2006 Annual Report
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I. Year 6 (for the period ending March 31, 2006) Report of the Joint Committee
Overview And Summary
-
The 1986-1990 Hepatitis C Fund (the “Trust Fund”) completed its sixth full year of operation on March 31, 2006 (“Year 6”).
-
In Year 6, the Centre received 908 new claims as follows:
| 162 |
- |
Primarily Infected Transfused |
| 10 |
- |
Primarily Infected Hemophiliac |
| 10 |
- |
Secondarily Infected |
| 86 |
- |
HCV Personal Representative claims where deceased died on or after January 1, 1999 |
| 17 |
- |
Personal Representative Claims where
deceased died before January 1, 1999 |
| 623 |
- |
Family member/dependant claims |
The Centre paid out approximately $51 million to all claimants (prior and new) in Year 6. Since its inception, the Centre has paid out a total of approximately $480 million in benefits in response to approximately 10,693 claims. There are a further 763 claims which are in process awaiting the submission of further information by the claimants or the completion of a traceback search, or both.
- The Investment Summary of Eckler Partners Ltd. at Schedule "H" indicates a value of $941 million held by the Trustee as at March 31, 2006. The total unpaid liability of the provincial governments is approximately $221 million for a total available to satisfy the claims of class members of approximately $1.16 billion.
- In Year 6, pursuant to Court Order, $368,976.96 comprised of interest earned on the Trust Fund account, was transferred by Royal Trust to TD Asset Management for investment by TD Asset Management.
- The chart on page 5 summarizes the budget versus actual expenses for the service providers in the past year ended March 31, 2006:
Service Provider |
Budget to March 31 2006 |
Actual |
Variance from budget |
Note |
Auditor [Audit Only]
Deloitte & Touche |
63,000 |
63,000 |
|
|
Auditor [Financial Statements]
Deloitte & Touche |
10,000 |
10,000 |
|
|
Auditor [Administrator Cost Review]
Deloitte & Touche |
9,000 |
9,000 |
|
|
Auditor [Special Projects]
Deloitte & Touche |
15,000 |
6,950 |
(8,050) |
See paragraph 18 below for a description of the Special Projects performed. |
Trustee
Royal Trust/RBC Dexia Investor Services Trust 1 |
115,000 |
93,700 |
(21,300) |
No monies beyond actual expenses have been paid. |
Investment Manager
TD Asset Management Inc. |
200,000 |
188,317.20 |
(11,682.80) |
No monies beyond actual expenses have been paid. |
Actuarial Services & Investment Review
Eckler Partners Ltd. |
55,000 |
119,553 2 |
64,553 |
See footnote 2 below and paragraphs 41 to 43 below for a detailed description of the over budget of Eckler Partners. |
Administrator [HepC & EAP2 ] 3
Crawford |
2,140,937 |
2,306,871 |
165,934 |
See paragraph 59 below for a description of the over budget of the Administrator. |
| Canadian Blood Services (CBS) |
41,976 |
51,334.90 |
9,358.90 |
See paragraph 52 for a description of the over budget of CBS. |
| PriceWaterhouse Coopers |
20,000 |
20,710.00 |
710 |
See paragraphs 46 and 47 for a description of the over budget. |
| LECG |
60,000 |
13,945 |
(46,055) |
No monies beyond actual expenses have been paid. |
| Héma-Québec |
16,939 |
37,373.92 |
20,434.92 |
To be applied against previous overpayment and subject to approval of the Superior Court of Québec. See paragraph 56 below. |
1 See paragraph 25 below for information on the removal of Royal Trust as trustee and the appointment of RBC Dexia Investor Services Trust (“RBC Dexia”) as successor trustee.
2 The large over budget of Eckler Partners is due to actuarial services incurred pursuant to Court Order which expenses will be reimbursed to the Trust Fund by the Federal Government. Only $235 of the over budget relates to work performed by Eckler Partners in the normal course, while $64,318 of the over budget is attributable to the Federal Government and will be borne by the Federal Government pursuant to the Court Order.
