Court Provides Guidance On Class Counsel Fees And The Class Proceedings Fund Levy Calculation

On a re-hearing of the issue of class counsel fee determination, the Ontario Superior Court recently considered the appropriate approach for determining class counsel fees and the calculation of the Class Proceedings Fund (the Fund) levy in Welsh v. R.

The underlying litigation related to the previous Court approval of the parties' $15 million settlement agreement in relation to sexual and physical assault claims for damages sustained by students at three provincial schools for the deaf. The Court at first instance, however reluctantly, approved what was viewed as a "poor" settlement, representing a fraction of the claimed $325 million damages sought in the pleadings and where about 90 per cent of the class members received no compensation. The approval of class counsel fees of $3.75 million by the Court at first instance was then made conditional on a donation of $1.5 million to a charity for the deaf, lessening the fees paid to counsel. On appeal, the donation order