NWT Supreme Court Justice N.E. Devlin has ruled that $120,000 of previously frozen assets should be freed up to help cover the costs of Ron Barlas' defence in an ongoing legal battle with Lutsel K'e Dene First Nation (LKDFN). 

Barlas served in leadership roles with LKDFN's Denesoline Corporation as well as the Tsa and TaSA¹ú¼ÊÓ°ÊÓ´«Ã½™egera companies SA¹ú¼ÊÓ°ÊÓ´«Ã½” all three of which aim to produce profits for the First Nation. 

In April 2023, the First Nation and its chief, James Marlowe, accused Barlas of misappropriating over $10 million during his time with the companies, later making more specific accusations that he used company money to buy everything from real estate to jewellery to tuition to plastic surgery for himself and his family. His wife, Zeba Barlas, was also implicated. 

The two parties have been involved in a complex civil case ever since. One of the latest developments occurred in December, when Barlas' counsel requested the release of roughly $1.1 million from a pool of frozen assets that was worth around $5.5 million at the outset of the case. The majority of the amount they requested SA¹ú¼ÊÓ°ÊÓ´«Ã½” just under $1 million SA¹ú¼ÊÓ°ÊÓ´«Ã½” would be used to cover Barlas' legal fees, including a $675,000 bill for work already completed. The remainder, they said, would be used to cover his and his wife's living expenses SA¹ú¼ÊÓ°ÊÓ´«Ã½” $12,806 per month from September 2024 through to September 2025.  

Barlas' team made several points in support of their request. They claimed that he is the sole provider for his family, and that the ongoing legal proceedings have made him and his wife unemployable, at least in terms of jobs that would pay well enough to help them cover their legal fees and cost of living. They also claimed that a portion of the frozen assets come from the salary he earned during his years of work for LKDFN companies. Finally, they claimed that Barlas has already borrowed extensively to help cover his legal fees and cost of living, and is unable to borrow more.

LKDFN counsel countered this request in part by questioning Barlas' decision to enlist two high-profile and expensive lawyers, who they likened to a "Rolls Royce" defence. Justice Devlin agreed to some degree, but not entirely, noting that LKDFN's counsel has been even more expensive than Barlas', and that the quality of the lawyers involved on both sides has made a very complex case move more quickly and effectively than it otherwise might have.

Barlas' lawyers have "handled this challenging brief in exemplary fashion, in keeping with the best traditions of the bar," the judge said in a 22-page ruling released on Jan. 13. "This file is document and numbers-intensive yet has been made manageable. Highly contentious examinations have been a model of courtesy and professionalism throughout."

LKDFN counsel, meanwhile, "have been outstanding, with a bill to match," he added. "Every matter is briefed in exacting legal and factual detail. Each branch of this complex and now multifarious action is being pursued in a timely and aggressive fashion, supported by legal work of the highest order."

"The litigation process here has benefited greatly from and been simplified and made more durable in outcome because of the counsel involved," he concluded on that point. "The quality of the litigation has matched its cost."

LKFDN counsel also countered Barlas' request for the release of more funds by arguing that his proposed monthly budget is excessive. 

Justice Devlin found that critique "has merit."

"The $4,000 per month claimed for food and toiletries for a family of two seems excessive, even in context of higher northern living costs," he said. "The same can be said for a monthly gas budget of $700. Intuitively, two older unemployed people living in Yellowknife do not have that far to drive. Similarly, $450 a month for cell phones does not comport with a modest lifestyle, nor does paying $1,700 per year in yard maintenance when not otherwise gainfully employed."

Devlin's ruling considered a number of other factors and legal precedent, but ultimately the judge ruled to disperse $120,000 to help cover Barlas' upcoming legal fees. That amount will be broken down into three segments: $10,000 is to be used to help Barlas participate in a March 3 hearing, which surrounds the possible return of funds that Barlas paid to a Toronto lawyer just before his other assets were frozen; an additional $10,000 allocated "for the next two case management conferences"; and the remaining $100,000 will be used to cover the "perfection and argument" of Barlas' appeal of a July 2024 court verdict, in which Justice Karan Shaner found "overwhelming evidence" that he "knowingly breached his fiduciary duties" as the boss of LKDFN companies.