Alberta
Class Action Lawsuit Against the Province of Alberta – Rath on Behalf of Ingram and Scott
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To preface, the amount of knowledge I have in our legal system would fit into a thimble with a lot of room leftover to hold, well…a lot of other stuff that would fit into a thimble.
But I’m going to do my best to cover the certification hearing for the Class Action Lawsuit against the Province of Alberta by Rath and Company, on behalf of Rebecca Ingram and Chris Scott.
For the purposes of keeping this to a reasonable length, I’ll be hitting more along the lines of the high-notes instead of going through and summarizing the thousands of pages submitted by Rath and Co + the Province and keep to what I found most interesting throughout the 2 days I’d spent down at the courthouse viewing. The hearing was to allow both sides to submit their briefs and so that Justice Feasby could make sure that he understood the base of their cases, qualify information and take it away for judgement.
Even if Rath is successful in having this Class Action Certified, there is still a long road ahead to succeed in getting damages covered and a trial to be had and because of the specifics of the mishandling by the Province throughout the pandemic, if they are successful here, it doesn’t mean that every other province can proceed ahead, under the same criteria.
What does this mean?
The previous case against the Province with Rebecca Ingram, showed that the non-pharmaceutical interventions – lockdowns, businesses closed, capacity limits…were ruled Ultra Vires (beyond legal power or authority), by Justice Romaine…in that, these weren’t actually made by the Chief Medical Officer of Health (CMOH), Deena Hinshaw, they were made by Cabinet…and Cabinet hid behind Hinshaw issuing these orders under the Public Health Act instead of working with the Emergency Management Act.
Because of “Cabinet Privilege”, information was revealed by the CMOH and Justice Romaine – in camera (private) – we can only speculate the reasons for this.
One could argue that because the province and Alberta Health Services got 100% of everything wrong during the pandemic, that this was just another link in the very weak chain…
However, it’s also possible that the Cabinet Members making these decisions wanted to hide and remain hidden for political purposes, as in…those making the decisions to close down businesses didn’t want to have to face voters in a subsequent election, knowing the damages that they’d caused in the business community.
Seeing how many small businesses were closed down, to never reopen…savings spent, jobs and homes lost, lives impacted by these decisions, arguably touching every single person in the province, would make for some bad press and a constituencies filled with voters showing up with a chip on their shoulder towards those who made these decisions and still chose to run for Legislature again.
In addition to this…If the orders were run through the Emergency Management Act, all of the businesses impacted would be entitled to compensation, whereas under the Public Healthcare Act…they weren’t.
It’s based on these specificities that Rath argued that the Province acted in ‘Bad Faith’ as the basis for their case, in that, the province made decisions that they didn’t have the authority to make and absolutely had to have known would harm businesses and made them through the PHA which restricted these businesses from being compensated.
Rath had completed his presentation of their brief before lunch on the first day, where Feasby had a couple of points that he wanted clarified…which was completed after lunch on this same day.
And then…the Province took the podium.
As I’d previously stated, this was a bloodbath for the afternoon of Day 1 and continued on throughout their presentation on Day 2, where by Feasby openly mocked each member of the Province – Dube, Chu and Flanders.
Rightfully so, if I might add, because a lot of their logic was illogical and even to those of us in the gallery, laughable both with and without comments from the Justice.
On day 2, because of the chorus of opened mouthed guffaw from the gallery, we’d all received a warning try and keep it down.
Arguments made by the province which were stunning and laughable:
- The public does have a right to accountability and that these would be ‘Ballot Box Issues’, of course recognizing that Cabinet was the ones who made these decisions but because they were hidden behind Cabinet Confidence, we can’t actually have accountability, which of course Dube knew;
- The Plaintiffs (Rath on behalf of Ingram and Scott) needed to name the members responsible – which were, again, hidden by cabinet confidence;
- There is no fiduciary accountability afforded under the Public Health Act, where the interventions were deemed Ultra Vires;
- The Province couldn’t have known that businesses would be harmed by the orders – where Feasby stated that it would be impossible for them to Not Know;
- Businesses are not members of a vulnerable group – though were identified by the CMOH orders;
- There is no Nexus or Proximity between the Acts (CMOH orders) and Injury – where Feasby stated causation where orders made, closed businesses, that caused injury was the connection;
- A breach of the Bill of Rights does not necessitate compensation, where the use of the Public Health Act was engaged illegally by cabinet;
- No common issues exist – where all businesses that were impacted were impacted financially;
- Not all businesses that were impacted abided by the CMOH orders, though they may be able to still show financial losses during these times;
- Abuse of Power, by Cabinet in their orders, wasn’t actually an Abuse of Power because it was done in good faith;
- Even without the orders, during the pandemic, people still wanted to just stay home and avoid going out – they actually said this;
- Although the Pandemic Orders were deemed Ultra Vires, they were valid at the time. This was particularly stupid as an argument made repeatedly by Chu and lost the province some large points with Feasby. Her logic is that the orders WERE Valid up until the time they were deemed Ultra Vires…where Feasby stated, a definitive ‘Nope’. Once they were deemed Ultra Vires, this extended back to when they were put in place.
