Executive Summary: Key Legal and Evidentiary Issues

• The Parks Canada CEO’s denial of a business licence lacked procedural fairness due to failure to consider the applicant’s full submission.

• TDNXDY’s recommendation to deny the licence relied on factual inaccuracies and irrelevant considerations, undermining its credibility.

• LKDFN, the most directly affected Indigenous party, supported the business licence, but its view was not given proper weight by decision-makers.

• Reconciliation was improperly invoked without evidentiary justification to override other statutory considerations under the licensing regulations.

• The Superintendent and PCEO both relied heavily on TDNXDY’s flawed recommendation without critically assessing its deficiencies.

• The Federal Court ruled the PCEO’s decision unreasonable and set it aside, awarding costs to the applicant.

Facts and outcome of the case

Background and the creation of the park

Trophy Lodge NWT Ltd., a fishing and tourism lodge on the eastern end of Great Slave Lake, had operated since 1965 under Northwest Territories regulations. In 2019, the creation of the Thaidene Nëné National Park Reserve transferred regulatory oversight to Parks Canada, under the Canada National Parks Act and the Parks Canada Agency Act. As part of a reconciliation-focused framework, Canada and the Lutsël K’é Dene First Nation (LKDFN) signed an Establishment Agreement, creating a co-management regime involving an advisory board called Thaidene Nëné Xá Dá Yálti (TDNXDY).

Following the park's creation, Trophy Lodge became subject to federal jurisdiction and required a Parks Canada business licence to operate. The lodge was purchased in 2022, and the new owners applied for a licence, proposing business practices that included environmental upgrades, Indigenous cultural respect, and local economic inclusion.

Review and denial of the business licence

Despite the support of both Parks Canada and LKDFN, TDNXDY recommended against issuing the licence. Its reasoning cited cultural sensitivities, historical colonial impacts associated with the former RCMP post on the site, and objections to how the lease was transferred to Parks Canada without LKDFN’s input. These justifications were not grounded in the licensing criteria provided to TDNXDY by Parks Canada. The Superintendent of Parks Canada accepted TDNXDY’s recommendation and denied the licence. The applicant requested a review by the President and CEO (PCEO) of Parks Canada.

The PCEO upheld the denial, primarily relying on the principle of reconciliation and the absence of a joint management plan for the park. However, the PCEO did not have access to the applicant’s full licence application or the supporting documents submitted to TDNXDY. The decision was also made without addressing the applicant’s argument that TDNXDY’s reasoning was flawed and outside its mandate.

Federal Court decision

The Federal Court ruled in favour of Trophy Lodge NWT Ltd., setting aside the PCEO’s decision. Justice Régimbald held that the review process was procedurally unfair because the PCEO lacked critical evidence, including the original licence application. The Court found the TDNXDY recommendation was unreasonable due to factual errors and irrelevant considerations. It also criticized the Superintendent and PCEO for failing to properly assess whether the recommendation aligned with statutory objectives, such as environmental protection and park management.

Furthermore, the Court emphasized that reconciliation is a legitimate consideration under the licensing regulations, but its invocation must be evidence-based. In this case, the First Nation most affected—LKDFN—supported the business, which undermined the justification for invoking reconciliation as a reason to deny the licence.

Outcome and costs

The Court granted the application for judicial review and set aside the PCEO’s decision. While the licence at issue had expired and no further remedy was granted, the applicant had since filed a new application, which must now be considered in light of the Court’s findings.

The Court awarded Trophy Lodge $18,207.00 in costs for the judicial review. Additionally, Parks Canada and LKDFN were each awarded $3,000.00 for their costs relating to a motion for injunctive relief that was ultimately not heard.