Hudson’s Bay Company/The Bay
This class proceeding concerns the improper use of surplus funds in a pension plan to pay for administrative expenses and employer contributions to a related defined benefit plan.
The claim alleges that the Hudson’s Bay Company Limited (“HBC”), Royal Trust Corporation and Investors Group Trust Co. Ltd. unlawfully diverted surplus assets of the Simpsons Limited Supplementary Pension Plan (the “Plan) to fund the separate defined contribution plan for Zellers and Kmart employees. It is alleged that HBC, Royal Trust Corporation and Investors Group Trust Co. Ltd. committed breaches of trust, breaches of fiduciary duties and undertook an unlawful diversion of surplus assets in relation to the administration of the Plan.
The action was certified as a class proceeding by the Ontario Superior Court by order dated April 28, 2005. The class of persons this action represents is detailed in the Certification Order, below. Generally, the class is comprised of all members, retirees and beneficiaries of the Plan as of the 1st of January, 1988, now known as the Dumai Pension Plan.
-
Latest Developments
-
May 18, 2012
We are pleased to advise that the Supreme Court of Canada has dismissed HBC’s application for leave to appeal the decision of the Court of Appeal for Ontario.
-
April 5, 2012
Leave to appeal the decision of the Court of Appeal to the Supreme Court of Canada has been sought by the HBC. We are currently awaiting a decision on this leave application from the Supreme Court of Canada, and will provide an update when the outcome of the application becomes available.
-
October 11, 2011
We are pleased to advise that HBC’s cross-appeal of the trial decision of the Honourable Mr. Justice Wilton-siegel has been dismissed by the Court of Appeal for Ontario. To view a copy of the decision of the Court, please consult the “Documents” tab below.
-
July 25, 2011
HBC’s cross-appeal of the trial decision of the Honourable Mr. Justice Wilton-Siegel proceeded before the Court of Appeal on March 31, 2011. We will advise Class members of the outcome of the cross-appeal when the decision is released by the Court of Appeal.
-
January 17, 2011
HBC’s cross-appeal of the trial decision of the Honourable Mr. Justice Wilton-Siegel will proceed before the Court of Appeal on March 31, 2011. We will advise Class members of the outcome of the cross-appeal when it is known.
-
July 20, 2010
As was described in the Notice to the Class (April 30, 2009), this settlement is generally comprised of three benefits to members of the Class:
a) A one time percentage increase in pension payments to Class members in receiving a retirement pension as at December 31, 2008;
b) A cash payment in the amount of $500 to Class members who were active or deferred vested members of the pension plan as at December 31, 2008, as well as a cash payment to certain estates of Class members; and,
c) A pro rata cash distribution to Plan members.
Payments in respect of the amounts listed in b) and c) above have been made in a single cheque.
We have been advised by counsel to HBC that all settlement payments have now been mailed. If you have not received your settlement payments, or if you have any questions regarding the settlement, please contact us as soon as possible.
-
February 18, 2010
The implementation of the settlement is now well underway. In late November of 2009, the Canada Revenue Agency provided HBC with the required consent to register various amendments to the pension plan necessary to implement the settlement.
Effective January 1, 2009, HBC implemented an increase in the monthly pension benefit for members of the class action who were receiving a pension from the Dumai Plan as at December 31, 2008.
We have been advised that class members who were active employees as of December 31, 2008, will soon be receiving their distribution stipulated by the settlement agreement.
Further details concerning the implementation of the settlement will be provided as they occur.
-
October 5, 2009
On October 2, 2009, the Financial Services Commission of Ontario issued a Notice of Registration of Amendment, approving an amendment to the Hudson’s Bay Company Pension Plan to permit the implementation of the Court approved settlement in this matter
-
September 21, 2009
On September 16, 2009, Justice Cullity signed a Judgment approving the Settlement Agreement, which is subject to HBC obtaining certain regulatory consents and approvals. To view a copy of the Judgment, please click here.
The deadline for filing claims on behalf of class members who died between January 1, 1994 and August 6, 2002 has been extended to November 30, 2009. To view a copy of the Notice of Class Action Settlement and Estates Claim Procedure please click here. Veuillez cliquer ici pour consulter la version PDF de l’Avis de règlement du recours collectif et de procédure de réclamations des représentants légaux des successions.
-
August 20, 2009
On August 20, 2009, Justice Cullity approved the proposed settlement of this action, subject to HBC obtaining regulatory consents or approvals from the pension regulator under the Pension Benefits Act. Justice Cullity also approved class counsel’s fees and disbursements, payment of the Class Proceedings Fund levy and reimbursement of disbursements funded by the Law Foundation. To view Justice Cullity’s reason for decision, please click here.
Important note: Legal representatives of the estates of eligible class members must ensure they request and submit a claims form to HBC’s Pension Department by no later than September 1, 2009 or the estates’ claim to any proceeds under the settlement will be extinguished. For more information, review the Notice of Hearing to Approve Class Action Settlement and Class Counsel Fees by clicking here..