- The Plaintiffs should be suing Alberta Health Services, arguing that AHS is not the province, again another stupid point where the judge stated, “You can’t stand here with a straight face and make this as an argument”.
- Expropriation of businesses wasn’t actually expropriation (businesses shut down or limited in capacity were essentially expropriated – partially or fully taken away from leaseholders and property owners), because there were no transfer of titles and they weren’t kept by the province on a forever hold. When I’d asked Eva Chipiuk about this, she stated that the province had effectively made this up as terms of expropriation, this isn’t what it actually means…and this was clarified to the Justice by Jeff on reply following the Province stating their case on Day 2.
- Classes of businesses could not be identified for a Class Action Lawsuit – where, orders put out by the CMOH on behalf of Cabinet, specifically identified the types of businesses that would need to close or limit capacity. Jeff made a point on this where in the early stages, Casinos and Stripper Bars were allowed to be left open while Schools were closed. I did get a good laugh out of this recollection of events;
- It would be more beneficial for businesses who were harmed to represent themselves individually instead of through a Class Action – where smaller businesses would pay in excess of their claim in legal fees and clog the courts for decades;
- Businesses that lost money throughout this time would have immediately made it back once they were reopened – of which there is absolutely no way they could make this determination especially given the fact that hundreds of businesses closed forever during this time;
- Chris Scott and the Whistle Stop Cafe isn’t a suitable representation in the class action because Scott didn’t abide by CMOH orders, crowd funded over $100k, needed to hire more staff because of the surge of business that he’d received because of publicity around his location, paid off a loan for property, all in 2021…where, Chris did actually abide by CMOH orders in 2020, did lose money, was on the verge of bankruptcy and only worked to mitigate damages following several months of losses due to the CMOH orders;
- Chris Scott may have actually made more because of the pandemic, despite the fact that he was arrested, closed down, abided by CMOH orders in 2020, was getting death threats because of being branded negatively through media spun by his lack of compliance for the orders to keep him from losing everything;
There may be more…this is what I could get out of the 36 pages of notes that I’d taken over the course of the 2 days…but basically the Province brought in the C-Team of Lawyers making in attempts to make the case that:
AHS is not the province, acted illegally but in good faith, is not responsible for any damages because they didn’t fully expropriate businesses forever, couldn’t have known that businesses wouldn’t suffer from financial losses in being closed or restricted for months on end and even if they did, probably made their money back if not more money when they finally opened and couldn’t be lumped together because REASONS.
Whereas against the province, Rath and Company makes the claim that:
Cabinet made decisions that turned into illegal orders under the Public Healthcare Act, not using the Emergency Management Act so that they could hide the identity of the decision makers and skate on being financially liable for losses they knew would be incurred by businesses that were shut – acting in bad faith.
And again…while I don’t know a whole lot about the legal system, all of the laws and terms used throughout these 2 days, can appreciate that all requirements for a Class Action were met and responded to. The legality and relevance of these will be weighed by Justice Feasby and he’d seemed confident that he’ll be able to have a ruling on the Certification for Class Action by December 1st, 2024…and closed out with a statement that he wasn’t going to be accepting any additional documentation from either party. They’d effectively had their ‘day in court’, and had opportunity to clarify their cases.
Hope ya made it through all of this…and I hope it makes as much sense to you as does to me as in a solid – kinda. If you were watching the livestream or in the gallery and noted anything additional worthy of mention or correct me in any errors, please do so in the comments.
I’m looking forward to the next leg in this journey!
Alberta
Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn
From the Fraser Institute
By Tegan Hill
According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.
The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.
For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).
And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.
In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.
This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.
Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.
Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.
Of course, if the government falls back into deficit there are implications for everyday Albertans.
When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.
According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.
Author:
Alberta
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
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