Defendant response to BC Hydro Site C injunction

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    No S169064

    Vancouver

    Registry

    IN THE SUPREME COURT OF BRITISH COLUMBIA

    BETWEEN:

    BRITISH COLUMBIA HYDRO AND PO WE R AUTHORITY

    PLAINTIFF

    AND:

    KEN BOON, ARLENE BOON. VERENA HOFMANN, ESTHER

    PEDERSEN

    also

    known

    as

    Rachel

    Blatt, HELEN KNOTT, YVONNE

    TUPPER

    JANE

    DOE,

    JOHN

    DOE and all other

    persons

    unknown to the Plaintiffoccupying, obstructing, blocking,

    physically impeding or delaying access, at or in

    the

    vicinity of

    the area

    in and around

    the

    south

    bank

    of

    the

    Peace River upstream west of

    the

    Moberly River, including

    the

    area

    in and

    around

    the heritage site known as Rocky Mountain Fort

    DEFENDANTS

    APPLICATION RESPONSE

    Application response of: the Defendants Ken Boon, Arlene Boon, Esther Pedersen,

    Helen Knott and Yvonne Tupper.

    THIS IS A

    RESPONSE

    TO the notice of application of

    th e

    Plaintiff British Columbia

    Hydro and Power Authority file January 29 2016

    r t

    1: ORDERS

    CONSENTED

    TO

    The

    application

    respondents consent

    to

    the

    granting

    of none

    of

    the

    orders

    set

    out

    In

    Part

    1 of the notice of application.

    r t 2: O RDERS O PPO SE D

    The application respondents oppose the granting of all of the orders

    se t

    out nPart 1 of

    the notice of application.

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    Part

    3:

    ORDERS ON WHICH NO POSITION

    IS

    TAKEN

    The application respondents take no position on the grantingof the none ofthe orders

    sought in Part 1 of the notice of application.

    art 4: FACTUAL

    BASIS

    Overview

    1. The Piaintiff

    has

    not met any part of the three-part test for

    an

    injunction. The

    Plaintiff purports to prove interference

    with

    its activities through contradictoryand

    often unsourced hearsay and double hearsay.

    The

    Plaintiffs evidence of harm

    and irreparable harm consists of inadmissible opinion evidence and the Plaintiffs

    evidence is contradicted by four expert opinions filed by

    the

    Defendants. The

    four expert opinions

    filed

    by the Defendants authoritativelydemonstrate that no

    net loss to 80 Hydroor its ratepayers will arise from construction deiay.

    he Parties

    2. The Plaintiff 80 Hydroand PowerAuthority is a government corporation that

    reports to the Minister of Energy and Mines.

    3. On January 19,2016, the Piaintiff filed a Notice of Oivil Oiaim alleging that the

    defendants have committed trespass and other torts, and seeking injunctiverelief

    and

    damages

    4. OnJanuary 29,2016, the Plaintiff filed a Notice ofAppiication seeking an

    interlocutory injunction. Including enforcement provisions, restraining the

    defendants and anyone having notice of the order fromobstructing or interfering

    with

    the

    construction of

    th e

    Site 0 Clean Energy

    Projecf

    until

    the

    trial of the

    action, on broad terms set out ina draft Order InjunctionApplication ).

    5. The Plaintiffhas set the InjunctionApplication down for a one day hearing on

    February 22 2016

    6. The application respondents Ken 8oon, Arlene 8oon, YvonneTupper, Helen

    Knottand Esther Pedersen the Defendants ) are named as defendants in the

    Notice of

    Civil

    Claim and

    named as

    respondents in

    the

    Injunction Application.

    The remaining defendant, Verena Hofmann, is represented by separate counsel

    and Is not participating in this application.

    7. On February15,2016, the Defendants filed a jointResponse to Civil Claim

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    8. On February15,2016, the Defendants filed a Notice ofApplication seeking

    various procedural reliefincluding an order aliowing the cross-examination of

    MichaelSavidant;

    an

    order requiring document production of contracts, project

    schedules and other documents relied upon by

    the

    Plaintiff; and an order striking

    hearsay and opinion evidence.

    On

    the material

    issue of whether the

    Defendants

    t respassed

    or interfered with

    the

    Plaintiffs

    activities

    the Plaintiff relies almost entirelv o n h ea rs av

    evidence

    9.

    The

    Plaintiff relies almost entirely on

    hearsay

    affidavit evidence on

    the

    material

    issue of whether

    th e

    Defendants

    trespassed

    or interference with

    the

    Plaintiffs

    activities. On that issue,

    the

    Plaintiffoffers only two affidavits containing hearsay.

    10.Affidavit 1 of Patrick Hayes, swom January

    29 2016

    ( HayesAffidavif) is given

    by

    one

    of

    the

    Plaintiffs counsel team insupport of his client's Injunction

    Application. The Hayes Affidavit is tendered primarily to demonstrate that

    the

    Respondents trespassed or interfered with the Applicant's activities.

    11.The Hayes

    Affidavit

    is entirely unsourced hearsay.

    Mr.

    Hayes provides no

    evidence as to how

    the

    exhibits to his affidavit

    were

    compiled, or by whom. In

    some cases the

    Hayes Affidavit is unsourced double hearsay. One cannot

    ascertain, upon reading the Hayes Affidavit, whether

    Mr.

    Hayes personally

    conducted online investigations leading to the discovery of news media articles

    and Facebook posts. Mr. Hayes does not aver that he personally located this

    information online, and, if

    he

    did

    so when he

    did

    so

    It is

    reasonable to

    conclude

    that other people located the information onlineand provided

    Mr.

    Hayes

    with

    copies.

    12.The Affidavit 1 of Douglas Powell,sworn January28 2016 ( Powell Affidavit is

    tendered for

    the

    purpose of demonstrating that

    the

    Defendants trespassed or

    interfered with the Plaintiffs activities

    13.The PowellAffidavit is almost entirely hearsay. Mr. Powell relays observations

    that he alleges were made by security contractors on the Site C project site. In

    paragraphs 7-68

    and

    72-91 of his affidavit,

    Mr.

    Powell relays observations that he

    claims were made by other people. Exhibits

    B-BB

    comprise recordings, in note

    and

    video form, of those observations said

    to

    have been made by

    other

    people.

    14.With the exception of paragraphs 69-71, Mr. Powell

    made

    none of these

    observations himself. He has no direct knowledge of

    the

    Respondents' or

    security contractors' activities.

    Mr.

    Powell relies on verbal statements and on

    daily shift reports, ofevents that he himselfhas not witnessed, that have been

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    provided to

    him

    bysecuritypersonnel. Heavers that he refersto these reports

    for

    the

    truth of th e facts set out in

    those

    documents [Powell Affidavit, para 8].

    15.

    Video

    recordingssupplement, insome instances, the reports provided by

    Mr.

    Powell's informants. However, th e Plaintiff ha s chosen to

    pu t

    only some of th e

    video recordings made bysecurity contractors into itsevidence on the Injunction

    Application,

    ithas withheld others videos taken bysecuritystaff

    from Exhibit

    Bto

    the Powell Affidavit [Powell

    Affidavit,

    para. 7].

    16.

    S o m e

    of

    th e

    videos

    within Exhibit B to

    the Powell

    Affidavit

    a r e inconsistent

    with

    or

    do not support the claimsmade bysecurity staff intheir dailystaff reports or their

    verbal statements to Mr. Powell. In his affidavit, Mr. Powell does no t a d dr es s o r

    explain

    these

    inconsistencies.

