Hudson’s Bay Company/The Bay

Overview

This class proceeding concerns the improper use of surplus funds in a pension plan to pay for administrative expenses and employer contributions to a related defined benefit plan.

The claim alleges that the Hudson’s Bay Company Limited (“HBC”), Royal Trust Corporation and Investors Group Trust Co. Ltd. unlawfully diverted surplus assets of the Simpsons Limited Supplementary Pension Plan (the “Plan) to fund the separate defined contribution plan for Zellers and Kmart employees. It is alleged that HBC, Royal Trust Corporation and Investors Group Trust Co. Ltd. committed breaches of trust, breaches of fiduciary duties and undertook an unlawful diversion of surplus assets in relation to the administration of the Plan.

The action was certified as a class proceeding by the Ontario Superior Court by order dated April 28, 2005. The class of persons this action represents is detailed in the Certification Order, below. Generally, the class is comprised of all members, retirees and beneficiaries of the Plan as of the 1st of January, 1988, now known as the Dumai Pension Plan.

Active

Latest Developments

July 20, 2010

As was described in the Notice to the Class (April 30, 2009), this settlement is generally comprised of three benefits to members of the Class:

a) A one time percentage increase in pension payments to Class members in receiving a retirement pension as at December 31, 2008;

b) A cash payment in the amount of $500 to Class members who were active or deferred vested members of the pension plan as at December 31, 2008, as well as a cash payment to certain estates of Class members; and,

c) A pro rata cash distribution to Plan members.

Payments in respect of the amounts listed in b) and c) above have been made in a single cheque.

We have been advised by counsel to HBC that all settlement payments have now been mailed. If you have not received your settlement payments, or if you have any questions regarding the settlement, please contact us as soon as possible.

February 18, 2010

The implementation of the settlement is now well underway. In late November of 2009, the Canada Revenue Agency provided HBC with the required consent to register various amendments to the pension plan necessary to implement the settlement.

Effective January 1, 2009, HBC implemented an increase in the monthly pension benefit for members of the class action who were receiving a pension from the Dumai Plan as at December 31, 2008.

We have been advised that class members who were active employees as of December 31, 2008, will soon be receiving their distribution stipulated by the settlement agreement.

Further details concerning the implementation of the settlement will be provided as they occur.

More Developments

Important Note: This website is intended to provide general information only. Despite our best efforts, it is not always completely up to date and should not be relied upon to make important legal decisions. This website does not offer legal advice and is not designed to answer questions about your individual situation or entitlement. It does not eliminate the need to obtain independent legal advice. Communications through this website will not be treated as private, privileged or confidential. It does not create a solicitor-client, fiduciary or other relationship. Whether you are a class member or not in a particular class action or not depends upon the court order made in that particular case. This website will be updated from time to time with information as it becomes available.