The Musqueam Indian Band (plaintiffs) lived on a large reserve of land near Vancouver. In 1956, the Shaughnessy Heights Golf Club (Shaughnessy) negotiated the use of 162 acres of the Musqueam’s land to expand its golf club. Under the Royal Proclamation of 1763, which declared the Crown’s intent to take title to lands in Canada, Indians many only sell or lease their land through surrender to the Crown (defendant). Thus, the Musqueam agreed to surrender the land to the Crown for lease to Shaughnessy. The Crown then negotiated the lease with the Golf Club. The terms ultimately agreed to by the Crown were much less favorable than the terms originally agreed to by the Musqueam. The Musqueam sued the Crown for damages.