers of the courthouse who were denying or delaying the right of the public to physical access to the courts. The Supreme Court noted that the various specific rights and freedoms enumerated in the Charter could not be enforced except through courts of competent jurisdiction. The Court confirmed that the picketing of the courthouse constituted criminal contempt in that it "transcend[ed] the limits of any dispute between particular litigants and constitute[d] an affront to the administration of justice of a whole." (at 237)

[27] However, it is a large step - in my view, too large - from the Court's reasoning in B.C.G.E.U. to the proposition that because a court of law has ordered proceedings to be remitted to the trial list, the Bands have been denied access to justice, thereby giving rise to a "right" to funding by the Province. I am not persuaded there is such a right. Unfortunately, many persons in our society find themselves unable to pay the high costs of litigation, which include provincial filing fees and taxes (unsuccessfully challenged in John Carten Personal Law Corp. v. British Columbia (Attorney General) (1997) 40 B.C.L.R. (3d) 181). In the latter case, Lambert J.A. said this for the majority:

There are many reasons why the cost of legal services, or a lack of funds, may restrict, hamper, or even prevent a person from exercising rights of access to the courts or rights of access to other legal services. What would be required in order to find this Act [Social Services Tax Act] wholly unconstitutional, or even unconstitutional in its application in a particular case, would be proof that people, or a class of people, in general, or some person in particular, who would have been able to exercise the legal rights in question if this tax were not in effect, were or was prevented by this tax from exercising those rights. It would not be sufficient to found an argument that the Act was unconstitutional in concept or in application merely to show that the tax operated as an impediment or a discouragement to the exercise of a protected right. What would be required would be proof that the right was denied, or its exercise was prevented, by the existence or operation of this tax. In other words, that a right which would have been exercised but for this tax could not be exercised because of this tax. [para. 13]
 

The majority held that even though Mr. Carten, a lawyer, had deposed that he had several clients whose access to the courts was "restricted or interfered with" as a result of the imposition of social services tax on legal services, he had presented an insufficient basis of "constitutional facts" to support his argument that the tax was invalid. No case has gone so far, however, as to find that one's right to "access to justice" includes a right to state-funded legal fees or to counsel provided by the state if one cannot afford to pay for one's own lawyer.

[28] Of course there are legal aid programs in every province of Canada which soften the effect of this reality to some extent. In some circumstances as well - e.g., where a person is charged with a serious criminal offence and his liberty is at risk - there is statutory recourse such as that provided by s. 684 of the Criminal Code. But I am not aware of any authority for the proposition that the principle of access to justice means more than a duty on the government to make courts of law and judges available to all persons or that it includes an obligation to fund a private litigant who is unable to pay for legal representation in a civil suit - even one that may be sui generis. If the meaning of access to justice is to be extended that far, it is in my view for government to do.

[29] For similar reasons, I agree with the Chambers judge that s. 35 of the Constitution Act does not place an affirmative obligation on the provincial Crown or the courts to provide for the funding of the legal fees of an aboriginal band in attempting to prove an asserted right and the infringement thereof, even in defence to a proceeding brought by government. Undoubtedly, the fiduciary duty of the Crown must be considered in connection with the application of general statutes and obligations to aboriginal peoples, but as the Chambers judge noted, there is nothing in the specific circumstances of this case that would give rise to a "fiduciary expectation" of funding. (This is not to say that the existence of the Crown's broad fiduciary duty should not be considered in the exercise of the Chambers judge's discretion in making an order as to costs, as I will discuss below.)

[30] Had a breach of a constitutional right been shown or threatened, there is precedent for a "funding order" of the kind sought by the Bands, as an 'appropriate remedy' under s. 24 of the Charter. One such order was made in the well-known decision of R. v. Rowbotham (1988) 41 C.C.C. (3d) 1, in which the Ontario Court of Appeal held that in an exceptional case where legal aid has been refused and the court determines that legal representation is essential to ensure that an accused will receive a fair trial (thereby involving ss. 7 and 11(d) of the Charter), it may stay criminal proceedings against the accused until the necessary funding of counsel is provided. In the words of the Court:

[T]here may be rare circumstances in which legal aid is denied but the trial judge, after an examination of the means of the accused, is satisfied that the accused, because of the length and complexity of the proceedings or for any other reasons, cannot afford to retain counsel to the extent necessary to ensure a fair trial. In those circumstances, even before the advent of the Charter, the trial judge had the power to stay proceedings until counsel for the accused was provided. Such a stay is clearly an appropriate remedy under s. 24(1) of the Charter. Where the trial judge exercises his power, either Legal Aid or the Crown will be required to fund counsel if the trial is to proceed. [at 69; emphasis added.]
 