3 EAP2 is the abbreviation for the HIV Secondarily-Infected Settlement.
- The Joint Committee is recommending that the budgets for the Administrator and Canadian Blood Services (“CBS”) be reduced in Year 7 to reflect a lower volume of applications and claims processing.
- The chart on page 7 summarizes the proposed budgets for service providers in Year 7 4, which will be a short fiscal year of nine months rather than twelve:
Service Provider |
Proposed Budget to December 31, 2006 (excludes GST) |
Proposed Monthly Charges (excludes GST) |
Auditor [audit only]
(Deloitte & Touche) [excluding travel and administration costs] |
64,000 |
up to 7,111.11 |
Auditor [financial statements]
( Deloitte& Touche) [excluding travel and administration costs] |
10,000 |
up to 1,111.11 |
Auditor [administrator cost review and specified procedures]
(Deloitte& Touche)
[excluding travel and administration costs] |
13,500 |
up to 1,500.00 |
Auditor [special projects]
[excluding travel and administration costs] |
5,000 |
Payments will be subject to court order. |
Trustee
(RBC Dexia) |
78,750 |
up to 8,750 |
Investment Manager
(TD Asset Management Inc.) |
150,000 |
up to 16,666.66 |
Actuarial Services & Investment Review
(Eckler Partners Ltd.) |
42,750 |
up to 4,850 |
Administrator [HepC & EAP2]
(Crawford) |
See paragraphs 64 to 66 below regarding the ongoing contract negotiations between Crawford and the Joint Committee. |
up to 178,411.41 |
Canadian Blood Services (CBS) |
31,482 |
up to 3,498 |
| PriceWaterhouseCoopers LLP |
15,000 |
up to 1,666.66 |
| LECG |
45,000 |
Payments will be subject to court order. |
| Héma-Québec |
7,933.04 |
Payments will be subject to court order. |
| Joint Committee [regular fees and disbursements] |
610,000 |
Payments will be subject to court order. |
| Joint Committee [fees and disbursements related to the 2005 sufficiency hearing] |
360,000 |
Payments will be subject to court order. |
4 See paragraphs 13 and 14 below which set out the recommended change in year end effective April 1, 2006 (Year 7)
- Fund Counsel incurred fees in the 12 months ending March 31, 2006 of approximately $538,998.00 (exclusive of taxes and disbursements). It is anticipated that this amount will be lower in Year 7 as the volume of appeals will be reduced. No amounts are paid to Fund Counsel without a specific court order.
- Joint Committee fees incurred in the 12 months ending March 31, 2006 (exclusive of taxes and disbursements) were approximately $1,077,401.01. This amount includes fees for general Joint Committee work, fees for sufficiency-related Joint Committee work, and fees related to work performed by the Joint Committee pursuant to Court Orders dated August 17, 2005 and December 28, 2005 and at the request of the Federal Government, which fees will be reimbursed to the Trust Fund by the Federal Government pursuant to the same Court Orders. A detailed breakdown of the global Joint Committee fees for Year 6 into the three aforementioned categories is provided at paragraph 73 below. No amounts are paid to the Joint Committee without a specific court order.
General
- This is the sixth annual report of the Joint Committee to the Supreme Court of British Columbia, the Superior Court of Justice for Ontario and the Superior Court of Quebec (collectively the “Courts”) on the status of the Trust Fund and the administration of the Hemophiliac HCV Plan and Transfused HCV Plan (collectively the “Plans”).
- The Joint Committee is comprised of Harvey Strosberg, J.J. Camp, Bonnie Tough and Michel Savonitto. Harvey Strosberg was appointed by Order of the Superior Court of Justice for Ontario. J.J. Camp was appointed by Order of the Supreme Court of British Columbia and Michel Savonitto by Order of the Superior Court of Quebec. Bonnie Tough was appointed by Order of each of the Superior Court of Justice for Ontario, the Supreme Court of British Columbia and the Superior Court of Quebec. This Report is prepared by and on behalf of all members of the Joint Committee.
- In conjunction with the advice of Deloitte & Touche, the Joint Committee had, for audit and reporting purposes, established March 31 as the year-end of the Trust Fund and the administration of the Plans. The Year 6 Audit Report, therefore, is based upon a twelve-month cycle commencing April 1, 2005 and ending March 31, 2006.
