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T-1350-75
William Smith (Plaintiff)
v.
Attorney General of Canada (Defendant)
Trial Division, Mahoney J.—Vancouver, October 25; Ottawa, November 4, 1977.
Crown — Territorial extent of Canada — Yukon Territory — Submission that Yukon not ceded by Crown to Canada, and not part of Canada — Authority to construct Dempster High way given in name of Queen in right of Canada — Whether or not Yukon properly ceded — Whether or not Queen's personal fiat required to authorize highway construction — Treaty of Paris, 1763 — The Royal Proclamation, October 7, 1763 [R.S.C. 1970, Appendix II, p. 123] — The British North America Act, 1867, 30 & 31 Vict., c. 3, s. 196 (U.K.) [R.S.C. 1970, Appendix II, p. 191] — Rupert's Land Act, 1868, 31 & 32 Vict., c. 105, ss. 2, 5 (U.K.) [R.S.C. 1970, Appendix II, p. 239] — Order in Council, June 23, 1870 [R.S.C. 1970, Appen dix II, p. 257] — Order in Council, July 31, 1880 [R.S.C. 1970, Appendix II, p. 301].
The plaintiff challenges the validity of actions, taken in the name of the Queen in right of Canada, to construct the Dempster Highway, projected from Dawson City to Fort McPherson. Plaintiff's thesis is that a considerable area of what is commonly accepted as part of Canada, is not, in fact, part of Canada and that authority for the project crossing that area must be derived from the Queen's personal fiat.
Held, the action is dismissed. Whether acquired by conquest or settlement, the land presently comprised within the Yukon Territory was acquired by the Crown in right of Great Britain, not by King George III or any of his successors in a personal or private right. If the Yukon Territory was not comprised in the North-western Territories, which is not proved, nor in Rupert's Land, which, on the evidence, it was not, then it was included in the territory annexed to Canada by Order in Council of July 31, 1880. Although that Order in Council was not authorized by section 146 of the B.N.A. Act, there was no express statu tory authority to bar it and the Crown in right of Great Britain did have the capacity to effect a cession of territory without legislative authority.
Sikyea v. The Queen (1964) 43 D.L.R. (2d) 150, [1964] S.C.R. 642, applied. Campbell v. Hall (1774) 98 E.R. 1045, applied. Gordhan v. Kanji (1875-76) 1 App. Cas. 332, applied.
ACTION. COUNSEL:
W. Smith on his own behalf. J. R. Haig for defendant.
SOLICITORS:
William Smith, Old Crow, Y.T., on his own behalf.
Deputy Attorney General of Canada for defendant.
The following are the reasons for judgment rendered in English by
MAHONEY J.: The plaintiff challenges the valid ity of actions taken in the name of Her Majesty the Queen in right of Canada to construct the Dempster Highway. That highway is presently under construction and, when complete, will run from a southerly terminus at Dawson City, Yukon Territory, in a generally northeasterly direction, to a northerly terminus at Fort McPherson, North west Territories. The plaintiff's thesis is that a considerable area of what is commonly accepted as part of Canada is not, in fact, part of Canada. Included in that area is the land traversed by the Dempster Highway.
Evidence adduced and argument presented by the plaintiff at the trial did not expand upon what was alleged in the application by which these proceedings were commenced and the affidavit filed in support thereof. His case may be fairly summarized as follows: (1) the land in question was, by the Treaty of Paris, 1763, surrendered by the King of France, Louis XV, to the King of Great Britain, George III;' (2) the land so surren dered became the domain of the British Monarch in his personal capacity and remains the personal domain of Her Majesty the Queen, as successor to King George III, never having been conveyed by King George III or any of his successors to the Crown in right of Canada and (3) that, according ly, actions taken in respect of it by those acting in the name and by the authority of the Crown in right of Canada, rather than in the name and by
... Moreover, his Most Christian Majesty cedes and guaranties to his said Britannick Majesty, in full right, Canada, with all its dependencies, as well as the island of Cape Breton, and all the other islands and coasts in the gulph and river of St. Lawrence, and in general, every thing that depends on the said countries, lands, islands and coasts, with the sovereignty, prop erty, possession, and all rights acquired by treaty, or otherwise, which the Most Christian King and the Crown of France have had till now over the said countries, lands, islands, places, coasts and their inhabitants ... .
the authority of Her Majesty personally, are ille gal actions. Alternatively, the same result, that is to say the requirement of the personal authoriza tion of Her Majesty, is said to follow from provi sions of The Royal Proclamation of October 7, 1763 2 , which, if it contemplated the Yukon Terri tory at all, certainly contemplated that the follow ing provision apply to lands within it:
And We do hereby strictly forbid, on Pain of our Displeas ure, all our loving Subjects from ... taking Possession of any of the Lands above reserved, without our especial leave and Licence for that Purpose first obtained.