In the result, the Court granted a stay and found it unnecessary to decide whether the trial judge "would be empowered to direct that legal aid or the appropriate Attorney General pay the fees of counsel." (at 70.)

[31] More recently, the Supreme Court of Canada in New Brunswick (Minister of Health and Community Services) v. G.(J.) [1999] 3 S.C.R. 46, directed the Province of New Brunswick to provide state-funded counsel to the appellant to ensure the fairness of a hearing concerning the custody of her children, who had been taken into custody by the New Brunswick Minster of Health and Community Services. The appellant was indigent and living on social assistance and had been denied legal aid under the provincial program because custody applications were not covered under the legal aid guidelines. The Court held that the Minister's application to extend the original custody order "threatened to restrict the appellant's right to security of the person" under s. 7 of the Charter and that:

This restriction would not have been in accordance with the principles of fundamental justice were the appellant unrepresented by counsel at the custody hearing. Section 7 guarantees every parent the right to a fair hearing when the state seeks to obtain custody of their children. In certain circumstances, which obtain in this case, the parent's right to a fair hearing requires the government to provide the parent with state-funded counsel. To avoid a prospective breach of s. 7, the motions judge, who was under a duty to ensure the fairness of the hearing, should have ordered the government to provide the appellant with state-funded counsel under s. 24(1). [para. 55; emphasis added.]
 

[32] The Court placed particular emphasis on the fact that in order to avoid potential conflicts of interest, the provincial government as a matter of policy did not cover custody applications initiated by the Ministry of Health. As a result of this policy, Legal Aid New Brunswick had agreed to fund guardianship applications, but did not have the resources to cover custody applications. The Court observed:

In December of 1991, the Council of the Law Society adopted a policy of limiting the provision of legal aid certificates to victims of family violence involved in private family litigation and to respondents to guardianship applications by the Minister of Health and Community Services. This policy was adopted pursuant to s. 12(14) of the Act, which provides that the Law Society may limit the provision of legal aid in certain matters when the Legal Aid Fund is in danger of being depleted. Consequently, the Charter infringement in this case is not caused "by the legislation itself, but by the actions of a delegated decision-maker in applying it": see Eldridge [supra], at para. 20. . . .
Assuming without deciding that the policy of not providing state-funded counsel to respondents in custody applications was a limit prescribed by law, that the objective of this policy - controlling legal aid expenditures - is pressing and substantial, that the policy is rationally connected to that objective, and that it constitutes a minimal impairment of s. 7, I find that the deleterious effects of the policy far outweigh the salutary effects of any potential budgetary savings. [paras. 97-8; emphasis added.]
 

The remedy fashioned by the Court as the least intrusive one was to leave the government's policy intact "subject to a discretion vested in the trial judge to order state-funded counsel on a case-by-case basis when necessary to ensure the fairness of the custody hearing." (para. 102.) Chief Justice Lamer was of the view that by not directing the government to design a new policy, the Court was steering clear of the admonition in Osborne v. Canada (Treasury Board) [1991] 2 S.C.R. 69, against "intruding into the legislative sphere beyond what is necessary in fashioning remedies for Charter violations." (para. 102.)

[33] It was not argued in the case at bar that the federally-funded program for constitutional challenges should be ordered to cover the Bands' costs or directed to revise its policy of not funding trials. Indeed, the test-case funding program was not represented in these or related proceedings; nor was the federal Crown or the Minister of Justice to whom Ms. Mandell has addressed a request for assistance. It may be that Ms. Mandell has concluded that in the absence of a clear Charter breach, it would not have been worthwhile to join those entities in some manner in these proceedings. In any event, it would not be appropriate for me to comment further on the New Brunswick case since those possible sources might still be the object of an application.

