What is the test for approving a settlement in a class action?
British Columbia, Canada
The following excerpt is from Fairhurst v De Beers Canada Inc., 2018 BCSC 59 (CanLII):
In Jeffrey v. Nortel Networks, 2007 BCSC 69, Groberman J. (as he then was) reviewed the law regarding settlement approvals in class actions, synthesized the factors considered in approving a class proceeding settlement, and, at para. 28, distilled them into four broad questions: • Has counsel of sufficient experience and ability undertaken sufficient investigations to satisfy the court that the settlement is based on a proper analysis of the claim? • Is there any reason to believe that collusion or extraneous considerations have influenced negotiations such that an inappropriate settlement may have been reached? • On a cost/benefit analysis, are the plaintiffs well-served by accepting the settlement rather than proceeding with the litigation? and • Has sufficient information been provided to the members of the class represented by representative plaintiffs, and, if so, are they generally favourably disposed to the settlement?
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