Nathalie Drouin

The Ontario Superior Court of Justice heard unopposed applications by the Joint Committee in the national Hepatitis C class actions (Parsons and Kreppner) to allocate approximately $160 million in "Excess Capital" from the settlement fund.

The Joint Committee proposed four recommendations to increase various benefits for approved class members and family members, including lump sum payments, loss of guidance/care/companionship awards, lost pension benefits, and loss of services rates.

The court granted the application, finding the proposed allocations reasonable, non-discriminatory, and consistent with the settlement agreement's purpose of bridging compensatory gaps.

This is a joint decision from the Supreme Court of British Columbia, Alberta Court of Queen’s Bench, Ontario Superior Court of Justice, and Superior Court of Québec concerning the administration and termination of the national Hepatitis C class action settlement.

Class Counsel sought orders approving a third pro rata payment from the PELD Fund, payment of class counsel disbursements, approval of administrative expenses, waiving a future audit, and a declaration terminating the Settlement Agreement.

The courts approved all requests, with a minor variation regarding the termination process, and also granted relief from forfeiture to a class member for a missed payment.

Class counsel brought an application to assess the financial sufficiency of the Compensation Fund established under the Hepatitis C class action settlement and sought a declaration prioritizing the transfer of surplus funds to the insolvent Past Economic Loss and Dependents Fund (PELD Fund).

The court found that the Compensation Fund was solvent with a small projected surplus, while the PELD Fund remained insolvent.

To prevent inequity for eligible class members who had received nothing from the depleted PELD Fund, the court authorized the transfer of the remaining Compensation Fund surplus to the PELD Fund, with the specific allocation to be determined at a future hearing.

The Attorney General of Canada and the Joint Committee representing Class Members brought competing applications regarding the allocation of approximately $236 million in excess capital held in the trust fund established by the 1986-1990 Hepatitis C Settlement Agreement.

Canada argued the excess capital should be returned to it, while the Joint Committee sought to allocate the funds to increase benefits for Class Members.

The court dismissed Canada's application, finding that the excess capital allocation provision was intended to provide an opportunity to bridge compensatory gaps for Class Members.

The court approved seven of the Joint Committee's nine recommendations for allocating the funds, including increases to fixed payments and loss of services compensation, to be implemented by way of special distribution.