TORONTO, March 21, 2003 (PRIMEZONE) -- A class action has been filed today against the Business Development Bank of Canada (the "BDC"). The plaintiffs are pensioners of the Pension Plan for Employees of the BDC and will be requesting court certification to act on behalf of a class that includes all pensioners and deferred vested members of the Plan as well as their beneficiaries. The Action alleges breach of fiduciary duty, unjust enrichment, and breach of contract in regards to the BDC's treatment and use of part of the surplus assets in the Pension Plan for Employees of the BDC. An actuarial report prepared for the Pension Plan as at December 31, 2001 indicates that the Plan had well over $100 million in surplus assets.
The Notice of Action filed by the Plaintiffs alleges that the BDC breached its fiduciary duties as Plan administrator and unjustly enriched itself by implementing amendments to the Plan which had the effect of improperly diverting trust fund assets held for the sole benefit of the class members. The action alleges that the BDC diverted pension assets that should have been used for the benefit of the class to reduce its own contributions to the Plan as well as to provide a contribution holiday for its current employees. The Notice of Action claims that the BDC has failed to protect the interests and rights of the retirees and has put its own corporate interests ahead of those of the retirees.
The Notice of Action also alleges that the BDC breached its employment agreements with the plaintiffs and the class in that it had agreed that all contributions made to the Plan by and on behalf of the class members would be used solely for the benefit of the class members. However, according to the Notice of Action, the BDC implemented Plan amendments that allegedly diverted the contributions made by or on behalf of the class members to uses that benefited the BDC and its current employees rather than the class members.
Michael Mazzuca and Kirk Baert of the Toronto law firm Koskie Minsky are representing the class.
Koskie Minsky is a leading employee benefits firm and is experienced in handling complex class actions involving pension and employee benefits matters. Lexpert recognizes lawyers at the firm as leading practitioners in the class action and pension fields and related areas of law.