Change of the Fiscal Year
- In Year 6, the Joint Committee recommended and Deloitte & Touche agreed that the fiscal year end of the Trust Fund be changed to December 31 in the year beginning April 1, 2006 (Year 7) to coincide with the year end used for actuarial sufficiency analysis.
- The Joint Committee will be seeking a court order declaring Year 6 the last fiscal year of the Trust Fund to end on March 31, and declaring Year 7, which began on April 1, 2006, to be the first fiscal year of the Trust Fund to end on December 31 and directing all future fiscal years of the Trust Fund to end on December 31.
- The budget and expenses of each of the service providers are discussed in detail below, and all budgets for Year 7 are proposed on the basis of a short fiscal year of nine months rather than twelve.
- The Joint Committee recommends that the budgets of service providers include payment through to March 1, 2007 in order to provide for a reasonable period of time from December 31, 2006 until March 1, 2007 for the audit and accounting review of the expenses for the preparation of a report to the Courts in March 2007.
Deloitte & Touche
- Deloitte & Touche was appointed auditor of the Trust Fund pursuant to the Orders of the Courts. The Joint Committee recommends the continuation of this appointment.
- In addition to the audit of the Trust Fund, the Joint Committee requested the following services from Deloitte & Touche:
-
A cost review (but not an audit) of the expenses charged by the Administrator to the Trust Fund. Attached hereto and marked
as Schedule "B" is
a copy of the Cost Review of the Administrator.
-
The preparation of the annual financial statements. Attached hereto and marked as Schedule "A" is
a copy of the financial statements prepared and audited by Deloitte & Touche.
- An audit of the top 10 out-of-pocket expenses paid by the Administrator and the performance of additional procedures on the Administrator’s expenses.
- The chart set out below summarizes the work done by Deloitte & Touche in Year 6 in comparison to the Year 6 budget and the proposed budget for Year 7.
Work |
Year 6 Budget $ |
Year 6 Actual $ |
Year 7 Budget $ |
Audit |
63,000
+ administration and travel costs |
63,000
+ administration and travel costs |
64,000
+ administration and travel costs |
Financial Statements |
10,000
+ administration and travel costs |
10,000
+ administration and travel costs |
10,000
+ administration and travel costs |
Administrator Cost Review |
9,000
+ administration and travel costs |
9,000
+ administration and travel costs |
13,500
+ administration and travel costs |
Special Projects |
up to 15,000
+ administration and travel costs |
6,950
+ administration and travel costs |
5,000
+ administration and travel costs |
- The Deloitte & Touche budget numbers are exclusive of travel costs, administration charges and GST. Variances from budget in the final invoices are a result of the addition of travel and administration charges. The costs incurred for the Audit, the Financial Statement, the Administrator Cost Review and Special Projects are $88,950 exclusive of an administrative charge of $5,337 and travel expenses of $1,930, for a total of $96,217.
- A copy of the invoice for the work of Deloitte & Touche in Year 6 is attached as Schedule C. Deloitte & Touche received payment throughout the year of $68,333.30. The Joint Committee recommends approval of Deloitte & Touche’s outstanding invoice in the amount of $27,883.70, plus taxes, for a total of $29,835.56.
- The audit cost is the same for a short fiscal year as it is for a regular fiscal year of 12 months. Deloitte & Touche proposes and the Joint Committee recommends that the budget for Deloitte & Touche for the year April 1, 2006 to December 31, 2006 be $64,000 (Audit), $10,000 (Financial Statements), $13,500 (Administrator Cost Review) and $5,000 (Special Projects), all exclusive of travel and administration costs and taxes.
- The Deloitte & Touche budget will be paid in monthly instalments of $7,111.11 (Audit), $1,111.11 (Financial Statements) and $1,500 (Administrative Cost Review). Payments for any special projects will be subject to further court order.
Royal Trust/RBC Dexia
- Royal Trust was appointed Trustee of the Trust Fund pursuant to Orders of the Courts.
