Superior Court decision advances $200M basic income lawsuit
Class-action suit seeks damages from province, citing sudden cancellation of program causing significant emotional and financial harm
The superior court has given the green light for participants in the Ontario Basic Income Pilot to move forward with their lawsuit.
The provincial government is facing a class-action lawsuit, brought on behalf of 4,000 individuals who had participated in the pilot, which launched in 2017. Meant to last for three years, it was cancelled in July 2018.
On March 4, the Ontario Superior Court of Justice released a decision certifying the class-action lawsuit. The suit, brought forward by Lindsay residents Dana Bowman, Grace Hillion, Susan Lindsay and Tracey Mechefske, who were participants in the program, seeks damages of up to $200 million.
The project was introduced with the goal of studying the impacts of a basic income. Approximately 4,000 Ontarians living in Lindsay, Hamilton and Thunder Bay enrolled in the pilot, and agreed to receive monthly payments for a three-year period.
In exchange for the monthly payments, members opened their lives up to the researchers.
The lawsuit alleges the Province of Ontario breached the terms and conditions of the contract it entered with the 4,000 Class Members by ending the three-year program early, payments ceased March 2019.
“I was angry, I was anxious, and I wasn’t sleeping,” stated Mechefske in a press release.
When asked for a comment, the province stated none would be provided as the matter is before the courts.
Mechefske started her own natural skin care products business with the income she was receiving through the program. The cancellation eliminated her ability to fund the business and pay down the debt she accumulated to purchase materials.
To make matters worse, Mechefske says she was actively involved in recruiting others in her community to sign up for the program.
“I convinced a lot of people that this would better their lives, that’s one of the reasons I’m so passionate about fighting this. It wasn’t just me who got hurt, everybody I encouraged to sign up got hurt too,” added Mechefske.
Many people, like Bowman, had signed up for the program in the hopes of gaining dignity, hope and “financial stability.”
Prior to participating in the pilot, Bowman was receiving Ontario Disability Support Program (ODSP) benefits. She has since returned to ODSP and receives about $700 per month, half of what she was receiving under the pilot.
“The Basic Income Pilot allowed me to help care for my grandchildren. I could travel to my daughter’s home to spend the weekend, bring groceries, and have a family meal. I was able to contribute to her dinner table, I wasn’t taking from my grandchildren. Now I feel like I’m a burden,” admitted Bowman.
Subject to any appeals, the class action will now move onto the second stage, which is the common issue trial.
“This is where we ask the court to decide the legal issues that were certified. In this case, that means the court will determine, among other things, whether or not there was a binding contract between the government and all class members, such that the government owes damages for breaching the contract,” explained Stephen Moreau, a partner at Cavalluzzo LLP and lead counsel for the plaintiffs.