OTTAWA - Canada's Indian affairs minister says a dispute over legal fees is not expected to delay payments to former students of native residential schools.

Ottawa is challenging a court ruling that ordered the government to pay Saskatchewan lawyer Tony Merchant between $25 million and $40 million.

Merchant says his firm is owed the money for work done over 10 years on behalf of more than 8,000 natives claiming abuse at residential schools during the last century.

But Indian Affairs Minister Jim Prentice says the law firm must show evidence that those clients exist and were served.

The dispute has some claimants worried that compensation worth about $5 billion will be delayed.

Prentice says there's no reason why payments expected by late this year should be held up while legal fees are sorted out.