September 2023 UPDATE: First Stage Payment Notification Letters and Cheques were issued on September 19, 2023 via Canada Post.
Background
On April 15, 2009, this class action lawsuit was launched on behalf of the proposed representative plaintiff Jeffrey Lipson, against Cassels Brock & Blackwell LLP (“Cassels Brock”) in respect of allegations relating to legal opinions (“Legal Opinions”) prepared in support of a timeshare program operated and promoted by the Athletic Trust of Canada for anticipated tax credits (“Program”).
The Plaintiff and Cassels Brock and Blackwell have agreed to settle this class action for the all-inclusive amount of $8.25 million. The settlement was reached following extensive negotiations between the parties and with the assistance of a retired judge (mediator).
The agreement to settle this matter does not imply any liability, wrongdoing or fault on the part of Cassels Brock. None of the allegations against Cassels Brock have been proven and Cassels Brock expressly denies any liability, wrongdoing and/or fault.
Class Definition
In 2013 this action was certified to proceed as a class proceeding on behalf of the following Class:
All individuals who applied and were accepted to be beneficiaries of the Athletic Trust in 2000, 2001, 2002 and/or 2003 and received Timeshare Weeks from the Athletic Trust and donated them, together with a cash donation, to one or more of the RCAAAs (the “Class Members”).
Notice of Certification was published in 2014 and 2015 and the opt-out period is now closed.
Settlement Approval
After years of litigation, the parties reached a settlement of the class action. The settlement was subject to the approval of the Court. The Court held a hearing to decide whether to approve the settlement on January 20, 2023.
In Reasons for Decision released on February 14, 2023, the Court approved the settlement as being fair, reasonable and in the best interests of the Class. A copy of the Settlement Approval Order has been posted on this website and can be found here.
Notice of Settlement Approval and Payment of Compensation
The court-approved Notice of Approved Settlement Approval will be posted on this website on or before March 16, 2023 (which is 30 days after the date of the decision approving the settlement) . Class Members should refer the Notice of Approved Settlement for additional details on the next steps in this settlement.
The $8.25 million Settlement Fund includes all compensation payable to the Class Members for any potential damages arising from their participation in the Athletic Trust Tax Reduction Program, legal fees and related disbursements (including taxes), the costs of administration and distribution of money to Class Members, a contribution to the legal expenses incurred by the Plaintiff and certain Class Members before Roy O’Connor LLP took carriage of this action, and a 10% statutory levy to the Class Proceedings Fund. In exchange for its $8.25 million payment, Cassels will receive a full release of all claims and any potential claims that Class Members may have against Cassels relating to, among other things, the Program, the donation of Timeshare Weeks and any tax consequences or damages arising therefrom as more fully described in the Settlement Agreement attached to the Settlement Approval Order.
The compensation paid to Class Members will be paid from the amount of money remaining after deducting the Court-approved legal fees and disbursements (including taxes), as well as the costs of administering and distributing the money to Class Members, from the $8.25 million (the “Net Settlement Fund”). The money to be distributed to the Class Members from the Net Settlement Fund is intended to reimburse them for some of their cash donations to the charities under the Program.
The settlement will be paid out of the Net Settlement Fund by the Settlement Administrator in two stages following the approval of the Settlement. The first stage payments will be based on the Class Members’ pro rata or proportionate cash donation made to the Athletic Trust Program. First stage payments are scheduled to paid in the summer of 2023.
The second stage of payments will distribute the remaining balance or residue of funds to the Class Members who cashed their cheques in the first stage of payments. Second stage payments are scheduled to paid in 2024.
Class Members entitled to compensation will receive a notice and letter sent from the Settlement Administrator on March 16, 2023, summarizing the information available as to their individual donations to the Program and will have until May 15, 2023 to provide, correct or modify information.
The Settlement Administrator will have 90 days from May 15, 2023, to review any donation information provided by Class Members. Payments will be made following the close of that review period.
Updating Class Member Contact Information
In order that the Notice of Approved Settlement and cheques payable to Class Members are delivered to the correct address, Class Members are requested to confirm or update their contact information by sending an email to the settlement administrator RicePoint Administration at [email protected].
Key Dates
|
Notice of Proposed Settlement |
Passed (December 13, 2022) |
|
Settlement Approval Hearing |
Passed (January 20, 2023) |
|
Release of Settlement Approval Decision |
February 14, 2023 |
|
Notice of Approved Settlement Issuance |
March 16, 2023 |
|
Response Period |
May 15, 2023 |
|
First Stage Payment Notification Letters |
September 19, 2023 |
PLEASE DO NOT CONTACT THE COURTS WITH INQUIRIES ABOUT THE CLASS ACTIONS OR THE SETTLEMENT. All inquiries should be directed to Class Counsel or the Administrator.
This website provides a summary of the Settlement Approval Order. Where there is any conflict between the language of this website and the language of the Settlement Approval Order the language of the Settlement Approval Order will govern.