In the recent decision McLean v.
The Class Action
On
On
The Settlement Agreement
The parties entered into a written settlement agreement on
- Without admitting liability,
Cathay Pacific will pay$1,550,000 (the "Settlement Funds"). - Using the Settlement Funds, class counsel will establish a compensation fund to pay provable loss claims submitted by class members.
- Any Settlement Funds remaining after payment of class members' loss claims, class counsel fees, disbursements, taxes, and honorarium to the representative plaintiff McLean shall be donated to the
Law Foundation of British Columbia .
The settlement agreement was contingent on the certification of the action as a class action and court approval of the settlement. Under s. 35 of the
The action was certified as a class action for settlement purposes on
Court Approval of the Settlement Agreement
In
- the likelihood of recovery, or the likelihood of success;
- the amount and nature of discovery evidence;
- settlement terms and conditions;
- recommendations and experience of counsel;
- future expense and likely duration of litigation;
- recommendations of neutral parties, if any;
- number of objectors and nature of objections;
- presence of good faith and absence of collusion;
- degree and nature of communications by counsel and the representative plaintiffs with class members during litigation;
- information conveying to the court the dynamics of, and the positions taken by the parties during the negotiation.
-
The settlement agreement was negotiated at arm's length (the parties were acting independently from one another) with the help of an experienced mediator and experienced counsel.
- Given recent Canadian court decisions dismissing data breach class actions, there was a risk that class members could go through years of litigation only to have their case against
Cathay Pacific dismissed. By contrast, an early out-of-court settlement would allow class members to recoup at least some of their losses. Cathay Pacific's passenger business had depleted approximately 99% over the past year due to the COVID-19 pandemic. Without a voluntary settlement, class members might not be able to enforce any judgment that they might obtain against the air carrier.
Objections to the Settlement
Only five class members raised objections to the settlement agreement.
Three of those objections were to the term of the settlement agreement that leftover Settlement Funds would be donated to the
Concluding that it was fair, reasonable, and in the best interests of the class members,
Footnotes
1 2021 BCSC 1456.
2 2021 BCSC 1456 at para 26.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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