Court rules against Manitoba First Nation in barge battle with Crown corporation

A Manitoba judge has dismissed a request from Poplar River First Nation asking a federal Crown corporation be ordered to continue operating a barge on Lake Winnipeg, ruling the Court of King’s Bench does not have jurisdiction in the matter.

The federal government has been looking to divest itself of the Freshwater Fish Marketing Corp., which held a monopoly on fish marketing and sales in the country upon its creation in 1969. It has since lost economic power as provinces, including Manitoba, have opted out.

A government-appointed advisory council, established in 2018, recommended several years ago that regional fishing groups and processors, or an Indigenous economic development corporation, take the reins as a private, user-owned operation.

Poplar River is concerned the divestment will end the community’s use of the MV Poplar River barge, owned by the Crown corporation. The remote First Nation on the east shore of Lake Winnipeg relies on the barge to drive its economy through fishing.

The community filed a lawsuit against the corporation and federal government in December, as well as the notice of motion that sought a court-ordered injunction to protect its interests in using the barge.

Court of King’s Bench Justice Sarah Inness, in a decision earlier this month, ruled the court does not have the jurisdiction to hear Poplar River’s motion for an injunction.

“I am sympathetic to (Poplar River’s) circumstances as the future economic stability of the community hangs in the balance,” wrote Inness. “However, these factors are insufficient for me to find jurisdiction to grant the relief sought.”

The injunction motion asked the court to order the federal government and corporation to temporarily suspend Freshwater Fish from disbanding until it has fully consulted with and accommodated Poplar River’s treaty and Indigenous rights.

It also sought a court order preventing the sale or disposal of the barge without Poplar River’s consent.

Poplar River sought the court orders to stall any changes to the corporation until a judge rules on its lawsuit.

The First Nation relies on fishing as one of its biggest trades. The barge transports food, construction materials and fuel to the First Nation, as well as commercial catches of pickerel and whitefish, the court filings say. The community of about 1,400 people does not have all-weather road access.

The First Nation argues that without the barge, commercial fishers can’t transport and sell their catch, while essential supplies aren’t easily shipped to Poplar River.

The First Nation argued the government neglected its rights and harmed its economic security, leaving it in a state of uncertainty. The loss of the vessel would lead to irreparable harm, it argued. It pointed to a 2022 explosion that rendered the vessel inoperable, sparking a near-collapse of its economy.

The federal government conceded that King’s Bench could rule on Poplar River’s statement of claim, but argued the Manitoba court did not have jurisdiction under the law to grant injunctions against the federal Crown, Inness wrote in her decision.

Ottawa argued the federal court has exclusive jurisdiction to grant injunctions against the federal Crown and only on applications for judicial review, rather than injunction motions.

The marketing corporation argued the lawsuit against it should be stayed because Poplar River did not include a proper cause of action — a legal basis entitling a party to sue — in its court filing.

But Inness said Poplar River may still seek to amend its lawsuit.

She ruled it would be unjust and prejudicial to the community if she were to stay the lawsuit against the marketing corporation, finding that issue should be addressed separately after a judge hears more legal arguments.

The statement of claim remains before the court and neither the Crown corporation or government have filed statements of defence in response.

erik.pindera@freepress.mb.ca