    17.There is no evidence that

    th e

    peoplewho allegedly made

    these

    observations,

    and that wrote daily reports ormade video recordings,were unable or

    unavailable to provide direct evidence.

    O n

    the material i ss u e o f whether th e Respondents t r es p a ss e d o r interfered with the

    Applicant s activities th e

    Applicant

    also

    reiies

    on unsourc e d hearsav

    18.Inadditionto the Hayes

    Affidavit

    and

    Powell Affidavit,

    three additional affidavits

    relied on by the Plaintiff in its application contain hearsay on the material issue of

    whether the Defendants trespassed or interferedwith the Plaintiffs activities.The

    hearsay evidence inthe three affidavits on this issue is unsourced.

    19.TheAffidavit 1 of Cameron Penfold, affirmed

    January 28 2016

    (Tenfold

    Affidavit

    contains unsourced hearsay on thismaterial Issue.

    20.Atparagraphs 7-10 ofhis

    affidavit,

    Mr. Penfold uses the defined term Clearing

    Contractor , without ever identilying the person or the company to which he is

    referring

    to. Mr. Penfold givesevidenceabout actions taken and reported bythis

    unidentified Clearing Contractor. Among other things, he claimsthat

    two

    Individuals stood infront of a machine on

    January

    4 2016. However, Mr.

    Penfold did not witness this alleged event, and he does not identify th e source of

    his information

    an d

    belief as to this alleged event.

    21.There is no evidence that

    th e

    unidentified people who provided Mr. Penfold with

    the informationat paragraphs 7-10 were unable or unavailable to provide direct

    evidence. Further, incontrast to paragraphs 7-10,

    at

    paragraphs 11-12 of his

    Affidavit,

    Mr.

    Penfold identifies a source of

    th e

    latter information.

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    22.Atparagraphs 14>16 of his affidavit, Mr. Penfoldoffersopinionsbased upon

    hearsay evidence of his discussions withthe ClearingContractor . Again, he

    never identifies th e Clearing Contractor or any actual person whom he allegedly

    had

    these

    discussions. At paragraph 16, he

    reaches an

    opinion

    based

    upon

    hearsay discussions with unidentified persons.

    23.At paragraph 17 of his affidavit,

    Mr.

    Penfold avers that:

    17 Iam informed by the General Manager of

    the

    Clearing Contractor,

    and verily believe, that

    as

    a result ofthe presence of persons inthe Lower

    Reservoir

    Area

    interfering with

    the

    work under

    the

    Clearing Contract

    (shown in Drawings 1 to 4 of

    the

    Clearing Contract),

    a) the ClearingContractor has been unable to conduct clearing or

    access

    development under

    the

    Clearing Contract

    as

    planned;

    b) since January

    4 2 16

    the Clearing Contractor has not received

    any revenues for clearing or

    access

    development under the

    Clearing Contract;

    c) the clearingcontractor has fourteen pieces ofequipment

    standing by (including the three pieces of equipment which have

    been

    moved across

    the

    MoberiyWinter Bridge),

    as

    well as

    supervisors, labourers and support staff waitingand available to

    perform the work.

    24.In so testifying,

    Mr.

    Penfold givesevidencebased onan unidentified source. He

    againdoes notdisclosewhothe Clearing Contractor is orwhoitsGeneral

    Manager is. Hedoes not indicate that he believes it is necessary to keep this

    person's name confidential. There is no evidence that the General Manager,

    whoever he or she is,

    was

    unable or unavailable to provide direct evidence of

    the

    hearsay statements at paragraph 17.

    25.The Affidavit 1 of Andrew Watson, affirmed

    January 29 2 16

    ( Watson

    Affidavit

    contains unsourced hearsay on this material issue.

    26.Atparagraph56 of his

    affidavit,

    Mr.

    Watsongivesthis double hearsay evidence:

    56 I am advised by Doug Powell, BCHydro Safety and Securitywho

    has been to the camp se t up bythe Defendants on the south bank, that the

    location ofthe camp as plotted byBCHydro security personnel, usingGPS

    coordinates, lies directlyin the path where the retention dike

    will

    be

    built.

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    27.At paragraph 56,

    Mr.

    Watson gives information from

    Mr.

    Poweli, who himself

    based the

    information he gave Mr. Powell on GPS plotting done by others.

    Neither Mr.

    Watson

    nor Mr. Poweli affixes that GPS work,

    conducted

    by

    unidentifiedBCHydro security personal, to their affidavits. The Defendants

    are

    leftunable to

    assess

    the accuracy of those GPS coordinates.

    28.There is no evidence that Mr. Poweli was unable or unavailable to provide this

    information, including the GPS work, as direct evidence.

    29 The

    Affidavit 1 of Siobhan

    Jackson

    affirmed January

    29 2016

    ( Jackson

    Affldavif) contains unsourced hearsay on this material issue.

    30.Atparagraphs 23 and 24 of her affidavit, Ms. Jackson avers that:

    23 ... Iam advised by Doug Powell, Manager of Safety and Security

    for the Project, that the two cabins and other temporary structures erected

    bythe protestorsat the

    Rocky

    Mountain Fortsite, including firepits and

    holes that have

    been

    dug,

    are

    located withinand around BlockE and

    directly in the wayof the future archeological work

    at

    the site.

    Now

    producedand shown to me and markedas

    Exhibit

    G is a map showing

    the locationof BlocksA to G (as identified byGolder), overlaid

    with

    the

    locationof the camp area and cabins erected by

    the

    protestors that was

    prepared bya memberofthe Project'sGIS (mapping) group undermy

    supervision.The camp structures have been plotted using GIS

    coordinates collected by BCHydrosecurity personal who visited the site

    on January 14,2016.

    24 I have provided a copyof the overlay map (attached as Exhibit 'G )

    to

    D Arcy

    Green (Senior

    Archeologist, Golder),

    and he advises me that all

    of the camp infrastructure

    would

    need to be removed to complete the

    archaeological work in BlockE.

    31

    .Atparagraph23, Ms. Jackson givesas hearsay

    opinion

    evidence the

    views

    of

    Mr.Poweli. She tenders Exhibit G without identifying the person who prepared it.

    Further,

    Exhibit

    G is itselfsaid to be based upon GISworkdone by unidentified

    BC Hydro security personnel,

    which

    GISwork iswithheld

    from

    evidence.The

    Defendants are left unable to

    assess

    the accuracy of

    those GPS

    coordinates.

    32 There is no evidence

    that

    Mr. Powell

    was

    unable or unavailable to provide direct

    evidence of his opinion that structures

    are

    directly in the way of future

    archeological

    work

    at the site, orwas

    unable

    to

    provide Ms.

    Jackson

    with

    the

    GSP work underlying Exhibit G.

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    33. Atparagraph 24, Ms. Jackson gives

    as

    hearsay opinionevidence the opinion

    of

    Mr

    Green.

    Mr

    Green s alleged opinion is stated by Ms. Jackson to

    be based

    on Exhibit G, the document prepared by unidentified BCHydrostaff that itself

    was based

    on

    the

    undisclosed GIS work of unidentified security personnel.

    There is no

    evidence

    that Mr.

    Green

    was unable or unavailable to provide direct

    evidence of his opinionthat ail camp infrastructure would need to be removed to

    complete archaeological work in Block E.

    Facts relevant to the failure

    t o e n fo rc e

    the Land Act

    34.

