WINNIPEG — A Federal Court judge has ruled that the transfer of a former Winnipeg military base to a Crown corporation for redevelopment and sale is invalid.

In a decision released Wednesday, Justice Douglas Campbell said the federal government did not properly consult with First Nations over the future use of the surplus land before transferring it to the Canada Lands Company, which was to redevelop and sell the land.

Under the ruling, the federal government has been told it must consult with the groups, opening up the possibility the former military base could be transferred to First Nations control and eventually house an urban reserve.

Seven Manitoba First Nations argued Ottawa should have used the property to settle outstanding land claims under Treaty 1.

Indian Affairs Minister Chuck Strahl had argued the parcel did not qualify to become First Nation treaty land.

The lawyer for the First Nations, Norman Boudreau, called the ruling "monumental" and said it will set a precedent for many other cases.

"It's a huge victory for the First Nations," Boudreau said. "The judge stated that Canada had a duty to consult with First Nations prior to disposing of the Kapyong land and have failed in that duty."

The southern Manitoba bands — Brokenhead, Long Plain, Peguis, Roseau River, Sagkeeng, Sandy Bay and Swan Lake — applied for an injunction in 2007 blocking the land's transfer to the CLC, arguing they should have been given right of first refusal on the valuable site.

The land includes the main 65-hectare portion of Kapyong that houses the former base and the adjacent 27-hectare housing portion, home to 358 post-Second World War houses.

"Canada acted contrary to law by failing to meet the mandatory legal requirement of consultation" before the Treasury Board decided in 2007 to transfer the surplus land to the CLC, Campbell wrote.

The judge was also critical of the federal government for arguing that no duty to consult First Nation existed and that if the duty to consult did exist, it had fulfilled its duty to do so.

A spokesperson for Vic Toews, Manitoba's senior MP, said the government is studying the decision.

Chief Glenn Hudson of Peguis, spokesman for Treaty One First Nations, said he hopes the decision spurs the government to act quickly so the land — which has been largely unused since 2004 when the Princess Patricia's Canadian Light Infantry regiment relocated to Canadian Forces Base Shilo — can be put to use.

"We should deal with all of this in an expeditious manner — both the people of Winnipeg and the First Nations have been kept waiting long enough," he said.

(Winnipeg Sun)