Background
2005-2019
Between January 1, 2005 to March 31, 2019, the Province of Manitoba required CFS Agencies to remit over $335 million of the Federal Children’s Special Allowance (CSA) payments back to Manitoba’s general revenue fund. Where CFS Agencies refused to remit CSA, Manitoba withheld maintenance and operation funding from the CFS Agencies in amount it estimated to be equivalent to CSA the CFS Agency would have received.
CFS Agencies apply for these funds on behalf of children in their care, consistent with the federal Children’s Special Allowances Act, which states that the funds are to be used exclusively for the care, maintenance, education, training or advancement of the child-in-care. The monthly CSA payments equal the maximum Canada Child Benefit payment plus the Child Disability Benefit.
In 2018, Class Counsels brought a court Application on behalf of six Indigenous Child and Family Services Agencies, at the same time, a proposed Class Action was filed on behalf of the children. The lawsuits pertained to the Province of Manitoba’s illegal claw back from Indigenous Agencies of CSA monies meant for children-in-care (the “CSA Policy”).
2020
In response to legal challenges, the Manitoba government passed section 231 of the Budget Implementation and Tax Statutes Amendment Act (BITSA) legislation in 2020, exempting the Province from any legal responsibility.
Class Counsels subsequently filed a constitutional challenge of that legislation and CSA Policy, alleging that Manitoba’s actions discriminated against the children based on their race and status as a child-in-care, in breach of the children’s Charter rights.
2022
On May 18, 2022, Justice Edmond issued his decision, finding that Manitoba’s actions and section 231 of BITSA were unconstitutional and that they discriminated against foster children in Manitoba, 88% of whom are First Nation and Metis children, all of whom Justice Edmond declared were among the most vulnerable members of our society. Section 231 of BITSA was declared invalid.
2024
March 2024
On March 19, 2024, an Agreement in Principle was reached between the Province of Manitoba and Class Counsels to settle three Children’s Special Allowance (CSA) Class Action Lawsuits which sought compensation for past and current provincially funded children-in-care of Child and Family Services Agencies (CFS Agencies) in Manitoba, whose CSA benefit was clawed back or withheld between January 1, 2005 to March 31, 2019. The Province agreed in principle to pay $530 million (Agreement in Principle). The agreement is subject to court approval.
The three Class Action Lawsuits are:
Indigenous CFS Agencies (Flette)
Non-Indigenous CFS Agencies (Lavallee)
Metis CFS Agencies (Lafontaine)
The agreed to Settlement amount is allocated to the Flette Action and Lavallee Action for $445,200,000 and to the Lafontaine Action for $84,800,000.
Exchange Solutions Inc. (EXG) has been engaged as the Claims Administrator for the Indigenous CFS Agencies (Flette) Action and Non-Indigenous CFS Agencies (Lavallee) Action.
June 2024
On June 20, 2024, the Court of King’s Bench of Manitoba has authorized the Representative Plaintiffs to give notice to Class Members that a Settlement has been reached
Short-form and Long-form Notices have been sent according to the Court-Approved Notice Plan and are available to Class Members here.
September 2024
On September 5, 2024, Justice Huberdeau approved the Settlement Agreement. This agreement has support from the Assembly of Manitoba Chiefs (AMC), Southern Chiefs' Organization, Manitoba Keewatinowi Okimakanak, and several Child and Family Services (CFS) groups.
The Settlement Agreement sets deadlines for Manitoba to make payments and includes other important steps to end the lawsuits, like a public apology in the Manitoba Legislature. It also explains how and when Class Members will get their payments from the Settlement Fund.
There is a 31-day appeal period after the approval.
If there are no appeals, then Class Members will be able to submit claims beginning on January 6, 2025 for a two year Claim Registration Period.
October 2024
As there were no appeals, Class Members will be able to submit claims beginning on January 6, 2025 for a two year Claim Registration Period.