The applicants, claimants under a Hepatitis C class action settlement, sought leave to sue the settlement administrator, Crawford & Company (Canada) Inc., for breach of contract, negligence, and breach of fiduciary duty.
They alleged mismanagement of the Past Economic Loss and Dependents Fund (PELD Fund) and misleading advice regarding compensation options, which resulted in them receiving only a pro-rata share of their approved compensation.
The court granted leave, applying the "reasonable possibility of success" test.
It found that the proposed claims, if proven, demonstrated a reasonable prospect of success for all three causes of action.
The court distinguished the case from prior decisions denying leave, emphasizing that the allegations pertained to the administrator's conduct in providing advice while aware of fund insolvency, rather than merely challenging compensation calculations.
Arguments regarding release and limitation periods were dismissed as premature at this stage.
