Provincial Licence Doesn’t Promise Adequate Consultation With First Nations

In its recent decision in Moulton Contracting Ltd. v. British Columbia, the British Columbia Court of Appeal (Court) held that the Province of British Columbia (Province) can contractually exclude liability for losses incurred by forestry companies and other licensees due to third parties' interference with the licensees' operations. The Court also dismissed the claim by Moulton Contracting Ltd. (Moulton) that the Province had impliedly represented that it had discharged its duty to consult First Nations before issuing timber sale licences (Licences) to Moulton. This case serves as a reminder to would-be resource developers that a licence to harvest provincial resources is necessary but not always sufficient to carry out the intended operations.