The defendant admits that all actions taken to construct the Dempster Highway have been taken in the name and by authority of Her Majesty in right of Canada and that a personal fiat for the particular purpose was neither sought nor received.
I am by no means satisfied that any part of what is today the Yukon Territory was, in fact, within the contemplation of either the Treaty of Paris or The Royal Proclamation. The evidence fails utter ly to establish that it was and it would appear to follow from Sikyea v. The Queen 3 , which dealt with the westerly part of the Northwest Territo ries, that it was not. In delivering judgment for the Supreme Court of Canada in that case, Hall J. said:
On the substantive question involved, I agree with the rea sons for judgment and with the conclusions of Johnson J.A. in the Court of Appeal. He has dealt with the important issues fully and correctly in their historical and legal settings, and there is nothing which I can usefully add to what he has written.
For the Court of Appeal, Johnson J.A. had held: 4
The Indians inhabiting Hudson Bay Company lands were excluded from the benefit of the Proclamation, and it is doubt ful, to say the least, if the Indians of at least the western part of the Northwest Territories could claim any rights under the Proclamation, for these lands at the time were terra incognita and lay to the north and not "to the westward of the Sources of the Rivers which fall into the Sea from the West and North West" (from the 1763 Proclamation describing the area to which the Proclamation applied).
The "Sea" above referred to was, in its context, plainly the Atlantic Ocean. If it was terra incog- nita in so far as The Royal Proclamation was
2 Vide R.S.C. 1970, Appendix II, p. 123 at p. 127.
3 [1964] S.C.R. 642 at 646.
4 (1964) 43 D.L.R. (2d) 150 at 152.
concerned, today's Yukon Territory could not have been otherwise in so far as the Treaty of Paris was concerned.
However, be all that as it may, the basic propo sition that the reigning monarch's relationship to overseas territorial acquisitions was in a private, rather than an official, capacity during and after the eighteenth century is unsupportable. If one accepts that the land in question was ceded by the Treaty of Paris then it plainly was acquired by conquest. That being so, among the propositions which Lord Mansfield held, in 1774, to be "too clear to be controverted", the following is particu larly pertinent: 5
A country conquered by the British arms becomes a domin ion of the King in the right of his Crown; and, therefore, necessarily subject to the Legislature, the Parliament of Great Britain.
If it was not so ceded, it follows that the Yukon Territory was acquired by settlement sometime after the signing of the Treaty of Paris. The general legal consequences of such an acquisition were established in 1722. 6
... it was said by the Master of the Rolls to have been determined by the Lords of the privy council, upon an appeal to the King in council from the foreign plantations,
1st, That if there be a new and uninhabited country found out by English subjects, as the law is the birthright of every subject, so, wherever they go, they carry their laws with them, and therefore such new found country is to be governed by the laws of England; though after such country is inhabited by the English, acts of parliament made in England, without naming the foreign plantations, will not bind them; ... .
If, as appears most probable, the land now within the Yukon Territory became British by settlement, it was at a time when the Monarch did not, by the law of England, exercise sovereignty over England in the personal or private, as opposed to institu tional, capacity which the plaintiff seeks to ascribe to the Crown's sovereignty over the territory in issue.
5 Campbell v. Hall (1774) 98 E.R. 1045 at 1047.
6 Case 15—Anonymous (1722) 24 E.R. 646.
Whether acquired by conquest or settlement, the land presently comprised within the Yukon Terri tory was acquired by the Crown in right of Great Britain not by King George III or one of his successors in any personal or private right. The evidence does not establish just when that acquisi tion occurred. It is, however, sufficient to find that British sovereignty over what is now the Yukon Territory was asserted and recognized internation ally not later than February 28, 1825. On that date, the boundary between British and Russian America was established by treaty. What remains to be determined is whether that sovereignty was later transferred to the Crown in right of Canada.
The political entity now called Canada was created by The British North America Act, 1867.' By section 3 of that Act, it was provided that:
... the Provinces of Canada, Nova Scotia, and New Brunswick shall form and be One Dominion under the Name of Canada;
Its geographic extent was limited to what is pres ently the Provinces of Nova Scotia and New Brunswick and parts of the present Provinces of Quebec and Ontario. The Act provided for the addition of other British colonies to Canada including, inter alia, Rupert's Land and the North-western Territory.
