LandKeepers News Archive
PBM lawsuit against LBN going ahead Company seeking injunction and damages
January 20 2009 | News Articles | BC Local News
PBM lawsuit against LBN going ahead Company seeking injunction and damages
Published: January 20, 2009
Over three weeks ago, on Dec. 30, 2008, Pacific Booker Minerals (PBM) filed suit against the Lake Babine Nation (LBN), as a result of an Oct. 14 press release issued by LBN Chief Betty Patrick stating that it was withdrawing from discussions with PBM over its Morrison copper-gold project.
The company described the LBN press release as “unexpected, damaging and allegedly defamatory … “
PBM claims that the news release contained several defamatory statements, that allegedly implied that the company conducted itself dishonestly or in bad faith, that it was disrespectful because it attempted to obtain confidential information from band members, and that it behaved in an unfair or immoral way by attempting to deprive the LBN of legal counsel.
“There has been no change in the situation regarding the lawsuit,” said PBM chief operating officer and executive vice-president Erik Tornquist, “We have not heard from LBN, and there has been no apology or retraction. The lawsuit is going ahead. and the matter is with our lawyers.”
Tornquist stressed, “We are moving forward with the LBN. The … damaging press release, while highly unfortunate, will not prevent us from doing our very best to consult. But we have to take care of our shareholders and investors. We see no way out of the dilemma created by the LBN press release other than to leave the defamation and damages issues to the courts and otherwise act in good faith to consult with the LBN in the ongoing environmental assessment process.”
LBN Chief Betty Patrick, asked if there had been any official or unofficial contact with PBM since the suit was launched, said, “I have had unofficial contact with the president of PBM.”
Asked if the lawsuit was holding up the release of funds from a capacity funding agreement signed by LBN and PBM on Dec. 5, 2008, Patrick stated, “No, there has been no holdup of funds. The work is continuing, and the environmental assessment process is moving along.”
Patrick, commenting on whether the lawsuit could be settled out of court without incurring additional legal expenses, expressed hope.
“I’m sure there can be a settlement; I’m certainly willing to work toward it; the focus should be on relationship-building.”
The Oct. 14 LBN news release said that LBN was withdrawing from dialogue with PBM “due to serious concerns regarding PBM’s conduct and the government’s handling of the consultation process.”
The news release also said that PBM continued to offer LBN money “but we haven’t seen a dime”; and claimed that the company was questioning individual members of the LBN without asking permission and was repeatedly telling them that the company preferred they not use legal counsel.
“Gone are the days when First Nations are not entitled to legal representation and we are not going to let them dictate to us who is on our team. Their actions to date are disrespectful and do not encourage us to trust them,” said Patrick’s news release.
The release also contained a quote from Patrick which said, “Development must respect our aboriginal rights and title and engage with us on a level playing field in the Morrison project is to move forward.”
The PBM claim against LBN states that “by reason of the words … the Plaintiff [PBM] has been seriously injured in its character, credit and reputation, and in its ability to conduct its business, and has suffered damages.”
PBM said that the Oct. 14 LBN press release had been republished by Stockwatch, Canada Newswire, NationTalk, Metals News, and Stockhouse, which are investment and media outlets available on the Internet.
PBM denied the allegations made in the news release, and requested a public retraction of the press release, but no response was received from the defendants [LBN], which refused to retract or amend them, according to the lawsuit.
PBM also said in its claim that the LBN intended to repeat the defamatory statements or to publish similar words.
PBM is seeking an injunction preventing further publication of the defamatory statements or similar words, plus general, special and punitive damages.
The lawsuit comes almost one month after PBM announced that it had reached an agreement with LBN on “capacity funding” on Dec. 5, 2008, where the company announced that it would provide LBN funds to participate in the environmental assessment, among other things.
PBM began discussing the Morrison project with the LBN in 1993, according to the suit.
The company said it held informal talks with LBN until Sept. 30, 2003, when the B.C. Environmental Assessment Office ordered an environmental assessment of the Morrison project, which required formal consultations with LBN and others.
As part of that consultation, PBM and the B.C. government made several ‘capacity funding offers, in which the LBN would receive funds to review the environmental assessment process and for ‘community engagement’.
PBM claims that it received no response to those offers, and on July 18, 2008, a lawyer for LBN sent a letter requesting $100,000 and a reopening of prior regulatory assessments.
PBM kept negotiating with the LBN, according to the claim, attempting to determine the needs of the LBN, and to arrive at what it termed a ‘reasonable funding agreement’, which was finally signed with LBN on Dec. 5, 2008.
According to the PBM website, “indicative of how PBM is moving forward is its recent [Dec. 5] agreement, after the [Oct. 14] LBN press release, to provide capacity funding to the LBN to enable effective consultations in the environmental assessment process.
PBM has also agreed to work with LBN to develop a communications protocol. These and other commitments originated from offers made by PBM some two to three years ago (but which did not receive any LBN response for long inexplicable delays).”
http://www.stockwatch.com/swnet/newsit/newsit_newsit.aspx?bid=Z-C:BKM-1564552&symbol=BKM&news_region=C
http://www.bclocalnews.com/bc_north/lakesdistrictnews/news/37895899.html
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