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Children's Special Allowance Class Action

FAQS

 

  1. What is this class action about?
  2. Am I a member of the class, or a guardian of a class member?
  3. Who is excluded from the class action?
  4. When was the class action certified?
  5. When was the class action settled?
  6. What does the settlement offer?
  7. What is the status of the lawsuit?
  8. How do I opt-out of the class action?
  9. What do I lose by opting-out of the class action?
  10. How do I object to the settlement?
  11. Do I have a lawyer in this case?
  12. How will the lawyers be paid?
  13. What are my Legal Rights and Options at this Stage?
  14. What is the process for Class Members to receive their benefit(s)?
  15. How is payment calculated?
  16. What documentation is required for persons seeking payment in respect of a Deceased Class Member?
  17. How is the Distribution Fund broken down?
  18. How do I get more information?

 

1. What is this class action about?

 

A class proceeding was commenced against the Government of Manitoba in respect of Manitoba’s actions and policies relating to the administration of Children’s Special Allowance Benefits (“CSA Benefits”) from children in the care of Métis Child, Family and Community Services Agency Inc. and Michif Child & Family Services Inc. (the “Métis Agencies”) between January 1, 2005 and March 31, 2019 (the “Lafontaine Class Action”). There are separate but related class proceedings dealing with Manitoba’s actions and policies relating to the administration of CSA Benefits paid for children in the care of Child and Family Services Agencies in Manitoba other than the Métis Agencies over that same period of time (the “Flette/Lavallee Class Actions”).

 

From January 1, 2005 to March 31, 2019, Manitoba took Children’s Special Allowances (CSA) Benefits from Child and Family Service Agencies in Manitoba, the legal guardians of children in care (the “CSA Policy”).

 

The CSA Benefit is the equivalent to the Canada Child Benefit received by parents of children who are not in care, and should have been used exclusively for the benefit of the child for whom it was owed to under the Federal Children’s Special Allowances Act. In total, Manitoba wrongfully took more than $45,000,000 from the Lafontaine Class during this time.

 

In 2020, Manitoba passed legislation which deemed lawsuits regarding its CSA Policy to be dismissed, and retroactively legitimatized its CSA Policy during the claim period.

 

In 2022, Manitoba Court of King’s Bench found Manitoba’s actions to be unconstitutional and discriminatory. Afterwards, three class actions were certified to pursue recovery of the money taken by Manitoba, including the Lafontaine class action.

 

On December 13, 2023, the Court certified the Lafontaine Class Action as a class proceeding and certified the class as all Indigenous and non-Indigenous persons who were in the care of the Métis Agencies at any time between January 1, 2005, and March 31, 2019 (the “Class Period”), and for whom the Métis Agencies received CSA Benefits pursuant to the Children’s Special Allowances Act (“CSA Act”) that were directly or indirectly taken by Manitoba, including through claw backs of provincial funding (the “Class”).

 

The Plaintiffs in the Lafontaine Class Action have reached a settlement with the Government of Manitoba in the amount of eighty-four-million eight-hundred-thousand ($84,800,000) to be paid to class members with a portion of those funds to be used to pay legal fees, the costs of administering the settlement and for programs and services to be delivered in connection with the distribution of settlement funds (the "Settlement"). The Court will need to approve the Settlement. The Settlement Approval Hearing is scheduled for September 5-6, 2024.

2. Am I a member of the class, or a guardian of a class member?

 

If you were a child in the care of either of the Métis Agencies at any time between January 1, 2005, and March 31, 2019, you are likely a member of the Class and likely entitled to compensation.

 

If you are a parent or guardian to a minor child who may be a part of the Class, you are responsible for making decisions on behalf of the Class member with respect to the class action, including opting out or making an objection.

 

Two other, related class actions have also been certified, with different class definitions:

 

  • The Flette Class: All Indigenous persons, and the estates of those persons, who were in the care of Child and Family Services Agencies in Manitoba (the "CFS Agencies”), other than the Métis Agencies, at any time between 2005 to 2019, and for whom the CFS Agencies received CSA Benefits that were directly or indirectly taken by Manitoba, including through claw backs of provincial funding; and

  • The Lavallee Class: All non-Indigenous persons, and the estates of those persons, who were in the care of CFS Agencies, other than the Métis Agencies, at any time between 2005 to 2019,  and for whom the CFS Agencies received CSA Benefits that were directly or indirectly taken by Manitoba, including through claw backs of provincial funding.

