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Completed Inquiries – Reports Released

01/02/1995

Sumas Indian Band [IR No. 6 Railway Right of Way] - February 1995

The Sumas Band claim concerns a railway right of way expropriated in 1910. In 1927, the railway company abandoned the line and subsequently sold the land to non-Indians. One third was purchased by the Band. At issue was the Band's contention that the Railway Act and the Indian Act allowed the railway company only a limited interest, and hence the right of way should have been restored to reserve status when it was no longer used for railway purposes. The Department of Indian Affiars and Northern Development rejected the claim in 1988. In 1993, the Indian Claims Commission (ICC) was asked by the Band to conduct an Inquiry into the rejection of the claim.

The ICC itemized the issues as: first, what interest the railway took, and what, if any, was taken by the Band or Canada; second, what obligation does Canada have after the railway ceased to function; third, if the railway did acquire absolute title, did this breach Canada's fiduciary obligation; and fourth, was the Order-in-Council valid for all or part of the parcel of land.

The Indian Claims Commission found Canada had failed on all counts to meet its fiduciary obligations to the Sumas Band. More specifically, the ICC found that the railway acquired its interest only as long as the lands were used for railway purposes; consequently, that the Band and Canada retained a reversionary interest in the right of way. When the right of way ceased to be used for railway purposes, Canada failed in its fiduciary duty to protect the Band's reversionary interest and return the land to reserve status. Moreover, if the letters patent to the railway company were effective to transfer full ownership, then the Crown breached its fiduciary duty in failing to limit the transfer of interest appropriately. Finally, the Commission found that the Order-in-Council was valid for the original expropriation in 1910. This did not affect the Commission's finding that the land in question ought to have been returned to reserve status when abandoned by the railway in 1927.

The ICC report, issued in December 1994, recommended that the claim of the Sumas Band be accepted for negotiation under Canada's Specific Claim policy.

Response: In June 2005, government accepted claim for negotiation.

To download the government's response - PDF

To download the report - PDF