Veterans Long Term Care Class Action

Under the Veterans Health Care Regulations, Veterans Affairs Canada (VAC) administers benefits to eligible veterans who are in receipt of long-term care, including adult residential care, intermediate care, and chronic care. Veterans are required to contribute, up to a maximum monthly amount, to the cost of their accommodation and meals(“A&M”) while in long-term care.

The maximum monthly A&M amounts veterans are required to pay are set by reference to the lowest user charge for accommodation and meals permitted by a province or territory.

This proposed class proceeding alleges that since at least 1 October 1998, VAC overcharged class members for the cost of their care by miscalculating A&M amounts because VAC failed to apply the lowest user charge for accommodation and meals permitted in the territories.

The proposed class proceeding seeks, among other things, that Canada pay proposed class members, including estates of such persons, damages, including the A&M amounts for which they were overcharged, and interest.

CASE NAME
Estate of Gordon Allen and Stanley Broski v. His Majesty the King

COURT
Federal Court, Action No.: T-2914-24-ID-1

DATE FILED
Statement of Claim, filed 28 October 2024

ABOUT THE ACTION

The Veterans Health Care Regulations provide benefits administered by Veterans Affairs Canada (VAC) to eligible veterans for the costs of long-term care, including adult residential care, intermediate care, and chronic care. The Regulations require that, unless exempted, veterans in long-term care who receive financial support from VAC must contribute to the cost of their accommodation and meals by paying monthly maximum amounts – referred to as “A&M Charges”.

The Regulations require VAC to adjust A&M Charges annually to ensure the amount charged is the lesser of:

(a) the lowest monthly user charge for accommodation and meals permitted by a province; or
(b) a calculation that factors in the maximum monthly amount of A&M Charges that applied in the previous year and changes to the Canadian Consumer Price Index.

The Interpretation Act provides that the term “province” in every federal enactment includes both provinces and territories.

Since at least 1 October 1998, VAC has miscalculated annual adjustments to A&M Charges by failing to apply the lowest monthly user charge for accommodation and meals permitted by any province or territory. At all relevant times, the Northwest Territories permitted the lowest monthly user charge for accommodation and meals of any province or territory.

Miscalculations to the annual adjustments of maximum monthly A&M charges resulted in VAC requiring proposed class members to pay substantially more for the cost of their long-term care than required by law.

The proposed class proceeding alleges that Canada is liable to the proposed class for, among other things, damages equal to the overcharges, plus interest.

CLASS MEMBERS

The proposed class is defined as:

All individuals, including veterans of the Canadian Armed Forces, war-service civilians or pensioners, and their survivors, including eligible estates of all such persons, who received benefits for long-term care under the Veterans Health Care Regulations and paid, at any time since at least 1 October 1998, accommodation and meals charges.

AFFECTED BENEFITS

Veterans Health Care Regulations – Accommodations and meals charges

Legal Team

Malcolm N. Ruby
Adam Bazak

Michel W. Drapeau
Joshua M. Juneau

Kirk M. Baert
Adam Tanel

Daniel Wallace

Bill Dick, K.C.
Angela Bespflug

Updates

Veterans may have paid too much for long-term care for years due to federal error – CBC News

October 29, 2024

Read the CBC story on the analysis that uncovered a possible error in how Veterans Affairs Canada calculates the way Canadian veterans pay for long-term care: https://www.cbc.ca/news/politics/territorial-tax-error-vac-1.7365673

Statement of Claim filed in veterans long term care proposed class action

October 28, 2024

On 28 October 2024, a proposed class action was filed on behalf of Canadian veterans, overseas service veterans, war-service civilians, and others (the “Class Members”) to address an alleged miscalculation, since at least October 1, 1998, in annual adjustments to accommodation and meals charges that are mandatory fees for cost of care payable by Class […]

FAQs

Learn more about this Class Action

What is a class proceeding?

A class proceeding (also commonly referred to as a “class action”) is a type of lawsuit where a group of people who have been subjected to the same, or similar, legal wrongs are represented collectively by one or more member of the class, who act as the voice for the group as a whole and who instructs the lawyers for the action on behalf of the whole class.

A proposed class action is not a class proceeding until the court determines that the case meets the requisite legislative test and certified as a class proceeding.

Class actions have three main goals: access to justice, behaviour modification, and judicial economy. A class action makes the legal process simpler and more manageable for each class member seeking to make a claim. It often does not make economic sense for each member of an affected class to sue the defendant individually, because the money being sought is less than the legal costs it would take to prosecute the lawsuit. A class action functions as an affordable procedural vehicle for the victims of mass wrongs.

What is this action about?

Pursuant to the Veterans Health Care Regulations, Veterans Affairs Canada (VAC) provides facility-based long-term care for eligible veterans of the Canadian Armed Forces, war-service civilians, and others. Veterans in long-term care must contribute to the cost of their accommodation and meals up to a maximum monthly amount – referred to as A&M Charges. Under the regulations, the maximum monthly A&M charges cannot be higher than the lowest monthly user charge permitted by any province or territory.

This proposed class action alleges that since at least 1 October 1998, VAC has miscalculated annual adjustments to A&M Charges by failing to apply the lowest monthly user charge permitted by the territories – specifically, the Northwest Territories. This error has resulted in proposed class members paying substantially more for the cost of their long-term care than prescribed by law. This proposed class proceeding asserts that VAC (i.e., His Majesty the King) is liable to the proposed class for, among other things, damages equal to the over-charges, plus interest.

What are the allegations in the action?

The Veterans Health Care Regulations require veterans in long-term care under the regulations, unless exempted, to contribute to the cost of their accommodation and meals up to a monthly maximum amount – referred to as A&M Charges. Veterans Affairs Canada (VAC) is responsible for administering A&M Charges.

The regulations provide that VAC must adjust the A&M Charges annually and that they cannot be higher than “the lowest monthly user charge for accommodation and meals permitted by a province”.

This proposed class action alleges:

1. Since at least 1 October 1998, VAC has miscalculated the annual adjustments to A&M Charges by failing to apply “the lowest monthly user charge for accommodation and meals permitted by a province”.

2. Section 35 of the Interpretation Act defines “province” in every federal enactment (which would include the Veterans Health Care Regulations) to include territories, including the Northwest Territories (NWT).

3. At all relevant times, the NWT charged lower monthly user charges for accommodation and meals than other provinces.

4. The failure of VAC to apply the NWT rate to A&M Charges resulted in veterans in long-term care paying higher A&M Charges than permitted under the regulations.

5. VAC’s miscalculation has resulted in proposed class members being required to overpay for the cost of accommodation and meals in long-term care since at least 1 October 1998.

6. As a result, VAC (i.e., His Majesty the King) is liable to the proposed class members for, among other things, damages plus interest to compensate for the over-charges.