In Prophet River First Nation v. Rath & Co., a judge from the Alberta Court of Queen’s Bench has exercised his discretion and extended the time allotted for taxation of lawyer’s fees ($10 million) in connection with a larger settlement ($130 million) between Prophet River First Nation and the Government of Canada.
This settlement was in the news in 2008 when members of that first nation took over their band office in a peaceful sit-in. They were upset that Chief Liza Wolf and Councillors Lorraine Wolf and Loretta McAllister gave themselves each a $800,000 lump sum payments as part of the “administration costs” of the lawsuit.
When those three were ousted in an election, the new Chief and Councillors commenced this action, seeking to tax the funds received by the law firm, Rath & Co., even though the deadline had passed.
The lawyer forcefully argues that the change in Band governance should not be considered. He cites the decision of the B.C. Court of Appeal in Holmes Greenslade v. Starcom International Optics Corp. (1977) 86 B.C.A.C. 66 in which the Court held that mere change of control of a corporation should not cast a different light on the issue of taxation of accounts. But Bands are not corporations and the extent of Band consultation varies considerably. There is no evidence in this case of any consultation on the amount of the lawyer’s fee before it was agreed to. Moreover, under the circumstances here, it is clear that no taxation of this account would be pursued by Prophet River under the previous Chief and Council.
29 The lawyer is very familiar with First Nations governance and the ups and downs of Band politics which often do not provide for optimal transparency. There is evidence that the Band Council Resolutions in question were placed in an envelope (sealed or unsealed) and put in the administration’s safe where it was uncovered by the newly elected Chief and Council.
Decision
30 Upon consideration of all the factors I come to the view that public confidence in the administration of justice carries the day and I exercise my discretion to extend the time for taxation.
Turtle Talk 