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

STORY AND VIDEO: Just kicking it: Taekwondo centre a mainstay in Prince Rupert

Master Paul Bozman has been at the helm for over three decades

PHOTO GALLERY: Rain doesn’t block the fun at Friendship House party

Annual Block Party offers activities, food and entertainment for all ages

New piece of art bedecks Prince Rupert Library

“The Quilt of Belonging to Prince Rupert” makes long awaited move to its new home

CityWest mistakenly overcharging customers on PST since 2013

Prince Rupert’s telecommunications company sent out notices to residents informing them of the error

Master students in Prince Rupert share their findings for a more sustainable city

Students with Ecotrust Canada’s North Coast Innovation Lab showcase their work at Lester Centre

Heart of Our City: Nobody is perfect, including parents

Sherry Beal has been giving and finding support at Prince Rupert’s North Coast Community Services

WEB POLL: Do you agree or disagree with the council of Port Edward’s decision to deny financial assistance for the feral cats?

A resident asked council for $2,400 to spay, neuter, and care for three feral cats in a colony of 20

The Northern View announces inaugural Tyee Fishing Derby in Prince Rupert

More than $7,000 up for grabs for biggest legal salmon and halibut

The Northern View 2019 Readers Choice

It’s that time of year again! Vote online or at the Prince Rupert office before noon on Aug. 30

B.C. Lions fall to 1-9 after 13-10 loss to Ticats

Lowly Leos have dropped six straight CFL contests

VIDEO: B.C. woman meets biological mother, 38 years later

Mother never gave up hope of finding daughter, despite all the obstacles

B.C. man who died after rescuing swimmer was known for helping others

Shaun Nugent described as a dad, a coach, a hero and ‘stand-up guy’ at celebration of life

B.C. RCMP plane chases fleeing helicopter as part of major cross-border drug bust

The helicopter eventually landed at a rural property near Chilliwack

Thousands cycle to conquer cancer

The 11th annual Ride to Conquer Cancer took place Saturday morning, Aug. 24 in Surrey, B.C.

Most Read