Background:
Spirit Bay Developments Limited Partnership, managed by its general partners TSD General Partner Inc. and Beecher Bay GP Ltd., entered into long-term leases with Beecher Bay First Nation for land development. Scala was contracted to build homes for the project but stopped work in December 2018 due to unpaid invoices. Scala won an arbitration award in 2020 for unpaid services, which Spirit Bay did not pay. Beecher Bay First Nation, a limited partner in Spirit Bay, held 51% ownership of the partnership.

Key Legal Issues:
Scala petitioned for the appointment of a receiver to enforce the arbitration award. Beecher Bay First Nation opposed this, citing section 89 of the Indian Act, which protects First Nation property from seizure. They also argued that appointing a receiver violated the Beecher Bay Land Code, which governs reserve lands.

Indian Act Argument:
Beecher Bay claimed its interest in Spirit Bay’s assets, including land leases, was personal property protected under the Indian Act. The court disagreed, holding that the general partners held the lease assets, which could be seized.

Outcome:
The court ruled in favor of Scala, appointing a receiver and enforcing the $1,860,000 arbitration award, plus $230,000 in legal costs, for a total of $2,090,000.