The plaintiffs in a pension surplus class action moved for court approval of an amendment to a previously approved settlement after actuarial assumptions underlying the settlement proved incorrect and the anticipated surplus dramatically declined.
The amended settlement offered a guaranteed minimum payment and a potential capped second distribution if surplus re‑emerged by a specified date.
Numerous class members objected, arguing the amendment was unfair and inconsistent with the expectations created during the original settlement campaign.
The court held that it had jurisdiction under s. 29(2) of the Class Proceedings Act, 1992 to approve or reject the amended settlement but concluded the proposal was substantively, procedurally, circumstantially, and institutionally unfair.
The court emphasized that settlement approval requires fairness beyond mere monetary advantage and refused to approve an unfair settlement even if it represented the better option among undesirable alternatives.