2002 Annual Report

Previous | Table of Contents | Next

Schedule R – Report of Fund Counsel

1. The duties and responsibilities of Fund Counsel are defined by Section 7.01 of the January 1, 1986 - July 1, 1990 Hepatitis C Settlement Agreement. These duties and responsibilities include:
   
   
   1. defending decisions made by the Administrator;
      
      
   2. defending and advancing the interests of the Trust Fund;
      
      
   3. receiving financial statements and actuarial and other reports relating to the financial sufficiency of the Trust Fund from time to time; and
      if deemed necessary or desirable by Fund Counsel, making applications to courts pursuant to Section 10.01 of the Settlement Agreement.
      
      
2. Carolyn Horkins and John Callaghan were appointed as Fund Counsel for the Ontario Class Actions by Order of the Ontario Superior Court of Justice. Mason Poplaw was appointed Fund Counsel for the Quebec Class Actions by Order of the Quebec Superior Court. William Ferguson was appointed Fund Counsel for the British Columbia Class Actions by Order of the British Columbia Supreme Court.
   
   
3. During the fiscal period of April 1, 2001 through to March 31, 2002, Fund Counsel was largely handling appeals instituted by Claimants who had been found ineligible by the Administrator. The appeals are conducted either as References or Arbitrations. Appeals can be conducted in writing or in person. When the appeal is conducted in person, Fund Counsel attends the hearing, which is held where the claimant resides. In most every case, the Fund Counsel prepares written submissions defending the Administrator’s decisions. The submissions are delivered to the Claimant and the Referee/Arbitrator.
   
   
4. If the appeal is conducted by way of Reference, the Referee’s decision must be confirmed by the Court. If confirmation of the Referee’s decision is opposed by the Claimant, the Referee’s decision is reviewed by the Court. During this past year, Fund Counsel has made submissions to the Court on a number of cases where the Referee’s decision has been opposed by the Claimant.
   
   
5. In addition to attending on appeals, the Fund Counsel handled a number of claims where court approval was necessary for payments involving minors or a mentally incompetent adult.
   
   
6. Fund Counsel also receives and reviews financial statements and other reports relating to the financial sufficiency of the Trust Fund. They also attend on other day-to-day issues, which affect the sufficiency of the Trust Fund.
   
   
7. Below is a report of the activities of each Fund Counsel in relation to the appeals conducted:
   
   
   1. Ontario Fund Counsel

      The Ontario Fund Counsel oversees appeals from Claimants in Alberta, Manitoba, Ontario, Saskatchewan, New Brunswick, Newfoundland, Nova Scotia, Prince Edward Island, Yukon Territory, The Northwest Territories and Nunavut.

      During the fiscal year April 1, 2000 through to March 31, 2002, Ontario Fund Counsel handled 79 appeals in the above-noted jurisdictions with the exception of Prince Edward Island and the Territories. Of the 79 appeals, 9 were withdrawn, 17 have been completed and 53 are pending, many of which have already commenced. To date, 47 persons have either conducted or are awaiting in person appeals, many of which have been commenced but are not completed. Sixteen persons have conducted or are awaiting in writing appeals. There are 7 appeals, for which it has yet to be determined whether they will be conducted in person or in writing. There have been 7 cases involving References, which have required judicial confirmation.

      Because Ontario Fund Counsel is involved in appeals from a number of provinces, there is a significant amount of travel involved in conducting the various appeals.

      Ontario Fund Counsel incurred fees of $225,263.50 and disbursements of $21,307.81 exclusive of taxes. With taxes, Ontario Fund Counsel incurred fees of $305,342.70 and disbursements of $30,037.33 (including $20,272.11 for travel, hotel and meals).

   2. Quebec Fund Counsel

      During the fiscal period in question, Quebec Fund Counsel received a total of 21 appeals. Fifteen appeals have been completed to date and written submissions have been produced in each case. There were 5 appeals, which proceeded in writing. There have been 6 decisions rendered by the Referee and 2 by the Arbitrator. Nine decisions are pending. Of the remaining 6 appeals, 4 appeals will be conducted in person and 2 will be conducted in writing.

      Quebec Fund Counsel has incurred fees of $166,171.50 and disbursements of $8,407.86. With taxes, the total amount of fees and disbursements incurred in Quebec is $186,798.29.

   3. British Columbia

      During the fiscal period in question, B.C. Fund Counsel received a total of 21 appeals. Four of these appeals were withdrawn. Thirteen appeals have been completed to date and written submissions have been produced in each case. Of the 13 completed appeals, 3 proceeded by way of an in-person hearing and the remaining 10 proceeded in writing. There have been 5 decisions rendered by the Referee and 5 by the Arbitrator. Three decisions are pending. All of the remaining 4 appeals will proceed by way of in-person hearings.

      B.C. Fund Counsel has incurred fees of $225,670.00 and disbursements of $14,775.28 (including 5,683.43 for travel/transportation). With taxes, the total amount of fees and disbursements incurred in B.C. is $273,194.25.

8. Fund Counsel anticipates that the amount of time spent on appeals will increase in this fiscal year. In addition, many of the current appeals involve complicated issues, which will involve additional expert and witness evidence, which will increase costs over last year. Accordingly, we anticipate fees to increase over last year by approximately 20%.

Top