 

It is possible a person may be a member of more than one class and entitled to compensation from more than one class action. For example, if a person was in the care of one of the Métis Agencies for a certain period of time, and in the care of a different child and family service agency for another period of time, and both periods of time were between 2005 and 2019, that person is likely a member of more than one class and is likely entitled to compensation from more than one class action.

 

If you believe you may be a member of more than one class action, please inquire with the Authority who can assist you.

 

3. Who is excluded from the class action?

 

The Settlement does not apply to anyone who is not a Settlement Class Member, including Excluded Persons. Excluded Persons are:

 

  • the Defendant, and its directors, officers and employees;

  • persons who validly opt out of the Settlement;

  • persons who previously resolved and/or released their claims in an individual settlement with the Defendant with respect to the issues raised in the Action; and

  •  Class Counsel and the presiding judge in the Action.

 

4. When was the class action certified?

 

On December 13, 2023, the Court certified the Lafontaine Class Action as a class proceeding and certified the Class.

 

The Court appointed Rene Lafontaine and Mary Derendorf as the Representative Plaintiffs.

 

The Court appointed Lax O’Sullivan Lisus Gottlieb LLP and MN Trachtenberg Law Corporation as Class Counsel.

 

5. When was the class action settled?

 

On March 19, 2024, the Plaintiffs reached an agreement in principle with Manitoba to settle the Lafontaine Class Action for a payment of $84,800,000. A portion of the Settlement funds will pay for legal fees, settlement administration fees and programs and services to be delivered in connection with the distribution of settlement funds.

 

On June 19, 2024, the Plaintiffs and Manitoba entered into a definitive settlement agreement. Under the settlement agreement, the Métis Child and Family Services Authority, with the assistance of Epiq Class Action Services Inc. is appointed to manage the distribution of the Settlement funds. The Authority will determine each Class member’s eligibility and entitlement to payment from the Settlement funds.

 

6. What does the settlement offer?

 

The Settlement offers total compensation to the Class in the Lafontaine of $84,800,000 plus approximately $7,000,000 in CSA funds retained by the Métis Agencies. From that amount, approximately $7.5 million will be used for (1) legal fees, (2) administration of the Settlement, and (3) programs to support Class members. These amounts are subject to court review and approval.

 

Each Class member will receive a payment in proportion to the amount of time spent in care between January 1, 2005 and March 31, 2019 and the amount of CSA Benefits that were applied for, received and remitted to Manitoba and/or clawed back.

 

Any amount paid to a Class member from the Settlement Benefits will not be deemed to be a form of income replacement or compensation for loss income, and will not affect eligibility for, the amount, nature and/or duration of social assistance programs administered by or on behalf of Manitoba.

 

If there are any undistributed amounts, the Authority will distribute the remaining amounts held on behalf of the Undistributed Class Members to the Métis Agencies as a cy près distribution. The Métis Agencies will exclusively apply the cy près distribution toward the care, maintenance, education, training or advancement of individuals in their care or programming and services for the care, maintenance, education, training or advancement of individuals formerly in the care of the Métis Agencies.

 

7. What is the status of the lawsuit?

 

The Court approved the Settlement at a Court hearing on September 5th and 6th, 2024.

 

Currently cheques are being delivered to eligible Class Members. Please note the cheque disbursement is not being handled by us, but rather through the Metis Child and Family Services Authority.

 

Eligible Class Members can coordinate with the Metis Child and Family Services Authority to pick up their cheque by contacting them at the number on the notice they have received.

 

If picking up your cheque, please ensure to bring valid ID to verify your identity.

 

What identification is considered acceptable proof?

To certify their identity, Class Members or the administrators of a Class Member’s estate will have to present a government-issued photo ID such as:

  • Manitoba Métis Federation Citizenship Card;
  • Provincial or Territorial Driver’s License;
  • Provincial or Territorial Identification Card;
  • Passport;
  • Secure Certificate of Indian Status Card;
  • Permanent Resident Card;
  • Canadian Forces Photo Identification Card; or
    Any other government identification with a photo and name

 

8. How do I opt-out of the class action?

 

The Opt-Out period for this class action has passed. The deadline to submit a formal and valid opt out form was 5:00 p.m. CST on August 26, 2024. This means that all Class Members who did not submit an opt-out form by the deadline are automatically included in the Settlement Agreement and will be bound by its terms.

 

It is no longer possible to opt-out of the Settlement.

