Canada Judgment

Federal Court

Tiller v. Canada

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01

Holding and result

The Court approved the Fee Agreement as amended to set the Class Members' contribution at 7% and ordered the Defendant to pay $6,000,000 plus applicable sales taxes to Class Counsel as a contribution toward fees; the Court further ordered that class members contribute 7% of individual compensation (with prescribed exclusions), allocated the fees 70% to Klein Lawyers LLP and 30% to Higgerty Law, and imposed specific invoicing, payment, trust, withholding, remittance and reporting procedures pending the expiry or final resolution of any appeal.

Court disposition

Representative Plaintiffs' motion to approve class counsel fees granted; Fee Agreement approved as amended.

Orders

  • The Fee Agreement executed June 24, 2019 is approved subject to amendment of Clause 1.04 to 7% and consequential amendment of Clause 1.05 to 7%.
  • The Fee Agreement is incorporated by reference into this Order and its definitions apply to this Order.
  • The Defendant will pay $6,000,000.00, plus applicable sales taxes, to Class Counsel as a contribution towards Class Counsel fees.
  • Class Members will contribute 7%, plus applicable taxes, of individual compensation awarded under the Settlement, excluding amounts for reimbursement of out-of-pocket medical documentary expenses and travel expenses when travel exceeds 50 kilometres for an in-person assessor interview.
  • Pursuant to the Fee Agreement, 70% of the Class Counsel fees will be payable to Klein Lawyers LLP and 30% will be payable to Higgerty Law.
  • Within 10 days of the Approval Date, Klein Lawyers will invoice the Defendant for $4,200,000 plus applicable sales taxes and Higgerty Law will invoice the Defendant for $1,800,000 plus applicable sales taxes; these amounts will be paid by the Defendant within 30 days following the Approval Date.
  • Class Counsel will hold amounts paid by the Defendant in trust pending expiry of any appeal period for the Federal Court approval of the Settlement Agreement or Class Counsel fees and will return amounts if approvals are overturned on appeal or adjusted to amounts not covered by final order.
  • The Administrator will calculate and hold back the Class Counsel fee, plus applicable sales tax, from compensation payable to each Class Member and will remit 70% of the fee, plus applicable sales tax, to Klein Lawyers and 30% to Higgerty Law on the first business day of each month for compensation paid in the prior month.
  • Klein Lawyers and Higgerty Law will each provide the Defendant with an itemized list of disbursements with receipts or supporting documentation within 30 days of this Order and the Defendant will pay reasonable disbursements as agreed or assessed by the Court.
  • Each Party will bear their own costs of this application.

02

Material facts

Parties

Cheryl Tiller

Plaintiff

Mary-Ellen Copland

Plaintiff

Dayna Roach

Plaintiff

Her Majesty the Queen

Defendant

Amounts and remedies

  • Defendant Contribution: CAD 6,000,000
  • Klein Lawyers Share of Defendant Contribution: CAD 4,200,000
  • Higgerty Law Share of Defendant Contribution: CAD 1,800,000
  • Class Member Fee Percentage: 7

03

Procedural history

  1. Posture

    Class Proceeding / Approval of Class Counsel Fees (motion)

04

Questions and positions

Legal issues

Party arguments

Applicant
Representative Plaintiffs sought court approval of the Fee Agreement executed June 24, 2019, with amendment of Clauses 1.04 and 1.05 to 7%, and requested orders implementing the Defendant's agreed contribution and procedures for withholding, remittance, trust and disbursement reporting.
Respondent
The Defendant took no position on the motion and agreed to contribute $6,000,000 to Class Counsel fees; the Defendant required invoices, supporting disbursement documentation and payment according to the timelines in the proposed order.

05

Court’s reasoning

  1. 01

    Federal Courts Rules, SOR/98-106, Rule 334.3

    Court approval is required for class counsel fees and fee agreements in Federal Court class proceedings

  2. 02

    Federal Court practice and inherent supervisory jurisdiction to approve class settlements and fees

    Court may approve and incorporate fee agreements into orders and impose conditions governing payment, allocation and holding of fees pending appeal

  3. 03

    Principles of trust and escrow reflected in court orders and settled practice

    Funds paid by a defendant toward class counsel fees may be held in trust pending expiry or final resolution of any appeal to protect parties' interests

06

Ratio, limits and disposition

Ratio decidendi

The Court approved the Fee Agreement as amended to set the Class Members' contribution at 7% and ordered the Defendant to pay $6,000,000 plus applicable sales taxes to Class Counsel as a contribution toward fees; the Court further ordered that class members contribute 7% of individual compensation (with prescribed exclusions), allocated the fees 70% to Klein Lawyers LLP and 30% to Higgerty Law, and imposed specific invoicing, payment, trust, withholding, remittance and reporting procedures pending the expiry or final resolution of any appeal.

Court disposition

Representative Plaintiffs' motion to approve class counsel fees granted; Fee Agreement approved as amended.