- In Year 6, the Courts removed Royal Trust as Trustee of the Trust Fund and appointed RBC Dexia as successor Trustee of the Trust Fund on the same terms and conditions as those under which Royal Trust was originally appointed. The Joint Committee recommends the continuation of RBC Dexia’s appointment.
- Attached as Schedule D is a brief description from RBC Dexia of its Custodial Trustee activities in the year ended March 31, 2006.
- The Courts approved an annual budget for Royal Trust of $115,000.
- The actual charge to the Trust Fund by Royal Trust/RBC Dexia for the year ended March 31, 2006 was $93,700. No payments have been made to Royal Trust/RBC Dexia beyond those expenses actually incurred.
- RBC Dexia proposes and the Joint Committee recommends that RBC Dexia’s budget for the year April 1, 2006 to December 31, 2006 be 9/12ths of $105,000, namely $78,750. RBC Dexia will charge monthly an amount not to exceed $8,750.
TD Asset Management Inc.
-
TD Asset Management Inc. (“TD Asset Management”) was appointed Investment Manager of the Trust Fund pursuant
to Orders of the Courts. The Joint Committee recommends the continuation of that appointment. Attached as Schedule "E" is
confirmation that TD Asset Management has complied with the court approved Investment Guidelines.
- The Courts approved an annual budget for TD Asset management of $200,000 for the year ended March 31, 2006.
- Total fees charged by TD Asset Management for Year 6 were $188,317.20. No payments have been made to TD Asset Management beyond those expenses actually incurred. Attached as Schedule "F" is the TD Asset Management Report setting out the actual charges for the year ended March 31, 2006 by quarter.
- TD Asset Management proposes and the Joint Committee recommends that its budget for the year April 1, 2006 to December 31, 2006 be $150,000 to reflect the short Year 7. TD Asset Management will charge monthly, an amount not to exceed $16,666.66.
Eckler Partners Limited
- Eckler Partners Limited (“Eckler Partners”) was retained by Class Counsel and subsequently the Joint Committee to provide actuarial advice in respect of the Trust Fund.
- Eckler Partners also provides advice to the Joint Committee in respect of investments on an as needed basis. The Joint Committee is considering hiring an Investment Consultant for the Trust Fund on a full-time basis in Year 7. The Joint Committee will seek the approval of the Courts on the appointment of any Investment Consultant to be retained.
- Eckler Partners has been and continues to be engaged in the sufficiency review required by s. 10.01 of the Settlement Agreement, which was to take place in 2005. The actuarial work related to the 2005 sufficiency review was commenced in Year 5 and continued in Year 6. The 2005 sufficiency review is to take place in the current year, Year 7, and Eckler Partners will continue to provide its services in respect of the sufficiency review during this year. The Courts approved a budget of $420,000 for actuarial work related to the 2005 sufficiency review which was commenced in Year 5 and continues into the present year, Year 7. The Joint Committee’s Annual Report for Year 7, to be delivered to the Courts in March 2007, will provide details of the actual expenses incurred by Eckler Partners for actuarial work related to the 2005 sufficiency review as compared against the court approved budget of $420,000.
- In Year 6, pursuant to the Order of Justice Winkler dated December 28, 2005, Eckler Partners also incurred expenses for work performed at the behest of the Federal Government which expenses will be reimbursed to the Trust Fund by the Federal Government pursuant to the same Court Order. This work involved preparation for and participation in meetings attended by a member of the Joint Committee, Federal Government counsel and actuaries retained by the Federal Government. This work related to the Federal Government’s preparation of its own independent actuarial report in response to the report prepared for the Trust Fund by Eckler Partners.
- Attached as Schedule G is the Report of Eckler Partners regarding their activities during Year 6.
- Attached as Schedule H is an Investment Summary provided by Eckler Partners.
- The Courts approved an annual budget for Eckler Partners’ actuarial and investment review services of $55,000 to be paid in two payments of $5,500 and ten monthly payments of $4,400.
- Eckler Partners incurred $119,553 in charges for the period from April 1, 2005 to March 31, 2006. Eckler Partners was paid $55,000. For Year 6, there is an outstanding balance owing to Eckler Partners of $64,553. Attached as Schedule I is the Accounting Summary from Eckler Partners.
