Court reviewing $510M legal bill from Robinson Huron Treaty settlement

Garden River First Nation and Atikameksheng Anishnawbek say they're gratified by a recent court decision granting an assessment of the $510 million in legal fees paid out in the litigation of a treaty annuities claim that led to the historic $10-billion Robinson Huron Treaty settlement.  

The ruling in favour of the two northern Ontario communities was handed down in Ontario Superior Court late last week.   

“With this decision, we are relieved and feel vindicated,” said the First Nations in a joint statement released this week. “Throughout this legal process, Atikameksheng and Garden River have always asked for transparency and accountability, and today, we feel that justice has been served and will continue to be served.”  

Garden River First Nation Chief Karen Bell and Atikameksheng Anishnawbek Chief Craig Nootchtai brought the case to court on behalf of their First Nations in July, arguing that the legal fees need to be reassessed after Robinson Huron Litigation Fund (RHTLF) overpaid lawyers by more than $400 million.

A $10-billion settlement for 21 First Nations in Robinson Huron Treaty territory was finalized with Canada and Ontario earlier this year after a lengthy court battle over annual treaty payments, which have remained frozen at $4 per person since 1875. 

The First Nations reached a $10-billion settlement with Canada and Ontario for past annuities last year following a lengthy court battle. 

After news of the court challenge by Garden River and Atikameksheng broke, the RHTLF said Nahwegahbow Corbiere Genoodmagejig Barristers & Solicitors in Rama, Ont., agreed to set aside $255 million — or half — of the legal fees for advocacy work in the treaty territory, including future litigation.

When the matter was heard in court this past July, Michael Rosenberg — the lawyer representing both Garden River and Atikameksheng — argued that the Litigation Management Committee (LMC) of the RHTLF failed to obtain an independent legal opinion on the “largest contingency fee in legal history,” — with chiefs and trustees being pressured to approve the lawyers’ bill amid concerns that the distribution of settlement proceeds would be delayed. 

Justice Steele reserved her decision during the hearing, which was heard in a packed Toronto courtroom with upwards of 1,000 people at one point watching the proceedings remotely. 

In her written decision, Steele agreed with the applicants that a review of the legal fees may be compelled under sections of the Solicitors Act, despite those fees already being paid out.      

“I am concerned that given the significant number of beneficiaries under the trust who are impacted by the LMC and majority of the RHTLF trustee decision to pay the sizable partial contingency fee without any independent legal advice on the reasonableness of the fee, failure to have the legal fees reviewed by the Court may erode the public confidence in the administration of justice,” Steele wrote. 

Justice Steele will convene a case conference with the parties Nov. 6 to schedule next steps in order to begin the assessment process.