    The

    Plaintiff

    and the

    Ministry

    of

    Forests, Lands

    and

    Natural Resource Operations

    have failed to take any appropriate steps to pursue statutory remedies. The

    Ministry

    of Forests, Lands and Natural Resource Operations is the

    ministry

    responsible for administering and enforcing

    the

    Land

    Act

    35.The Defendants have a right to be present on Crown land.

    36.Neither

    the

    Plaintiffnor

    the

    Ministry of Forests, Lands and Natural Resource

    Operations has ever

    notified

    the Defendants that they are trespassing under the

    LandAct or othenA/ise contravening

    the

    Land

    Act

    37.The Ministry of Forests, Lands and Natural Resource Operations does not take

    the position that the Defendants presence at the

    Rooky

    Mountain Fortsite is

    unauthorized under the LandAct On January 20 2016 in an email to an

    employee ofthe

    Plaintiff

    a

    Ministry

    employee

    would

    only

    take the

    position

    that

    the

    structures that have

    been

    erected at

    the

    protest

    camp have

    not

    been

    authorized

    38.The structures at the Rocky Mountain Fortsite are one small cabin placed at the

    site on December

    31 2015

    a covered tent area created by a tarp,

    and

    another

    small cabin placedat the site In mid-January 2016.These twocabins are small

    not fixed to the ground, temporary and very simple.

    39.Ministry staff have never communicated to the Defendantstheir

    position

    that the

    structures

    are

    unauthorized

    under

    the

    Land

    Act

    The Respondents have

    not

    been toldbyeither the Applicant or the Ministry that Ministry staffdetermined that

    the

    structures

    are

    unauthorized

    under t he L an d

    Act

    40.The Plaintiff has not posted any signs that are compliant with the LandAct

    limiting access to the

    Rocky Mountain

    Fortsite or adjacent Crown lands. Ithas

    not posted any signage advising that access to that sitewas

    limited

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    41.The Plaintiffssecurity contractors posted a sign

    at

    the site on December 31,

    2015. However, that sign did not say that peopie could not be present at the

    RockyMountainFort site or that

    access

    to the site was limited. That sign did not

    direct anybody to vacate or stay offthat Crown land. Itdid not say that peopie s

    presence on Grown land

    was

    unauthorized.

    42.The December 31,2015 sign did not direct a sheriff or a pubiicofficerto seize

    any improvements, goods, chatteis or othermaterials. The signdid not state any

    timeor place ofany contravention ofthe Land

    Act,

    did not state any detaiis of

    any contraventionof the Land

    Act,

    and did not othenvise compiy with s. 59(2) the

    Land ct

    43.The Defendants have not been notifiedof any aiieged La/idiAcfviolations in a

    manner consistent

    with

    s. 59(1) ofthe LandAct They were not served

    with

    any

    Land Act notice inperson or by registered mail.

    44.

    The

    Ministry

    of Forests, Lands and

    Natural

    Resource Operations has numerous

    processes

    place forreporting anymisuses of

    Crown

    landto Natural Resource

    Officers

    with

    its Compiiance and Enforcement Program, including trespassing

    and constructing unauthorized structures on

    Crown

    iand.These processes

    include electronic reporting forms, the Natural Resource Violation

    reporting iine,

    and other

    avenues set

    out in a brochure providing guidance on reporting

    vioiations

    to

    Natural

    Resource Officers

    45.Neitherthe Plaintiff nor the

    Ministry

    of Forests, Lands and Natural Resource

    Operations has madeanyeffort to apply the enforcement

    provisions

    oftheLand

    Act The Plaintiff has not asked the Ministry or its enforcement staff to enforce s.

    60 against the Defendants, by

    following

    anyofthe Ministr/s processes or

    othenvise

    46.The Ministry has made no independent effort

    itself

    to enforce the LandAct

    against the

    Defendants,

    despite being aware ofthe structures at the Rocky

    Mountain Fort site [Thome

    Affidavit,

    Exhibit

    A].

    47. Further,the Plaintiff has not asked the Minister of Forests, Lands and Natural

    ResourceOperations to delegate to the

    Plaintiff

    the powerto enforcess. 59and

    60,oranyother

    provisions

    oftheLandAct Under s. 97 ofthe LandAct, the

    Minister

    maydelegatethe power toact onthe

    Minister s

    behalf respecting anyof

    theminister s powers or functions underthis

    Act

    to a government corporation as

    defined in

    the

    FinancialAdministrationAct The Applicant BCHydro is a

    government corporation as thatterm isdefined in theFinancial Administration

    ActTheApplicant isan agent ofthe govemment under s. 3 oftheHydro and

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    PowerAuthorityAct, RSBC1996, c 212; its powers may be exercised oniyas an

    agent of the government The government is the Applicants sole shareholder.

    The Applicant Is controlled by the

    government

    The

    Plaintiff

    has failed to demonstrate Harm and

    Irreparable

    Harm

    48. The Plaintiff

    has

    failed to demonstrate harm

    and

    irreparable harm. The PiaintifPs

    evidence of irreparable harm is set out in theAffidavit 1 ofMichael Savldant

    affirmedon January

    28 2016

    ( SavidentAffidavif).

    49. The SavidantAffidavit is unqualified opinion that does not comply with Rule 11,

    and is based upon contractual dccuments that have been withheldfrom

    evidence

    50.The SavidantAffidavit is controverted inmaterial respects by four expert

    affidavits tendered by the Defendants, namelyAffidavit 1 of Robert McCuilough,

    affirmed February 9,2016 McCuilough Affidavif), Affidavit 1 ofDr. Man/in

    Shaffer, affirmed February 10,2016 ( ShafferAffidavit ), Affidavit 1 ofPhillip

    Raphais, affirmed February11,2016 ( Raphals

    Affidavit )

    and

    Affidavit

    1 of

    MarcEiiesen, affirmed February 14 2016 ( EiiesenAffidavit ) (collectively, the

    Defendants' Expert Evidence ).

    51 .Specifically,

    the SavidantAffidavit estimates the cost of

    delaying

    construction for

    one year at $420 million [SavidentAffidavit, paras.

    4-5].

    The Defendants' Expert

    Evidence contradicts this conclusion.

    Mr.

    McCuilough, Dr. Shaffer, Mr. Raphais

    and Mr. Eiiesen have the advantage over Mr. Savidant of actually being experts,

    and their affidavitscomplywithRule 11.

    52.The Respondents' Expert Evidence demonstrates that a delay inconstruction

    activities would no t result in a net financial

    cost

    to the Plaintiff or its ratepayers

    Forexample,

    as

    put bythe ShafferAffidavit:

    Todemonstrate that a delay inconstruction and the in-service date ofSite C

    would result in a net cost to BCHydro,

    Mr.

    Savidantwould have had to

    compare the cost Impacts ofdelay that he has

    identified in

    his

    Affidavits

    with

    estimates of the benefit that BCHydro would realize fromthe deferral of

    expenditures

    with

    a

    revised

    schedule

    for

    SiteC. The

    Affidavits

    do not

    provide

    such a comparison. Consequently, the

    Affidavits

    do notdemonstratethat

    there would in fact a

    net

    cost

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    53.Further

    the

    Defendants' Expert Evidence, and in particular

    the

    McCullough

    Affidavit demonstrate that a delay in construction activitieswould result ina

    net

    financial benefit to

    th e

    Plaintiff and Its ratepayers.

    54.

    Mr.