-
June 29, 2009
The settlement and fee approval motions in this matter were heard before the Honourable Mr. Justice Cullity of the Ontario Superior Court on June 25, 2009. The Honourable Mr. Justice Cullity reserved his decision on the motions. Members will be advised of the outcome of the motions when they become available through an update to this website.
-
April 30, 2009
The Honourable Mr. Justice Cullity issued an Order, approving a Notice to Class members of the hearing of a motion for approval of the tentative settlement in this matter, scheduled for June 25, 2009.
-
February 25, 2009
Prior to the hearing of the parties’ appeals in December 2008, the parties reached a settlement in principle, which is subject to court approval. As a result, the Plaintiffs withdrew their appeal to the Court of Appeal for Ontario of the trial decision and HBC agreed to adjourn their cross-appeal. The parties are currently drafting the tentative settlement and intend to seek Court approval of a notice to class members. Assuming the Court approves the proposed notice in March or April 2009, the parties will then notify class members of the details of the proposed settlement and pending motion for Court approval of the settlement and proposed class counsel fees.
-
December 1, 2008
Pursuant to Notices of Appeal and Cross-Appeal filed by the parties, an appeal and cross-appeal of the decision of the Honourable Mr. Justice Wilton-Seigel was to be heard by the Ontario Court of Appeal in December of 2008.
-
July 31, 2007
The Honourable Mr. Justice Wilton-Siegel renders his reasons for decision in which he dismissed the Plaintiff’s action. While the Honourable Mr. Justice Wilton-Siegel found that the fund assets were held exclusively for the benefit of plan members, he held that “Hudson Bay Co. was entitled to apply the assets of the (pension) trust fund to meet its funding obligations in respect of both the Zellers. . . and the Kmart employees . . . .” The Court found that class members would, however, have a claim to surplus if the Plan had to be wound up.
-
January 15, 2007
The trial of this action was heard by the Honourable Mr. Justice Wilton-Seigel.
-
April 28, 2005
This action was certified as a class proceeding by Order dated April 28, 2005.
-
May 18, 2012
-
News Releases and Reports
- September 21, 2009 Notice of Class Action Settlement and Estates Claim Procedure
- September 21, 2009 Avis de règlement du recours collectif et de procédure de réclamations des représentants légaux des successions
- April 30, 2009 Notice of Settlement Approval Hearing (French)
- April 30, 2009 Notice of Settlement Approval Hearing (English)
-
Documents
- September 21, 2011 Decision dated September 22, 2011
- September 15, 2009 Judgment of Justice Cullity Dated September 16, 2009
- August 19, 2009 Reasons for Decision of Justice Cullity
- April 29, 2009 Notice Order, dated April 30, 2009
- July 30, 2007 Reasons for Judgment dated July 31, 2007
- April 27, 2005 Certification Order dated April 28, 2005
- April 26, 2005 Amended Amended Amended Statement of Claim dated April 27, 2005
- March 23, 2003 Statement of Defence of Hudson's Bay Company
-
FAQS
What is a class action?
A class action is a lawsuit which provides a method for a large group of people with common claims to join together to advance one large claim. Class actions are a more efficient and cost-effective way for groups of people with common claims to gain access to the legal system and seek justice.What does certification mean?
In order for an action to proceed as a class action, the court must determine whether it is appropriate for the case to be treated as a class action. Some of the factors the courts consider are the extent to which the claims of the class members are common, and whether a class action is preferable to other methods (such as individual actions) of advancing the issues. The decision as to whether a class action should be certified takes place at a certification hearing and is decided by a judge. If certified, a representative plaintiff will advance the action on behalf of all of the class members.How do I know if I am a Class Member?
The certification order will always contain a description of who is a class member. We post the certification orders in our actions so that you can review them. You do not need to “sign up” to become involved in a class action. If you are included in the class description, you are automatically a class member who will be affected by the outcome of the class action unless you decide to “opt out”.
Are Class Members notified of the certification of the class proceeding?
Yes. After the claim has been certified, the court will authorize notice to be given to the members of the class.Can I opt out of a class action and pursue independent legal action?
Yes. When a class action is certified, class members are always given an opportunity to opt out of the action. A deadline is imposed for opting out. If you do not opt out by the given deadline, class members will be bound by the outcome of the class action, whether it is successful or unsuccessful. If you opt out, you will not receive any benefit if the action is successful.
Will there be any cost to class members for legal fees?
Typically, class actions are handled on a contingency fee basis, which means that the class action lawyers will be paid only if the class action is successful at trial or settled. In that case, class counsel fees may be paid by the defendants or out of the settlement or judgment proceeds as approved by the court. In addition, the plaintiff may seek funding assistance from the Class Proceeding Fund which, if funding is granted, may provide funding for disbursements.
I still have questions…
Please feel to contact us by using the contact information on this site.
