Chippewas of the Thames [Clench Defalcation]

This claim dates back some 150 years to the mid-1800s. The Chippewas of the Thames claim that moneys owed to the First Nation from the sale of surrender lands were wrongfully appropriated around 1854 by Joseph Brant Clench, an officer with the Indian Department who had been appointed agent for the sale of lands in southern Ontario in 1845. The claim is referred to as the Clench Defalcation (defalcation is a legal term referring to misappropriation of trust funds or money held in a fiduciary obligation).

The claim was accepted for negotiation in June 2001, with negotiations getting under way in November of that year. Issues facing the negotiating parties included identifying the date and amount of the defalcation and agreeing on an approach to valuing nominal amounts in current dollars. Having reached agreement on the amount of compensation at the end of fiscal year 2002–2003, the parties then turned to drawing up the settlement agreement, the trust agreement, and the ratification voting guidelines. In late March 2004, the parties reached agreement on these documents. It is anticipated that the ratification vote will take place in mid-2004.