 

9. What do I lose by opting out of the class?

 

A member of the Class who opted out will not be entitled to participate in the Lafontaine Class Action, will not be bound by the Settlement approved by the Court, and will not be eligible for any recovery in the Lafontaine Class Action. A Class member who opts out may be eligible to pursue a claim in a separate proceeding. If you wish to pursue your own claim in a separate proceeding, you should consult with a lawyer immediately.

 

10. How do I object to the Settlement?

 

The deadline to object to the Settlement has passed. If you disagreed with the Settlement offering compensation to Class Members, a completed Objection Form was to be received by the Authority by 5:00 p.m. CST on August 26th, 2024.

 

It is no longer possible to object to the Settlement.

 

11. Do I have a lawyer in this case?

 

Yes. The Court has appointed Lax O’Sullivan Lisus Gottlieb LLP and MN Trachtenberg Law Corporation to represent you and all other Class Members as “Class Counsel”. You will not be charged for contacting these lawyers with questions:

 

 

12. How will the lawyers be paid?

 

At the hearing on September 5-6, 2024, Class Counsel sought Court approval that a portion of the Settlement funds be used to pay the legal fees, disbursements and applicable taxes relating to the prosecution and settlement of the Lafontaine Class Action, which were estimated to be $1,500,000. This amount may increase depending on the legal fees, disbursements and applicable taxes relating to the administration of this Settlement. The precise amount will be provided in advance of the Settlement Approval Hearing.

 

Class Counsel in the Lafontaine Action are not being paid on a contingency basis and are not seeking to be paid a percentage of the overall settlement amount. Instead, Class Counsel fees reflect the actual billable time paid by the Plaintiffs.

 

If Class Members object to the Settlement or legal fees, they are responsible for paying the legal fees of any lawyer or other professional or person who they retain to assist in advancing any such objections.

 

13. What are my Legal Rights and Options at this Stage?

 

Do Nothing

If you support or are indifferent to the proposed Settlement, you do not have to do anything right now.

 

When the administration process begins, you will be able to identify yourself to the Authority and receive compensation.

 

Object to the Proposed Settlement

If you disagree with the proposed Settlement offering compensation to Class Members, you can voice your objection to the Court by completing and submitting the Objection Form no later than August 26, 2024.

 

Object to the Proposed Fees

If you disagree with the legal fees allocated to Class Counsel, you can voice your objection to the Court by completing and submitting the Objection Form no later than August 26, 2024.

 

Opt-Out of the Class Proceeding

If you do not want to participate in the class action, you must formally “opt out” by completing and submitting the Opt-Out Form no later than August 26, 2024.

10. What happens if I do nothing?

 

If you support or are indifferent to the proposed Settlement, you do not have to do anything right now.

 

When the administration process begins, you will be able to identify yourself to the Authority and receive compensation.

11. How do I opt-out of the class action?

 

Members of the Class who do not want to participate in the class action must formally “opt out”. To opt out you must complete and submit the opt-out form, which can be found here. The opt-out form must be sent by e-mail to info@metiscsaclassaction.ca or by mail to the Métis Child and Family Services Authority ( the “Authority”) at:

 

Métis Child and Family Services Authority

Administrator, Lafontaine Class Action re: Children’s Special Allowance

c/o Epiq Class Action Services Canada Inc.

P.O. Box 507 STN B

Ottawa ON K1P 5P6

 

No Class Member will be permitted to opt out of the class action unless the completed opt-out form is received by the Authority by 5:00 p.m. CST on August 26, 2024.

12. What do I lose by opting out of the class?

 

A member of the Class who opts out will not be entitled to participate in the Lafontaine Class Action, will not be bound by the Settlement once approved by the Court, and will not be eligible for any recovery in the Lafontaine Class Action. A Class member who opts out may be eligible to pursue a claim in a separate proceeding. If you wish to pursue your own claim in a separate proceeding, you should consult with a lawyer immediately.

13. How do I object to the proposed settlement?

 

If you are an eligible Class Member, you can choose to have your cheque mailed to the address we have on file, or you have the option to pick it up in person from a designated Metis Child and Family Services Authority office. Eligible Class Members can coordinate with the Metis Child and Family Services Authority to pick up their cheque by contacting them at the number on the notice they have received.

 

If picking up your cheque, please ensure to bring valid ID to verify your identity.

 

What identification is considered acceptable proof?