- Of the $64,553 owing to Eckler Partners for Year 6, $64,318 relates to work performed by Eckler Partners pursuant to Court Order at the request of the Federal Government, which will be reimbursed to the Trust Fund by the Federal Government pursuant to Court Order. Only $235 of the excess relates to investment and review services provided to the Trust Fund by Eckler Partners for Year 6. The Accounting Summary from Eckler Partners at Schedule I includes a breakdown of the fees of Eckler Partners into services provided pursuant to Court Order at the expense of the Federal Government, and actuarial and investment review services provided to the Trust Fund.
- The Joint Committee will seek an order for reimbursement to the Trust Fund of the abovementioned fees, related disbursements and applicable taxes by the Federal Government.
- Eckler Partners has proposed and the Joint Committee recommends that the total budget for both actuarial services and investment review services be $42,750 for the year ending December 31, 2006, to be paid in two payments of $4,400 (as previously ordered by the Courts to be paid in April and May 2006) and seven monthly instalments of $4,850. Attached as Schedule J is the proposed budget for Year 7.
PriceWaterhouseCoopers LLP
- PriceWaterhouseCoopers LLP provides annual updates for tax calculations on software used to calculate income loss, software maintenance for the software used to calculate loss of income claims and separate software used to calculate and track loss of income payment caps and holdbacks, and advice, assistance and training to the Administrator of the Trust Fund with respect to both types of software.
- The total budget approved for PriceWaterhouseCoopers LLP in Year 6 by Court Order was $20,000, exclusive of GST.
- Actual billings by PriceWaterhouseCoopers LLP for services between April 1, 2005 and March 31, 2006, were $20,710 inclusive of disbursements, for an over budget of $710. In Year 6, PriceWaterhouseCoopers LLP received payments totalling $22,159.70 including taxes. Part of this amount was paid by Royal Trust and part was paid directly by counsel as a disbursement. The Joint Committee recommends approval of these payments.
- The Joint Committee recommends that the budget of PriceWaterhouseCoopers LLP for the year April 1, 2006 to December 31, 2006 be $15,000, to be paid in monthly instalments of $1,250.
LECG
- LECG was retained initially by the Joint Committee and subsequently by the Administrator to provide expert accounting services in respect of a number of complex self-employment loss of income claims and appeals. The Joint Committee budgeted $60,000 for the cost of these services in its Year 5 Annual Report, and stated it would seek court approval of these expenses at the end of fiscal Year 6.
- Actual billings by LECG for services between April 1, 2005 and March 31, 2006 were $13,945 and have been paid by Crawford. The Joint Committee recommends approval of these payments in the total amount of $13,945.
- The need for LECG’s services will continue in Year 7. The Joint Committee recommends a budget of $45,000 for LECG for the short Year 7. All amounts paid or payable to LECG in Year 7 will be subject to approval by the Courts as in Year 6.
Canadian Blood Services
-
The total budget approved for CBS in Year 6 was $41,976 exclusive of taxes. Actual expenses incurred by CBS in Year 6 were $51,334.90, which was $9,358.90 over budget. At the beginning of Year 6, on April 1, 2005, CBS had a credit balance of $32,413.33, and in Year 6, CBS received payments from Royal Trust/RBC Dexia in the amount of $9,562.67, exclusive of GST, for a total of $41,976. The Joint Committee recommends payment of CBS’ over budget of $9,358.90. The CBS actual versus budget reconciliation is attached as Schedule K.
- The efficient and effective conduct of tracebacks is a crucial component of the administration of the Plans. However, in the last two years, the demand for and costs of such tracebacks has been reduced significantly. The Joint Committee anticipates that this trend will continue.
- Attached as Schedule L is a copy of the proposed budget for CBS for the period April 1, 2006 to December 31, 2006. The budgeted amount is $31,482 to be paid in monthly instalments not exceeding $3,498 plus GST.
