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COURT FILE AO. ‘Action No, IN THE COURT OF QUEEN'S BENCH OF ALBERTA, JUDICIAL DISTRICT OF EDMONTON Viuorucd94 PLAINTIFFS: THE MONTANA FIRST NATION and CHIEF CAROLYN BUFFALO and RAINBOW TOBACCO GP. DEFENDANT. THE ALBERTA LIQUOR AND GAMING COMMISSION DOCUMENT ‘STATEMENT OF CLAIM ADDRESS FOR ‘CHADY F. MOUSTARAH SERVICE AND CONTACT =MOUSTARAH & COMPANY INFORMATION OF 400, 10150 - 100 Street PARTY FILING THIS Edmonton, AB T5J OPS DOCUMENT Ph: 780-428-8585 / Fx: 780-428-6564 (11-1897/0FM) NOTICE TO DEFENDANT You are being sued. You are a Defendant. Go to the end ofthis document fo see what you can do and when you must doit Note: State below only facts and not evidence (Rule 13.6) ‘Statoment of facts relied on: 1 ‘The Montana First Nation is an Indian Band located on the Reserve known as Montana #139, Chief Carolyn Buffalo is @ Full Status Indian and the duly elacted chiat of the Montana First Nation. Rainbow Tobacco G.P. is an Aboriginal Business licensed by the Federal Page 1 of 6 10 1". Governent to manufacture and sell tobacco products The Alberta Gaming and Liquor Commission (the AGLC) is a Crown commercial enterprise and an Agent of the Provincial Government of Alberta, On January §, 2011, the AGLC seized 75,000 cartons of cigarettes from a warehouse located on the Montana #139 Reserve ‘Two days eariier, Chief Carolyn Bufialo voluntarily and intentionally alerted the authorities, in this case the RCMP, that some of the cigarettes stored on the Montana #139 Reserve had been stolen, CChiot Carolyn Buffalo explained that the cigarettes were produced on the Kahnaweke #14 indian Reserve and shipped to Montana #139 Indian Reserve, and that the cigarettes were federally licensed and duty paid Chief Carolyn Buffalo expressed her hope that the cigarettes could be distributed ‘o other Indian Reserves, and thereby create employment on the Montana #139 Reserve, Despite being apprised of the above information, the AGLC insisted upon investigating the Montana First Nation and seizing the tobacco ‘The AGLC iseued a press release after seizing the tobacco, the contents of which are reproduced below. ‘The AGLE claimed that the cigarettes were contraband and that they were not properiy marked for sale in Alberta, despite the fact thatthe cigarettes were marked ‘CANADA - Dury PAID - DRorT AcaUITTE”. Despite being aware of the duty paid Page 2 of 6 12. 13, 14, 6 16. 7, ‘marking, the AGLC stil clzimed that the cigarettes were contraband “The personal property owned by Full Status Indians and located on reserve is ‘exempt fom taxation. The Alberta Tobacco Tax Act and Tobacco Tax Regulation, ‘Alta, Reg. 273/1983 comply with this constitutional and traaty right of Full Status Indians ty exempting tobacco sales made on Indian Reserves from taxation, ‘The AGLC intentionally seized the cigarettes from a Quonset on the Montana First Nation. ‘The AGLC and the Provincial Government of Alberta lacked jurisdiction to enter onto an indian Reserve and enforce the provincial Tobacco Tax Act on Full Status Indians. The AGLC did not have the right to seize the cigarettes and does not have the ight fo continue to detain the cigarettes. ‘The tobacco was seized without jurisdiction and upon false assertion, contained in an Information to Obtain a Search Warrant, that the cigarettes were counterfeit and contraband. The AGLC insisted on making these claims regarding the cigarettes, ‘and consequently insinuating that the cigarettes were evading paying tax and Cuties, despite the cigarettes being marked "CANADA-DutyPaio- Drorr AcquITTE”, ‘The Montana First Nation has requested thatthe cigarettes be retuned as soon as possible, but the AGLC has persisted in refusing to return the goods or even providing an inventory of the seized cigarettes. Furthermore, the AGLC has Provided no assurances regarding the storage conditions ofthe tobacco, Cigarettes are perishable goods, and as such the AGLC’s wrongful seizure and detention ofthe cigarettes will eventually result in the desttuction of the goods. Page 3of 6 18 19, 20 a 22, 23, 24. 