Feds sued for short-changing disabled veterans and alleged cover-up

Lawsuit follows error government admits making in 2002

The federal government knowingly short-changed hundreds of thousands of disabled veterans and RCMP members about $165 million in benefits, a proposed class action filed in Federal Court on Friday asserts.

The unproven claim, which seeks $600 million in damages, accuses the government of negligence and breach of contract among other things. It also wants the court to order the government to pay the owed benefits with interest.

“Canada’s calculation error has resulted in loss to vulnerable eligible members who rely on benefits to survive,” the suit alleges. “Canada has known about the calculation error for years but it has not taken appropriate steps to rectify its conduct.”

The lawsuit, which has yet to be certified as a class action, follows a calculation error the government admits making in 2002. As a result, as many as 270,000 veterans and others receiving a disability pension or benefits were shortchanged until 2010, when the mistake was discovered.

READ MORE: Feds promise $165 million in compensation after shortchanging 270,000 veterans

However, according to the statement of claim, Ottawa allegedly hid the error until this past November — disclosing it only after veterans ombudsman Guy Parent said his team had stumbled upon the problem while looking at another issue and flagged it to the government.

“In 2010, the defendant discovered the calculation error (but) failed to announce this error,” the claim asserts. “The defendant chose not to disclose or rectify the error.”

In a statement, Veterans Affairs Minister Jody Wilson-Raybould said she was committed to ensuring those affected would receive their rightful entitlement.

“When the ombudsman brought this to our attention in 2018, we did a detailed review and worked to secure up to $165 million for those retroactive payments,” Wilson-Raybould said Friday. She said she could not comment further given the legal action.

As many as 120,000 people affected may have died without receiving any of the owed money. The government has said their estates would be entitled to the backpay.

The proposed representative plaintiff is Jean-Francois Pelletier, of Dartmouth, N.S., who served with the navy from 1986 to 2005 and was deployed to the Gulf region in 2002, according to the court filing. Pelletier had injured his foot early in his career and he was ultimately given a monthly, indexed disability pension of about $2,000.

Last week, a Calgary-based law firm filed a similar claim in Federal Court on behalf of another former soldier, CBC News reported.


Like us on Facebook and follow us on Twitter.

Just Posted

Alberta’s 47 legislature newbies meet under the dome for orientation day

Most new members are with the United Conservatives, who won a majority government

OPINION: Jason Kenney won by portraying himself as the Guardian of Alberta

How did Kenney do it? He never considered himself an opposition leader and didn’t pretend to be one.

Kenney talks pipelines with Trudeau after election win, calls it cordial

Almost a year ago Kenney dismissed Trudeau as a dilettante and a lightweight

Nixon elected according to Global News

Nixon surges ahead in 15 ridings

VIDEO: Police dog in Oregon struck by 200 porcupine quills during pursuit

The German shepherd had to be sedated and was in treatment for more than two hours

Wilson-Raybould: Feds want to just ‘manage the problem’ of Indigenous Peoples

Former federal justice minister speaks at First Nations Justice Council meeting in B.C.

Oil and gas company confirms death of one of its employees in Yoho avalanche

Dana Coffield died when he was skiing in the Rocky Mountains

Cenovus CEO estimates production curtailments will deliver billions to taxpayers

The curtailment program started Jan. 1 was designed to keep 325,000 barrels per day off the market

Robbery in Leduc County estimated at $40,000

Leduc RCMP investigate break and enter and theft of firearms

Singh says childhood abuse steeled him for scrutiny and stress of politics

He recounts the assaults for the first time in his book Love & Courage

Despite five extra weeks’ parental leave in Canada, dads still face stigma: survey

One reason people said dads don’t need leave is because they can just bond with their kids at weekend

Calgary’s public school board responds to Syrian child’s suicide after bullying

Amal Alshteiwi, a newcomer to Canada from Syria, took her own life several weeks ago

Child, 11, accidentally shot in the chest at Alberta religious colony

Child taken from Hutterite colony to nearby hospital

Most Read