Canada Judgment

Federal Court

Riddle v. Canada

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01

Holding and result

Given the pandemic and delays in finalizing eligibility determinations, the court concluded the proposed interim distribution mechanism—payment of the Designated Amount into trust and conditional disbursement of $25,000 per eligible claimant after specified thresholds—was reasonable and in the best interests of the class, with interest and any surplus/deficit to be managed in accordance with the settlement and further court orders if required.

Court disposition

Consent motion granted; order issued

Orders

  • Defendant to pay the Designated Amount ($500,000,000.00) to the Claims Administrator to be held in trust for Eligible Class Members.
  • Claims Administrator to commence paying Eligible Class Members the sum of $25,000.00 each once more than 4,767 claimants’ applications have been fully and finally rejected without further opportunity for review or reconsideration.
  • Any interest earned on the amounts held in trust by the Claims Administrator to be paid to the Sixties Scoop Healing Foundation in accordance with the terms of the Sixties Scoop Settlement Agreement.
  • If fewer than 20,000 total claimants are determined to be Eligible Class Members, surplus monies from the Designated Amount to be distributed in such manner as further ordered by the Court.
  • If greater than 20,000 claimants are determined to be Eligible Class Members, Defendant to pay additional monies to the Claims Administrator for distribution to Eligible Class Members in such manner as further ordered by the Court.

02

Material facts

Parties

Jessica Riddle

Plaintiff

Wendy Lee White

Plaintiff

Catriona Charlie

Plaintiff

Her Majesty the Queen

Defendant

Amounts and remedies

  • Designated Amount: CAD 500,000,000
  • Per Claimant Interim Payment: CAD 25,000
  • Rejection Threshold for Payments (claimants): 4,767
  • Eligibility Cap for Distribution Consideration (claimants): 20,000

03

Procedural history

  1. Posture

    Class Action / Consent Motion for Settlement Distribution Order

04

Questions and positions

Legal issues

Party arguments

Applicant
Applicants moved on consent for immediate measures to effect payments to Class Members given pandemic-related exigencies and delays in determining total eligible claimants, arguing the proposed distribution method is reasonable and in the best interests of the class as a whole.
Respondent
Defendant consented to the relief sought; no adverse submission recorded. The proposed steps and safeguards were accepted as appropriate pending final determination of eligible claimant totals.

05

Court’s reasoning

  1. 01

    Federal Court discretion and class action practice

    Court may approve interim or alternative distribution mechanisms when reasonable and in the best interests of the class

  2. 02

    Sixties Scoop Settlement Agreement

    Terms of a settlement agreement govern allocation of interest and the treatment of surplus or shortfall

06

Ratio, limits and disposition

Ratio decidendi

Given the pandemic and delays in finalizing eligibility determinations, the court concluded the proposed interim distribution mechanism—payment of the Designated Amount into trust and conditional disbursement of $25,000 per eligible claimant after specified thresholds—was reasonable and in the best interests of the class, with interest and any surplus/deficit to be managed in accordance with the settlement and further court orders if required.

Obiter and limits

  • The court noted that any subsequent issues arising from this interim distribution can be addressed later if necessary.
  • The exigencies of the current pandemic justify a practical interim approach to give effect to the purpose of the Settlement.

Court disposition

Consent motion granted; order issued

  • Defendant to pay the Designated Amount ($500,000,000.00) to the Claims Administrator to be held in trust for Eligible Class Members.
  • Claims Administrator to commence paying Eligible Class Members the sum of $25,000.00 each once more than 4,767 claimants’ applications have been fully and finally rejected without further opportunity for review or reconsideration.
  • Any interest earned on the amounts held in trust by the Claims Administrator to be paid to the Sixties Scoop Healing Foundation in accordance with the terms of the Sixties Scoop Settlement Agreement.
  • If fewer than 20,000 total claimants are determined to be Eligible Class Members, surplus monies from the Designated Amount to be distributed in such manner as further ordered by the Court.
  • If greater than 20,000 claimants are determined to be Eligible Class Members, Defendant to pay additional monies to the Claims Administrator for distribution to Eligible Class Members in such manner as further ordered by the Court.

Source and reliance status

Federal Court · 27 March 2020

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Judgment text

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Source document

Federal Court

Judgment· 27 March 2020

2020 FC 453

Riddle v. Canada Court (s) Database Federal Court Decisions Date 2020-03-27 Neutral citation 2020 FC 453 File numbers T-2212-16 Decision Content Date: 20200327 Docket: T-2212-16 Citation: 2020 FC 453 Ottawa, Ontario, March 27, 2020 PRESENT: The Honourable Mr. Justice Phelan BETWEEN: JESSICA RIDDLE, WENDY LEE WHITE

AND CATRIONA CHARLIE Plaintiffs and

HER MAJESTY THE QUEEN Defendant

ORDER UPON motion on consent for the reliefs specified in this Order; AND UPON READING the Affidavit of Eric Khan; AND UPON CONSIDERING the exigencies of the current pandemic and that the determination of the total number of eligible Class Members is taking more time than anticipated; AND UPON CONSIDERING that the proposed method of distribution is a reasonable option in the current circumstances to give effect to the purpose of the Settlement to make payments to Class Members; AND the Court having concluded that the relief is in the best interests of the Class as a whole and that any issues which may arise subsequently can be addressed at a later date if necessary; THIS COURT ORDERS that: The Defendant pay the Designated Amount ($500,000,000.00) to the Claims Administrator to be held in trust for Eligible Class Members. The Claims Administrator commence paying Eligible Class Members the sum of $25,000.00 each, once more than 4,767 claimants’ applications have been fully and finally rejected without further opportunity for review or reconsideration. Any interest earned on the amounts held in trust by the Claims Administrator be paid to the Sixties Scoop Healing Foundation in accordance with the terms of the Sixties Scoop Settlement Agreement. Should fewer than 20,000 total claimants be determined to be Eligible Class Members, the surplus monies from the Designated Amount be distributed in such manner as further ordered by the Court. Should greater than 20,000 claimants be determined to be Eligible Class Members, the Defendant pay additional monies to the Claims Administrator for distribution to Eligible Class Members in such manner as further ordered by the Court. Blank “Michael L. Phelan” Blank Judge

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