Bodnar v. The Cash Store Inc.

Bodnar v. The Cash Store Inc.

The Court held that Cash Store had administered the settlement incompetently and contrary to the Approved Settlement Agreement: it could not exclude previously approved claimants after issuing entitlement letters; it was not permitted to deduct PPP or cash card fees from claim offsets under the agreement; the Court possessed continuing supervisory jurisdiction to ensure proper administration of the settlement, including replacing the Settlement Administrator; and, on this basis, Cash Store was removed and Epiq was ordered to assume administration subject to specified disclosure and procedural orders.

Citation
2011 BCSC 667
Parties
Plaintiffs: Andrew Bodnar and Jose Bartolome; Defendant Settlement Administrator: The Cash Store Inc.; Defendants: Rentcash Inc.; All Trans Financial Services Credit Union Ltd.; Card Capital Inc.; 367463 Alberta Ltd.; 1015005 Alberta Ltd.; Assistive Financial Corp.; Advance Finance Corporation; Bridgeview Financial Corp.; Seisform Drilling (1957) Ltd.; Longship Capital Inc.; Avenir Financial Funding Corp.; 3074700 Nova Scotia Ltd.; 19695 Yukon Inc.; Robert John Hankinson, Q.C. Trustee Of The Hugh Denham RCA Trust
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
24 May 2011
Procedural Posture
Class Proceeding (settlement Administration) / Application for Directions to Remove and Replace Settlement Administrator After Court Approved Settlement
Outcome
Application granted in part: Cash Store removed as Settlement Administrator and Epiq Systems Inc. appointed as substitute Settlement Administrator; multiple ancillary directions and disclosure orders made.
Legal Topics
Settlement Administration, Court Supervisory Jurisdiction, Removal of Settlement Administrator, Claims Processing and Auditing, Interpretation of Settlement Agreement, Allegations of Bad Faith
Source Language
English
Class Actions Civil Procedure Contract Law Equity Remedies Settlement Administration Court Supervisory Jurisdiction Removal of Settlement Administrator +3 more

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Parties

Andrew Bodnar and Jose Bartolome

Plaintiffs

The Cash Store Inc.

Defendant Settlement Administrator

Rentcash Inc.; All Trans Financial Services Credit Union Ltd.; Card Capital Inc.; 367463 Alberta Ltd.; 1015005 Alberta Ltd.; Assistive Financial Corp.; Advance Finance Corporation; Bridgeview Financial Corp.; Seisform Drilling (1957) Ltd.; Longship Capital Inc.; Avenir Financial Funding Corp.; 3074700 Nova Scotia Ltd.; 19695 Yukon Inc.; Robert John Hankinson, Q.C. Trustee Of The Hugh Denham RCA Trust

Defendants

Procedural Posture

Class Proceeding (settlement Administration) / Application for Directions to Remove and Replace Settlement Administrator After Court Approved Settlement

Legal Issues

  1. 1 Whether the Court may remove and replace the Settlement Administrator
  2. 2 Whether Cash Store may revise and exclude previously approved claims after issuing entitlement letters
  3. 3 Whether Cash Store may deduct Price Protection Plan (PPP) and cash card fees from offsets to claims

Ratio Decidendi

The Court held that Cash Store had administered the settlement incompetently and contrary to the Approved Settlement Agreement: it could not exclude previously approved claimants after issuing entitlement letters; it was not permitted to deduct PPP or cash card fees from claim offsets under the agreement; the Court possessed continuing supervisory jurisdiction to ensure proper administration of the settlement, including replacing the Settlement Administrator; and, on this basis, Cash Store was removed and Epiq was ordered to assume administration subject to specified disclosure and procedural orders.

Court Disposition

Application granted in part: Cash Store removed as Settlement Administrator and Epiq Systems Inc. appointed as substitute Settlement Administrator; multiple ancillary directions and disclosure orders made.

Orders

  • Cash Store removed as Settlement Administrator and directed to employ Epiq Systems Inc. to perform the Settlement Administrator functions
  • Cash Store to cooperate with Epiq and provide full access to settlement records