    McCullough concludes that a delay in construction of the Site 0 project, and

    corresponding delay of the in-service

    date

    of the project, would amount to a

    net

    savings to British Columbia. He estimates the

    net

    savings of a one year delay, in

    present value terms, would

    be

    267.68million; he estimates the net savings of a

    twoyeardelay at 519.44 million; and he estimates the net savings of a fiveyear

    delay at 1,187.47million. Given the magnitude of these savings, inclusion of

    ongoing costs of delaywould almost certainly result in the

    same

    conclusion

    [McCulloughAffidavit, Exhibit B, p. 33].

    55.Additionally, Dr. Shaffer concludes that the benefit of deferring remaining

    expendituresfor fouryears

    would

    be inthe order of 0.9 billion to over

    1.1

    billion. Depending on the additional project costs of such a delay, that suggests

    that a four year (or longer)delay inthe development of the Site C projectcould

    result in significant savings and net benefits for BCHydro and its customers

    [ShafferAffidavit Exhibit D, p. 35; see also ElisenAffidavit para. 15]

    56.As adjudication of irreparable harmand the balance ofconvenience requires

    findings offact in respect ofthe net costs and benefits of constructiondelay, the

    Defendants have sought leave to cross-examine

    Mr.

    Savidant on his affidavit

    [Defendants' Notice ofApplication forvariousprocedural relief filed on February

    15,2016]. Cross-examination ofMr. Savidant is likely to yield further evidence

    that will be ofassistance in determining the contested issue of the anticipated

    costs and benefits of delays in construction of

    the

    Site C project.

    The

    Plaintiffs

    Omit

    Kev Documents from their Affidavits

    57.The Defendantsomitkeydocuments, uponwhichthey relyheavily from their

    Affidavits. Noexplanationfor these omissions is givenby the

    Plaintiff.

    8 ThePlaintiff

    has

    omitted from its affidavits a complete copy of

    the

    Clearing

    Contract and a complete copy of

    the

    MainCivil Works Contract , including parts

    of the Main Civil Works Contract that govern the project schedule and delay and

    liquidated damages provisionsin the contracts. The Clearing Contract and Main

    Civil Works Contract are central to this application; three of

    the

    Plaintiffs affiants

    rely

    on them.^ The

    Plaintiff

    relies heavily onthese contracts

    in

    itsNotice of

    Civil

    Claimand NoticeofApplication, and in its affidavitmaterials.

    1.

    With

    respect to theMain Civil WorksContract, twoof the Plaintiffs affiantsreferto or

    rely

    upon

    the MainCivil Works Contract in their affidavitevidence [Watson Affidavit paras. 26-27 and 60-62;

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    59.The contractual and regulatory scheduling documents are expected to have

    significant probative value for the issues of irreparable harm and balance of

    convenience. If

    the

    contracts do not require what

    the

    Plaintiffclaims they require,

    or if

    the

    contracts include terms that contemplate delays of the type complained

    of by

    the

    Plaintiff, the Plaintiff

    will

    not be able to demonstrate irreparable harm.

    60.Forexample,

    at

    paragraph 61 ofthe Watson

    Affidavit

    Mr.

    Watson opines and

    speculates that

    changes

    to construction plans:

    would be considered a significant change to criticalpath activities

    set

    out

    in BCHydro s contractwith PRHP and therefore PRHP is likely to claim

    additional costs. In particular, this change would cause acceleration of

    otherwork, re-planning logistics and re-allocating equipment, labour and

    associated resources in order to

    meet

    its contractual obligations related to

    critical

    path activities. BCHydro expects the cost of a change of this

    magnitude

    would

    have to be negotiated

    with

    PRHP.

    61.This speculative evidence at paragraph 61 is based upon the contractual

    obligations in

    the Main

    Civil Works Contract. Those contractual obligations have

    not

    been

    disclosed in full or in material part by

    the

    Plaintiff on this application.

    62. Further,

    the

    Plaintiff

    has

    withheld both contractual and regulatory evidence about

    the project schedule fromevidence. Ithas pleaded reliance on and its

    preliminary

    construction schedule

    from

    itsEnvironmental Impact Statement; this

    preliminary construction schedule was not included in the project s Environmental

    Assessment Certificate issued inOctober 2014 [Watson Affidavit, Exhibit

    D].

    63. Further, after

    that

    Certificate

    was

    issued, the provincial government

    made

    a

    decision in December2014 to revise

    the

    project schedule.

    The

    Plaintiff submitted

    a revised project schedule to provincial regulators inMarch2015. The revised

    construction schedule was submitted to provincial regulators inMarch 2015 in

    AppendixAto the Applicant s Construction

    Activity

    Plan - DamSite Area and

    Moberiy

    River. The Plaintiff has excised Appendix A from the exhibit containing

    the Construction Activity Plan and none of its pleadings or affidavits in the

    Injunction

    Application mentionthe revised project schedule submitted to

    provincial regulators [Watson Affidavit Exhibit J, pp.

    7 and

    290].

    Savidant

    Affidavit

    paras.

    4-11].-With

    respect to the Clearing Contract, relianceis foundin the

    Watson

    Affidavit

    paras. 25 and 57-59,the Savidant

    Affidavit

    paras. 4-11, and the Penfbid

    Affidavit

    paras. 5 and 17.

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    64.The ConstructionActivity Plan recognizes that the constructionschedule may

    change or be delayed, based on permitIssuance, weather or other Project

    changes

    65.Rather than disclose the project schedules submitted to regulators, the Plaintiff

    relies on unsourced, self-serving hearsay for evidence of Its project schedule. At

    paragraph 24 of his affidavit,

    Mr

    Watson purports to tender a map

    at Exhibit

    S.

    He claims that the schedule of the clearing Is more speclflcaily shown on

    the

    map that Is nowproduced and shown to me and marked as

    Exhibit

    S .

    Mr

    Watson

    does

    not Indicate

    the

    source of this map. He remains silent on who

    created the map, forwhat purpose, or howhe obtained it. Indeed,

    Exhibit

    S is

    dated January 29,2016, the same day that

    Mr

    Watson affirmed his

    affidavit

    These facts create

    the

    Impression that the map

    was

    created only to bolster Mr

    Watson s claim, otherwise unsupported by the evidence filed by

    the

    Plaintiff, that

    there exists a specific, fixed clearing schedule .

    66.The evidence Is to the contrary, even on the Incompletecontractual evidence

    provided to date bythe Plaintiff The ClearingContract expressly contemplates

    that clearing workmay not be completed byMarch 31,2016,

    In

    which case the

    Parties

    will

    meet to reviewprogress on the work[Penfold

    Affidavit

    ExhibitA,p.2].

    67.To remedy these omissions, the Defendants have sought an order requiring the

    Plaintiff to produce three types ofdocuments relevant to Irreparable harm and the

    ba lan ce o f convenience

    a. contracts relied upon by the

    Plaintiff

    which are referenced Inthe Plaintiffs

    affidavits and Its Injunction Application, but that Ithas notdisclosed.

    Including

    but not

    limited

    to complete copies ofthe ClearingContract and

    the Main CivilWorks Contract;

    b. portionsof regulatorydocuments containing project construction

    schedules, which portionswere excised fromthe Plaint iffs exhibits;and

    c. documents referred to or relied upon by Andrew Watson In giving his

    evidence regarding waste rock storage at paragraph 23 of his Affidavit

    68. The Plaintiffs construction activities

    will

    destroy old growth

    and

    near-old growth

    forests on th e

    south

    bank

    of

    the Peace River, In the Lower Reservoir Area

    The Adminis tra tion o f Jus ti c e

    69.There

    are

    currently three appeals and

    one

    judicial review underway Infour

    separate legal proceedings challenging the environmental assessment decision

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    and allegingbreaches ofthe dutyto consult First Nations regarding the Site C

    project.

