Question Period Note: Hepatitis C Settlement Agreements

N/A

• In 1999 and 2007, the Government of Canada entered into two separate court-approved settlement agreements (the 1986-1990 Hepatitis C Settlement Agreement and the Pre-1986/Post-1990 Hepatitis C Settlement Agreement, respectively) to compensate individuals who contracted Hepatitis C from the blood system. The settlement agreements were approved by the Courts (Quebec, Ontario, Alberta, and British Columbia), are administered at arm’s length from the federal government, and together represent approximately $2 billion in compensation. The Pre-1986/Post-1990 Agreement came to an end as of December 9th, 2022.
KEY MESSAGES
• The Government of Canada recognizes the tremendous hardship that infected individuals and their families have endured after those individuals contracted Hepatitis C from the blood system.
• The Government of Canada set aside approximately $2 billion in compensation for individuals who contracted Hepatitis C from the blood system. This was done via two court-approved settlement agreements – the 1986-1990 Hepatitis C Settlement Agreement and the Pre-1986/Post-1990 Hepatitis C Settlement Agreement.
• The administration of the Pre-1986/Post-1990 Hepatitis C Settlement Agreement is now complete and the Agreement came to an end as of December 9, 2022 by orders of the Quebec, Ontario, Alberta, and British Columbia courts.
IF PRESSED …
• The two Hepatitis C Settlement Agreements–the Pre-1986/Post-1990 and the 1986-1990 Hepatitis C Settlement Agreements–were deemed fair and reasonable by the courts. These settlement agreements were/are administered at arm’s length from the federal government.

In 1999 and 2007, the Government of Canada entered into two separate court-approved settlement agreements (the 1986-1990 Hepatitis C Settlement Agreement and the Pre-1986/Post-1990 Hepatitis C Settlement Agreement, respectively) to compensate individuals who contracted Hepatitis C from the blood system. The settlement agreements were approved by the Courts (Quebec, Ontario, Alberta and British Columbia) and are/were administered at arm’s length from the federal government.

The Pre-1986/Post-1990 Agreement was divided into two funds - the Main Compensation Fund to cover claims for general damages and the Past Economic Loss and Dependants (PELD) fund to cover past loss of income, loss of services in the home and benefits to dependants. While all infected class members of the Settlement Agreement have received some funding to compensate them for their hardships, the PELD received more claims than expected and has been exhausted as of 2010 after paying 1,156 claims. In 2016, the Courts approved the transfer of any surplus remaining in the Main Compensation Fund of the Pre-1986/Post-1990 Settlement Agreement to the PELD Fund, to help address its deficiency.

In October 2019, following a transfer of the remaining funds in the Main Compensation Fund to the PELD, a pro rata distribution to the eligible claimants who had not been paid from the PELD was endorsed by the Courts. Two pro rata distributions resulted in eligible claimants receiving approximately 25% of the total value of each PELD claim. On February 28, 2022, the Courts Ordered a third and final pro rata distribution to eligible claimants, which has since been paid.

On December 9, 2022, the Courts ordered the termination of the Pre-1986/Post-1990 Hepatitis C Settlement Agreement. The Trustee confirmed that it has received all forfeited funds remaining from the final distribution and that all invoices from the service providers have been paid. The remaining funds (approximately $25K) were transferred to Canada within 60 days of the end date.

Media attention is possible – in 2019, there was media coverage of the Government of Canada’s perceived inaction to address the deficit in the PELD fund.

• The 1986-1990 Agreement is separate and distinct from the Pre-1986/Post-1990 Agreement and it is expected to continue until approximately 2080.
• The Pre-1986/Post-1990 Agreement was divided into two funds - the Main Compensation Fund to cover claims for general damages and the Past Economic Loss and Dependants (PELD) fund to cover past loss of income, loss of services in the home and benefits to dependants. While all infected class members of the Settlement Agreement have received some funding to compensate them for their hardships, the PELD received more claims than expected and was exhausted as of 2010 after paying 1,156 claims.
• In October 2019, following a transfer of the remaining funds in the Main Compensation Fund to the PELD, a pro rata distribution to the eligible claimants who had not been paid from the PELD was endorsed by the Courts. Two pro rata distributions resulted in eligible claimants receiving approximately 25% of the total value of each PELD claim. On February 28, 2022, the Courts Ordered a third and final pro rata distribution to eligible claimants, which has since been paid.
• On December 9th, 2022, the above-mentioned courts ordered the termination of the Pre-1986/Post-1990 Hepatitis C Settlement Agreement. Remaining funds were transferred to Canada within 60 days of the end date.