[34] Where no breach of the Charter is shown or threatened and where no "fund" or "program" has been established, it seems clear that courts of law do not have the jurisdiction to order the Crown to defray legal fees or to retain counsel. In this regard, I note the decision of the Yukon Territory Court of Appeal in Canada (Attorney General) v. Savard (1996) 106 C.C.C. (3d) 130. In that case, a judge had appointed counsel for an accused under s. 672.24 of the Criminal Code. Unlike s. 684 of the Code, s. 672.24 made no provision for the payment of counsel, providing simply that:

Where the court has reasonable grounds to believe that an accused is unfit to stand trial and the accused is not represented by counsel, the court shall order that the accused be represented by counsel.
 

[35] In Savard, supra, a trial judge had ordered that counsel be appointed for an accused in a criminal case. The lawyer first sent his account to Legal Aid, and when it refused, sought an order that the federal Minister of Justice pay his fee. The majority of the Court, per Rowles J.A. (Wood J.A. dissenting), held that in the absence of express language requiring government to pay counsel, "the fundamental principle the courts have applied in regard to the expenditure of public funds, as set out in Auckland Harbour Board v. The King [[1924] A.C. 318 (J.C.P.C.)] must be respected." (para. 113.) In Auckland Harbour Board, Viscount Haldane discussed the principle that the control of expenditures from the Consolidated Revenue Fund rests exclusively with Parliament:

. . . it has been a principle of the British Constitution now for more than two centuries, a principle which their Lordships understand to have been inherited in the Constitution of New Zealand with the same stringency, that no money can be taken out of the consolidated Fund into which the revenues of State have been paid, excepting under a distinct authorization from Parliament itself. The days are long gone by in which the Crown, or its servants, apart from Parliament could give such an authorization or ratify an improper payment. Any payment out of the consolidated fund made without Parliamentary authority is simply illegal and ultra vires, and may be recovered by the Government if it can, as here, be traced. [at 326-7]
 

As also noted by Rowles J.A. in Savard, the High Court of Australia in Dietrich v. The Queen (1992) 109 A.L.R. 385, applied the same principle. Dean J.A. stated:

. . . the common law does not impose upon the government or any section or member of the community an enforceable duty to provide free legal advice or representation to anyone. What the common law requires is that, if the government sees fit to subject an accused person to a criminal trial, that trial must be a fair one. [at 411]
 

[36] Rowles J.A. also noted the Supreme Court's decision in Prosper v. The Queen [1994] 3 S.C.R. 236, where the Court considered whether a person placed under arrest has a substantive right to advice from state-funded counsel. In the course of his reasons concluding that there was no such right, Chief Justice Lamer observed:

In light of the language of s. 10 of the Charter, which on its face does not guarantee any substantive right to legal advice, and the legislative history of s. 10, which reveals that the framers of the Charter decided not to incorporate into s. 10 even a relatively limited substantive right to legal assistance (i.e., for those "without sufficient means" and "if the interests of justice so require"), it would be a very big step for this Court to interpret the Charter in a manner which imposes a positive constitutional obligation on governments. The fact that such an obligation would almost certainly interfere with governments' allocation of limited resources by requiring them to expend public funds on the provision of a service is, I might add, a further consideration which weighs against this interpretation. [at 267]

It follows, in my view, that the Bands do not have a constitutional right to provincially-funded legal fees, and that the courts do not have the jurisdiction to order same.

Costs

[37] I turn next to consider whether an order should be made in respect of "costs" as that term is normally used in legal parlance. As has been noted, the Chambers judge concluded that the court has the jurisdiction in appropriate circumstances to order costs in advance but that that jurisdiction is "narrow and restricted to exceptional cases." In my view, the circumstances of this case are "special" or "exceptional". The "test case" nature of these proceedings has already been noted, and the public importance in this Province of the issues to be tried is obvious. It is clearly in the public interest that the applicability of the Forest Practices Code to lands and activities claimed as aboriginal be determined, and be determined on all the available evidence. The proceedings were initiated and are being pursued by the Minister against the Bands, and there is no doubt that counsel who have experience in aboriginal law are required to put forth the Bands' position. These facts remove this case from the realm of ordinary litigation where costs do generally follow the event, and financial hardship is not a proper ground for ordering otherwise: see Brown v. Black Top Cabs Ltd. (1997) 43 B.C.L.R. (3d) 76 (B.C.C.A.), at para. 16. More importantly, the honour of the Crown is at stake in dealings between it and aboriginals: see R. v. Van der Peet [1996] 2 S.C.R. 507, at 537. The broad discretion exercisable by the Supreme Court in making costs orders must surely be informed by that principle in the particular circumstances of this case. In my view, it is simply unrealistic for the Crown in this case to fold its hands and say that the Bands will have to manage without counsel. In my respectful opinion, the Chambers judge erred in assuming that these matters were irrelevant to the exercise of his discretion regarding costs.

