By Timothy S. Donahue
Top Takeaways:
- Rainbow Distribution is suing the province of Québec for over $8 million, alleging repeated seizures of tobacco shipments to First Nations communities.
- The company claims the actions infringe treaty rights under the “Covenant Chain” and a recent Superior Court decision recognising First Nations’ inherent right to trade tobacco free from provincial taxation.
- He says the seizures began in August 2024 and include impounding of trucks and confiscation of product, which he says have caused losses now exceeding the $8 million claim.
A distributor operating from the Mohawk territory of Kahnawà:ke is filing a lawsuit against the province of Québec, seeking over CAD $8 million in damages after a series of seizures of his business’s shipments, trucks, and products, which he describes as an assault on First Nations trading rights.
Robbie Dickson, owner of Rainbow Distribution, alleges that Quebec’s authorities—specifically Revenu Quebec and the province’s Attorney General—have repeatedly interrupted his company’s shipments of tobacco destined for other First Nations communities.
He claims the conduct has cost the business “millions,” impeded trade, and damaged the reputation and economies of Indigenous communities. “My belief in my heart is that I’m not only fighting for myself, but for all of our First Nations people involved in the tobacco industry,” Dickson said. “This means a lot more to me than that.”
Court filings show that multiple delivery drivers for Rainbow Distribution were stopped starting in August 2024 while en route to Indigenous communities, with products and vehicles seized during those stops. Six such incidents are reported between August 2024 and August 2025.
In one case, nearly CAD $150,000 worth of tobacco products were seized, and trucks were impounded; Dickson states that further seizures in April 2025 and the following weeks involved additional losses of over CAD $100,000.
The 2023 case involving Derek White and Hunter Montour found that a treaty known as the “Covenant Chain” remains a valid and binding mechanism through which First Nations retain rights to trade tobacco free from provincial regulation under the federal Excise Act. Dickson asserts the ruling supports his claim that his business engages in constitutionally protected commerce among Indigenous peoples.
In the statement of claim, Dickson is seeking CAD $8.1 million in damages: CAD $2 million to cover product losses, CAD $3 million for lost business opportunities, CAD $3 million in punitive damages, plus CAD $50,000 each for reputational and moral damages. He told The Eastern Door that his losses might now exceed CAD $15 million when including replacement costs for vehicles, lost production time, and market share decline.
Rainbow Distribution is described in the filings as a “wholly First Nations-owned” company operating on the Kahnawà:ke reserve, manufacturing and distributing tobacco products to Indigenous markets.
The lawsuit argues that Québec’s Tobacco Tax Act and related enforcement unfairly target Indigenous trade, violating rights under Section 35 of the Constitution Act, 1982, and provisions of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
Québec officials have not submitted a public comment or defense in the matter, according to media reports. The next step in the case is to schedule court proceedings to determine whether parts of the provincial legislation can be suspended or struck down, and whether damages are owed for past enforcement actions.
Dickson expressed hope that the corporation’s lawsuit will reaffirm Indigenous trading rights and facilitate Nation-to-Nation tobacco commerce among First Peoples. “We’re fighting for our sovereign right to the tobacco plant, and our First Nations trading rights to be able to deal with each other throughout Turtle Island,” he said.
