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Zachary Leonard was arrested with four others in 2006 after trying to cross the border at International Falls in a van containing 46-hundred ecstasy tablets.
After escaping from a Falls halfway house to Canada, an Ontario Superior Court judge committed him for extradition.
But the Ontario Court of Appeal ruled the justice minister didn't properly take into account a legal principle that says different considerations must be made when sentencing aboriginal offenders.
The Appeal Court says Leonard could be prosecuted in Canada.