SUMMARY OF THE JOINT COMMITTEE’S RECOMMENDATIONS TO THE COURTS - 2019 EXCESS
CAPITAL
The Joint Committee’s applications ask the Courts to allocate $193,421,000 of
the 2019 Excess Capital to create four new special distribution benefits for
claimants approved under the Transfused HCV Plan, Hemophiliac HCV Plan, and
the HCV Late Claims Benefit Plan (the “Plans”).
The four recommendations made by the Joint Committee in these applications
seek to further address concerns previously communicated to the Joint
Committee and the Courts. Class members and family members continue to
identify these areas as falling short of compensating for the losses and
damages they have suffered.
While the 2019 Excess Capital is undoubtedly a large amount of money, the
Joint Committee’s recommendations are nonetheless limited by the funds
available and the competing interests of the benefits it is seeking to obtain.
If the Courts grant the relief requested by the Joint Committee, approved
class members and family members who have previously received one or more of
the following benefits under the Plans, or claimants who are subsequently
approved to receive benefits under the Plans, will be entitled to receive
these corresponding 2019 special distribution benefits.
The Joint Committee’s recommendations to the Courts and the value/cost of each
are summarized below:
1. 6.8% of Fixed Payments
The Joint Committee recommends the creation of a 2019 special distribution
benefit equal to 6.8% of the value of the following fixed
payments (shown in 1999 dollars), indexed to the dollar value of the year in
which the benefit is paid out:
-
the $10,000, $20,000, $30,000, $65,000 and/or $100,000 fixed disease level
payments under section 4.01(1)(a),(b),(c),(d),(e) of the Plans and the
corresponding 8.5% special distribution benefit created from the 2013 Excess
Capital;
-
the $50,000 fixed payment for the election made by living co-infected
hemophiliacs under section 4.08(2) of the Hemophiliac HCV Plan or section
4.08(2)(Hemo) of the HCV Late Claims Benefit Plan and the corresponding 8.5%
special distribution benefit created from the 2013 Excess Capital;
-
the $50,000 fixed payment for the election made by estates of infected
persons who died before January 1, 1999 under section 5.01(1) of the Plans
and the corresponding 8.5% special distribution benefit created from the
2013 Excess Capital;
-
the $120,000 fixed payment for the election made by estates and family
members of infected persons who died before January 1, 1999 under section
5.01(2) of the Plans and the corresponding 8.5% special distribution benefit
created from the 2013 Excess Capital; or
-
the $72,000 fixed payment for the election made by estates and family
members of co-infected persons who died before January 1, 1999 under section
5.01(4) of the Hemophiliac HCV Plan or section 5.01(4) (Hemo) of the HCV
Late Claims Benefit Plan and the corresponding 8.5% special distribution
benefit created from the 2013 Excess Capital.
If the recommended allocation for fixed payments is granted:
-
infected class members who received disease level benefits would be entitled
to a special distribution benefit based on their current cumulative disease
level and/or any progression in disease level that may hereafter occur in
the following approximate amount(s) (shown in 2020 dollars):
Disease Level
|
6.8% Allocation per disease level
|
Cumulative Total
(in 2020 dollars)
|
Disease level 1
|
$1,097
|
$1,097
|
Disease level 2
|
$2,195
|
$3,292
|
Disease level 3
|
$3,292
|
$6,584
|
Disease level 5
|
$7,133
|
$13,717
|
Disease level 6
|
$10,974
|
$24,691
|
-
class members who received one of the following fixed payment benefits would
be entitled to a special distribution benefit in the following approximate
amount (shown in 2020 dollars):
Fixed Payment Type
|
6.8%
(in 2020 dollars)
|
$50,000 non-pecuniary general damages option for approved living
co-infected hemophiliac class members
|
$5,487
|
$50,000 death benefit option for approved class members whose
death prior to January 1, 1999 was caused by HCV
|
$5,487
|
$120,000 death benefit option for approved class members whose
death before January 1, 1999 was caused by HCV
|
$13,169
|
$72,000 death benefit option for approved co-infected hemophiliac
class members whose death before January 1, 1999 is not proven to
be caused by HCV
|
$7,901
|
The cost/value of this recommendation is approximately $54,684,000 of the 2019
Excess Capital, before administrative expenses.