26, 26. ‘The AGLC failed to meet the Duty of Care it owed to the Plants ‘The AGLC was negligent in its investigation of the Plaintiffs end failed to take reasonable steps to ascertain its jurisdiction over Indian Bands and on Indian Reserves. The AGLC’s nogligence has caused the Plaintiffs financial harm, ‘The AGLC has interfered withthe relationship between the Montana First Nation and Rainbow Tobacco G P. The AGLC intentionally seized the goods which were the subject of the business relationship, ‘The AGLC knew, or ought to have known, that seizing the goods would interfere With the relationship between the Plants ‘The AGLC's interference has inhibited the economic development of the Montana First Nation and has flustrated the opportunity for the indigenous people of the Montana First Nation to eam a livelihood, The AGLC's interference has caused lost profits for Rainbow Tobacco G.P. and the Montana First Nation, ‘The particulars ofthe defamation include, but are not limited to, the libellous press ‘release issued by AGLC on January 6, 2011. The text of the press release is reproduced below: Page 4 of 6 14 million contraband cigarettes seized in Ponoka area Edmonton .. On January 5, investigators from the Alberta Gaming and Liquor Commission (AGLC), in cooperation with the RCMP, confiscated approximately 75,000 cartons of contraband cigarettes with a potential value of $3 milion in lost tax revenue to the eravince, The cigarettes were found as a result ofa search warrant on a Quonset, inthe Ponoka region. The cigarettes wore not properly marked for egal Sale in Alberta in violation of the provincial Tobacco Tax Act, The Iivestigation is stil underway Allwholesaiers and importers of tobacco into Alberta must be licensed toe! or import tobacco for resale. In adition all tobacco products for tapaid sale must be labelled according to federal and provincial regulations related to taxes, manufacturing and distribution, Under a Memorandum of Understanding with Alberta Finance and Enterpiise, the AGLC conducts various compliance inspections at tobacco retailers related to the Tobacco Tax Act. AGLC investigators also work with local police agencies on investigations of contraband totacco. ‘The AGLC's press release defamed the goods of Rainbow Tobacco by claiming that the products manufactured by Rainbow Tobaceo are contrabend, and ‘consequently insinuating thatthe cigarettes are ilegal and of an inferior quality to Cigarettes produced by non-aboriginal tobacco manufacturers ‘The reputation ofthe Montana First Nation was also damaged by the AGLC's press. ‘release. The press release stated thatthe Montana Fist Nation's possession ofthe Cigarettes deprived the Provincial Government of Alberta of $3 million of tobacco taxes, This explcitstatementis unirue because cigarettes cold on Indian Reserves, ‘are tax exempt under the Alberta Tobacco Tax Actand Tabacco Tax Regulations. These statements are defamatory as they suggest that the Montana First Nation 's dishonestly attempting to deprive the Provincial Government f Alberta reverie. Page 5 of 6 30. The impication that the Montana First Nation does nat pay its fair share of taxes is particularly harmful to an aboriginal community's reputation as it struggles to obtain public services of an equal quality available to the general Canadian public ymedy sought: 31, WereTerone He PLANTS Cua AGANET THE Ds 2, Adeclaration that the Alberta Tobacco Tax Act is not a law of general application under the Section 88 of the Federal Indian Act b. declaration that the AGLC's seizure of the tobacco from the Indian Reserve is ultra vires © The retumn of al the seized tobacco to the Montana First Nation 4. General damages of $1 milion dolars for lost reputation and lost profits ©. Punitive damages of $499,000 dollars. NOTICE TO THE DEFENDANT You only have a short time to do something to defend yourself against this claim: 20 daysif you are served in Alberta + month if you are served outside Alberta but in Canada 2 months if you are served outside of Canada, You can respond by fling a Statement of Defence or a Demand for Notice in the office of the Clerk of the Court of Queen's Bench at Edmonton, Alberta, AND serving your Statement of Defence ora Demand for Notice on the plaints address for service, WARNING you do not file and serve a statement of defence or a demand for notice within your time Period, you rsk losing the law suit automatically. f you do not filo, or do not serve, or are late in doing ether of these things, a court may give a judgement tothe plaintifs against wu Page 6 of 6