In 2004, a group of mining companies and individuals learned they did not own the claims they had been mining near Dawson City for more than 20 years.

Last Friday, the group 6167 Yukon Inc., Nnathur Resources, Peter Risby and Ruth Ann Gullen filed a lawsuit against both the federal and territorial governments over the claims.

'Canada and the Yukon knew that the allegation that the plaintiffs did not own the denied claims contravened the terms of the grants to those denied claims and the numerous renewals of the grants. Alternatively Canada and the Yukon acted with a reckless indifference to the legality of their actions in denying the documented interest of the plaintiffs in the denied claims,' states the lawsuit filed in Yukon Supreme Court.

It was only when the group applied to have all of its claims lumped together that they learned the Trondek Hwechin First Nation was asserting ownership of the claims.

'At all relevant times, the denied claims were titled to one of the plaintiffs,' the court documents state.

It was in 1984 when Risby began accumulating the claims on the Indian River on behalf of the numbered company and Nnathur Resources. By 1990, Risby got title to 795 claims in the area, the documents read.

Title to the claims were held by or on behalf of any of the plaintiffs.

Over the years, the companies had to follow the authority and decisions of the Canadian government and then the Yukon government following the devolution agreement in 2003.

Grants were issued for the claims and renewed regularly, it's noted.

Those grants were in place, providing certain rights to the companies.

'These rights included the right to mine the area of land compromising each claim,' the court documents continue.

After applying to have the claims grouped together in 2003, the mining recorder in Dawson informed them through an April 1, 2004 letter, that the application was being denied on the basis that 33 of the claims weren't owned by them.

It was also around that time when Risby received a letter from the first nation stating the claims at issue were part of settlement land and Risby was prohibited from going onto the denied claims.

At no time was Risby or the others involved told of any issue over the title of the property. All regulatory fees were paid and all assessment work required was done to keep the claims in good standing, the lawsuit reads.

The mining recorder also continually renewed the claims on behalf of the federal and then Yukon government, after the devolution of federal powers to the territory, on the territory's behalf.

The two governments also knew denying ownership of the claims was likely to mean a loss of value, it's stated.

For more than 20 years, the two governments made it seem that the companies were the owners of the claims by accepting renewal fees.

'The defendants (the Canadian and Yukon governments) identified their own representation as false, therefore at best, making the representation negligent. The plaintiffs relied on the representation to their detriment,' the lawsuit continues.

The governments owed a duty of care to the mining companies as they were charged with the administration of mining and in that the companies conducted mining activities on the land.

'In firstly granting and then denying the ownership to the denied claims, the defendant (the Yukon and Canada) breached the duty of care to the plaintiffs who had, in good faith, discharged all conditions of ownership for a period of 20 years without notice or warning from Canada or Yukon,' the court documents state.

The companies along with Risby and Gullen are claiming general damages, special damages, punitive damages, interest, the cost of the court action and anything further the court sees as just.

The exact amount of the damages would be calculated or determined by the court, the lawsuit states.