To certify their identity, Class Members or the administrators of a Class Member’s estate will have to present a government-issued photo ID such as:

 

  • Manitoba Métis Federation Citizenship Card;
  • Provincial or Territorial Driver’s License;
  • Provincial or Territorial Identification Card;
  • Passport;
  • Secure Certificate of Indian Status Card;
  • Permanent Resident Card;
  • Canadian Forces Photo Identification Card; or
  • Any other government identification with a photo and name

14. What is the process for Class Members to receive their benefit(s)??

 

Class Members seeking money under the Settlement are not required to submit a Claim Form in order to receive compensation under the Settlement. They are however required to complete certain documentation as part of the identification and verification process.

 

All Adult Class Members will receive their payments directly.

 

Payments for Underage Class Members who are in the care of the Agencies will be paid to the Agencies. The Authority will make distributions to the Agencies on behalf of Underage Class Members who are in the care of the Agencies.

 

Payments for Underage Class Members who are not in the care of the Agencies will be held in trust by the Authority in an interest-bearing or investment account, subject to any further order from the Court. The Authority will make distributions to Underage Class Members who are not in the care of the Agencies after they turn the age of majority.

 

Payments for Deceased Class Members will be paid to the administrator of the Deceased Class Member’s estate. To be recognized as the administrator of the Deceased Class Member’s estate, a person must provide either:

 

(1)a probated will; or

(2) a court order appointing them as the administrator of the Deceased Class Member’s estatet.

15. How is the payment calculated?

 

Each Class Member’s CSA Payment amount will be calculated by adding the Class Member’s Child Benefit Payment and (if applicable) the Class Member’s Disability Payment. Interest will be calculated for each Class Member’s CSA Payment at a rate of 2.25%. Interest will be calculated until the date of Settlement Approval, considering the dates for which the Class Member would have received the CSA Benefits.

 

To calculate the Child Benefit Payment for each Class Member, the Authority will first determine the dates for which the Class Member was in the care of the Agencies. For each year the Class Member was in the care of the Agencies, the Authority will multiply the number of months the Class Member was in the care of the Agencies by the monthly Child Benefit for that year which aligns with the age of the Class Member for the given year. These yearly amounts will be added to determine the Class Member’s total Child Benefit Payment.

 

Please note that if an individual was in the care of the Agencies for less than 30 days, they are not a Class Member and are not entitled to a Child Benefit Payment.

16. What documentation is required for persons seeking payment in respect of a Deceased Class Member?

 

Persons seeking Payment in respect of a Deceased Class Member must present the following documentation:

 

  1. a) Proof of death of the Class Member; and
  2. b) Either (1) a probated will or (2) a court order appointing them the administrator of the Deceased Class Member’s estate.

17. How is the Distribution Fund broken down?

 

The Distribution Fund is the amount of money that is available for distribution among the Class and totals $84,228,552. It is the Settlement Fund and the Amounts held by the Agencies less the Administrative Costs. The Settlement Fund represents, in part, the CSA Benefits amounts clawed back by Manitoba. The Amounts held by the Agencies represent amounts held by the Agencies that were received by the Agencies during the Class Period in respect of Class Members but were not remitted to Manitoba. Both the Settlement Fund and the Amounts held by the Agencies are available for distribution to the Class. The Distribution Fund is broken down into the following categories:

 

18. How do I get more information?

 

The Court office will not be able to answer questions about matters in this Notice. If you have any questions regarding the proposed Settlement or making a Claim, information is available by accessing the following website http://metiscsaclassaction.ca, contacting Class Counsel, contacting the Authority, or contacting Epiq at the following:

 

Métis Child and Family Services Authority

Email: csaclassaction@metisauthority.com

 

Epiq Class Action Services Inc.

Email: info@metiscsaclassaction.ca

Phone: 1-877-835-4546

 

You may also be a member of the Flette or Lavallee Class Actions. For more information on the Flette or Lavallee Class Actions, you can contact the claims administrator or the following law firms:

 

Flette Lavallee Class Action Claims Administrator

Exchange Solutions Inc.

Email: info@csasettlement.com

Phone: 1-204-947-7101 or Toll Free 1-844-947-7101

 

  1. The Flette Class:

    DD West LLP

    Email:
    CSA@ddwestllp.com

  2. The Lavallee Class:

    Cochrane Saxberg LLP
    Email: CSA@cochrancesaxberg.com

    OR

    DD West LLP
    Email: CSA@ddwestllp.com

 

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