Paul Bickford
Northern News Services

Hay River (May 13/02) - The K'atlodeeche First Nation has sued the federal government over a piece of land it claims has been misused.

The band is demanding $1.56 million from Ottawa for lost rent, along with $350,000 for not being able to develop the land.

In addition, the band is seeking $450,000 from Nav Canada for use of the land, along with $350,000 for being unable to develop it.

The federal government dismisses the band's claims.

The First Nation's statement of claim was filed Jan. 11 in the Supreme Court of the NWT.

It states that, prior to July 1968, the federal Department of Transport reserved about 447 acres, known as Lot 628, within Treaty 8 territory to install navigation equipment for the Hay River Airport. The land became part of the Hay River Reserve when it was created in 1974.

However, the band says that, in 1975, the Department of Transport permitted NorthwesTel to install telecommunications equipment on the land, and later permitted use by the Canadian Coast Guard, Aeronautical Radio Inc. and Nav Canada, without the consent of the band.

The band's lawyers argue the federal government's control of the land had to be exercised solely in the interest of the band, including maximizing economic return.

The statement of claim says the federal government failed to act as a "prudent and competent trustee."

In its statement of defence filed April 30, the federal government rejects the band's assertion that Ottawa held the land in trust.

The statement of defence also states that, when the reserve was created, the Department of Transport was allowed continued use of Lot 628 as long as it was required for a beacon and transmitter for Hay River Airport.

The government acknowledges that, beginning in 1975 and into the 1990s, a series of licences and leases were issued by the minister of transport to CN, Northwest Telecommunications Inc., NorthwesTel and Nav Canada for the installation of various communications equipment. It argues there was no detriment to the plaintiffs from that use, nor from use by the Canadian Coast Guard.

According to the federal government, neither Nav Canada nor any of the other organizations is currently using the land.

The federal government says it conducted itself "reasonably, properly and in the utmost good faith."

It also criticizes the band for an "inexcusable" delay in commencing the court proceedings.