The Court of King’s Bench is reviewing the details of a $530-million settlement compensating every child affected by the province clawing back federal funds for kids in care — more than 80 per cent of whom are Indigenous.
“This week’s hearings are a pivotal step towards justice and long-awaited compensation to the First Nations children who were wrongfully denied support,” Assembly of Manitoba Chiefs Grand Chief Cathy Merrick said in a news release.
The comprehensive class-action settlement agreement aims to recoup the federal Children’s Special Allowance that was diverted from children in care to the province from 2005 to 2019 — an estimated $335 million.
The NDP government had child-welfare agencies remit the federal benefit to the province in 2005, saying it was in compliance with the law because it was providing services to children in care.
The Progressive Conservative government put an end to the practice in 2019. One year later, it passed legislation to prevent children in care from suing the province to get the money back. The province was taken to court over it.
Justice James Edmond ruled in 2022 that the province violated the Charter of Rights and Freedoms by denying a benefit to the claimant group — among “the most vulnerable members of our society” — that is not denied to others.
The proposed settlement includes interest, damages from discrimination, and legal and administrative costs.
The deal has been endorsed by the AMC, the Southern Chiefs’ Organization, Manitoba Keewatinowi Okimakanak, the Manitoba Métis Federation and the province. The parties to the class action are seeking its approval by Court of King’s Bench Justice Alain Huberdeau on Thursday and Friday.
The unopposed agreement includes detailed information about how and when eligible class members can expect payment from the settlement fund.
It also requires an apology by Families Minister Nahanni Fontaine in a public sitting of the Manitoba Legislative Assembly.
carol.sanders@freepress.mb.ca
Carol Sanders
Legislature reporter
Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol.
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