What is the settlement?
Merchant Law has agreed to pay an all-inclusive amount of $1,450,000 to resolve the claim. It denies the allegations and has not admitted any liability, misconduct or wrongdoing. It agreed to settle to avoid the cost, delay and uncertainty of continued litigation. The settlement is a final compromise and does not mean that a court has found that Merchant Law did anything wrong. The settlement is not effective unless the Court approves it.
How much money will I get?
You will only be paid if you make a claim and the Court approves the settlement. The amount depends on how much you paid to Merchant Law as a retainer fee and how many Class Members make claims.
The $1,450,000 is about 85% of the retainer fees being contested in this class action. If all Class Members make a claim, after deducting legal fees payable to Class Counsel (plus other approved expenses), Class Counsel estimate that Class Members may get 50% back. For example, if you paid $500 in retainer fees, you would get $250 back. This is only an estimate. The actual amount will depend on the number of Class Members who participate.
How is my share worked out?
If the Court approves the settlement, the funds will be distributed proportionally after deducting any legal fees, disbursements and representative plaintiff honorarium approved by the Court. Your share would be the amount you paid divided by the total paid by everyone taking part, multiplied by the amount left after approved deductions and administration costs. The amount you paid would be taken from Merchant Law’s records.
Do I have to pay anything?
No. You do not have to pay legal fees out of your own pocket, and it does not cost anything to make a claim. The lawyers will ask the Court to approve their fees and expenses, which will be paid out of the settlement money. The lawyers are asking for 30% of the settlement money, plus expenses and applicable taxes.
Has this class action gone to court?
It did not go to trial. Both sides agreed to resolve the case through a proposed settlement. Class Counsel were successful in a certification application, where the Court allowed the action to proceed as a class action. Certification is a procedural decision. It is not a decision that the claims are true or that Merchant Law did anything wrong.
What happens if I do nothing?
If you do not make a claim, you will not receive a share of the settlement money. Only people who validly opt out are not bound by the Settlement Agreement.
What if the Court does not approve the settlement?
The settlement will not take effect and no money will be paid under it. The Court would then give directions about next steps, including whether Class Members receive further notice.
Who are the lawyers for the Class?
CFM Lawyers LLP and Sotos LLP are Class Counsel. They represent the Class and the representative plaintiff, James Mayer.
Is the Notice available in French?
The Notice is in English. Class Counsel will explain the Notice in French to any Class Member who asks.
L’avis est rédigé en anglais. Les avocats du groupe expliqueront l’avis en français à tout membre du groupe qui en fait la demande.
I have another question
Contact Class Counsel: CFM Lawyers LLP at info@cfmlawyers.ca or 1-800-689-2322, or Sotos LLP at classactions@sotos.ca or 1-877-294-9747.