Treaty 1 Annuity Claim
Overview
When Treaty 1 was formed, the annuity had meaningful purchasing power. However, Canada froze that annuity payment at $5 in 1875 and its real value has been eroded over time. Zongidaya Nelson is taking action to restore the real value of the annuity payments.
Zongidaya is a member of Roseau River Anishinaabe First Nation, and he has been appointed by the Manitoba Court of King’s Bench to represent the beneficiaries of Treaty 1. Zongidaya started his lawsuit in 2019 and he is seeking a declaration that the Crown must increase annuity payments to maintain their real value. On behalf of all Treaty 1 beneficiaries, he is also seeking compensation for a century-and-a-half of being shortchanged.
Zongidaya is represented by McCarthy Tétrault LLP, Boudreau Law, Jason Zushman Law Corporation, Norman Rosenbaum, and Candice Metallic. The action is proceeding to trial.
Background
Executed in August 1871 by the Crown and various Anishinaabe, Swampy Cree, and other First Nations, Treaty 1 represents solemn and sacred promises between Canada and First Nations.
The Treaty 1 First Nations upheld their end of the bargain: they allowed the Crown the use of over 40,000 square kilometres of land spanning most of what is now southern Manitoba. The Crown, however, did not reciprocate.
The terms of Treaty 1 provided for perpetual annuity payments of three dollars per person (raised to five dollars by Order in Council in 1875) “to be made in such articles as the Indians shall require of blankets, clothing, prints (assorted colours), twine or traps, at the current cost price in Montreal, or otherwise, if Her Majesty shall deem the same desirable in the interests of Her Indian people, in cash”. At the time, this commanded significant purchasing power.
The parties’ shared understanding that annuity payments would have real value was confirmed by the express contemplation of payment in kind. Nevertheless, the Crown has failed to increase payment of the annuities for more than 150 years.
Among other relief, the action seeks an order requiring Canada to compensate beneficiaries of Treaty 1 for unpaid or underpaid annuity payments, and a declaration that Treaty 1 contains an augmentation or indexation provision requiring Canada to continually adjust annuity payments for losses in real value, including purchasing power. The claim seeks to address the wrongs of the past and safeguard the future, to allow present and future generations to benefit from this important treaty promise.
Zongidaya is committed to representing the rights and interests of all Treaty 1 beneficiaries. He calls on the leaders of Treaty 1 nations to support the claim. He asks First Nations and beneficiaries to share any records that they may have on Treaty 1, and particularly the annuities clause. He also welcomes knowledge holders and Elders to share their invaluable knowledge on the treaty relationship and promises to help advance the claim.
Case Updates
For an overview of the status and benefits of the claim, see the February 2024 Treaty 1 Newsletter.
On July 17, 2019, the claim in this matter was filed and issued. See the Fresh as Re-Amended Statement of Claim, here.
On February 11, 2022, the Court of King’s Bench of Manitoba granted a Representation Order in favour of Zongidaya. See the Representation Order, here.
On October 30, 2023, Canada filed its defence. See the Statement of Defence, here.
On November 8, 2023, Zongidaya filed his reply. See the Reply to the Statement of Defence, here.
March 21, 2025 update.
In the News
- CBC News: Manitoba First Nations man sues federal government for $11B over 'unfulfilled' treaty annuity payments
- CTV News Winnipeg: 'We want justice': Lawsuit claims feds owe $11 billion to Treaty 1 First Nations
- The Winnipeg Free Press: First Nations owed $11B in treaty payments: lawsuit
Frequently Asked Questions
What is a representative action?
A representative action permits a plaintiff to advance a claim that includes other persons who have an interest in or may be affected by the proceeding. This allows an issue that impacts several people to be addressed through a claim by an individual.
Will I be bound by the outcome of the action?
This representative action will bind all persons who are entitled to receive annuity payments under Treaty 1. If you are entitled to receive annuity payments under Treaty 1, then you do not have to take any steps to have your rights decided in Zongidaya’s action. Orders of the court in this proceeding will be binding on you. Similarly, a settlement of Zongidaya’s action may be binding on you if the court decides that the settlement is in the interest of the Treaty 1 beneficiaries.
Do I have to pay to be part of the action?
Nothing up front. The lawyers are acting on a contingent retainer. This means that the lawyers bringing the action will only be paid if the action succeeds. If successful, the lawyers will be paid a portion of the settlement or judgment, but only with court approval.
Contact
For media inquiries, please contact:
Michael Rosenberg
Partner, McCarthy Tétrault LLP
mrosenberg@mccarthy.ca
416.601.7831
For class member inquiries, please contact:
Alana Robert
Associate, McCarthy Tétrault LLP
alrobert@mccarthy.ca
416.601.8022