The plaintiffs brought a motion for approval of a class action settlement and approval of class counsel fees under the Class Proceedings Act, 1992.
The class action alleged negligent design and manufacture of elevator “sheave jammer” braking devices and breach of maintenance contracts following a regulatory order requiring their replacement.
The parties reached a mediated settlement establishing a $12 million settlement fund for class members who incurred costs replacing the devices.
The court held the settlement fell within the range of reasonableness given litigation risks, including uncertainty in proving defectiveness and potential reduction of damages through betterment arguments.
The court approved the settlement, class counsel fees, and a $15,000 honorarium for one representative plaintiff, but declined compensation for the second representative plaintiff.