QMJHL Hockey Players Minimum Wage Violations Class Action
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QC Oct 04, 2024 [fr]
Jugement demande de rectification -
QC Sep 11, 2024 [fr]
Judgment Confirming New Class Counsel -
QC Oct 22, 2020 [fr]
Judgment Rejecting Proposed Settlement -
QC Sep 13, 2019 [fr]
Demande Introductive d'Instance -
QC Jun 27, 2019 [en]
Judgment Granting Authorization -
QC Jun 27, 2019 [fr]
Jugement sur autorisation -
QC Nov 19, 2018 [en]
Application for Authorization
TO: ALL CLASS MEMBERS
All players who were members of a Quebec Major Junior Hockey League (QMJHL) team located in the provinces of Quebec (1), New Brunswick (2), Prince Edward Island (3), and Nova Scotia (4) between approximately 2011 to 2018
Re: Walter and Gobeil vs. Quebec Major Junior Hockey League Inc. et al.
Superior Court of Quebec, District of Montreal, Court File Number 500-06-000716-148
__________________________________________________________________
Dear QMJHL former player Class Members,
We Want Your Opinion
We hereby request everyone’s opinion on whether to: (i) oppose the proposed settlement and proceed to a trial on the merits of the case; or (ii) to allow the proposed settlement to proceed and be approved, thereby terminating the class actions.
The Representative Plaintiffs in the present Quebec Court action will be contesting the proposed settlement and will ask that it be rejected on the grounds that:
a) the CHL misrepresented their financial position, and should have paid much more than the proposed settlement provides for – more specifically, the leagues failed to disclose a “slush fund”, to which they have access to through Hockey Canada, in the amount of $119 million (CBC reported in July 2022, that those investments are valued at $153 million in stocks, bonds, cash and other assets)(5), up to 40% of which came from CHL players’ participation in the World Junior Championships;
b) the proposed settlement does nothing to change the culture and systemic financial abuse that the players of major junior hockey continue to be subjected to – more specifically, there is no behaviour modification that would improve the mental and physical health, safety, and economic well-being of the players; and
c) the proposed settlement does not compensate anyone who has signed an NHL contract, as they will not be eligible to make a claim (and so, they will receive $0). (6)
While always a risk, the Representative Plaintiffs in the present Quebec Court action believe that if the case is successful at trial (which, of course, cannot be guaranteed), the potential award will be in excess of $70 million plus interest (which could bring the total judgment to more than $100 million); the average payout per player under this best-case-scenario would be between $41,000-$58,750. On the other hand, under the proposed settlement, QMJHL Class Members will receive approximately $7.86 million; the average payout per player under the proposed settlement will be around $4,618. (7)
Background Information
On September 11, 2024, the Quebec Court of Appeal confirmed that the undersigned lawyer has been appointed as Class Counsel to represent the Representative Plaintiffs in the present Quebec class action (see Walter c. Savonitto et Ass. inc., 2024 QCCA 1170). The Court of Appeal confirmed that the Representative Plaintiffs in the present Quebec Court action were permitted to fire their previous lawyers because they insisted on presenting the proposed settlement for approval against their clients’ clear instructions.
As many of you are not aware of this class action lawsuit, this is a case whereby it is alleged that the Class Members, who were hockey players, were entitled to be – but were not – paid minimum wage, overtime pay, and other standard employment benefits under provincial employment legislation.
There are 3 interrelated class actions that were filed against the Ontario Hockey League (OHL) in Ontario (8), the Western Hockey League (WHL) in Alberta (9), and the Quebec Major Junior Hockey League (QMJHL) in Quebec (10) – all leagues under the umbrella of the Canadian Hockey League (CHL).
It is estimated that the class members of all 3 cases are made up of the following persons:
League | Affiliate Players (11) | Regular Players | Total Class Size |
---|---|---|---|
OHL | 273 | 1,175 | 1,448 |
WHL | 214 | 922 | 1,136 |
QMJHL | 322 | 1,380 | 1,702 |
TOTAL | 809 | 3,477 | 4,286 |
The Ontario class action was certified on April 27, 2017, the Alberta class action was certified on June 15, 2017, and the Quebec class action was authorized on June 13, 2019.