146. It shall be lawful for the Queen, by and with the Advice of Her Majesty's Most Honourable Privy Council, ... and on Address from the Houses of the Parliament of Canada to admit Rupert's Land and the North-western Territory, or either of them, into the Union ... and the Provisions of any Order in Council in that Behalf shall have effect as if they had been enacted by the Parliament of the United Kingdom of Great Britain and Ireland.
Rupert's Land was the name of the territory specified in the Letters Patent, dated May 2, 1670, whereby King Charles II incorporated the Hud- son's Bay Company. Nothing of the present Yukon Territory lay within Rupert's Land as defined in the Letters Patent; however, to provide for the Crown in right of Great Britain to accept the surrender of Rupert's Land so that its admission to Canada might be effected as provided in section 146, the British Parliament enacted the Rupert's
7 30 & 31 Vict., c. 3 (U.K.) [see R.S.C. 1970, Appendix II, p. 191].
Land Act, 1868 8 . It provided, in part, as follows:
2. For the Purposes of this Act the Term "Rupert's Land" shall include the whole of the Lands and Territories held or claimed to be held by the [Hudson's Bay Company].
5. It shall be competent to Her Majesty by any such Order or Orders in Council as aforesaid, on Address from the Houses of the Parliament of Canada, to declare that Rupert's Land shall, from a date to be therein mentioned, be admitted into and become part of the Dominion of Canada.... 9
By Order in Council dated June 23, 1870, Ru- pert's Land and the North-western Territory were, effective July 15, 1870, ordered to "be admitted into and become part of the Dominion of Canada". '° Both the Rupert's Land Act and sec tion 146 of the B.N.A. Act were recited as au thority for the Order in Council.
I have no evidence upon which to make a find ing as to what the term "North-western Territory" meant during the years 1867 to 1870, inclusive. I have no basis upon which to conclude that it was a distinct or defined geographic entity much less, if so, upon which to define it. Rupert's Land, as described by the Letters Patent, was a definite geographic entity. Its extent, as defined by the Rupert's Land Act, is much less amenable to definition embracing, as it does, lands claimed, as well as held, by the Hudson's Bay Company.
There is considerable evidence drawn from the Company's archives before the Court as to its claims and activities in the present day Yukon Territory and beyond into Alaska during the first half of the nineteenth century. The post at Fort McPherson, established in 1839, controlled trade on the Peel River upstream of the McKenzie. As to the Porcupine River basin, Lapierre's House, established on the Bell River in 1842 and Fort
8 31 & 32 Vict., c. 105 (U.K.) [see R.S.C. 1970, Appendix II, p. 239].
9 The "such Order or Orders in Council" referred to in section 5, are defined in section 3 which authorized acceptance of surrender of the Hudson's Bay Company's lands, etc. by Her Majesty only on certain conditions including that it be null and void unless within a month of acceptance, an Order in Council issue as contemplated by section 146 of the B.N.A. Act.
10 Vide R.S.C. 1970, Appendix II, p. 257, at p. 258.
Yukon, established at the junction of the Porcu pine and Yukon Rivers in 1848, respectively inter cepted its upstream and downstream trade. Fort Yukon was, in fact, some 120 miles inside Alaska and was, after the American purchase from Russia, abandoned in 1870. The surrender by the Company to the Crown that preceded the Order in Council of June 23, 1870, reserved ten acres of land at Lapierre's House, now in the Yukon Territory."
From 1821 until 1859, the Hudson's Bay Com pany, then amalgamated with the North West Company, held a licence giving it exclusive right to the fur trade in British North America, other than Rupert's Land, which it enjoyed otherwise; the provinces of Canada and territory west of the Rocky Mountains. The licensed territory included the present day Yukon and the licence carried with it responsibilities for the administration of justice in the licensed territory, all pursuant to statute. 12 It is said that the prevailing economic philosophy in Britain and political trends in Canada were not conducive to continuation of such a trading monopoly or delegation of political author ity beyond 1859. It does seem that, as a practical result of the absence in much of the territory of either trading competition or the apparatus of government, the lapse of the licence did not immediately alter the Company's de facto position in the territory.
