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 Viskase Canada Inc. and Viskase Companies Inc. on behalf of all persons who retired from the Lindsay Ontario plant and who were receiving life insurance and health care benefits.

The Statement of Claim alleges that the Defendants wrongfully terminated premium payments for these life insurance and health care benefits that the retirees enjoyed. It was alleged that the elimination of these retiree benefits was contrary to a promise that the benefits would vest on retirement and could not be eliminated thereafter.

You were advised that your benefits were being eliminated in a letter which was sent to you by Viskase in December, 2006.

3. What were my benefits and how were they changed?

The benefits you had prior to December 14, 2006 are outlined in the forms and booklets provided and distributed by Viskase Canada to you at the time of your retirement and thereafter. Viskase refused to continue paying for those benefits after February 1, 2007.

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 employed by Viskase Canada at the Lindsay Plant and in receipt of life insurance and group health benefits from Viskase Canada as of December 14, 2006.

If you were mailed a Notice of the Settlement Approval Hearing, then our records do indicate you may be a class member. Click here to see a copy of the Notice of the Settlement Approval Hearing.

6. Can I Opt Out?

A Settlement Approval hearing took place on April 22, 2008 in Barrie, Ontario before Justice R. MacKinnon of the Ontario Superior Court. The Settlement Agreement was approved by the Justice MacKinnon at that hearing. Once the Settlement Agreement becomes a Final Order on May 22, 2008 an Opt Out Form will be provided to class members with the option of opting out of the class. If you opt out you will receive no settlement benefits. If you do not file an Opt Out Form 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 opt-out threshold is not reached you will receive the settlement benefits.

8. How did the Settlement come about?

The Settlement was the result of negotiations between counsel for the class members and counsel for the Defendants.

9. What are the terms of the Settlement?

The Defendants will make a lump sum payment of $10,000.00 to each life insurance beneficiary of a Class Member who has passed away since February 1, 2007 and will make payments on account of health benefits to eligible Class Members (and their spouses who are entitled to coverage) who are under the age of 65 as of February 1, 2007, in the amount of $200 per year for each year until reaching the age of 65.

Viskase will also pay all of Counsel’s fees in the amount of $125,000.00 CAD, inclusive of GST and disbursements. You are not responsible for any legal fees.

Details of the settlement benefits can be found in the settlement agreement itself, and the Notice of Settlement Approval.

10. What do I do if I don’t agree with the Settlement?

The Settlement has been approved by the Court. As long as you are a class member, you can fill out and mail in the Opt-Out form that will be provided to you once the Settlement Approval Order becomes a Final Order.

11. How do I know if I am part of the Settlement?

If you received a Notice and you do not opt out you are considered part of the Settlement. If you opt out then you are not part of the settlement.

12. What do I have to do in order to obtain my settlement?

You do not have to do anything. The court has approved the Settlement, and as such you are part of the Settlement.

13. What compensation will a class member receive under the Settlement?

There are approximately 200 members of the class. Under the Settlement Agreement, Viskase will reinstate life insurance coverage for eligible Class Members and will make payment of $10,000.00 to each life insurance beneficiary of a Class Member who has passed away since February 1, 2007.

Viskase will make payments on account of health benefits to Class Members (and their spouses who are entitled to coverage) who were under the age of 65 as of February 1, 2007, in the amount of $200 per year for each year until reaching the age of 65. This will be paid in a lump sum.

14. Why were my benefits that were taken away not reinstated?

The Settlement Agreement provides for a reinstatement of previous life insurance coverage. It does not provide for the reinstatement of group health 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 members. In this case, through the negotiation process it became apparent to Class Counsel that the Defendants would not agree to reinstate the previous group health benefit plan.

15. My spouse was a retiree and was still alive on February 1, 2007, but is now deceased. Will there be compensation on his/her behalf?

Yes. The settlement benefit will be paid directly to the beneficiary and notice of the payment will be sent to the estate of the class member if applicable.

16. I never used my benefits - will I receive compensation?

If at February 1, 2007 you were in receipt of group health benefits provided by Viskase and you were under the age of 65 before February 1, 2007 you will receive $200 for every year under the age of 65.

For example, if you were 63 years of age before February 1, 2007 you would receive
$400.00.

(65 - 63 (your age) = 2 x $200 = $400.00

17. I lost more from the benefit changes than the payment I will receive - wilI I get compensated for my total losses?

No. The agreement simply provides $200.00 per year for every year under the age of 65.

18. When should I expect to receive my settlement benefit?

A cheque will be mailed to you likely in the summer of 2008 if you are entitled to payment for benefits. Your life insurance will also be reinstated at that time.

19. Who are class counsel?

The law firm of Cavalluzzo Hayes Shilton McIntyre & Cornish LLP (click here to view web site).

20. Who determines how much Class Counsel is being paid?

The Superior Court of Justice determined Class Counsel’s fees. Class Counsel have funded the litigation since it was commenced in February of 2007. As part of the Settlement Class Counsel requested $125,000.00 for their representation of the class. This amount is less than twenty percent of the total settlement award secured from the Defendant which is what our retainer agreement provided. This amount includes all disbursements, notice costs and GST.

21. How do I contact Class Counsel?

Jorge V. Hurtado, a lawyer in the law firm of Cavalluzzo Hayes Shilton McIntyre & CornishLLP, can be reached at 1-416-964-5538 or email jhurtado@cavalluzzo.com.

22. What should I do if I will be moving?

Communications with class members is based on information received from Viskase Canada. If your address was incorrect or you will be moving please advise our law firm so we have an up to date address.

23. Are more details available?

Click here to return to the home page, which provides links to various documents relevant to the action.