Money not claimed in settlement will not be used for healing services

McKenzie Lake Lawyers does not expect the full $7.5 million set aside as part of a compensation package for those abused while in government care prior to 2008 to be used. But any money left over from compensating individuals will not go into a pot to offer holistic services for healing. 

Money remaining in the alternate criteria fund will revert back to the province, says Sabrina Lombardi, lawyer with the Ontario-based firm. The Alberta Child Welfare Class Action Settlement does not set aside money for mental health supports for those abused while in government care.

The Alberta Child Welfare Class Action Settlement established the $7.5 million alternate criteria fund to compensate the “small subgroup of individuals,” who fall beyond the time frame set by the province’s Victims of Crime financial benefits program, says Lombardi. The settlement impacts those who were subject to a permanent wardship order or permanent guardianship order by Alberta Child Welfare between July 1, 1966, and Feb. 19, 2008, or a temporary guardianship order between July 1, 1985 and Feb. 19, 2008, and who were abused. The fund is split with $6.5 set aside for those under permanent wardship and $1 million as compensation for those under temporary guardianship.

“We wanted to ensure that there was enough money to cover it. We didn’t want it to be shorted in anyway,” said Lombardi, who says there are probably a few hundred people not covered through the VOC.
While the average VOC settlement is between $15,000 to $30,000, payouts can run as high as $110,000, depending on the abuse that was experienced.

“(Financial compensation) is just one part of it,” said Nelson Mayer, executive director with the Alberta Native Friendship Centres Association. “For me, the more important stuff is healing. Is any resource set in the settlement that they’re going to get going to be enough to really address some of the outstanding issues that have arisen as a result of the abuse they were subjected to?”

Mental health supports, which will be required, he says, come at a substantial cost. 

Lombardi says it is estimated that “upwards to 1,500 to 2,000” people may be eligible for compensation. Claimants have until Jan. 15, 2017, to make their applications. Payouts could take up to a year after the application has been received depending on the documentation required to set the dollar value as well as the number of claims received.

Lombardi does not know how many of those impacted are Aboriginal.
Mayer has no figures to offer either, but said, “Given that the rates in some areas of the province can be as high as 70 per cent of our children were placed in care over the last years, I imagine it could be a significant number.”

Lombardi would not say whether any of those who initiated the class action in 2004, which is referred to as T.L., R.M., and J.S. v. Her Majesty the Queen in Right of Alberta as Represented by the Director of Child Welfare and the Public Trustee, were Aboriginal.

“There’s a reason why we used initials. That’s all private information,” she said.

Lombardi says her firm filed four or five objections to the settlement with the court. Some of those who objected were upset because the class action did not include them and others “misunderstood what this lawsuit was about …. They seemed to have been misinformed about what the lawsuit was about and grossly misled with respect to what they might actually get at the end of the day. So some of these individuals, I think, had been holding on to these unfortunate misrepresentations and promises … and they couldn’t accept what the lawsuit was actually about and how well the settlement actually resolved the true points about the lawsuit.”

McKenzie Lake Lawyers were appointed class counsel in 2013 after the previous counsel had been removed by the court. Lombardi could not say why the previous counsel was dismissed.