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Sender:
Lionel Smith
Date:
Thu, 23 Nov 2000 15:18:16 -0500
Re:
Another class action

 

There is another big class action recently decided in Ontario, Authorson v. Canada (11 Oct 2000), Superior Court. This action was brought by veterans who were or became unable to manage their own affairs. They alleged that for many years the agencies of the federal Crown have systematically mismanaged the veterans' pension & benefits assets, in particular by not investing the funds or even paying interest. The Crown argued that any "trust" of the administered funds was political (trust "in the higher sense", in an expression I have never really understood). Held, there was a real trust, or at least a fiduciary obligation requiring investment or interest. The main defence was is a statutory provision which says no claim lies in respect of periods before 1990; this was passed in contemplation (fear) of the very claim now brought. This provision was held to be consistent with the Charter of Rights. However it was rendered inoperative by the Bill of Rights of 1960 (which is something of a surprise since this Bill has not done much over the years). The Crown is appealing.

Meanwhile the quantification of the claim is proceeding. Some of the plaintiffs are or were veterans of WWI. According to today's Globe and Mail, the plaintiffs' expert says that the value of the claim is $3.6 billion if the money had been invested in equities, $1.6 billion if invested in a conservative portfolio.

I leave it to somebody else to tell me whether this is a restitution case.

 

Lionel


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