The Supreme Court in British Columbia has upheld the Nisga'a treaty as constitutionally valid.

The decision rejects a bid by the B.C. Liberals to quash the $487-million deal, which gave land, cash and legislative powers to the Nisga'a.

The treaty was given royal assent in May, but Liberal leader Gordon Campbell argued it creates a "third order of government," something he says the Constitution doesn't allow.

The Liberals said any right to self-government was extinguished at Confederation and the Constitution allows only Parliament and the provinces to make laws.

B.C. Supreme Court Justice Paul Williamson disagreed. He ruled that the right of aboriginal people to govern themselves may have been diminished, but it was not extinguished.

And he said the lawmaking power granted to the Nisga'a is consistent with guarantees to self-government in the Constitution.

It's a decision that sits well with the president of the Nisga'a tribal council.

"Well, our views have been vindicated — thoroughly vindicated — by Supreme Court of British Columbia," said Joseph Gosnell.

B.C.'s aboriginal affairs minister, Dale Lovick, was likewise satisfied. He said the ruling vindicates the province's strategy to settle claims by negotiation, not litigation.

"What it may do is simply give a very clear declaration to those other individuals who want to do mischief to the negotiation process that the courts are not going to be complicit in that," said Lovick.

But Campbell said he'll take his arguments to the B.C. Court of Appeal. "I think frankly if the decision stands we'll be living in a profoundly different country tomorrow than we did today," said Campbell.

Campbell says if unchallenged, the decision could lead to the kind of conflicts that sprang from the Marshall ruling on native fishing rights in Nova Scotia.