Canada loses bid to dismiss lawsuits over Discovery Islands salmon farm closures.
The Supreme Court of British Columbia has rejected an attempt by the federal government to strike out multiple lawsuits brought by salmon farming companies seeking damages over the closure of open-net pen farms in the Discovery Islands, off the coast of British Columbia.
In a decision released this month, Justice Lauren Blake found that the legal claims filed by Mowi Canada West, Cermaq Canada, Allen Diving, and James Walkus Fishing Co. could proceed, despite earlier related rulings at the federal level.
The companies argue they suffered significant financial harm as a result of the 2023 decision by then-fisheries minister Joyce Murray not to renew licences for 15 salmon farms in the region. That decision followed a 2020 mandate from Prime Minister Justin Trudeau to transition away from open-net pen aquaculture in British Columbia by 2025.
The federal government sought to have the cases dismissed, claiming the plaintiffs were attempting to bypass the federal judicial review process. In 2024, a federal court had ruled against the same companies and two First Nations, upholding the legality of the licence non-renewals and affirming that consultation requirements had been met. That ruling is currently under appeal.
In the provincial court case, however, Justice Blake ruled that the civil claims disclosed a reasonable cause of action and were not certain to fail. She found that the plaintiffs had a legal basis to argue that the ministers had acted with subjective recklessness or wilful blindness, and that they had knowledge their actions would likely cause economic harm to the companies.
Two claims — alleging that property had been taken and that the ministers engaged in abusive administrative action — were struck on the grounds they were bound to fail. But the remainder of the cases were allowed to proceed.
The judge directed the parties to attempt to agree on which categories of damages should be pursued. If no agreement is reached, the court will schedule a hearing.
A spokesperson for Fisheries and Oceans Canada said the government is reviewing the court’s decision and declined to comment further while the case remains active. A lawyer for three of the companies declined to provide comment.