OTTAWA - The Federal Court says it was "unreasonable" for the federal government to appoint a third-party manager for the financially troubled First Nations community of Attiwapiskat.
The decision, released today, says it's clear that stepping in and taking over was not the best way to deal with the root of problems at the troubled northern Ontario reserve.
The James Bay community of 2,000 declared a state of emergency in October 2011 after a severe housing shortage forced more than two dozen families to live in temporary shelters, some without insulation or plumbing.
The Conservative government appointed a third-party manager as Prime Minister Stephen Harper suggested that the band had mismanaged federal funds in the face of the housing crisis.
That manager was withdrawn April 19, but the Attawapiskat First Nation refused to drop its lawsuit against the government.