1. What is a class proceeding?
A class proceeding, or a class action, is a lawsuit which provides a means for a large group of people with common legal issues to join together and participate in one large action. Class actions are a relatively efficient and cost-effective way for groups of people with common legal issues to gain access to the legal system and seek justice.
2. What is this class proceeding about?
A class proceeding was commenced against the Defendants Kimberly-Clark Inc., Neenah Paper Company of Canada and Neenah Paper, Inc. on behalf of all persons who retired from the Terrace Bay and Longlac operations and who were receiving retirement or life insurance benefits from Neenah Paper, Inc. as of September 30, 2006.
The Statement of Claim alleges that the Defendants reduced or eliminated
a number of benefits that the retirees enjoyed. It is alleged that the reduction
in retiree benefits was contrary to a promise that the benefits would vest
on retirement and could not be reduced or eliminated thereafter.
You were advised that your benefits were being changed in a letter which was
sent to you by Neenah Paper, Inc. in August 2006.
3. What are my benefits and how were they changed?
The benefits you had prior to the changes are outlined in a booklet which should have been provided to you at the time of your retirement or shortly thereafter. The change to the benefits was that your group benefits were eliminated effective October 1, 2006 and replaced with individual benefits through Manulife’s “Follow Me” program. As well, there were increases in the amount to be paid for life insurance.
4. Have the Defendants admitted liability?
No. The parties have entered into a settlement without any admission of liability.
5. Am I a class member?You are a class member if you were receiving or paying for post-retirement health benefits or life insurance that was changed by Neenah Paper effective October 1, 2006 and if you do not validly opt out of the proceeding. If you received a written notice about the settlement then our records indicate you are a class member.
If you did not receive a notice and think you should have received one, please notify Mia London at mlondon@cavalluzzo.com or by phone at (416) 964-5528.
6. Can I Opt Out?
If you do not wish to be part of the settlement then you can fill out the Opt Out Coupon attached to the Notice and send it to Class Counsel by no later than January 30, 2008. If you do not file an Opt Out Coupon in a timely manner, you will be considered to be a class member for the purposes of the settlement of the class proceeding.
7. What do I do if I wish to be part of the settlement?
You do not need to do anything. If the Superior Court of Justice approves the settlement on February 6, 2008 and 10 or less individuals opt out then you will receive your share of the settlement funds. If more than 10 individuals opt out then the Defendants have the right to terminate the Settlement Agreement.
8. How many class members are there?
The list provided by the Defendants indicates that there are approximately 630 individuals who are class members.
9. How did the proposed settlement come about?
The Settlement was the result of negotiations between counsel for the class members and counsel and representatives for the Defendants.
10. What are the terms of the proposed Settlement?
The Defendants will pay $5,500,000.00
($5.5 million) to Class Counsel that will be used to pay settlement monies
to all of the Class Members. The Defendants
will also pay to Class Counsel $1,000,000.00 ($1 million) in lieu of the Follow
Me benefits that were to be paid by the Defendants to September 30, 2008 less
an amount for the monthly premiums if the settlement if the settlement is not
approved by December 31, 2007. It is anticipated that the settlement will be
approved in February 2008, and as such the estimated amount in lieu of Follow
Me benefits will be approximately $766,000. Each person who received Follow
Me benefits will receive a pro rata share of this amount.
Details of the settlement benefits can be found in the settlement agreement
itself, and the Notice of Settlement Approval. When it is posted on this website,
there will be a more detailed discussion of the settlement in the affidavit
of Hugh O’Reilly.
11. What do I do if I don’t agree with the proposed Settlement?
The settlement is still subject to court approval. You are entitled to object to the settlement at the court approval hearing, which is taking place on February 6, 2008 at 10 a.m. in Thunder Bay. If you intend to object it would be helpful to send written materials outlining your objection to Class Counsel prior to the court hearing. Please do not write or contact the Court directly prior to February 6, 2008.
