THEBACHA/FORT SMITH - The council of Salt River First Nation has lost its appeal of a court ruling which reinstated Chief Frieda Martselos.

In a June 19 ruling, the Federal Court of Appeal declined to overturn the Jan. 8 decision by the Federal Court of Canada to reinstate Martselos as chief of the Fort Smith-based band.

Frieda Martselos is back in the chief's office at Salt River First Nation on June 24 after over two months on stress leave. - Paul Bickford/NNSL photo

Justice Johanne Trudel wrote she failed to see how council's decision to dismiss Martselos amounted to a reasonable exercise of its discretion and noted the resolution removing her was completely silent on council's decision-making process.

"I therefore conclude that the council's decision is unreasonable as it lacks justification, transparency and intelligibility," the justice wrote in her decision, which was supported by two other justices.

Trudel added a more elaborate election code applied in a fair and transparent manner would go a long way to prevent such counter-productive disputes.

Martselos had been ousted by the band council just a week after winning an April 30, 2007, by-election to replace former chief Jim Schaefer.

The chief is pleased with the appeal court's decision, which was released the day after a June 18 hearing in Vancouver.

"It was a fast decision," Martselos said.

"It was the correct decision."

She hopes the court ruling will help end the dispute with council.

"I think they have no choice but to look at the court decision very seriously," she said.

However, Martselos did not appear to be overly confident that would happen, saying she might even be suspended by council for speaking to News/North.

"I haven't been able to do my job," she said of her time in office. "There hasn't been a day I've been able to be chief since I've been elected."

She said council has continued to throw roadblocks and lawyers in her way, has ignored her and provided no access to documents.

It has left her basically with no power to do anything, she said.

Martselos was on unpaid leave from April 4 to June 24 because of stress caused by the situation.

Despite those problems, Martselos intends to run in an upcoming election in August.

"I'm definitely running," she said.

"I offered honest, accountable and transparent leadership. I still stand by that."

She hopes the August election will help clear the air.

That election will be for chief and the two seats on council currently occupied by Sonny MacDonald and Sub-Chief Toni Heron.

Coun. Mike Beaver said no one on council will comment on the appeal court's ruling at this time.

The resolution removing Martselos contained 21 articles of impeachment and was passed by four council members - Beaver, Heron, MacDonald and Chris Bird.

They objected to what they viewed as Martselos' autocratic manner and unilateral actions after being elected, such as removing band financial records to Edmonton for audit and firing the band's financial officer.