Court File and Parties
COURT FILE NO.: CV-15-537029-CP DATE: 20170908 SUPERIOR COURT OF JUSTICE - ONTARIO
RE: Matthew Robert Quenneville, Luciano Tauro, Michael Joseph Pare, Therese H. Gadoury, Amy Fitzgerald, Renee James, Al-Noor Wissanji, Jack Mastromattei and Jay MacDonald, Plaintiffs
AND:
Volkswagen Group Canada Inc., Volkswagen Aktiengesellschaft, Volkswagen Group of America Inc., Audi Canada Inc., Audi Aktiengesellschaft, Audi of America Inc. and VW Credit Canada Inc., Defendants
Proceeding under the Class Proceedings Act, 1992
BEFORE: Justice Edward P. Belobaba
COUNSEL: David O’Connor, Harvey Strosberg and Adam Dewar for the Plaintiffs Cheryl Woodin, Michael Eizenga and Ilan Ishai for the Defendants
HEARD: June 14, 2017
VW 2.0L Settlement – Legal Fees
1In reasons released on April, 26, 2017 I approved the $2.1 billion settlement of the Volkswagen “dieselgate” class action involving the illegal “defeat devices” installed in certain Volkswagen and Audi 2.0L diesel-powered automobiles. [1] I noted that the U.S. class action had settled for just over $10 billion. [2] I concluded that the amount of the $2.1 billion Canadian Settlement was not only fair and reasonable but was more than would have been recovered in litigation. I was satisfied that the Settlement was very much in the best interests of the class. [3]
2Under s. 12 of the Settlement Agreement, VW (defined to include all seven defendants) agreed to pay class counsel’s reasonable legal fees, disbursements and taxes. The Agreement explained that if the parties could not agree on the amount, then class counsel could bring a motion asking that the court fix the fees. The parties were initially unable to reach an agreement on the legal fees payable and class counsel moved for a judicial determination.
3However, as matters progressed the parties advised that they had reached an agreement as to class counsels’ legal fees. VW has agreed to pay $31.2 million, inclusive of disbursements and taxes. The legal fees portion is approximately $26, the disbursements just under $1 million and the taxes about $3.5 million.
4VW and class counsel now ask that the payment of these legal fees be approved under ss. 12.1.1 and 12.1.2 of the Settlement Agreement.
5When I approved the overall Settlement Agreement, I also approved the process for the payment of legal fees as set out in s. 12. I was satisfied that the $2.1 billion settlement was generous to the class members and that any legal fees payable by VW under s. 12 of the Agreement would be separate and apart from the overall settlement amount and would not diminish class members’ reasonable recovery. In other words, I was satisfied that the legal fees amount, as negotiated and agreed to by VW and class counsel would be appropriate and acceptable, and would thus be approved by this court.
6I have no reason not to approve the agreed-to legal fees amount. Order to go as per the draft Order signed today.
Justice Edward P. Belobaba Date: September 8, 2017
[1] Quenneville v. Volkswagen, 2017 ONSC 2448 [2] In re Volkswagen “Clean Diesel” Marketing Sales Practices and Products Liability Litigation, MDL, No. 2672 (CRB)(JSC) (U.S. District Court, Northern District of California, October 25, 2016). [3] Supra, note 1, at para. 7.