Mtis federation loses lawsuit against Manitoba government over quashed $67.5M payout

The Manitoba government waswithin its rights to cancel a $67.5-million payment to the Manitoba Metis Federation connected tofuture hydroelectric development, the Court of Queen's Bench has ruled.

Chief JusticeGlenn Joyalruled against the MMFin a judgmentreleased on Tuesday.

The Manitoba Metis Federation argued in a two-day hearing in Septemberthat the Progressive Conservative government didn't have the right to quash asettlement agreed to by the federation andManitoba Hydro in 2017.

It saidthe government's actions wereunconstitutionaland violated both the contract andIndigenousrights.

The province trashedthe agreement in March 2018, with Premier Brian Pallistercalling it "persuasion money" and arguingthe province shouldn't payMtis people in exchange for their silence.

He said the agreement was for discussion purposes and wasn't legally binding.

'Lawful and reasonable' exercise

Joyal wrote in his decision that the decision to cancel the deal was a "lawful and reasonable exercise" of cabinet's power to enforce its stewardship role over Hydro.

"I am of the view that using a standard of correctness, the directive falls squarely within cabinet's authority to issue binding legal directives (in this case to Hydro) respecting important matters of policy," Joyal wrote in his decision.

Those matters can include issues of fiscal prudence, he wrote.

The Manitoba Metis Federation has had a strained relationship with the province for years.

The province alsocancelledanearlier 2014 contractbetween itself, the Mtis federationand Manitoba Hydro. That $20-million deal, dubbed the Turning the Page agreement, was in exchange for the federation's support forseveralHydro activities, includingthe BipoleIII transmission line and the Keeyaskgeneration project.