604-689-7555 or 1-800-689-2322

Class Action Updates

November 23, 2020

Claims process for settlement funds – make a claim now. If you are a Canadian resident as of May 25, 2016 who, between December 23,…

September 25, 2020

CFM is co-counsel in the recent proposed class action lawsuit filed in Vancouver against Google, its parent company and its subsidiaries, on behalf of Canadian…

August 26, 2020

The British Columbia ODD class action has been certified for settlement purposes as against the TSST Defendants.  


10. What is reliance risk?

Reliance risk has to do with whether a claimant made the decision to convert from the DB to the DC plan because they relied on what Teck Metals/Cominco and Towers told them.

One of the plaintiffs’ main arguments in this case was Teck Metals/Cominco and Towers made some misleading statements in encouraging people to convert to the DC plan. These statements are called “misrepresentations”.

The plaintiffs also argued that if Teck Metals/Cominco and Towers had not made these misrepresentations, fewer people would have converted their pensions. This is called “reliance” – each class member must have relied on the misrepresentations to be entitled to any money for their losses.

The law also requires people to act reasonably. In the context of misrepresentations, it has to be reasonable for a person to have relied on the misrepresentations.

If this lawsuit had gone to trial, each class member would have had to prove that they relied on the misrepresentations. This also means that each class member would have had to prove that (acting reasonably) they would not have converted their pensions if there had been no misrepresentations. This is the reliance risk – the risk that class members would not be able to prove that they relied on the misrepresentations.

Class Counsel concluded that it would have been easier for some class members to prove this than others. For instance, for a class member who was young in 1992, it was reasonable to decide to convert. That is because a young class member is more likely to change careers or employers before retiring, and there are benefits to being in a DC plan if you expect to change careers or employers. This will make it harder for young class members to prove that they reasonably relied on the misrepresentations.

In contrast, for a class member who was nearing retirement in 1992, converting was much less reasonable. It would have been easier for older class members to prove that they relied on the misrepresentations.

Posted in: Questions about the Settlement Agreement, Teck/Cominco Class Action FAQs

Do NOT follow this link or you will be banned from the site!