Digests

Thomas v. Peace Hills Trust Co.

T-284-01

2001 FCT 443, Pelletier J.

8/5/01

19 pp.

Motion to strike action on ground Federal Court lacking jurisdiction to entertain action--Trustees of trust created to administer treaty land entitlement money suing bankers, alleging breach of trust agreement, breach of fiduciary obligation, negligence--Action brought in Federal Court pursuant to clause in related agreement in which parties who created trust agreed to attorn to jurisdiction of Federal Court--Bankers, who are not parties to agreement, disputing Federal Court's jurisdiction--Conditions set out in ITO--International Terminal Operators Ltd. v. Miida Electronics et al., [1986] 1 S.C.R. 752 for jurisdiction of Federal Court not met--(1) No statutory grant of jurisdiction to Federal Court by Parliament where action between subject and subject involving personal property located in Saskatchewan held by trust whose trustees residents of Saskatchewan--(2) and (3) No body of federal law nourishing statutory grant of jurisdiction and no law of Canada giving rise to claim--While involving interests of Indian bands over which Federal Court sometimes having jurisdiction, dispute not inextricably linked with federal law--Trust law in issue in relation to trust situate in Saskatchewan, whose trustees in Saskatchewan and whose subject personal property i.e. money or accounts--In so far as law of fiduciaries or law of negligence concerned, not "associated with Crown's position as litigant" and not federal law for these purposes--Although matter not within Federal Court's jurisdiction on face of it, plaintiffs pointing to agreements between federal, provincial Crowns, Saulteaux First Nation as providing necessary nexus with jurisdiction of Federal Court, particularly term of agreements in which parties agree all disputes in interpretation, enforcement of agreements will be adjudicated by Federal Court of Canada, Trial Division--Saskatchewan Treaty Land Entitlement Framework Agreement providing basis on which all subsequent treaty land entitlement agreements between federal, provincial Crowns and individual bands would be concluded--Parties reached agreement on wide range of issues--Agreement reflected in Framework Agreement and reduced to model agreements to be used in concluding agreements between Crowns, individual Entitlement Bands--Framework Agreement having appended to it Band Specific Agreement and model trust agreement--Band Specific Agreement intended to incorporate terms of Framework Agreement in agreement between federal, provincial Crowns and individual Band--Framework Agreement also containing clause providing determination of disagreement on any matter within Federal Court's jurisdiction--Saskatchewan Treaty Land Entitlement Act enacted to give effect to Framework Agreement--As Act not incorporating Framework Agreement, attornment clause remaining contractual only and not acquiring status as legislation--Following enactment of Act, federal, provincial Crowns entered into Saulteaux Treaty Land Entitlement Agreement with Saulteaux First Nation--That Agreement also contained clause attorning to jurisdiction of Federal Court--Nothing in Act conferring jurisdiction upon Federal Court in relation to subject-matter of Act--Cause of action not arising out of law of Canada since trustee's rights firmly anchored in Trust Agreement, not in federal legislation or federal common law--But Federal Court Act, s. 17(3)(b) providing Trial Division having exclusive original jurisdiction to determine any question of law, fact or mixed law and fact that Crown and any person have agreed in writing shall be determined by Federal Court--Attornment clause in Saulteaux Treaty Land Entitlement Agreement written agreement between Crown, another person conferring jurisdiction upon Federal Court in relation to interpretation, enforcement of Band Specific Agreement which, in turn, incorporates by reference Trust Agreement--Although appears that, as between Crown, Band such agreement would be effective to confer jurisdiction upon Court in relation to Band Specific Agreement, s. 17(3) must be read in light of s. 17(1), conferring concurrent jurisdiction upon Federal Court in cases where relief sought against Crown--Thus significance of s. 17(3) that confers exclusive jurisdiction--Effect of s. 17(3) not to expand Federal Court's jurisdiction, but to oust jurisdiction of provincial Superior Court--According to authorities, jurisdiction not acquired by consent, at least in court whose jurisdiction created by statute--Jurisdiction acquired by consent in s. 17(3) exclusive jurisdiction over claim over which Court would otherwise have concurrent jurisdiction--Crown, bankers could not confer jurisdiction upon Court by agreement in writing because nothing in dispute which is subject-matter of action which falls within this Court's jurisdiction--Not matter in which relief sought against Crown--Not application for judicial review within meaning of s. 18--Not claim between subject and subject "under or by virtue of the laws of Canada" where no other court has jurisdiction as contemplated by Federal Court Act, s. 25--Court of Queen's Bench of Saskatchewan has jurisdiction over dispute"--Motion granted, statement of claim dismissed for want of jurisdiction--Saskatchewan Treaty Land Entitlement Act, S.C. 1993, c. 11--Federal Court Act, R.S.C., 1985, c. F-7, ss. 17 (as am. by S.C. 1990, c. 8, s. 3), 25.