It is, however, one thing to enjoy an exclusive trading licence carrying an obligation to adminis ter justice over a given territory and quite another to hold that territory or, with any colour of right, to claim to hold it. On the evidence, I conclude that no part of the Yukon Territory, with the possible exception of lands immediately adjacent Lapierre's House, was within the contemplation of
Vide R.S.C. 1970, Appendix II, p. 277.
12 An Act for regulating the Fur Trade, and establishing a Criminal and Civil Jurisdiction within certain Parts of North America, 1 & 2 Geo. IV, c. 66 (U.K.).
the definition of Rupert's Land set forth in section 2 of the Rupert's Land Act.
On July 31, 1880, in response to an address of the Houses of Parliament of Canada, Queen Vic- toria, by Order in Council, ordered and declared: 13
From and after the first day of September, 1880, all British Territories and Possessions in North America, not already included within the Dominion of Canada, and all Islands adjacent to any such Territories or Possessions, shall (with the exception of the Colony of Newfoundland and its dependencies) become and be annexed to and form part of the said Dominion of Canada; and become and be subject to the laws for the time being in force in the said Dominion, in so far as such laws may be applicable thereto.
Plainly, if the Yukon Territory was not comprised in the North-western Territories, which is not proved, nor in Rupert's Land, which, on the evi dence, it was not, then it was included in the territory annexed to Canada by that Order in Council. 14 Similarly, if it was comprised in neither the North-western Territory nor Rupert's Land, that Order in Council was not authorized by sec tion 146 of the B.N.A. Act. No other statutory au thority from which derived the power to make that Order in Council was cited to me. Neither, I must add, was any express statutory bar to making it cited. The plaintiff argues that, in the absence of statutory authority, the Order in Council of July 31, 1880, was of no effect.
In Gordhan v. Kanji' 5 , the Judicial Committee of the Privy Council entertained an appeal from a decision of the High Court of Bombay based on that Court's finding that the Governor General of India in Council had, by Order in Council made January 29, 1866, without legislative author ity, ceded certain British territory to the Thakoor of Bhownuggur, an independent sovereign. The ratio decidendi of the High Court, and their Lord
13 Vide R.S.C. 1970, Appendix II, p. 301 at p. 302.
14 The colonies of British Columbia, in 1871, and Prince Edward Island, in 1873, had been admitted to the Union by Imperial Orders in Council authorized by provisions of s. 146 of the B.N.A. Act which I have not found it necessary to recite.
15 (1875-76) 1 App. Cas. 332 at 373 ff.
ships' view of it, are concisely stated in the follow ing passage from the Privy Council decision:
... the Judges of the High Court held that it was beyond the power of the British Crown, without the concurrence of the Imperial Parliament, to make any cession of territory within the jurisdiction of the British Courts in India, in time of peace, to a foreign power; and on that ground they made the order ... now under appeal,.... The question, whether the law thus laid down by the High Court of Bombay is correct, was fully and ably argued ... and their Lordships would have been prepared to express the opinion, which they might have formed upon it, if, in the result of the case, it had become necessary to do so. But having arrived at the conclusion that the present appeal ought to fail without reference to that question, they think it sufficient to state that they entertain such grave doubts (to say no more) of the soundness of the general and abstract doctrine laid down by the High Court of Bombay, as to be unable to advise Her Majesty to rest her decision on that ground.
Their Lordships went on to dismiss the appeal on a finding that what had in fact occurred had not been a cession of territory.
The Order in Council of July 31, 1880, effected, plainly and unequivocally, a cession of territory by the Crown in right of Great Britain. That it was not, in the ordinary concepts of the day, to a foreign power is immaterial. The issue is the capacity of the Crown in right of Great Britain in 1880 to effect the cession by Order in Council without express legislative authority. Nothing that transpired between January, 1866, and July, 1880, has been brought to my attention that would lead me to any other conclusion but that it still had the capacity at the latter date.
While I have not heretofore referred specifically to the portion of the Northwest Territories trav ersed by the Dempster Highway, I am satisfied that the identical considerations pertain to it as I have found to pertain to the Yukon Territory. I am entirely satisfied that the Yukon Territory general ly, and the lands traversed by the Dempster High way in both the Yukon and Northwest Territories in particular, have been validly ceded to Canada by the Crown in right of Great Britain, if not by the Order in Council of June 23, 1870, then certainly by the Order in Council of July 31, 1880. It follows that actions since taken in respect there of in the name and by the authority of the Crown
in right of Canada are not illegal by reason of their not having been taken in the name and by au thority either of Her Majesty personally or the Crown in right of Great Britain.
The plaintiff's action fails and will be dismissed with costs.
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