Modern treaties, including the treaty, are agreements between nations that include the courts in a broad and generous way. Crown honour distinguishes such contracts from international contracts or contracts between private parties and creates a fiduciary duty when the Crown takes discretionary control of a particular or recognizable Aboriginal interest. This loyalty obligation creates additional obligations of loyalty, good faith and full disclosure. In its dealings with Aboriginal peoples, the Crown must always be attentive to the honour of the Crown, be proactive and provide full disclosure of information important to Aboriginal parties. The Labrador Inuit won the right to self-administration in 2004 after entering into a successful claim agreement with the Government of Newfoundland and Labrador. The settlement area consists of 72,520 square kilometres of land in the northern labrador, which includes the five major Inuit communes of Nain, Hopedale, Rigolet, Makkovik and Postville. The Nunatsiavut government came to power through the agreement and can now pass laws in the areas of education, health and culture. When Newfoundland and Labrador joined Canada in 1949, both governments decided not to extend the law to the Aboriginal population of the new province. Moreover, the Union`s conditions did not even mention Aboriginal people, despite recommendations from National Convention delegates that the Canadian government would assume full responsibility for providing social services to Aboriginal Newfoundlanders and Labradors, as has been the case for similar groups across the country.  Nunatsiavut Government v. Newfoundland and Labrador, 2020 NLSC 129.
Prior to the hearing, the Tribunal ordered that the proceedings be transformed into a first phase of liability and, if necessary, a phase of prejudice. The liability trial took place five days in May and October 2019 in St. John`s, Newfoundland. and that preference be given to training, employment and the conclusion of the Inuit contract within the meaning of the agreement under paragraph (a) or the Innu within the meaning of the agreement under paragraph (b) is not applicable. AND CONSIDERING that the Labrador Inuit claim Aboriginal rights in and over the Labrador Inuit Land Area, based on their traditional and current use and land occupation. , the water and sea ice of Labrador Inuit Lands Claims Area in accordance with their own customs and traditions; The Nunatsiavut government has the power to establish its own judicial system and enact laws on land and resource management, education, health, culture and language. The Government Legislature is headquartered in Hopedale and its administrative centre in Nain. In addition, there are five Inuit community governments in Nain, Makkovik, Hopedale, Postville and Rigolet. All adult residents of Nunatsiavut, regardless of ancestry, have the right to vote and, as Nunatsiavut is still part of Newfoundland and Labrador, its citizens must pay provincial and federal taxes. The Court also ordered that Inuit be entitled to an assessment of damages for the undue benefits of Long Harbour, the breach of the duty to retain and the breach of the duty to consult, and that Inuit be entitled to 5% of the payments made by the proponent under the amendable provisions of the development agreement.  In 1977, the LIA applied to the provincial and federal governments for approximately 116,000 square kilometres of land and sea in northern Labrador.