According to a March 25 news release, the province’s government announced it has come to a “historic” settlement with children in care — to the tune of $530 million — in relation to “the province’s actions and policies relating to the administration of Children’s Special Allowances (CSA) from Child and Family Services (CFS) agencies between 2005 and 2019.”
The release, which was issued on behalf of Manitoba’s government and the Manitoba Métis Federation, notes that three certified class actions had been launched against the province, with plaintiffs seeking damages “for Manitoba’s breach of the Charter rights of vulnerable children.”
The government’s decision to settle comes after a judge reportedly ruled that a provincial order requiring CFS agencies to give federal funding from the Children’s Special Allowance back to the provincial government was unconstitutional and that it unlawfully withheld money from kids in care.
The release goes on to state that the settlement, still subject to court approval, “will compensate every child affected by the CSA policy including interest and additional monies for other damages and costs through the creation of a resolution fund.”
Legislation out of Ottawa dictates that federal CSA payments are to be made to CFS agencies “as an equivalent to the Canada Child Benefit received by parents in Manitoba.” Those CSA benefits are then to be used for the care, education and “advancement” of children in care.
But between 2005 and 2019, the province made CFS agencies pay $335 million of those federal benefits back to Manitoba’s “general revenue.”
The government ended the practice in 2019.
In the release, Manitoba’s government acknowledged it passed legislation in 2020 that exempted it from legal responsibility and that the move prompted a constitutional challenge, with a judge ultimately finding that “Manitoba’s CSA policy and related legislation exacerbated the already significant disadvantages experienced by children in care.”
As a result, the judge found, it breached their Charter rights against discrimination.
The province had reportedly defended itself by arguing it was entitled to the money because it was paying for the children’s care.
Manitoba Families Minister Nahanni Fontaine said the settlement is an example of “reconciliation through action.”
“Our government believes that every child matters and this agreement is an important step forward,” said Fontaine in a statement. “This money was supposed to be used for the advancement for some of the most vulnerable children in our society, and it was taken from them. This settlement is an example of how our government is prioritizing reconciliation through action.”
Similar lawsuits are reportedly unfolding in Alberta and Saskatchewan.
If you have any information, story ideas or news tips for Law360 Canada, please contact Terry Davidson at t.davidson@lexisnexis.ca or 905-415-5899.