The plaintiff brought motions for court approval of a $1.95 million settlement agreement and class counsel fees in a class action against BMO Trust Company and BMO InvestorLine Inc. The action alleged the defendants excessively withheld taxes on RRIF withdrawals.
The court approved the settlement, finding it fair and reasonable given the significant litigation risks, including a statutory bar defence under the Income Tax Act.
The court also approved a cy-près distribution of the net settlement funds to HelpAge Canada, as direct distribution to class members was deemed impractical and disproportionately costly.
Class counsel's 30% contingency fee and disbursements were approved as fair and reasonable.