    70.The

    Peace

    Vailey LandownersAssociationhas appealed to the

    British

    Columbia

    Court ofAppeal the decision of Justice Seweli of this Court, reported at Peace

    Valley LandownerAssociation v.British Ck lumbia (Environment), 2015 BCSC

    1129. Itsappeal is scheduled to be heard onApril 4 and 5,2016. The strength of

    the

    Peace

    VaileyLandownerAssociation s appeal Is evident fromthat party s

    factum

    71.A judicial reviewof the licences issued

    has

    been argued in the

    British

    Columbia

    Supreme Court bythe West

    Moberly

    First Nations and Prophet RiverFirst

    Nation.

    Arguments concluded on February2,2016, and reasons are under

    reserve. The issue Iswhether the Province breached a Consultation Negotiation

    Agreement byproceeding to issue licences without negotiating a consultation

    agreement

    with

    the

    First Nations.

    72.

    The West

    Moberly First Nations and Prophet River First Nation have appealed to

    the

    British Columbia Court ofAppeal the decision of Justice Seweii of this Court,

    reported at ProphetRiverFirst Nationv.British Columbia (Environment), 2016

    BCSC1682. This appeal is not yet scheduled.

    73.TheWest

    Moberly

    First Nations and Prophet RiverFirstNationhave also

    appealed a decision ofthe Federal Court, reported as ProphetRiverFirstNation

    Canada (Attorney

    GeneraO

    2015 FC1030, to the Federal CourtofAppeal.

    Their

    appeal

    is not yet scheduled.

    Pa r t s :

    LEGAL BASIS

    1. The Plaintiff

    has

    not satisfied

    the

    three>step common law

    test

    for

    an

    interlocutory

    injunction:

    RJR MacDonald

    Inc v. Canada (AttomeyGeneral), [1994]1 SCR

    311

    The

    Applicant

    has

    no t

    t endered

    anv non hearsav ev idence

    o f

    a se r iou s i s sue

    2. The first question to be addressed inthe test for an interlocutory injunction Is

    whether

    there is a serious

    issue

    to

    be

    tried: RJR - MacDonald

    Inc

    v.

    Canada

    (Attomey General), [1994] 1

    SCR

    311.

    3. The Plaintiff pleads that there is a serious issue ofwhether the Defendants have

    committed torts and other legai wrongs by interferingwiththe Plaintiffs rightto

    clear

    trees

    in the Lower ReservoirArea of th e Site C project.

    3

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    4. However,

    the

    Plaintiff

    has

    tendered no direct evidence of

    the

    Defendants aiieged

    behaviouror activitiesat the

    Rocky Mountain

    Fortsite. The onlyevidence that

    the Plaintiff has providedof the Defendants activities is hearsay evidence,

    including unsourced and double hearsay.

    5. In the case ofthe Powell

    Affidavit,

    Mr. Powell s hearsay evidence is partial,

    unreliable and inaccurate inmaterial respects. His evidence describes shift

    reports or verbalstatements given to him bythe Plaintiffs contractors, which

    reports and statements are often inconsistent

    with

    or unsupported byvideo

    footage taken by those contractors. Further,that video footage is incompleteand

    selective. Hishearsay evidence is also unnecessary, as the Plaintiffs contractors

    who made direct obsen ations are surely able to give direct evidence.

    The Court

    should

    aoolv Litchfield and decline

    to

    relv on hearsav

    evidence

    on

    the

    issue

    of

    whether the Defendants have

    trespassed

    or interfered

    with

    the Plaintiffs

    activities

    6. The Court should disregard hearsay evidence on the material issue ofwhether

    the Defendants have trespassed or interferedwith the Plaintiffs activities.

    7.

    While

    litigants are permitted bythe Rules ofCourtto relyon hearsay evidence on

    an interlocutory application, this rule ismore nuanced on

    injunction

    applications : P.O. v.

    British Columbia^

    2010

    BOSC

    290.

    8. The Defendants relyon the Court s decisions inLitchfield v.

    Darwin

    (1997), 29

    BCLR

    (3d)203 BCSC and inLeSoieiiRestaurant inc.et ai

    v. NomanI

    et ai,

    2005 BCSC

    1804. in those decisions, the Court refused to grant interlocutory

    injunctions due to concerns about the applicants heavy reliance on hearsay

    affidavit evidence

    9. In

    Litchfieid,

    DeWeerdt J. dismissed an application for an interlocutory injunction.

    Hedid so for the reason that itwas sought only on hearsay, and

    the

    applicant did

    not

    show

    that evidence from original

    sources was

    unavailable. He held that, while

    the Rules of Court permit litigants to relyupon hearsay on an interlocutory

    application for an injunction, a judge hearing such an application must still

    exercise his or

    her

    discretion

    as

    to whether Injunctive relief should

    be

    granted on

    the basis of hearsay. He heldthat itshould not:Litchfield v.Darwin (1997),29

    BCLR(3d) 203 (BCSC) at paras. 4-6.

    10.The Litchfieid6ec\s\on

    was

    applied and elaborated on in Le Soieii Restaurant

    inc.

    et

    ai v. Nomani et ai,

    2005

    BCSC 1804. Justice Baliance refused to grant an

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    interlocutory

    injunction where substantiaiiy all ofthe applicant s evidenceon a

    material issue was hearsay or double hearsay. For the Court,she held that:

    o It is always a matter of

    Judicial

    discretion

    as

    to whether an interlocutory

    order ought to be admittedon the basis of hearsay evidence (para 47);

    o Double hearsay should never be admitted (para 47);

    o Affidavits on information and belief may not be

    used

    in all circumstances

    (para 47);

    o Utchfield does not stand for the proposition that the court ought to decline

    to grant an interlocutory injunction onlyin circumstances where all ofthe

    evidence presented is hearsay. The vital point identified by

    the

    court

    inUtch^eld was that the pertinentmaterial and facts in issue did not go

    beyond statements based on information and belief (para 49);

    o Itis especially problematicto relyonlyon hearsay

    so

    when terms of the

    proposed injunction are expansive, such the

    plaintiffs would

    ineffect, be

    given substantially ail of the benefits of a judgment at trial

    as

    against the

    defendants

    Such a far-reaching

    outcome

    should

    alert

    the

    court

    to

    exercise extreme caution inadmitting

    hearsay

    on pivotal

    issues

    especially

    where there is no compelling reason given for the omission of

    the

    evidence from

    the

    original

    sources

    (para 52);

    o Injunctive relief is drastic and extraordinary, such that the court ought to

    receive direct evidence on essential facts in dispute on interlocutory

    applicationsof this kind wherever it is reasonably practicable and

    obtainable

    and

    in

    the absence

    of urgency . To apply a

    less

    rigid

    evidentiarythreshold runs the danger of compromising a meaningful

    consideration of the

    test

    for granting an interlocutory injunction (para 55).

    11TheDefendants

    submit

    that the ourt

    should

    follow Utchfield

    and

    Soleil and

    decline to grant the requested

    injunction.

    Almost the entiretyofthe evidence on

    the material issue of

    whether

    the Defendants have trespassed or interfered with

    the

    Plaintiffs activities is hearsay, including unsourced

    and

    double hearsay.

