Rath & Company charged an "unreasonable fee" of $8,518,075 plus interest.
Court needs to decide to whom this amount should be returned.
Contingency Fee Agreement (CFA):
Agreement was between Tallcree and Rath.
Fee paid from the Tallcree First Nation Trust (the Trust), not directly by Tallcree.
Settlement Agreement and Trust Declaration:
Settlement funds from the Government of Canada for Tallcree’s Treaty 8 Agricultural Benefits Specific Claim.
Trust for the benefit of those members of Tallcree alive on June 28, 2017 (444 beneficiaries no longer members).
Court’s Analysis:
Initial Filings:
Tallcree initially sought a review of the retainer agreement's reasonableness, not a lawyer's account review.
Trust and Beneficiaries:
Legal fees specified as 20% of Settlement Funds in the Trust Declaration.
Settlement Agreement and Trust Declaration ratified by Tallcree members through a vote.
Naming of Parties:
Tallcree did not include the Trustee, Trust Beneficiaries, or Canada in the proceedings.
Rath’s argument on the return of monies was delayed until after 2021 decisions.
Decision:
Return of Monies:
The $8,518,075 plus interest should be returned to individual beneficiaries of the Trust per the Settlement Agreement terms.
This decision is despite the practicality of returning the funds to the Band's Chief and Council for collective benefit.
Conclusion:
Justice Lee directed the return of the disputed fees to the individual beneficiaries as per the Trust terms, emphasizing adherence to legal frameworks over administrative convenience.