12. How do I know if I am part of the proposed settlement?
If you received a Notice and you do not opt out you are considered part of the settlement. If you opt out then are not part of the settlement.
13. If the settlement is approved, what do I have to do in order to obtain my settlement?
You do not have to do anything. If the court approves the settlement, you will receive a cheque for your portion of the settlement.
14. What compensation will a class member receive under the settlement?
There are approximately 630 class members. At this time we are unable to calculate the exact amount that you will receive as payment, however, if the settlement is approved by the Court, we anticipate that the amounts will be as follows:
If as of October 1, 2006, you were a retiree and entitled to receive group health benefits and life insurance, you will receive approximately $10,000 from the settlement funds.
If as of October 1, 2006, you were a retiree and had only group health benefits, you will receive approximately $9,000.
If as of October 1, 2006, you were a retiree and had only life insurance, you will receive approximately $1,000.
In addition, everyone entitled to health benefits under the Follow-Me Program will receive an equal share of the money being provided to replace that Program. For example, if this proposed settlement is approved by the end of February, 2008, approximately $766,000 will remain of the money being paid in lieu of the premiums and will be divided equally among all members of this group. Retirees whose spouses are entitled to these health benefits will receive two equal portions, one on their own and one on their spouses’ behalf.
As well, the Defendants have agreed that in the future class members will not have to pay more than 25 percent of their life insurance premiums. If you wish to continue in the Follow Me program and to pay your premiums yourself, please advise Manulife directly that you wish to do so.
15. Why were my benefits that were taken away not reinstated?
The settlement agreement does not provide for a reinstatement of previous benefits. Courts are often reluctant to force a party to perform a specific obligation, such as the reinstatement of benefits. Class Counsel were aware of this in negotiating on behalf of Class Counsel. In this case, through the negotiation process it became apparent to Class Counsel that the Defendants would not agree to reinstate the previous benefit plan or some other benefit plan.
16. My spouse was a retiree and was still alive on October 1, 2006, but is now deceased. Will I be receiving compensation on his/her behalf?
Yes. The settlement benefit will be paid directly to you or to the estate of the class member if applicable.
17. I never used my benefits - will I receive compensation?
Yes. Regardless of whether or not you accessed your benefits, a set amount is being paid to all class members.
18. I lost more from the benefit changes than the payment I will receive - wilI I get compensated for my total losses?
No. Every class member will receive the same payment. For some people this payment will exceed their losses and for some unfortunately it will not fully compensate them for their losses. It was not practical to design a settlement which would tailor each class member’s recovery to his or her specific loss. Class Counsel’s consideration of this issue will be fully detailed in the affidavit of Hugh O’Reilly, which will be posted on this website.
19. When should I expect to receive my settlement benefit?
If the court approves the settlement, a cheque will be mailed to you likely
in March 2008.
20. Who are class counsel?
The law firm of Cavalluzzo Hayes Shilton McIntyre & Cornish LLP (click here to view web site).
21. Who determines how much Class Counsel is being paid?
The Superior Court of Justice determines Class Counsel’s fees. Class Counsel have funded the litigation since it was commenced in the fall of 2006. Class Counsel will be requesting slightly less than twenty percent, or $1.1 million, for their representation of the class. This amount includes all disbursements, notice costs and GST. If approved, this amount will be deducted on a pro rata basis from the settlement amounts of each class member.
22. How do I contact Class Counsel?
Mia London, a partner in the law firm of Cavalluzzo Hayes Shilton McIntyre & CornishLLP, can be reached at 1-416-964-5528 or email mlondon@cavalluzzo.com.
23. What should I do if I will be moving?
Communications with class members is based on information received from Neenah Paper Inc. If your address was incorrect or you will be moving please advise our law firm so we have an up to date address.
24. Are more details available?
Click here to return to the home page, which provides links to various documents
relevant to the action.