    12.The hearsay evidence dealing with

    the

    Defendants activities is provided inthree

    afRdavits

    13. First,

    the

    Penfold Affidavitcontains unsourced hearsay

    on

    this Issue, at

    paragraphs 7-10 and 14-17, that is contraryto Rule 22-2(13)and is inadmissible.

    This Court should strike or disregard those portions ofthe PenfoldAffidavit.

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    14. Further, both the Powell

    Affidavit

    and Hayes

    Affidavit

    consist of hearsay evidence

    on

    the

    material

    issue

    of whether the Defendants have

    trespassed or

    interfered

    with

    the Plaintiffs activities

    15.

    With

    one exception,

    Mr.

    Powell does not

    offer

    any directevidence on the material

    Issue of whether actions constituting

    trespass

    or interference

    have

    occurred.

    Almostthe entirety of his evidence on this material Issue is hearsay.

    16.The exception is that Mr. Powell offers directevidence in paragraphs 69-71 of his

    Affidavit.

    Mr. Powell s three paragraphs of direct evidence is very limited and is

    manifestly insufficient to obtainthe injunctive relief sought.

    17.The hearsay evidence comprising the remainder of the Powell Affidavit neither

    bears the hallmarks of reliability being contentious and adversarial) or necessity

    there being no evidence that persons who made directobservations are not

    availableto giveevidence), itis not even plausibleto suggest that itwould be

    inconvenient for

    the

    Plaintiffs contractors and employees who allegedly

    made

    the observations to mak e

    their own

    affidavits

    18.In particular, in

    Exhibit

    B

    Mr. Powell

    has

    affixed only

    some of the video footage

    taken by the Plaintiffs contractors. He has excluded other videofootage

    from

    Exhibit B.

    The

    video footage is selective

    and

    incomplete.

    19.Further, some of the video footage in Exhibit B is inconsistent

    with

    or does not

    supportthe contents ofthe daily shift reports exhibited to the Powell Affidavit.

    Mr.

    Powell s description of what happens inthe videos is a) sworn on

    information and beliefand b) is inaccurate in material respects. Mr. Powell

    cannot be effectively cross-examined about these inconsistencies, however,as

    he did not make any ofthe observations documented inthe dailyshift reports.

    20.The Plaintiff has not provided any evidence suggesting that its staff and

    contractors who allegedly observed the Defendants, according to Mr. Powell are

    unable or unavailable to give any direct evidence.

    21.This Court should disregard paragraphs 7-68 and 72-91, and Exhibits

    B BB

    of

    the

    Powell ffidavit

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    22.Mr. Hayes also does not

    offer

    anydirectevidenceon the material Issue whether

    actions constituting trespass or Interference have occurred.

    All

    of his evidence on

    this

    Issue

    Is hearsay

    23.Further It appears that Mr.

    Hayes

    evidence Is In wholeor In part double

    hearsay.

    Mr.

    Hayes does not appear to have personally gathered the evidence

    affixed

    as

    exhibits

    to

    his affidavit.

    He

    does no t

    aver

    that he did so He does no t

    aver that he personallylocated the news articlesonline. He does not aver that he

    personally Investigated the social media webpages or that he personally

    accessed the

    Defendants

    Facebook

    accounts

    He

    remains

    silent In his affidavit

    on which person or persons located obtainedand collected the vast majority of

    exhibits

    to

    his

    affidavit

    24.

    Mr.

    Hayes is legal counsel to the Plaintiff.

    Mr.

    Hayes is presumed to be familiar

    with the applicable lawgoverning this application.

    Including

    this Court s decisions

    in Utchfield and Soleil.

    The

    Defendants respectfully submit that Itwould be

    inappropriateto relyon an affidavit of counsel which affidavit comprises

    evidence that is entirely hearsay and apparentlydouble hearsay on the material

    issue of whether actions constituting trespass or Interference have occurred.

    25.This Courtshould strikethe Hayes

    Affidavit

    or disregard

    It In

    Itsentirety.

    26.

    Finally

    the

    remaining

    evidence on the

    material

    Issue of whetheractions

    constituting trespass or Interference have occurred Is ali unsourced hearsay.

    27.The Penfold

    Affidavit

    gives hearsay evidence on this material Issue at

    paragraphs 7-10 and 14-17. He does not disclosethe names ofthe persons with

    whom he had discussions or

    the names

    of

    the

    Clearing Contractor or its General

    Manager who were the source of his Information and believe

    28. The Watson Affidavit gives double hearsay evidence on this material Issue at

    paragraph 56.

    Mr.

    Watson s

    information

    comes

    Mr.

    Powell which Is Itself based

    on untendered information gathered by unidentified BC Hydro security personnel.

    This has the effect of shielding GPS workconducted by these unidentified

    personnel. The Respondents are leftunable to assess the accuracy of those

    GPS coordinates. This prejudicially denies the Defendants of a defence to the

    hearsay allegation that they are interfering

    with

    the Plainttffs

    work

    due to their

    alleged proximity to equipment.

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    29.

    Likewise

    the Jackson

    Affidavit

    gives unscurced hearsay on this materialissue at

    paragraphs

    23-24.

    Aswith theWatson

    Affidavit Ms.

    Jackson s information also

    comes

    from Mr. Powell as well as from Exhibit G - which

    was

    created by

    unidentified

    BC

    Hydro

    staff using untendered GIScoordinates collectedby

    unidentified BCHydrosecurity personnel. Further,

    she

    gives

    as

    hearsay

    opinion evidencethe opinion ofMr. Green,which opinion Isalso based on

    Exhibit G and thus on the undisclosed GIS work of unidentified security

    personnel.

    Again

    this prejudicially denies the Defendantsof the

    ability

    to assess

    the accuracy of those GPS coordinates and to defend themselves against the

    hearsay allegation that they are interfering with the Plaintiffs work.

    The

    Plaintiff

    has

    provided no direct ev idence of anv tortious or

    illegal

    behaviour

    30.The

    Plaintiff

    has not providedany directevidence ofany tortious behaviour,

    amounting to nuisance, intimidation inducement of breach of contract,

    interferencewith economic relations by unlawful

    means

    or conspiracy.

    31. Indeed,

    the

    Plaintiff

    has

    not provided any hearsay evidence of any tortious

    behaviour. The hearsay evidence - which, following Utchfield and So/e//, should

    not be relied on in

    any

    event - merely indicates that the Respondents are

    present inthe area. The hearsay evidencedoes not showthat the Defendants

    have behaved in

    an

    obstructionist, intimidating or interfering manner whatsoever.

    32. Innoway does the Defendants presence at the RockyMountain Fort remotely

    equate to intimidation or mischiefunder ss. 423 or 430 of the Criminal Code. In

    nowaydoes the Defendants presence at the RockyMountain Fortsite amount

    to a

    breach

    of section

    13

    of

    the

    Heritage Conservation

    Act

    33.The Defendants have no knowledge of

    the

    existence or content of

    the

    Plaintifrs

    contracts beyond selective extracts of the Clearing Contract and the Main Civil

    Works Contract affixed to the Plaintiffs affidavits in this application.

    34.The Defendants mere presence

    at

    the RockyMountain Fort site is not a violation

    of

    section 60 of

    the Land Act.

    The structures are

    two small,

    non permanent

    transitory cabins and a tented area created by a tarp. There is no evidence of

    flouting the law.

    35.On January 20,2016, the Plaintiff asked the

    Ministry

    of Forests, Land and

    NaturalResources Operations to opine that that the occupation of the Rocky

    Mountain Fort site was unauthorized under

    the

    LandAct. However,

    the

    Ministry

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    declined

    to take the

    position

    that the

    occupation

    ofthe

    Rocky Mountain Fort

    site

    was unauthorized under the Land

    Act

    Instead, the

    Ministry

    would onlytake the

    position that the structures at that site were unauthorized.