- The CBS budget again includes a cost for the continued storage of frozen blood samples obtained in the period from 1986 through 1992. In Year 6, the Joint Committee consulted an expert in respect of the reliability of these samples, and also consulted the CBS about its view on the reliability of the samples. Although there is great difficulty in obtaining reliable data from these samples, the Joint Committee recommends that frozen samples continue to be stored. The Joint Committee will raise with the Federal, Provincial and Territorial Governments whether those governments have any interest in preserving the samples in respect of the pre-1986/post-1990 claims.
Hema-Québec
- The total budget approved for Héma-Québec for the year ended March 31, 2006 was $16,939. Actual expenses incurred by Héma-Québec in Year 6 were $37,373.92 inclusive of taxes. At the beginning of Year 6, on April 1, 2005, Héma-Québec had a credit balance of $58,138.11. After deducting the actual expenses of $37,373.92, Héma-Québec continues to have a credit balance in the amount of $20,764.19 as at the end of Year 6, March 31, 2006. The proposed budget for Héma-Québec in Year 7 is $7,933.04. A court order will be sought in Quebec to deal with the Héma-Québec budget and the use and/or refund of any overpayments.
Crawford
-
Crawford Adjusters Canada Incorporated/Expertises Crawford Canada Incorporée and The Garden City Group Inc. (“Crawford”) was appointed by the Courts as Administrator of the Plans for a 5-year term ending March 2005. In June 2004, the Courts extended Crawford’s appointment as Administrator to March 31, 2006. In September 2005, the Courts again extended Crawford’s appointment as Administrator to March 31, 2007.
- The Courts approved a budget for Crawford for Year 6, which provided for an annual payment to Crawford of $2,140,937 (HepC and EAP2) to be paid in monthly instalments of $178,411.41 exclusive of GST.
- Deloitte & Touche conducted an annual cost review of the expenses of Crawford. In the year ended March 31, 2006, the total expenses for Crawford were $2,306,871, which was $165,934 over budget. The report on Crawford expenses by Deloitte & Touche is attached as Schedule B.
- Attached as Schedule M is a brief description from Crawford of its activities in Year 6.
- Crawford is using the Centre for a few small class action administrations for which financial credit is being given in the Hepatitis C 1986 -1990 administration.
- In Year 6, pursuant to Court Orders and at the request of the Federal Government, Crawford incurred expenses associated with the production of certain non-identifying administrative data to the Federal Government in relation to the Federal Government’s response to the fund sufficiency study materials submitted by the Joint Committee, and for use by the Federal Government in creating actuarial and medical models to support settlement negotiations with certain plaintiffs who are not class members, namely the pre-1986/post-1990 group. The total expenses incurred by Crawford that are to be reimbursed to the Trust Fund by the Federal Government are $8,669.42 inclusive of disbursements and taxes.
- As part of its motion to file its Annual Report for Year 6, the Joint Committee will seek an order for reimbursement to the Trust Fund of the abovementioned fees, including disbursements and applicable taxes by the Federal Government.
- The Crawford contract for Year 7 is complicated by many factors including the following:
- the pending expiry of the appointment of Crawford (March 2007);
- the short year end for Year 7 (December 31, 2006);
- the decreasing claims volume in the Centre;
- the uncertainty as to the effect, if any, of sufficiency decisions on the work of the Centre; and
- the uncertainty as to whether or not Crawford will be asked to administer any pre-1986/ post-1990 settlement.
- The Joint Committee and Crawford are exploring various options, including a contract for administrative services on a financial basis other than the current cost-plus model.
- Considering the ongoing nature of these contract discussions, the Joint Committee recommends that the monthly payments to Crawford made in Year 6 in the amount of $178,411.41, continue to be made until October 1, 2006, so that the pending negotiations between Crawford and the Joint Committee may be completed. Upon completion of these contract negotiations, the Joint Committee will report to the Courts on the outcome, and recommend the required action to be taken regarding the budget ultimately agreed to, and the reconciliation of payments made to Crawford in Year 7.
