Coburn and Watson’s Metropolitan Home v. Bank of Montreal

Coburn and Watson’s Metropolitan Home v. Bank of Montreal

The court approved the Final Settlement and Distribution Plan because the settlement resulted from rigorous negotiation, was supported by unchallenged expert opinion, provided sufficient disclosure to class members, and served the class better than continued litigation; the court approved Class Counsel's 30% fee for the Final Settlement but ordered a $6,000,000 holdback (in addition to a prior $1,687,500 holdback) to ensure proper completion of distribution; disbursements were approved; proposed honorariums from settlement funds were declined because they would conflict with Quebec law, though counsel may pay honorariums from their own fees at their discretion.

Citation
2021 BCSC 2398
Parties
Plaintiffs (representative Plaintiffs): Coburn and Watson's Metropolitan Home dba Metropolitan Home and Maynard's Southlands Stables Ltd.; Defendants (final Settling Defendants): Royal Bank of Canada; Canadian Imperial Bank of Commerce; Toronto-Dominion Bank; Bank of Montreal; Bank of Nova Scotia; Defendants (previously Settled or Other Defendants): Bank of America Corporation; Capital One Bank (Canada Branch); Citigroup Inc.; Fédération des caisses Desjardins du Québec; MasterCard International Incorporated; Visa Canada Corporation; National Bank of Canada Inc.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
9 December 2021
Procedural Posture
Class Action (competition/interchange Fees) / Settlement Approval and Approval of Distribution Plan and Class Counsel Fees
Outcome
Settlement and distribution plan approved; class counsel fee request partially approved with holdback; disbursements approved; honorariums from settlement funds declined.
Legal Topics
Interchange Fees, Settlement Approval, Distribution Plan, Class Counsel Contingency Fees, Representative Plaintiff Honorariums
Source Language
English
Competition Law Tort Unjust Enrichment Class Actions Commercial Law Interchange Fees Settlement Approval Distribution Plan +2 more

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Parties

Coburn and Watson's Metropolitan Home dba Metropolitan Home and Maynard's Southlands Stables Ltd.

Plaintiffs (representative Plaintiffs)

Royal Bank of Canada; Canadian Imperial Bank of Commerce; Toronto-Dominion Bank; Bank of Montreal; Bank of Nova Scotia

Defendants (final Settling Defendants)

Bank of America Corporation; Capital One Bank (Canada Branch); Citigroup Inc.; Fédération des caisses Desjardins du Québec; MasterCard International Incorporated; Visa Canada Corporation; National Bank of Canada Inc.

Defendants (previously Settled or Other Defendants)

Procedural Posture

Class Action (competition/interchange Fees) / Settlement Approval and Approval of Distribution Plan and Class Counsel Fees

Legal Issues

  1. 1 Whether the Final Settlement of $120,000,000 is fair, reasonable and in the best interests of the class
  2. 2 Whether the proposed Distribution Plan and appointment of administrators are fair and practical
  3. 3 Whether Class Counsel's fee request of 30% of the Final Settlement is reasonable

Ratio Decidendi

The court approved the Final Settlement and Distribution Plan because the settlement resulted from rigorous negotiation, was supported by unchallenged expert opinion, provided sufficient disclosure to class members, and served the class better than continued litigation; the court approved Class Counsel's 30% fee for the Final Settlement but ordered a $6,000,000 holdback (in addition to a prior $1,687,500 holdback) to ensure proper completion of distribution; disbursements were approved; proposed honorariums from settlement funds were declined because they would conflict with Quebec law, though counsel may pay honorariums from their own fees at their discretion.

Court Disposition

Settlement and distribution plan approved; class counsel fee request partially approved with holdback; disbursements approved; honorariums from settlement funds declined.

Orders

  • Final Settlement of $120,000,000 approved
  • Distribution Plan approved and Epiq Class Action Services Canada Inc. and Hilsoft Notifications appointed as Claims Administrator and Notice Administrator respectively