2. 50% of Loss of Guidance, Care and Companionship Payments
The Joint Committee recommends the creation of a 2019 special distribution
benefit equal to 50% of the value of the following loss of
guidance, care and companionship payments (shown in 1999 dollars), indexed to
the dollar value of the year in which it is paid out:
- the $25,000 payment to a Spouse under section 6.01(a) of the Plans;
-
the $15,000 payment to a Child under age 21 at the date of death of the
infected person under section 6.01(b) of the Plans;
-
the $5,000 payment to a Child age 21 or over at the date of death of the
infected person under section 6.01(c) of the Plans and the $4,600 special
distribution benefit created from the 2013 Excess Capital;
-
the $5,000 payment to a Parent under section 6.01(d) of the Plans and the
$4,600 special distribution benefit created from the 2013 Excess Capital;
- the $5,000 payment to a Sibling under section 6.01(e) of the Plans;
-
the $500 payment to a Grandparent under section 6.01(f) of the Plans; or
- the $500 payment to a Grandchild under section 6.01(g) of the Plans.
If the recommended allocation for loss of guidance, care and companionship is
granted, family members who received a loss of guidance, care and
companionship benefit would be entitled to a special distribution benefit in
the following approximate amount (shown in 2020 dollars):
Family Member
|
50% allocation
(in 2020 dollars)
|
Spouse
|
$18,593
|
Child < 21
|
$11,155
|
Child 21 and >
|
$7,139
|
Parent
|
$7,139
|
Sibling
|
$3,718
|
Grandparent/grandchild
|
$372
|
The cost/value of this recommendation is approximately $71,812,000 of the 2019
Excess Capital, before administrative expenses.
Increase Lost or Diminished Pension Benefits by 4% of Loss of Income
The Joint Committee recommends the creation of a special distribution benefit
equal to 4% of the combined value of the annual loss of
income payment and the corresponding 10% special distribution benefit created
from the 2013 Excess Capital, capped at $200,000 per annum before 2014 and
$200,000 per annum indexed thereafter to compensate for lost or diminished
pension benefits.
If the recommended allocation to increase lost or diminished pension benefits
is granted, based on this formula, for example:
-
an infected class member receiving an annual income loss benefit of $50,000
would be entitled to a special distribution benefit of $2,000 for each year
of their income loss entitlement; while
-
an infected class member with an annual income loss benefit of $200,000 or
more, would be entitled to a special distribution benefit of $8,000 per year
of income loss entitlement.
The cost/value of this recommendation is approximately $6,653,000 of the 2019
Excess Capital, before administrative expenses.
Pay an additional $2/hr for Loss of Services incurred from and after January 1, 2014
The Joint Committee recommends the creation of a special distribution benefit
of $2/hour for each compensable hour of Loss of Services
under sections 4.03 and 6.01(2) of the Plans and the corresponding 2013
special distribution benefit, for the years 2014 and following, indexed to the
dollar value of the year in which it is paid out
If the recommended allocation to pay an additional $2/hour for loss of
services incurred from and after January 1, 2014 is granted, for example, a
class member receiving the maximum 22 hours of loss of services/week in 2020
would be entitled to a special distribution benefit in the approximate amount
of $3,400 for that year in 2020 dollars.
The cost/value of this recommendation is approximately $60,272,000 of the
Excess Capital, before administrative expenses.
INDEXING OF PAYMENTS
In the charts and examples mentioned above, the amount class members or family
members would be entitled to receive under each of the Joint Committee’s
recommendations has been shown in 2020 dollars. If the Courts approve a
recommendation and the amount becomes payable, the payment would be indexed up
to the dollar value for the year in which the payment is made.
FURTHER INFORMATION
Please note that the above is only a summary of what the Joint Committee is
asking the Courts to do: the materials that the Joint Committee has filed in
the Courts must be referred to for full and accurate details.
The materials filed in Québec are found here, the filed Ontario materials are here, and those filed in British Columbia are here.
HOW TO PROVIDE COMMENTS
The Joint Committee welcomes claimants’ input about these applications. You
can tell us what you think by writing to us through the administrator, here.
Comments received will be provided to the Courts in future filings.
NEXT STEPS
Canada and/or the Provinces and Territories may oppose these requests for the
2019 Excess Capital to be allocated for the benefit of the class members and
family members. Additionally, the Federal Government may bring its own
applications asking for the 2019 Excess Capital to be paid out to Canada.
Hearing dates are not yet scheduled. How quickly they can be scheduled will
depend on the positions Canada and the Provinces and Territories take on the
Joint Committee’s application, whether the Federal Government brings its own
applications, and the availability of the three Courts to sit at the joint
hearings.
Because the Courts in Ontario, British Columbia and Quebec jointly supervise
the ongoing Hepatitis C Class Action settlement, all three Courts must hear
the applications and must each reach substantially the same conclusions for
their decisions to become effective.
UPDATES
Please monitor this page for news about progress of the Joint Committee’s
applications, including any dates for court hearings.
|