The former head of the Łútsël K’é Dene First Nation’s business arm is appealing a court ruling that found he misappropriated millions of dollars.
In July, NWT Supreme Court Justice Karan Shaner ruled in favour of the First Nation and its chief in a lawsuit against Ron Barlas.
Shaner found that Barlas had “engaged in egregious conduct and abused his position as CEO” of Denesoline Corporation, “while gaining significant financial benefit for himself and his family.”
Barlas filed an appeal of that decision last month, as first reported by the CBC on Wednesday.
His lawyer is arguing that Justice Shaner erred by making a ruling on the lawsuit without holding a trial.
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The appeal claims a decision should not have been made solely on a paper record as there are “substantial factual disputes, disputes as to the parties’ intentions, credibility issues and other significant gaps in an incomplete evidentiary record.”
Specifically, the appeal asserts that the court should hear from former Chief Darryl Marlowe, directors of the First Nation’s companies, and lawyers and accountants before making a ruling.
The appeal further claims that pending related lawsuits against law firm Reynolds Mirth Richards & Farmer and accounting firm KPMG amount to litigating the matter “in slices.”
Barlas is asking for Shaner’s decision to be overturned and for his lawsuit to go to trial at the same time as the lawsuits against RMRF and KPMG.
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Shaner found that a trial was not necessary to make a ruling as she said there was “overwhelming evidence” against Barlas.
She did, however, order a more narrowly focused trial to determine the financial losses the First Nation had suffered, saying that forensic accountants and other experts would be required.
A date has not yet been set for the appeal to be heard.
