The Manitoulin Project offers an alternative to litigation, emphasizing a collaborative negotiation approach to address Canada’s outstanding fiduciary obligations through an out-of-court settlement process.
These claims flow from the Articles of Agreement of 1862 (“1862 Articles”). Under the 1862 Articles, the Crown undertook sale of the First Nations’ lands and was to set aside the proceeds for the First Nation's benefit with only the costs for survey and management to be deducted from those proceeds.
In 2005, the First Nations and Canada settled the “Jessie Bell I & II Lots Claims” related to the mismanagement of the sale and the proceeds of sale of two (2) lots on Manitoulin Island. In 2016, another claim was settled, concerning the Crown’s improper dealings related to five (5) lots on Manitoulin Island.
Settling these earlier claims provided the funds and the momentum to address the larger goals of the Manitoulin Project, which is to resolve the First Nations’ bigger claims for the Crown’s mismanagement of First Nations’ Trust monies generated from land sale transactions on Manitoulin, Barrie and Cockburn Islands after 1862.
These claims flow from the Articles of Agreement of 1862 (“1862 Articles”). Under the 1862 Articles, the Crown undertook sale of the First Nations’ lands and was to set aside the proceeds for the First Nation's benefit with only the costs for survey and management to be deducted from those proceeds.
In 2005, the First Nations and Canada settled the “Jessie Bell I & II Lots Claims” related to the mismanagement of the sale and the proceeds of sale of two (2) lots on Manitoulin Island. In 2016, another claim was settled, concerning the Crown’s improper dealings related to five (5) lots on Manitoulin Island.
Settling these earlier claims provided the funds and the momentum to address the larger goals of the Manitoulin Project, which is to resolve the First Nations’ bigger claims for the Crown’s mismanagement of First Nations’ Trust monies generated from land sale transactions on Manitoulin, Barrie and Cockburn Islands after 1862.
CURRENT CLAIM
Since 2016, work has been done collaboratively for the third phase of the Manitoulin Project by jointly engaging experts to research the Manitoulin Project Claims concerning the sale of the remaining sold lands (5,589 lots) and the fiduciary duty breaches related to the land sale proceeds. The goal of the Manitoulin Project has been to resolve the First Nations’ claims for the Crown’s mismanagement of First Nations’ Trust monies.
The current claims under negotiation are:
The Manitoulin Project claims allege that the Crown:
Phase 3 of the Manitoulin Project is to only seek compensation for the Crown’s mismanagement of trust funds and the losses related to that mismanagement.
The current claims under negotiation are:
- Roads Claim
- Indian Land Management Fund (ILMF) Claim
- Lots Related Claim
The Manitoulin Project claims allege that the Crown:
- sold the lots of land at below market value, thus reducing trust deposits to the First Nations (“the Lots Claim”);
- improperly diverted the First Nations’ Trust monies into roads-building for the benefit of other parties (“the Roads Claim”); and,
- used Indian Land Management Fund monies derived from Manitoulin land sales for purposes unrelated to the First Nations (“ILMF”).
Phase 3 of the Manitoulin Project is to only seek compensation for the Crown’s mismanagement of trust funds and the losses related to that mismanagement.
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THE ROADS CLAIM
Following the 1862 Articles, Canada took First Nation lands to sell and all land sale profits were to go to the First Nations, minus expenses for “survey and management.” The proceeds of the sales were put into Band trust accounts controlled by the Crown. From 1862-1930, the Federal Crown used the proceeds of land sales in Band trust accounts to build and maintain roads on Manitoulin Island. It is the First Nations' position that this money was spent improperly and it was used to build roads across Manitoulin Island, and to support settlement and settler activities. No First Nation monies should have been used to build these roads. This mismanagement was a breach of the Crown’s fiduciary duty towards First Nations. The Crown’s position has been that there was some First Nation benefit and this was to create infrastructure to “help sell unsold lands.” |
THE INDIAN LAND MANAGEMENT FUND
The basis of the ILMF Claim is similar to the Roads Claim. As mentioned, after 1862, Canada had taken First Nation lands to sell. All land sale profits were supposed to be going to the First Nations, minus expenses for “survey and management.” However, from 1862 to 1912, the Federal Crown took additional money from the Band trust accounts and deposited this money to the Indian Land Management Fund (ILMF). From this fund, the Crown paid Indian agent pensions, salaries, bonuses, commissions, and other expenses unrelated to the management of lands. Just as in the Roads Claim, it is the First Nations' position that this money was spent improperly and is therefore a breach of the Crown’s fiduciary duty. |
THE LOTS RELATED CLAIM
Finally, the Lots Related Claim seeks to address the Crown’s breaches in the sale of all the other lots on Manitoulin, Barrie and Cockburn Islands that were sold from 1862 to 1959. The research of the late elder Hardy Peltier was critical to support this Claim. Just as the Roads Claim and the ILMF Claim, the Lots Related Claim arises as breaches of fiduciary duty after the 1862 Articles. The basis of the Lots Claim is that the Crown failed in its fiduciary duty to properly sell lands taken following the 1862 Articles. It is the First Nations' position that the Crown failed its undertaking by mismanaging the sale of 5,589 lots. This includes selling lands below market value (for less than what they were worth); failing to collect all the land sale proceeds owing and to deposit the revenues in the Band trust accounts; and failing to supervise the unsold lands, which resulted in squatters depriving First Nations of their lands without providing compensation. |
The secret of our success is that we never, never give up. ~ Chief Wilma Mankiller
