Manuge v. Canada, (2013) 430 F.T.R. 125 (FC)

JudgeBarnes, J.
CourtFederal Court (Canada)
Case DateFebruary 14, 2013
JurisdictionCanada (Federal)
Citations(2013), 430 F.T.R. 125 (FC);2013 FC 341

Manuge v. Can. (2013), 430 F.T.R. 125 (FC)

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

.........................

Temp. Cite: [2013] F.T.R. TBEd. MR.067

Dennis Manuge (plaintiff) v. Her Majesty the Queen (defendant)

(T-463-07; 2013 FC 341; 2013 CF 341)

Indexed As: Manuge v. Canada

Federal Court

Barnes, J.

April 4, 2013.

Summary:

The plaintiff brought a class proceeding on behalf of 4,500 former members of the Canadian Armed Forces. At issue was the legality of the defendant's policy of reducing long-term disability (LTD) benefits payable to disabled Canadian Forces (CF) members under the CF Service Income Security Insurance Plan (SISIP) Policy 901102 by the monthly amounts payable to those members under the Pension Act.

The Federal Court, in a decision reported at 411 F.T.R. 76, found that the defendant's offset of Pension Act disability benefits from LTD income payable under the SISIP Policy was not contractually justified. The parties moved under Federal Courts Rule 334.29 seeking court approval for their negotiated settlement of the class action. Counsel for the class also sought court approval for their claim to legal fees under rule 334.4 payable from the proceeds of the proposed settlement.

The Federal Court approved the settlement on the terms proposed by the parties. The court ordered costs payable to class counsel on terms the court established.

Barristers and Solicitors - Topic 3311

Compensation - Measure of compensation - Class actions - The plaintiff brought a class proceeding on behalf of 4,500 former members of the Canadian Armed Forces - At issue was the legality of the defendant's policy of reducing long-term disability (LTD) benefits payable to disabled Canadian Forces (CF) members under the CF Service Income Security Insurance Plan (SISIP) Policy 901102 by the monthly amounts payable to those members under the Pension Act - Central to the dispute was the interpretation of art. 24 of the SISIP Policy and, in particular, whether monthly benefits payable to disabled CF members under the Pension Act were "monthly income benefits" as that phrase was used in the SISIP Policy - The Federal Court found that the defendant's offset of Pension Act disability benefits from LTD income payable under the SISIP Policy was not contractually justified - The parties moved under Federal Courts Rule 334.29 seeking court approval for their negotiated settlement of the class action - Counsel for the class also sought court approval for their claim to legal fees under rule 334.4 payable from the proceeds of the proposed settlement - They sought the approval of legal fees representing approximately 7.5% of the gross value of the settlement ($887 million) inclusive of past and future benefits - It was also proposed that the fees be payable wholly from the past amounts due to class members which would represent about 15.7% of the total value of the retroactive entitlements of class members - Counsel sought $65 million in fees - The Federal Court approved the settlement on the terms proposed by the parties - The court ordered legal costs payable to class counsel on the following terms: "(a) for legal fees, by the deduction of an amount equal to 8% of the refund and the cancellation of debts, if any, owing to Manulife Financial payable to each eligible class beneficiary; (b) for disbursements, by the deduction of an amount equal to 0.079% of the refund and the cancellation of debts, if any, owing to Manulife Financial payable to each eligible class beneficiary; and (c) by the deduction from refunds payable to class beneficiaries and the remission of all required goods and services tax, harmonized sales tax and/or provincial sales tax." - See paragraphs 27 to 52.

Practice - Topic 9862.1

Settlements - Court approval - Class actions (incl. fee approval) - The plaintiff brought a class proceeding on behalf of 4,500 former members of the Canadian Armed Forces - At issue was the legality of the defendant's policy of reducing long-term disability (LTD) benefits payable to disabled Canadian Forces (CF) members under the CF Service Income Security Insurance Plan (SISIP) Policy 901102 by the monthly amounts payable to those members under the Pension Act - Central to the dispute was the interpretation of art. 24 of the SISIP Policy and, in particular, whether monthly benefits payable to disabled CF members under the Pension Act were "monthly income benefits" as that phrase was used in the SISIP Policy - The Federal Court found that the defendant's offset of Pension Act disability benefits from LTD income payable under the SISIP Policy was not contractually justified - The parties moved under Federal Courts Rule 334.29 seeking court approval for their negotiated settlement of the class action - The Federal Court approved the settlement on the terms proposed by the parties - The settlement was a generous, complete and thoughtful resolution of the issues that were raised in the litigation and it would provide substantial financial assistance to thousands of disabled CF veterans and their families - The terms of settlement were also the product of extensive negotiations between the parties - It would not serve the interests of the vast majority of class members to send the parties back into further discussions to address the concerns of a handful of those who opposed the arrangement - It was also a settlement that was supported by the vast majority of class members who took the opportunity to make their views known - In short, it represented a fair and reasonable compromise that was in the best interests of the class as a whole - See paragraphs 7 to 26.

Practice - Topic 9862.1

Settlements - Court approval - Class actions (incl. fee approval) - [See Barristers and Solicitors - Topic 3311 ].

Cases Noticed:

Bodnar et al. v. Cash Store Inc. et al., [2010] B.C.T.C. Uned. 145; 2010 BCSC 145, refd to. [para. 4].

Châteauneuf v. Canada, [2006] F.T.R. Uned. 169; 2006 FC 286, refd to. [para. 4].

Dabbs v. Sun Life Assurance Co. of Canada (1998), 48 O.T.C. 391 (Gen. Div.), refd to. [para. 5].

Parsons et al. v. Canadian Red Cross Society et al., [2000] O.T.C. 968; 49 O.R.(3d) 281 (Sup. Ct.), refd to. [para. 28].

Endean v. Canadian Red Cross Society et al., [2000] B.C.T.C. 436; [2000] 8 W.W.R. 294; 2000 BCSC 971, affd. (2000), 147 B.C.A.C. 199; 241 W.A.C. 199; 2000 BCCA 638, refd to. [para. 28].

Slater Vecchio LLP v. Cashman, [2013] B.C.T.C. Uned. 134; 2013 BCSC 134, refd to. [para. 31].

Killough et al. v. Canadian Red Cross Society et al., [2007] B.C.T.C. Uned. 524; 2007 BCSC 941, refd to. [para. 41].

Helm v. Toronto Hydro-Electric System Ltd., [2012] O.T.C. Uned. 2602; 2012 ONSC 2602, refd to. [para. 49].

Vitapharm Canada Ltd. v. F. Hoffmann-La Roche Ltd. - see Ford et al. v. Hoffman-La Roche Ltd. et al.

Ford et al. v. Hoffmann-La Roche Ltd. et al., [2005] O.T.C. 208 (Sup. Ct.), refd to. [para. 49].

Baxter et al. v. Canada (Attorney General) et al., [2006] O.T.C. 1346; 83 O.R.(3d) 481 (Sup. Ct.), refd to. [para. 50].

Counsel:

Peter J. Driscoll, Dan Wallace and Ward K. Branch, for the plaintiff;

Paul B. Vickery, Lori Rasmussen and Travis Henderson, for the defendant.

Solicitors of Record:

McInnes Cooper, Halifax, Nova Scotia, for the plaintiff;

Branch MacMaster, Vancouver, British Columbia, for the plaintiff;

William F. Pentney, Deputy Attorney General of Canada, Ottawa, Ontario, for the defendant.

This motion was heard at Halifax, Nova Scotia, on February 14, 2013, by Barnes, J., of the Federal Court, who delivered the following judgment at Ottawa, Ontario, on April 4, 2013.

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