TORONTO, June 20, 2003 (PRIMEZONE) -- The Class Proceedings Fund has agreed to fund a class action on behalf of the members of the Participating Co-operatives of Ontario Trusteed Pension Plan. The class proceeding involves allegations regarding investment losses suffered by about 2,300 current and former employees of 26 Ontario farm co-operatives.
Established by the Law Society Amendment Act (Class Proceedings Fund), 1992, S.O. 1992, c.7, the Class Proceedings Fund advances funds to pay some or all of a plaintiff's disbursements. If a funded case is unsuccessful, the Fund will also indemnify a plaintiff who is ordered to pay a defendant's costs. The purpose of the Fund is to increase access to justice.
Plaintiffs apply to the Fund's Class Proceedings Committee, comprised of five lawyers, who screen the case, review the relevant documents, and meet and discuss the matter with plaintiffs' counsel before agreeing to provide funding.
The proceeding, commenced on February 19, 2003, names as defendants the pension plan board of trustees, its former investment manager and consultant, the actuaries and the custodian of the pension fund. The action alleges that the defendants were negligent and breached their fiduciary duties owed to plan members.
According to the Financial Services Commission of Ontario only $64 million was available last September to meet $120 million in pension liabilities under the Plan. Among the larger groups affected in this proceeding are the retirees and former employees of the former United Co-operatives of Ontario.
Koskie Minsky represents the plaintiffs. Koskie Minsky is widely acknowledged as one of Canada's pre-eminent firms in the areas of civil litigation, trade union labour law and pension and benefits.