A $30 million proposed settlement agreement was signed on March 31, 2020. With interest, the settlement fund is now $33,153,940. After all deductions, such as legal fees, disbursements, levies, administrative expenses, and sales tax, the net settlement fund is estimated to be approximately $19.8 million, which is to be distributed to eligible class members; class members will be compensated based on their duration of time in the CHL (the average hockey career was 2.34 seasons). The proposed settlement is subject to court-approval in all 3 jurisdictions.
On October 22, 2020, the Courts in Ontario, Quebec, and Alberta rejected the proposed settlement because the scope of the release contained in the agreement was overly broad, as it could be used to bar class members from suing in other actions for claims of: (a) damages from brain concussions; (b) damages for sexual assaults and physical harassment; and (c) damages from anti-competitive behaviour.
On May 25, 2023, an Amendment Agreement was signed by all of the parties, which modified the release language of the previous settlement. On March 15, 2024, the Ontario Court approved the proposed settlement. On April 15, 2024, the Alberta Court approved the proposed settlement.
What You Can Do to Help (if you choose to)
The Superior Court of Quebec has not approved or rejected the proposed settlement, as the Representative Plaintiffs in the present Quebec Court action have refused to present the proposed settlement for approval. It is expected that the QMJHL and other defendants will try to present the proposed settlement for approval in early 2025, while the Representative Plaintiffs in the present Quebec Court action will fight to have it dismissed, and instead, ask the Quebec Court judge to proceed to a trial.
The criterion that the Quebec Court will evaluate in accordance with the case law is: What is in the best interests of Class Members – to have the proposed settlement approved or rejected?
We believe that one of the key factors will be: What do Class Members want – to proceed to a trial or to settle? After all, it is your case and you should decide your future.
If you wish to support the Representative Plaintiffs in the present Quebec Court action, make your voice heard. You can do that by:
a) signing the petition to reject the proposed settlement, which was started by the Representative Plaintiffs in the present Quebec Court action; or
b) giving your opinion in writing on what you think of the proposed settlement (in a letter or by signing an sworn declaration); or
c) telling the judge orally what your opinion is (at a court hearing).
If you are interested, please volunteer to do whatever you are capable and comfortable with.
If any Class Member wants to speak to me, feel free to email me at jorenstein@clg.org or call me toll-free at 1-888-909-7863 or (514) 266-7863 extension #2.
1. The class period is October 29, 2011 to June 12, 2018, with the exception of 9264-8849 Quebec Inc., which has a class period of November 5, 2011 to June 12, 2018.
2. The class period is October 29, 2012 to July 28, 2017.
3. The class period is October 29, 2012 to October 28, 2017.
4. The class period is October 29, 2012 to July 4, 2016.
5. https://torontosun.com/sports/hockey/special-report-part-3-nothing-wrong-with-existence-of-hockey-canadas-unfairly-described-slush-fund-but
6. It is estimated that approximately 163 to 232 of the class members have signed NHL contracts.
7. Based on a prediction of how many players will actually make claims, estimates were made that the average hockey player would recover $12,133 based on a 45% take-up or $8,381 based on a 65% take-up.
8. Berg v. Canadian Hockey League et al., Ontario Superior Court of Justice, Court File No. CV-14-511423-00CP.
9. McEvoy et al. v. Western Hockey League et al., Court of Queen’s Bench of Alberta, Court File No. 1410-11912.
10. Walter et al. v. Quebec Major Junior Hockey League Inc. et al., Superior Court of Quebec, Court File Number 500-06-000716-148.
11. An affiliate player is a player called up from a lower league to play up to a maximum of five games with a team in the major junior league. An affiliate player who does not become a regular player and returns to the lower leagues.