The Use of Matrix Settlements in Canadian Class Actions

• Author: Sara J Erskine
• Pages: 57-70

57

THE USE OF MATRIX

SETTLEMENTS IN C A NADI A N

CL A SS ACTIONS

Sara J Erskine

Abstract: This paper considers the m atrix di stribution model

for class act ion settlements for deter mining compen sation lev-

els for complex class actions where cl aimants h ave varying

degrees of loss or dam age. Matrix sett lement agreements can

be an eff‌icient and effective way of adm inisteri ng settlements

for complex class actions where cla ss members have suffere d

varying deg rees of damage or loss. This paper exami nes three

Canadian cl ass action settlement s in Parsons v Canadian Red

Cross Society, Wilson v Servier Canad a Inc, and Baxter v The At-

torney Gene ral of Canada, which have used the m atrix model

to structure and administer sett lements. The eff‌iciency and

effectiveness of a matr ix settlement is dependent upon a care-

fully drafted matrix t hat def‌ines as ma ny different levels and

categories as there are compe nsable damages. Thi s provides

a level of transparenc y to the claim s regarding the amount

of compensation awarded to indiv idual class me mbers. This

paper also considers t he need to appoint an exper ienced

claims adm inistrator w ith the requisite ex pertise to apply

the matri x and make determi nations regarding a c laimant’s

eligibility for compens ation, as well as the role of counsel i n

the admini stration of claims. As the jurispr udence continues

to develop in Canada regard ing the approval of class act ion

settlements, we should expect to see more commentary and

direction from the court rega rding the use of mat rix settle-

ments, claims ad ministr ation, and the role of counsel in the

administration process.