Development Bank of Canada
This case went to trial before Mr. Justice Pitfield of the Supreme Court of British Columbia in June 2009.
Mr. Justice Pitfield released his judgment on September 29, 2009.
The Plaintiffs were partially successful in the action. The Judge ruled that certain expenses paid from the Plan Fund were unlawful. The BDC has already repaid the Fund the expenses in question. The Judge also held that certain amendments to the Plan entitling the BDC to surplus during the Plan’s currency were in breach of trust and, consequently, void.
The Judge also ruled that the BDC did not breach its fiduciary duty to retirees when it failed to provide them with benefits commensurate with those enjoyed by active members during the years the Plan was non-contributory. Retirees and other class members, therefore, will receive no compensation for the time Plan was in surplus and the active members enjoyed a contribution holiday.
A full copy of Mr. Justice Pitfield’s Reasons can be found at Court Documents.