Samson Indian Band and Nation v. Canada
T-2022-89 / T-1386-90 / T-1254-92
MacKay J.
6/7/95
14 pp.
Motion for order requiring plaintiff bands to produce all documents and to respond to questions in discovery relating to investment and spending patterns of bands-Plaintiffs opposing motion on ground matters sought not relevant to actions-Plaintiff Samson band seeking order to strike paragraph 31 from defendants' amended statement of defence under R. 419(1)(a) to (f)-All three plaintiffs claiming Crown breached responsibilities of trustee or other fiduciary or manager under equity, common law, statute, treaty and constitution with resulting damages suffered by them-Only claims relevant relating to management by Crown of moneys derived as royalties from oil and gas production from reserve lands, subsequently retained by Crown as account in Consolidated Revenue Fund (CRF)-Bases of defendants' claims to discovery said to be relevancy in terms of test set out in Reading & Bates Construction Co. v. Baker Energy Resources Co., (1988), Baker Marine Co. and Gaz Inter-Cité Quebec Inc. (1988), 25 F.T.R. 226 (F.C.T.D.)-Production of documents to be made, lines of discovery inquiry to be facilitated to enable party seeking information to better own case, weaken that of adversary or generally to throw light upon case-Essence of plaintiffs' position information sought by Crown's motion not relevant to any of money issues pleaded by plaintiffs-Whatever investment patterns, objectives, spending patterns of Bands in relation to own moneys, no nexus, no relationship between those and liability or damages alleged by plaintiffs' pleadings-Defendants' second contention, plaintiffs' investments relevant to determine whether rate of return on CRF funds reasonable, contrary to well established principle standard of care to be met by trustee or fiduciary determined, as matter of law, on objective basis with evidence adduced from experts or otherwise about reasonable standard of care-Actions, success or failure, standard met by Bands in management of own moneys clearly irrelevant to determination of reasonable standard of care of performance against which Crown to be judged herein-Returns on plaintiffs' investments of own moneys not relevant to issue of whether Crown breached fiduciary duty in failing to release moneys held in CRF accounts for benefit of Samson and Enoch Bands, if not also Ermineskin plaintiffs-Not relevant to assessment of damages-Where breach of obligation of trustee, fiduciary results in damage or loss, measure of damage restitution-Restitution not merely for loss of capital account or assets, also for loss through deprivation of use of assets-Order dismissing application of defendants, to be entered separately on all three files relating to separate actions, by each of plaintiffs-Samson plaintiffs arguing in regard of R. 419(1)(a) paragraph 31 of statement of defence not disclosing reasonable defence-Reference in paragraph 31 to plaintiffs' experience of returns on investments of funds as being less favourable than that obtained on other funds left with Crown not raising reasonable or arguable defence-Paragraph 31 immaterial under R. 419(1)(b), frivolous under R. 419(1)(c), struck out-Plaintiffs' motion allowed-Same reasoning, conclusion applicable to paragraph 30 of statement of defence in action by Enoch Band plaintiffs and to paragraph 32 of statement of defence in action by Ermineskin Band plaintiffs-Federal Court Rules, C.R.C., c. 663, R. 419.