Sides react to decision to drastically reduce legal fees in $10B treaty settlement case

Lawyers may appeal a decision to reduce legal fees from $510M to $40M related to a $10M settlement under the Robinson Huron Treaty Litigation Fund.

Lawyers are considering an appeal of a decision by a Superior Court judge to reduce legal fees from $510 million to $40 million related to a $10 billion settlement for First Nations under the Robinson Huron Treaty Litigation Fund.

The $510 million was based on a five per cent contingency fee agreed to by the sides involved in the case, which took 17 years to make its way through the court system.

While 19 of the 21 First Nations agreed to the fees, two of them went to court to have them reduced – and were successful.

“For years, we have been urging the Robinson Huron Treaty Litigation Fund and the Legal Team to have the legal fees assessed,” Gimaa (Chief) Craig Nootchtai, Atikameksheng Anishinabek said in a statement.

“We are proud to receive this decision from the court, which will transfer hundreds of millions of dollars from the hands of six lawyers to the 21 First Nations of the Robinson Huron Treaty.”

Ogimaa Kwe Karen Bell of Garden River First Nation said she is “delighted” by the ruling.

“(It) affirms our long-standing position that the Robinson Huron Treaty Litigation Fund was overcharged in legal fees,” Bell said in a statement.

“The return of these funds to the proper rights holders will have transformative impacts on our communities.”

“We went to court to protect the rights and interests of the beneficiaries,” added Garden River Coun. Chester Langille.

“We are grateful that they will now receive what is rightfully theirs.”

But a spokesperson for the legal team said the decision by Superior Court Justice Frederick L. Myers “echoes centuries of paternalistic attitudes to First Nations.”

“Ontario Superior Court Justice Fred Myers’ decision flew in the face of the litigation fund’s firm belief that the legal team should be compensated in keeping with a fee structure that had been carefully negotiated,” the statement said.

“An appeal of Judge Myers’ decision is being contemplated. It would address his central findings as well as several negative inferences made about counsel.”

The statement said the decision “continues a centuries-old narrative of First Nations being incapable of making informed decisions for themselves.”

“This litigation was enormously complicated and required arduous work by the entire legal team,” the statement said.

“The value of the ultimate $10-billion settlement speaks loudly to the enormous value to the clients that came from the legal team’s efforts on this landmark case.”

Fee ‘was carefully negotiated’

The fee structure was carefully negotiated and “sanctified by a sacred pipe ceremony. They submitted that the traditional sense of honour and principle embedded in Anishnaabe culture demanded that the agreement be respected.”

“The legal fee review was initiated by two First Nations -- Atikameksheng and Garden River First Nation -- who argued that the $510-million contingency fee was unacceptably high. They were opposed by the other 19 First Nations in the litigation fund,” the statement said.

“Counsel for the Litigation Fund and the legal team impressed on Judge Myers during the hearing that, after centuries of intergenerational poverty and abysmal treatment by the Crown, the case lifted 40,000 Anishnaabe people to a bright future and a new level of self-respect.”

In addition, the legal team decided to give half of the fee -- $255 million – back to the First Nations.

“It was to be used for a variety of programs and services that would enhance their way of life and the retention of the Anishnaabe language and culture,” the statement said.

“In the wake of Judge Myers’ decision, it is far from clear how those planning commitments will be affected.”