The representative plaintiff brought a motion to certify a proposed class action for settlement purposes under the Class Proceedings Act, 1992, and sought approval of a negotiated settlement and class counsel fees.
The claim arose from participation in a university-affiliated forgivable loan program that generated charitable donation tax receipts which were later disallowed by the Canada Revenue Agency, resulting in reassessments and interest liabilities for participants.
Approximately 200 individuals were proposed as class members.
The settlement provided refunds equal to 10% of amounts donated under the program and permitted class members to elect payment or donate the amount to the university.
The court found that the certification criteria under s. 5(1) of the Act were met and that the settlement was fair, reasonable, and in the best interests of the class, and approved class counsel fees.
