Claims, counter-claims fly over bitter cottage dispute with First Nations, Ottawa

In response to a $50-million lawsuit filed by 60 cottagers against the Chippewas of Nawash First Nation and Ottawa in February, the aboriginals are now suing the government for $60 million, while rejecting claims they have been unjustly enriched by keeping the cottages on their land.

In their response, the Chippewas argue the cottages are essentially in disrepair or fail to meet building code standards, and are in fact now an environmental liability.

The claims and cross-claims flow from a 1995 decision by the First Nation not to renew a 30-year agreement with Ottawa that allowed seasonal leases of their land in the Hope Bay subdivision of the Neyaashiinigming Indian Reserve on scenic stretch of the northern Bruce Peninsula.

While families had used the cottages for decades in some cases, the land on which the buildings sit is part of the natives' unceded reserve.

The cottagers continued to use the properties after 1995, in some cases renovating them, believing the leases might be renewed for another 20 years.

In December 2006, Indian and Northern Affairs Canada, who actually held the leases with the First Nation, wrote the cottagers to say they were no long able to access the properties.

They were given barely two months in the depths of winter to remove their belongings.

In their claim, the cottagers argue that Ottawa led them to believe new leases would be negotiated. They also argue they should have received 12 months notice so they could remove their possessions, which the First Nations now say are theirs.

"The conduct of INAC and the Crown in dealing with the cottagers . . . was deliberate, callous, exhibited bad faith and took place over a long period of time," the cottagers argue.

The cottagers' suit alleges that Indian Affairs and the band "wrongfully denied" their right to remove their cottages or should compensate them for their loss.

They argue Indian Affairs and the band allowed them to buy and make improvements to the buildings until the end of 2006, then suddenly took the position the leases and permits had expired.

"(Indian Affairs) and the band have been unjustly enriched by the possession of the cottages on the Hope Bay subdivision and the improvements made to them."

In its defence, the federal government argues the cottagers were given plenty of warning the leases might not be renewed and never made promises they would be extended.

"There is no basis for loss of enjoyment, lost opportunity or mental distress," the government says in its documents before Ontario Superior Court.

"Any expectation of the plaintiffs that they had such a right was unreasonable."

Ottawa also argues the group had plenty of time to remove their belongings and any claim for damages should be against the First Nation.

However, should the courts side with the cottagers that the government mishandled the lease situation, Ottawa is demanding that the Chippewas be responsible for any damages.