    The Plaintiff, a oovemment corporation

    should

    no t be Granted inlunctive relief

    when

    the

    government has

    avoided

    pursuing statutory

    remedies under

    the

    Land

    Act

    36.The Defendants submit that

    the

    Piaintiff, as a govemment corporation, should

    first

    pursue its statutory remedies under the LandAct, before seeking to enlist

    this Court in an extraordinary exercise of equitable jurisdiction.

    37.

    Reiying

    on Ontario

    case

    law,the Plaintiff argues that it is entitled to an injunction

    as of right to enjoin

    an

    unlawful act.

    38. However, in British Columbia, this Court has rejected

    that

    argument in the

    preciselythe

    same

    context

    as

    exists here, namely alleged trespasses to

    Crown

    land under section 60 of the Land

    Act

    Attorney General v. Sager, 2004 BCSC

    720

    at

    para 13 .

    39.The

    Land

    Act sets

    out the

    rights and responsibilities of the Crown Inthe

    administration of public land. The procedures ins 59

    are

    intended to

    ensure

    that

    adequate notice is given to

    the

    public of

    limits

    placed by

    the

    Crown on access to

    such lands. The remedies and procedures provided intherefore intended to

    provide due process for those accused of trespass on Crown lands - Sager,

    at

    para. 33.

    40.The equitablejurisdiction of this Courtought not to be invoked to restrictthe

    rights of boththe Defendants and ail members ofthe publicto enter on

    Crown

    land through the

    use

    of a Jane/John Doe injunction, where the govemment

    has

    chosen not to utilizethe offence provisions of

    the

    LandAct Sager, para 16.

    41.The government s resort to the courts for injunctiverelief ought to be a final step

    and not merely a convenient alternative to

    the

    application of criminalor other

    available sanctions: Sager, paras. 21-22; British Columbia Attomey General) v.

    Perry Ridge Water Users Assn., [1997] BCJ No. 2348 SC) QL); Alliford Bay

    Logging Nanaimo) Ltd v. Mychajlowycz, 2001 BCSC 636.

    42. While the Plaintiffis not

    the

    Attomey General, it is a govemment corporation. By

    law, it may exercise powers onlyon behalf of the government. By

    law,

    itis

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    controlled

    bythe government; Financial

    Administration Act^ definition

    of

    govemment corporation .

    43.The

    Ministry

    of Forests Landsand Natural Resource Operations has apparently

    elected not to enforce or assign the power to enforce

    the

    LandAct at

    the

    Rocky

    Mountain Fort site despite meeting with the PlaintifTs representatives.

    44.The Plaintiff may exercise delegated statutory powers under the Land

    Act

    including powers regarding trespass under ss. 59 and 60 of the Land

    Act

    because itis a govemment corporation referred to ins.97. However there is no

    indicationthat the Plaintiff has sought these powers from the Ministry Italso

    prefers to turn to this Courtfor an extraordinaryand broad exercise ofequitable

    relief

    affecting all members of the public rather than exercising statutory powers.

    45. In

    these

    circumstances to

    issue

    a Jane Doe/John Doe injunction

    and bypass the

    provisionsof the LandAcfwould deprive those individuals whomight

    othenArise

    be accused of offences under the Act of due process. Granting of interlocutory

    Injunction

    reliefis not just and equitable

    In

    allthe circumstances of the case -

    Sager para. 36.

    The s ta t us quo

    will

    not use the Plaintiff i r reparable harm in the form of

    in re sed

    o s t s

    46.The second question to

    address

    under the RJR - MacDonaid

    test

    is whether

    irreparable harm

    will

    result ifthe injunction sought is not granted. On this

    question the Court should conclude that the status quo will not

    cause

    the Plaintiff

    irreparable harm In

    the

    form of increased costs.

    47.

    Relying

    on Ontario case law the Plaintiff argues that itneed not demonstrate any

    irreparable harm to be entitled to an injunction it argues that it is entitled to an

    injunction

    as

    of right to enjoin an uniawful act.

    48. InBritishColumbia this Court

    has

    rejected that argument in

    the

    same

    context of

    alleged trespasses to Crown land under section 60 of the Land Act Sager para.

    13

    49.The Defendants submit

    that

    Ifthe Court decides to exercise its equitable

    jurisdiction and issue an interlocutory injunction itmay only do

    so

    after applying

    th e

    usual three step

    test

    20

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    SO.The Defendant

    has

    filed

    th e

    Affidavitsof

    Mr

    McCullough, Dr. Shaffer,

    Mr

    Raphals

    andMr Eliesen all of

    whom

    are

    qualified

    to

    give opinion

    evidence of

    the net cost ofdelay. Theiropinions concurthat construction delayswill not

    result in

    net costs

    for BC Hydro or its ratepayers:

    McCuliough

    Affidavit, Exhibit B,

    Ex. p.33

    Shaffer

    Affidavit,

    Exhibit D. Ex. p.35

    Raphals Affidavit

    Eliesen

    Affidavit,

    para.

    15

    A delay in construction of Site C, amounting to a

    delay ofthe in-servicedate ofSite C,would

    amountto a

    ne t

    savings to BritishColumbia, not

    a

    ne t

    cost Th e net savings of a on e year delay,

    in present value terms, is 267.68

    million;

    for a

    two year delay itis 519.44

    million;

    for a five

    year delay, the net savings is 1,187.47

    million

    ... given the magnitude ofthe net savings by

    delaying, inclusionof [ongoing]costs would

    almost certainly result Inthe same conclusion.

    Th e benefit of deferring remaining expenditures

    four years would

    be

    in the order of 0.9 to over

    1.1 billion Depending on the additional project

    costs of such delay, that suggests a four year or

    longer) delay in the development ofSite

    0

    could result in significant savings

    an d

    net

    benefits for

    8 0

    Hydro

    an d

    its customers.

    Th e additional costs of delay identified in th e

    Savidant Affidavit,

    when

    combined with

    th e

    very

    substantial positive ratepayer impacts that delay

    would produce priorto commissioning and in the

    very firstdecades thereafter, are not significant.

    Delayingcommissioning

    will

    tend to reduce

    th e

    losses

    that result from selling Site C surplus

    power inthe expert market at prices far below its

    productioncost. This benefit tends to reduce

    the increased capital costs resulting fromthe

    delay.

    Michael Savidant s alleged construction cost

    delays

    ar e

    effectively iilusionary

    because he

    relies on

    an

    unsubstantiated

    need

    for

    th e

    project

    based on long term forecasts

    that

    have not been

    properlyvetted. Delay ofthe project is

    likely

    to

    save British Columbia ratepayers more than the

    alleged estimated 420

    million

    costs Itemized by

    Michael Savidant. This situation is Increasingly

    obvious given current developments in load

    d e m a n d .

    2 1

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    51.

    In

    contrast, the Savidant

    Affidavit

    makes no

    effort

    to comply

    with

    Rule11.

    Moreover

    his curriculum vitae, released

    In

    other legal proceedings, casts doubt

    onthose qualifications. TheSavidantAffidavit is inadmissible

    opinion

    evidence

    and

    should

    be

    struck

    52. In contrast to the

    McCuliough

    Affidavit

    the ShafferAffidavit the Raphals Affidavit

    and the Ellesen Affidavit,

    the

    Savidant Affidavit

    estimates

    the

    cost

    of delaying

    constructionfor one year at 420 million. Atpage 2 ofthe Report attached

    as

    Exhibit B to

    the

    McCuliough Affidavit (the McCuliough Report ),Mr.

