Doug Ford government to pay $320K in legal fees to basic income class action
The Ontario government has agreed to pay $320,000 in legal fees to a class action seeking $200 million in damages for the early termination of a basic income pilot project.
The 4,000 members involved argue the cancellation of a government-run basic income program equates to a breach of contract.
“Today, we're calling on Ontario to stop spending taxpayer money, $320,000 in costs to lawyers is the latest, and resolve this matter fairly and with justice,” Stephen Moreau, Cavalluzzo LLP partner and lead counsel of the class action, said at a news conference on Monday.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
The government fought to prevent the class action from going forward – and as a result they are now paying $320,000 for the legal fees spent over the last five years.
The legal action, which was certified last month, was pursued in response to the early cancellation of a three-year basic income pilot for low-income earners in Hamilton, Lindsay, and Thunder Bay, launched in 2017. The goal of the research study was to determine if the government should consider introducing a fixed income.
The 6,000 people who signed onto the pilot completed regular surveys and provided personal information to the researchers. In exchange, single participants received just under $17,000 a year while couples received just over $24,000.
A year later, following an election and change of hands in government, the province abruptly announced it was terminating the pilot. The final payment date was set as March 25, 2019.
At the time, the government claimed the program didn’t help people contribute to the economy and that it discouraged them from getting back on track. The class argues the province was motivated by “unjust enrichment.”
'Devastating'
Jess Golem, one of the pilot participants, called the cancellation devastating.
Prior to joining the basic income program, Golem said she was working several contract jobs while recovering from a financially-abusive relationship. She explained how she was exhausted and constantly working, yet barely able to afford the cost of living.
“The income floor enabled me to feel secure enough to take a risk in starting a business while knowing that my basic needs would be covered,” Golem said on Monday.
“I actually predicted that if the basic income pilot had continued, I would only have been on the pilot for two out of the three years it was supposed to run because my business would have been making enough money that I would no longer been eligible to be on the pilot.”
However, the program was cancelled, pulling Golem into poverty.
“This sort of government needs to be held accountable for the promise that they have broken, for the lives that they've carelessly thrown into disarray, and the permanent damage they have caused by breaking their contract with us and prematurely canceling the basic income.”
CTVNews.ca Top Stories
Independent stores and grocery alternatives see sales boost amid Loblaw boycott
As the month-long boycott of Loblaw-owned stores wears on, small independent food retailers and alternative grocery options say they're seeing a boost in traffic and sales.
1 dead, others injured after London-Singapore flight hit severe turbulence, Singapore Airlines says
One person has died aboard a London-Singapore flight that encountered severe turbulence, Singapore Airlines said Tuesday. The plane was diverted to Bangkok, where emergency crews rushed to help injured passengers amid stormy weather.
How to check the Air Quality Health Index and assess your health risks
As we enter another wildfire season, Environment and Climate Change Canada is advising people to pay attention to air pollution levels and check the Air Quality Health Index – especially on smoky days.
What is BORG drinking, and why is it a dangerous trend? An expert explains
If you've been to a party lately and haven't seen someone drinking a BORG, you're likely not partying with college students.
Cardinal Lacroix cleared after investigation ordered by the Pope
The Vatican has announced that the investigation it commissioned into allegations of sexual touching against Cardinal Gerald Cyprien Lacroix did not confirm any act constituting misconduct or abuse on the part of the Vatican.
Oilers win Game 7 over Canucks, advance to Western Conference Final
The Edmonton Oilers weathered a late Vancouver Canucks charge on Monday night, beating the hosts 3-2 to win their seven-game second-round playoff series in the decisive showdown.
Katy Perry sings goodbye to 'American Idol'
Katy Perry said her goodbyes on 'American Idol' after seven seasons. On Sunday night’s live 'idol' season finale, a medley of Perry's hit songs were performed, including 'Teenage Dream,' 'Dark Horse' and 'California Gurls.'
DEVELOPING Defence witness who angered the judge in Trump's hush money trial will return to the stand
A defence witness in Donald Trump's hush money case whom the judge threatened to remove from the trial over his behaviour will return to the stand Tuesday as the trial nears its end.
The world's best airline is paying staff a bonus of 8 months' salary
Singapore Airlines will reward its employees with a bonus worth nearly eight months of salary, a person familiar with the matter told CNN on Friday.