Case Note: On Benefit Reduction Class Actions

In O'Neill v General Motors of Canada Ltd., 2013 ONSC 4654, a motion for partial summary judgment was granted in a class action by retired employees of GM after their health care and life insurance benefits were substantially reduced to offset GM's financial difficulties. Just prior to the scheduled trial of an appeal and cross-appeal in June 2014, the parties settled the matter in its entirety. The proposed settlement required GM to establish a $9 million fund for past life and health claims and to restore most of the class members' health and life insurance benefits effective September 1, 2014. It secured compensation for all 3200 class members, despite the fact that the claims of some members were less certain that others. On August 27, 2014, the settlement was approved by an Ontario court in O'Neill v General Motors of Canada, 2014 ONSC 4742 on the basis that it provided a real and immediate benefit to class members in terms of the compensation provided and the