    McCuliough assesses that

    Mr.

    Savldant's affidavit contains no descriptionof his

    updated calculations, displays a very limited understanding of project cost

    estimation, and contains a number of errors of fact.

    53.The

    McCuliough

    Report identifies the

    following

    specific difficulties

    with

    Mr.

    Savldant's estimate

    among

    others:

    a. Atparagraph5 ofhisAffidavit Mr. Savidant

    Identifies

    a construction cost

    increase of 60

    million

    over his August 12,2015 estimate of 100 million;

    yet at paragraph 6, Mr. Savidant Identifies an increase of 50

    million

    over

    that August 12,2015 estimate. Mr. Savidant has provided no details that

    would

    account

    for this discrepancy;

    b.

    Mr.

    Savidant appears to use an assumption of 18% interest rate, which is

    not a credible assumption in today's financial markets and contradicts the

    rate he appears to

    use

    forother calculations;

    c. Mr. Savidant Identifiespayments under the Main CivilWorks contract

    as

    a

    basis

    for Increased

    costs

    even though

    the

    contractor is not due to mobilize

    until

    early Februaryof2016. The McCuliough Report Indicates that non

    existent progress payments should not attract interest charges; and

    d. Mr. Savidant identifies an unsigned contract (the Turbine Generator

    contract)

    as

    a reason for Increased direct costs at paragraph 6(a)(iv). The

    McCuliough Report describes these alleged costs

    as

    speculative at best

    and questions whether the Main

    Civil

    Works and Turbine Generator

    contracts

    were

    mistakenly listed

    as causes

    for

    increases costs

    54 The

    Plaintiff

    has not

    disclosed evidence,

    such

    as

    the

    revised project

    schedule

    that itsubmitted to regulators in

    March

    2015 or the terms of its contracts that

    relate to projectscheduling, relevantto meeting its burden of proofon the issue

    of irreparable harm. The SavidantAffidavit appears to rely on

    these

    documents.

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    55. On the whole of

    the

    evidence,

    the

    continuance of

    the status

    quo would not

    cause

    the Plaintiff Irreparable harm.

    The

    balance

    of

    convenience

    favours

    denial

    of

    the

    requested

    injunction

    56.The third question under the RJR - MacDonaldtest is whether the balance of

    convenience favours the granting of an Interlocutory Injunction This involves a

    consideration not just of the parties interests, but of various publicInterests.

    57.

    In

    light

    of the evidence that delaying construction

    would

    create a net

    financial

    benefitfor

    British

    Columbian ratepayers, the public interest weighs against the

    granting of an injunction.

    58. Other public Interests would also

    be

    strongly served by refusing

    the

    injunction.

    59 The Plaintiffs construction activities will destroy old growth and near-old growth

    forests on

    the south bank

    of

    th e

    Peace

    River, in th e Lower

    Reservoir

    Area.

    This

    destruction cannot

    be

    quantified monetarily and would be an irreparable loss to

    the Respondents and to the public.

    60. One judicial reviewand three appeals are currently underway. The hearing of

    the judicial review concluded on February

    2 2016

    and reasons are in reserve.

    One of the appeals is

    set

    for

    April

    4 and 5,2016. The other two appeals are

    expected to be heard In the fall.

    61.The strength of these appeals Issubstantial. In particular, the strength ofthe

    Peace

    Valley

    Landowner Association sappeal is clearly evident from that party s

    compelling factum:

    LaxKv/alaams Indian Band

    v

    British

    Columbia Minister

    of

    Forests , 2004

    BOCA

    306 at paras. 16-20.

    62. The contents of the Peace Valley Landowner Association appeal dovetails with

    the expert opinion evidence filed by the Defendants on this application.

    In

    their

    appeal, the Association argues that Site C should have been referred to the BC

    Utilities Commission to assess

    the need

    for and

    cost

    of

    the

    project. Mr. Eliesen,

    Mr

    Raphals,

    Mr

    Shaffer and Mr McCullough concur with that suggestion.

    63. Further, the West Moberly First Nations and Prophet River First Nation, whose

    appeals to the BCCourt ofAppeal and Federal Court ofAppeal are ongoing,

    would suffer irreparable harm from the Applicant s tree clearing activities which

    would undermine their ability to exercise their constitutionally-protectedtraditional

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    rights. The harm to theWest Moberly First

    Nations

    and Prophet River

    First

    Nation s rights shouldbe assumed to be irreparable: Yahey v. British Columbia

    2015 BCSC 1302

    at

    paras. 41-45.

    64.The Plaintiff

    has

    shown itself to be

    piling

    shortcut upon shortcutwiththis project

    Itshortcutdue dilligence by bypassing the BC Utilities Commission, itshortcut

    the FirstNations by

    failing

    to consult, itshortcut the administration ofjustice by

    failing

    to waitfor the results on appeal before trammelling over FirstNations

    territory, it shortcut the LandAct requirements for notice on Grown land, it

    shortcut

    the

    Rule 11 requirements for expert evidence and it shortcut the

    Utchfield

    limits

    on hearsay evidence for interlocutory injunctions. Especially

    here,

    where the

    Defendants have demonstrated

    that

    the status

    quo is of net

    benefitto

    BO

    Hydro and Its ratepayers, an injunction should be denied.

    65.

    These

    considerations tip

    the

    balance of convenience against issuance of an

    interlocutory injunction.

    Part

    6:

    MATERIAL TO B E RELIED ON

    1. Plaintiffs Notice of

    Civil

    Claim filed January

    19 2016;

    2. Plaintiffs NoticeofApplication for an injunction

    filed

    January 29,2016;

    3. Plaintiffs affidavits in support of its application, including:

    a. Plaintiffs Affidavit 1 of Patrick Hayes,

    swom January

    29 2016;

    b. Plaintiffs Affidavit 1 of Cameron Penfold, affirmed January

    28 2016;

    c. Plaintiffs Affidavit 1 of AndrewWatson, affirmed January 29 2016;

    d. Plaintiffs Affidavit 1 of Douglas Powell, sworn

    January 28 2016;

    e Plaintiffs Affidavit 1 of Siobhan Jackson, affirmed

    January 29 2016;

    f. PlaintiffsAffidavit 1 of Michael Savidant, affirmed January

    28 2016;

    g. Plaintiffs

    Affidavit

    1 ofEdieThome, affirmed January 20,2016;

    4. Affidavit of Robert McCullough, affirmed February 9, 2016;

    5. Affidavit of Dr. Marvin Shaffer, affirmed

    February

    10 2016;

    6. Affidavit of PhillipRaphals, affirmed February

    11 2016;

    7. Affidavit of Marc Eliesen, affirmed February 14 2016;

    8. Affidavit 1 of

    Shauna

    Stewart, affirmed February 15 2016; and

    9. Such further material

    as

    this Court may accept

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    The ppli tion respondents estimatethat the application

    will

    take three days.

    The application respondents have

    filed in

    this proceedinga documentthat containsthe

    application respondents address for service.

    Date: February 15 2 16

    Counsel fo r the

    Re

    Jason GratI

    ndents / Defendants

    GratI

    Company

    Barristers

    and

    Solicitors

    601-510West Hastings St.

    Vancouver

    BC V6B 1L8

    604-694-1919 (office)

    604-608-1919 (fax)