Background:

• Plaintiff's Allegation: Haventree Bank automatically renewed her mortgage at a higher interest rate (9.99%) without her consent, causing her financial hardship and leading to the sale of her property.
• Legal Basis: Breach of the Interest Act and contractual terms due to involuntary/automatic mortgage renewals.

Proceedings:

• Class Certification: Action certified for settlement purposes on April 2, 2024.
• Class Definition: Individuals in Canada whose mortgages were involuntarily or automatically renewed by Haventree Bank, incurring additional interest, costs, and fees.
• Settlement Approval Hearing: No objections or opt-outs were received.

Settlement Details:

• Total Settlement Amount: $1,500,000
• Eligible Class Members: Approximately 3,340
• Individual Compensation: Up to $5,000 per mortgage, based on the take-up rate.
• Excess Funds: To be donated to a cy-près recipient approved by the court.

Court Findings:

• Fairness of Settlement: The settlement was deemed fair, reasonable, and in the best interests of the class.
• Class Counsel Fees: Approved at $450,000 plus HST and disbursements.
• Honorarium: Requested honorarium of $15,000 for the representative plaintiff was not approved due to the absence of exceptional circumstances.

Legal Principles Applied:

• Settlement Approval: Governed by the Class Proceedings Act, requiring court approval to ensure the settlement is fair, reasonable, and in the best interests of the class.
• Class Counsel Fees: Evaluated based on the contingency fee agreement, actual fees incurred, and principles set out in previous case law.

Orders:

1. Settlement approved.
2. Continued appointment of Epiq as Claims Administrator approved.
3. Notice Plan and Notice of Settlement Approval approved.
4. Claim Form approved.
5. Class counsel fees approved.
6. Honorarium request denied.