This paper considers the matrix distribution model for class action settlements for determining compensation levels for complex class actions where claimants have varying degrees of loss or damage. Matrix settlement agreements can be an efficient and effective way of administering settlements for complex class actions where class members have suffered varying degrees of damage or loss. This paper examines three Canadian class action settlements in Parsons v Canadian Red Cross Society, Wilson v Servier Canada Inc, and Baxter v The Attorney General of Canada, which have used the matrix model to structure and administer settlements. The efficiency and effectiveness of a matrix settlement is dependent upon a carefully drafted matrix that defines as many different levels and categories as there are compensable damages. This provides a level of transparency to the claims regarding the amount of compensation awarded to individual class members. This paper also considers the need to appoint an experienced claims administrator with the requisite expertise to apply the matrix and make determinations regarding a claimant’s eligibility for compensation, as well as the role of counsel in the administration of claims. As the jurisprudence continues to develop in Canada regarding the approval of class action settlements, we should expect to see more commentary and direction from the court regarding the use of matrix settlements, claims administration, and the role of counsel in the administration process.
Sara J Erskine (Sat,) studied this question.