IN THE MATTER OF DENNIS MANUGE V. HER MAJESTY THE QUEEN
Summary:
The Federal Court approves a negotiated settlement of a class action brought
on behalf of former members of the Canadian Forces.
On May 1, 2012, the Federal Court held that the practice of deducting monthly
Pension
Act
disability benefits from the long-term disability income payable to disabled Canadian
Forces class members was unlawful. The parties negotiated a settlement of the class
action and the value of the proposed financial settlement has been estimated at more than
$887 million. The central component of the proposed settlement is the full recovery by
approximately 7,500 class members or their families of all amounts unlawfully deducted
or which would otherwise have been deducted in the future.
The Court approves the proposed settlement finding that it represents a fair and
reasonable compromise that is in the best interests of the class as a whole. With respect to
the request made by counsel for the class to approve their claim to legal fees, the Court
approves legal fees in an amount equal to 8% of the retroactive refunds payable to class
beneficiaries. This figure is approximately 4% of the total value of the settlement.
A copy of the decision can be obtained via the Web site of the Federal Court: http://casncr-
