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Supreme Court refuses to hear Alberta coal appeal on questioning of former minister

Supreme Court refuses to hear Alberta coal appeal on questioning of former minister

CBC
Thursday, April 17, 2025 07:46:53 PM UTC

Canada's top court has refused to hear Alberta's attempt to appeal a ruling compelling former energy minister Sonya Savage to testify in a lawsuit launched by coal companies seeking billions in compensation from the province.

That leaves in place an Alberta Court of Appeal ruling that required the questioning in relation to the Alberta government's decision to open up mountains to more mining in 2020 but later reversing course on those plans. 

The companies involved in the trial, which is set for May, are Cabin Ridge Holdings Ltd. and Cabin Ridge Project Ltd.; Atrum Coal Ltd., along with its subsidiary, Elan Coal Ltd.; Black Eagle Mining Corp.; and Montem.

Northback Holdings also launched a damages claim in June 2024, but it will be heard separately. All together, the five companies are seeking north of $15 billion in damages.

The coal companies have alleged that the policy change resulted in a "de facto expropriation" of their coal assets, costing them financially. The companies' allegations have not been tested in court.

As a part of the lawsuit, the companies sought to question Savage, as well as former environment minister Jason Nixon. A lower court initially ruled in April 2024 neither needed to testify, but the Alberta Court of Appeal disagreed in February 2025, at least for Savage.

"We are satisfied that special circumstances exist that justify questioning former minister Savage and that she is the person best informed to answer relevant questions to be posed in relation to the motive, purpose and intent of the ministerial decisions, orders and directions," the Alberta Court of Appeal ruling reads.

The court determined Nixon did not need to testify, stating they were unable to conclude he was "the person best informed to answer the relevant questions to be posed."

Alberta then sought to get the Supreme Court of Canada to reverse the decision.

A spokesperson in the provincial energy ministry declined to comment, citing the matter being before the courts. 

A court date for the civil lawsuit has been set for May 19 in Calgary.

Earlier this year, the government lifted a ban on coal exploration in the Eastern Slopes of the Rocky Mountains. Nigel Bankes, a natural resources and energy law expert, said at the time that move could potentially undermine the ongoing legal cases.

Speaking in January, Alberta Premier Danielle Smith said the province was thinking about taxpayers when it made the move.

"If you look at the lawsuits that have been filed, it's $16 billion with the potential liability," she said at the time. "We have to take that seriously, and we have to make sure that the taxpayers are protected. At the same time, metallurgical coal is incredibly valuable."

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