In a landmark decision released March 31, the B.C. Supreme Court Teal Cedar’s $75M Lawsuit Over Logging Restrictions on Haida Gwaii dismissed Teal Cedar Products Ltd.’s $75 million lawsuit against the Province of British Columbia and the Haida Gwaii Management Council (HGMC), ending a years-long legal challenge to ecosystem-based forest management on Haida Gwaii that began in 2016 and went to trial in 2023.
Teal Cedar, a division of Teal-Jones, claimed that the Haida Gwaii Land Use Objectives Order (LUOO)—enacted in 2010 as part of reconciliation agreements between the Province and the Haida Nation—imposed such strict harvesting constraints that it effectively nullified its forestry tenures, causing financial harm. The company argued this amounted to a constructive expropriation of its rights and further alleged that the Province had breached both a duty of good faith and an oral promise to “keep Teal whole” in terms of harvest volumes.
Justice B. Brown rejected all three arguments.
“I do not find an oral contract promising Teal would be kept whole to have been made,” the judgment states.
“I am not persuaded that the LUOO has virtually abolished Teal’s rights or left Teal with no reasonable use of the tenures.”
“The Province did not act in bad faith vis-à-vis Teal in enacting the LUOO.”
The LUOO was enacted under the Province’s legal authority and implemented through the Haida Gwaii Management Council, a joint decision-making body created under the Haida Gwaii Reconciliation Act. The Council has authority over land and resource use decisions on Haida Gwaii, with two members appointed by the Haida Nation, two by the Province, and one jointly selected chair.
The LUOO was not a sudden policy shift, but rather the outcome of years of joint land-use planning between the Province and the Haida Nation. As outlined in the court ruling and confirmed in public documents, the LUOO was enacted under the Haida Gwaii Reconciliation Act and the Land Act, following the 2007 Strategic Land Use Agreement (SLUA). It reflects a co-managed, ecosystem-based approach to land use—prioritizing ecological integrity and Haida cultural values such as the protection of monumental cedars and culturally modified trees—while allowing sustainable timber harvests under new guidelines.
Justice Brown found that Teal’s harvesting rights remained subject to permits and evolving forest policy, including the Crown’s constitutional obligation to consult Indigenous nations. The tenures retained value—Teal ultimately sold them in 2016 for over $5 million—and the court found the Province had no contractual obligation to guarantee specific volumes.
“Recognition and protection of rights and interests are aspects of reconciliation,” the judge wrote. “Reconciliation is not distinct from the recognition and protection of Aboriginal interests and rights.”
The ruling follows decades of land advocacy by the Haida Nation and local residents. The LUOO’s introduction marked a turning point in forest stewardship on the islands, limiting clearcutting in ecologically and culturally sensitive areas and shifting toward long-term ecosystem-based management.
During the lengthy trial, Guujaaw—former President of the Council of the Haida Nation—testified about the impacts of industrial logging and the intergenerational work to protect Haida Gwaii’s forests. His testimony contrasted with the technical evidence offered by forestry experts, company executives, and provincial staff, grounding the legal dispute in a deeper cultural and historical context.
While Teal was pursuing this claim in court, its parent company, Teal-Jones, was facing severe financial pressure. In April 2024, the company filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) in British Columbia. A U.S. court also granted provisional recognition of the case under Chapter 15 of the U.S. Bankruptcy Code. Teal-Jones stated the restructuring was a necessary step to stabilize its finances, with global accounting firm PwC (PricewaterhouseCoopers) appointed as court monitor to oversee the process. The company has since resumed operations and is actively seeking investors and buyers through a court-supervised sales and investment solicitation process.
Teal-Jones is B.C.’s largest privately owned coastal forestry company, headquartered in Surrey, employing over 1,000 people across the province. On Haida Gwaii, the company operated under Tree Farm Licence 58 (TFL 58) and Forest Licence A16870 until December 2016, when it sold its operations—including TFL 58—to A&A Trading Ltd. for approximately $5.4 million. The court noted this sale as evidence that the licences still held value despite regulatory changes introduced by the LUOO.
The dismissal of its lawsuit, combined with its ongoing financial restructuring, marks a major turning point for the company—and potentially for similar legal challenges elsewhere in the province. Teal had argued that reconciliation-related policy changes entitled it to compensation, but the court firmly disagreed.
“The action is dismissed,” the judgment concluded. Submissions on court costs may follow.
While Teal Cedar’s claim has been dismissed, the broader question of Aboriginal title over Haida Gwaii has seen historic resolution outside the courtroom. In 2024 and 2025, the Haida Nation signed landmark agreements with the Province of British Columbia and the Government of Canada, formally recognizing Haida Aboriginal title to the islands and surrounding foreshore. These agreements—Gaayhllxid • Gíihlagalgang (“Rising Tide”) and Chii xuu Tll iinasdll / Chaaw K’aawga (“Big Tide / Low Water”)—mark the first negotiated recognition of Aboriginal title in Canadian history. They set in motion a new phase of reconciliation between Haida, provincial, and federal governments on Haida Gwaii.