Lindsay Merrifield

This decision addresses an application by the Representative Plaintiffs and Class Counsel in a settled class action for various relief related to the administration and distribution of an $80 million settlement fund.

The application sought orders to adjust small claims, distribute surplus monies, approve payment of the remaining legal fee holdback, approve disbursements for Class Counsel and other legal services, and establish a holdback for future disbursements.

The Ontario court, after conferring with parallel proceedings in British Columbia and Québec, granted the application, adopting the analysis of the decisions from the other two provinces.

In CCAA proceedings involving a payday lending enterprise, class members in Ontario consumer class actions moved for approval of three settlement agreements forming part of a broader global resolution of litigation involving the debtor companies, their directors and officers, and related parties.

The settlements resolved certain class claims and partially resolved a third‑party lender claim, providing more than $10 million in recovery with potential participation in future litigation proceeds.

The court applied established settlement approval factors including likelihood of success, litigation risks, counsel recommendations, absence of objections, and arm’s‑length negotiations.

The court concluded that the settlements were fair, reasonable, and in the best interests of the class and the restructuring process.

In CCAA proceedings involving a payday lending group, class counsel for Ontario consumer class actions sought court approval of contingency fees and disbursements following settlement of related class proceedings.

The settlements produced monetary recoveries exceeding $10 million for class members, with potential additional recovery from future litigation proceeds.

The court reviewed the reasonableness of the requested 25% contingency fee and disbursements using established factors including results achieved, litigation risk, and responsibility assumed by class counsel.

The motion was unopposed.

The court concluded the requested fees and disbursements were reasonable and approved the amounts.

In proceedings under the Companies’ Creditors Arrangement Act arising from the insolvency of a payday lending enterprise, class members moved for approval of settlement administration measures related to consumer class action settlements.

The requested approvals included a settlement distribution protocol, notice plan, privacy and information management protocol, and appointment of a claims administrator.

A third‑party creditor that had purchased loan receivables from the debtor sought accommodation to assert an equitable set‑off against class members’ settlement recoveries.

The court held that the creditor’s claim lacked the close connection required for equitable set‑off and was effectively a prejudgment garnishment against settlement funds.

The administrative protocols were approved as fair, reasonable, and in the best interests of class members.