Randy Vermont Bauslaugh

This decision concerns the approval of a class action settlement and class counsel's fees related to pension indexing benefits for members of the Brewer’s Retail, Inc. Pension Plan.

The dispute revolved around whether indexing constituted a protected pension benefit under the Pension Benefits Act.

The settlement provides for a 0.9% annual adjustment to pension benefits for pre-2010 service, with a specific fund allocated for certain class members requiring a claims process.

The court found the settlement to be fair, reasonable, and in the best interests of the class, noting it was the result of arm's-length negotiations and avoided the "all or nothing" risk of litigation.

Class counsel's fees and disbursements were also approved as fair and reasonable, representing a significant reduction from their dockets and a modest percentage of the total settlement value.

The Financial Services Regulatory Authority of Ontario (FSRA) appealed a Superior Court decision that dismissed its motion to stay a class proceeding initiated by Brewers Retail Inc. and a committee of pension plan members.

The class proceeding sought court approval of a comprehensive settlement regarding pension indexing issues, including amendments to the pension plan and trust, and compensation for known and unknown plan members.

FSRA argued that the Financial Services Tribunal (FST) had exclusive jurisdiction over these matters under the Pension Benefits Act (PBA) and the Financial Services Tribunal Act, 2017 (FSTA).

The Court of Appeal upheld the motion judge's finding that the Superior Court had concurrent jurisdiction, noting that neither the FSTA nor the PBA contained clear and unequivocal language ousting the court's inherent equitable jurisdiction to approve settlements and vary trusts.

The court affirmed that the class proceeding was the preferable procedure, as the FST lacked the power to approve the settlement or vary the pension trust, and the class action provided the necessary finality for all affected plan members.

This is a costs endorsement following a judgment certifying a class action settlement.

The Financial Services Regulatory Authority (FSRA) intervened to oppose the certification and sought a stay, but was entirely unsuccessful on the merits.

The court considered costs submissions from Brewers Retail Inc. (Applicant), the Committee representing the proposed class of pensioners (Respondents), and FSRA (Intervenor).

The court denied FSRA's request for costs, finding its intervention caused additional costs for other parties.

The court awarded Brewers Retail Inc. $159,000 and the Committee $51,000, both inclusive of disbursements and HST, to be paid by FSRA, finding their efforts necessary and reasonable given FSRA's strenuous opposition.