- In the Year 5 Annual Report, the Joint Committee stated its intention to provide the Courts with a proposal in the fall of 2005 for the future administration of the Trust Fund together with a mechanism for ensuring that the work will continue to be priced at a competitive level. The Joint Committee has not yet provided its proposal to the Courts due in part to the ongoing nature of the sufficiency hearing, and the possibility that the Federal Government will introduce a compensation package for individuals infected by contaminated blood outside of the class period (i.e. before 1986 and after 1990). The implementation of such a compensation package may have cost-saving implications for the administration of the Trust Fund by way of administrative cost-sharing. The Joint Committee will consider different options and provide the Courts with a proposal for the future administration of the Trust Fund along with a mechanism for ensuring competitive pricing following the sufficiency hearing and the resolution of the details of the settlement with the pre-1986/post-1990 class of claimants.
Fund Counsel
Belinda Bain and John Callaghan were appointed as Fund Counsel in the Ontario Class Actions by Order of the Ontario Court of Justice for Ontario. Catherine Mandeville was appointed Fund Counsel in the Quebec Class Actions by Order of the Quebec Superior Court and Bill Ferguson was appointed Fund Counsel in the B.C. Class Actions by Order of the Supreme Court of British Columbia.
- In the 12-month period ending March 31, 2006, the total Fund Counsel fees were $538,998.00 exclusive of taxes and disbursements. No amounts have been or will be paid to Fund Counsel without prior court approval of the fees and disbursements.
- The Joint Committee and Fund Counsel estimate that the volume of appeal work in Year 7 will be reduced compared to Year 6, while the complexity of appeal work will increase. The anticipated fees for Fund Counsel in Year 7 are ¾ of Year 6 subject to adjustments for the short Year 7.
- Attached as Schedule N is the report of Fund Counsel on their activities and their fees incurred in the 12 months ending March 31, 2006.
Joint Committee
- A summary of the work of the Joint Committee in the past 12 months is set out in Schedule O.
- In Year 6, the total Joint Committee fees were approximately $1,077,401.01, exclusive of taxes and disbursements. The fees include: (i) fees for regular Joint Committee work in the amount of approximately $608,252.46; (ii) fees for sufficiency-related work in the amount of approximately $424,842.55, and; (iii) fees related to work performed by the Joint Committee pursuant to Court Orders and at the request of the Federal Government in the amount of approximately $44,306.00. A summary of fees incurred by the Joint Committee is set out in Schedule P. No amounts have been or will be paid to the Joint Committee without prior court approval of the fees and disbursements.
- The fees of approximately $44,306.00 related to work performed by the Joint Committee pursuant to Court Orders, along with related disbursements and taxes, are to be reimbursed to the Trust Fund by the Federal Government pursuant to Court Orders. As part of its motion to file its Annual Report for Year 6, the Joint Committee will seek an order for reimbursement to the Trust Fund of the abovementioned fees, including disbursements and applicable taxes by the Federal Government.
- The Joint Committee estimates that the fees for the year April 1, 2006 to December 31, 2006 will be lower due to the short Year 7 and the conclusion of fund sufficiency matters. The Joint Committee has prepared a budget proposal for its fees and disbursements for Year 7 which is detailed in the brief summary attached as Schedule O.
Referees and Arbitrators
- In the 12-month period ended March 31, 2006, the total fees of the Arbitrators and Referees were approximately $197,506.35 exclusive of taxes and disbursements.
- A brief summary of the work of the Referees and Arbitrators as well as the fees incurred for the period April 1, 2005 to March 31, 2006 is set out in Schedule Q.
- The Joint Committee estimates that the fees of the Arbitrators and Referees in Year 7 will be similar to those incurred in Year 6 and recommends a budget equal to 9/12ths of that actually incurred in Year 6.
Dated: July 6, 2006
_________________________
J.J. Camp,
Camp Fiorante Matthews
Dated: July 6, 2006
_________________________
Harvey Strosberg,
Sutts Strosberg LLP
Dated: July 6, 2006
_________________________
Michel Savonitto,
Marchand Melançon Forget LLP
Dated: July 6, 2006
_________________________
Bonnie A. Tough,
Tough & Podrebarac LLP
*Proprietary, personal and financially sensitive information has been excluded from the publicly-disclosed copies of this
report.
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