[38] On the other hand, I am not persuaded that the Chambers judge erred in concluding that the Minister's amended petition should be referred to the trial list. In reaching that conclusion, the Chambers judge was mindful of his duty in all cases to ensure the just and expeditious determination of legal questions, which would require that the petition be heard summarily if at all possible - i.e., that a trial is the only reasonable way in which justice can be done, not that it is the "best way", as Ms. Mandell interpreted the Chambers judge's reasoning. He found that the particular complexities of this case, which will necessitate the examination or oral histories and the difficult questions of credibility and reliability they involve, required a full trial. Apparently, the parties have not been able to agree on any "compromise" arrangement under which limited rights of discovery and cross-examination might be acceptable.

[39] In all the circumstances, I conclude that the Chambers judge did not err in remitting these proceedings to the trial list but that he erred in failing to recognize that the case involves exceptional or unique circumstances which outweigh concerns about pre-judging the outcome of the case. The real challenge of this appeal is to formulate an order that will provide the Bands with concrete assistance but which will not expose the Province to unreasonable or excessive costs. The remedy sought by the Bands was that their application be sent back for determination by the Chambers judge based on the reasons of this court. When questioned, counsel explained they had stopped short of seeking an order for costs in advance from this court "out of respect for the Chambers judge". A better answer might have been that the case management judge will be in a much better position to assess the reasonableness of procedures and tactics employed by counsel as the litigation progresses and to ensure that the public purse is not extended beyond those bounds. In my view, it would be unnecessarily expensive and time-consuming for us to remit the application for costs simpliciter back to the Chambers judge, running the risk that the matter might again be appealed by one side or the other once the Chambers judge had ruled anew. I therefore propose to order that the Crown, in any event of the cause, pay such legal costs of the Bands as the Chambers judge orders from time to time in accordance with the following:

1. This determination is in respect of costs as that term is used in the Rules (see para. 10 above), and not in respect of legal fees and disbursements. This is not a determination that counsel is to be appointed by the Province or paid by the Province, as appears to have been the case in Spracklin v. Kichton [2001] A.J. No. 990 (Q.B.). (To the extent that Spracklin diverges from my Reasons, I respectfully disagree with it.)
2. Unless the Chambers judge concludes that special costs are warranted in this case, costs are to be calculated on the appropriate scale in light of the complexity and difficulty of the litigation.
3. Counsel are to consider whether costs could be saved by trying one of the four cases rather than all four at the same time. If counsel are unable to agree on that issue, they should seek directions from the Chambers judge. Counsel are also to use all other reasonable measures to minimize costs, and the Chambers judge may impose restrictions for this purpose.
4. The Province and the Bands are to attempt to agree on a procedure whereby the Bands upon incurring taxable costs and disbursements from time to time up to the end of the trial, will so advise the respondent, and provide such other 'backup' material as the Chambers judge may order. Such costs would be paid by the respondent within a given time-frame, unless the Province objects, in which case it shall refer the matter to the Chambers judge, who may order the taxation of the bill in the ordinary way.
5. If counsel are unable to agree on such procedures, the matter shall be taken back to the Chambers judge, who shall make directions in accordance with the spirit of these Reasons.

Subject to the foregoing, I would allow the appeal on the costs issue, but dismiss the appeal from the Chambers judge's ruling that these proceedings be remitted to the trial list.

[40] I would also order that the appellants have their costs of this appeal.

 

 

"The Honourable Madam Justice Newbury"

 

 

I AGREE:

 

 

"The Honourable Madam Justice Prowse"

 

 

I AGREE:

 

 

"The Honourable Mr. Justice Donald"