The Federal Court’s recent decision in Opaskwayak Cree Nation v Canada, 2026 FC 1110 provides important guidance on the scope of the Crown’s fiduciary duty when it expropriates reserve lands and how courts may approach compensation where those obligations are breached.
The Federal Court found that Canada breached its fiduciary duty to the Opaskwayak Cree Nation (“OCN“) in relation to the expropriation of reserve lands required for the construction of the Grand Rapids Dam in Manitoba. The Court ultimately awarded OCN equitable compensation for the loss it suffered as a result of that breach.
The Crown owes a fiduciary duty when there is a specific or cognizable Aboriginal interest and the Crown undertakes a discretionary control over that interest.1 “Cognizable Aboriginal interests” can include reserve lands and Aboriginal and treaty rights protected by section 35 of the Constitution Act, 1982.2 “Discretionary control” is interpreted generously, focusing on the vulnerability of the