  • The Fee Agreement executed June 24, 2019 is approved subject to amendment of Clause 1.04 to 7% and consequential amendment of Clause 1.05 to 7%.
  • The Fee Agreement is incorporated by reference into this Order and its definitions apply to this Order.
  • The Defendant will pay $6,000,000.00, plus applicable sales taxes, to Class Counsel as a contribution towards Class Counsel fees.
  • Class Members will contribute 7%, plus applicable taxes, of individual compensation awarded under the Settlement, excluding amounts for reimbursement of out-of-pocket medical documentary expenses and travel expenses when travel exceeds 50 kilometres for an in-person assessor interview.
  • Pursuant to the Fee Agreement, 70% of the Class Counsel fees will be payable to Klein Lawyers LLP and 30% will be payable to Higgerty Law.
  • Within 10 days of the Approval Date, Klein Lawyers will invoice the Defendant for $4,200,000 plus applicable sales taxes and Higgerty Law will invoice the Defendant for $1,800,000 plus applicable sales taxes; these amounts will be paid by the Defendant within 30 days following the Approval Date.
  • Class Counsel will hold amounts paid by the Defendant in trust pending expiry of any appeal period for the Federal Court approval of the Settlement Agreement or Class Counsel fees and will return amounts if approvals are overturned on appeal or adjusted to amounts not covered by final order.
  • The Administrator will calculate and hold back the Class Counsel fee, plus applicable sales tax, from compensation payable to each Class Member and will remit 70% of the fee, plus applicable sales tax, to Klein Lawyers and 30% to Higgerty Law on the first business day of each month for compensation paid in the prior month.
  • Klein Lawyers and Higgerty Law will each provide the Defendant with an itemized list of disbursements with receipts or supporting documentation within 30 days of this Order and the Defendant will pay reasonable disbursements as agreed or assessed by the Court.
  • Each Party will bear their own costs of this application.

Source and reliance status

Federal Court · 10 March 2020

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Judgment text

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Source document

Federal Court

Judgment· 10 March 2020

2020 FC 322

Tiller v. Canada Court (s) Database Federal Court Decisions Date 2020-03-10 Neutral citation 2020 FC 322 File numbers T-1673-17 Decision Content Date: 20200310 Docket: T-1673-17 Citation: 2020 FC 322 Ottawa, Ontario, March 10, 2020 PRESENT: The Honourable Mr. Justice Phelan

CLASS PROCEEDING BETWEEN: CHERYL TILLER, MARY-ELLEN COPLAND

AND DAYNA ROACH Plaintiffs and

HER MAJESTY THE QUEEN Defendant

ORDER (Counsel Fees) WHEREAS this motion was made by the Representative Plaintiffs pursuant to Rule 334.3 of the Federal Courts Rules, SOR/98-106; AND WHEREAS the Defendant takes no position on this motion having agreed to contribute Six Million Dollars ($6,000,000) to counsel’s fees; AND WHEREAS this motion was heard on October 17, 2019; AND UPON HEARING the submissions of counsel for the Representative Plaintiffs; AND UPON READING the motion record of the Representative Plaintiffs; THIS COURT ORDERS that: The Class Counsel fees set out in the fee agreement between the parties executed on June 24, 2019 [the Fee Agreement], attached as Schedule A, are approved subject to amendment of Clause 1.04 to 7% and the consequential amendment in Clause 1.05 to 7%. The Fee Agreement is incorporated by reference into this Order and the definitions set out in the Fee Agreement apply to this Order. The Defendant will pay $6,000,000.00, plus applicable sales taxes, to Class Counsel as a contribution towards Class Counsel fees. Class Members will make a contribution towards Class Counsel fees in the amount of 7%, plus applicable taxes, of the individual compensation awarded to each eligible Class Member under the Settlement, excluding any amounts paid to her for reimbursement of out-of-pocket expenses incurred to obtain medical documentary evidence to support her claim and travel expenses when

required to travel more than 50 kilometers from her residence to attend an in-person interview with the Assessor. Pursuant to the Fee Agreement, 70% of the Class Counsel fees will be payable to Klein Lawyers LLP and 30% will be payable to Higgerty Law. Within 10 days of the Approval Date, Klein Lawyers will provide the Defendant with an invoice for $4.2 million plus applicable sales taxes and Higgerty Law will provide the Defendant with an invoice for $1.8 million plus applicable sales taxes representing the Defendant’s respective contributions towards Class Counsel fees. These amounts will be paid by the Defendant within 30 days following the Approval Date, as defined in the Settlement Agreement. Class Counsel will hold the amounts paid by the Defendant in trust pending the expiry of any appeal period for the Federal Court approval of the Settlement Agreement or the Federal Court approval of Class Counsel fees. If an appeal of the Settlement Agreement approval or the approval of Class Counsel fees is filed, Class Counsel will continue to hold the fees paid by Canada in trust pending the final resolution of the appeal(s). Class Counsel will only remove the amounts paid by the Defendant from trust, in satisfaction of their invoices, if no appeal has been filed and the period for appeal has expired, or if any appeal is unsuccessful and all further appeal periods have expired. If

the Federal Court approval of the Settlement Agreement is overturned on appeal, Class Counsel will return to the Defendant the amount previously paid for Class Counsel fees. If the approval of Class Counsel fees is overturned or varied on appeal, Class Counsel will return to the Defendant any amount previously paid for Class Counsel fees which is not provided for in the final order of the Federal Court. The Class Counsel fee payable by each Class Member will be calculated by the Administrator who will hold back the Class Counsel fee, plus applicable sales tax, from the compensation otherwise payable to the Class Member. The Administrator will remit 70% of the Class Counsel fee, plus applicable sales tax, to Klein Lawyers and 30% of the Class Counsel fee, plus applicable sales tax, to Higgerty Law on the first business day of each month for all compensation paid to Class Members in the prior month. Klein Lawyers and Higgerty Law will each provide the Defendant with an itemized list of their disbursements, together with receipts or other supporting documentation satisfactory to the Defendant, within 30 days of the issuance of this Order. The Defendant will pay the costs of Klein Lawyers’ and Higgerty Law’s reasonable disbursements, as agreed between the Parties or as assessed by the Court. Each Party will bear their own costs of this application. Blank “Michael L. Phelan” blank Judge

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Federal Courts Rules, SOR/98-106, Rule 334.3

Legislation

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