Legal Background: The case involved the disputed ownership of a parcel of land (the "East Lot") in Nelson, B.C., which had escheated to the Crown after the dissolution of its previous owner, the Nelson City Land and Improvement Company. The Supreme Court of Canada had previously ruled that the land escheated in 1930 or 1931. The Mowatts sought to have the land transferred to them under the Escheat Act, based on their moral claim and discovery of the escheat.

Legal Issues: The primary issues were whether the Mowatts had a moral claim to the East Lot and whether the Deputy Attorney General (DAG) reasonably exercised his discretion under the Escheat Act. The Mowatts argued their long-term use, payment of taxes, and efforts to quiet title supported their claim. The DAG rejected both the Mowatts' and the City of Nelson's claims, ordering a blind auction instead.

Outcome: The Court of Appeal allowed the Mowatts' appeal, ruling that the DAG's decision was unreasonable under the Vavilov standard, particularly for failing to properly consider the appellants' moral claim and other relevant factors. The case was remitted to the Attorney General for reconsideration. No specific costs or awards were mentioned in favor of the Mowatts.