Canadian Imperial Bank of Commerce has agreed to pay a total of $153 million as settlement for a class-action suit filed more than 10 years ago due to the bank’s overtime policies.
A former employee and bank teller of CIBC, Dara Fresco, instituted this action since 2007.
Last year, the Ontario Court of Appeal dismissed an attempt by the bank to overturn a ruling made by a lower-court ruling in favour of the class-action on behalf of about 31,000 bank employees.
Dara Fresco says the settlement is a fair compromise that will bring meaningful compensation to thousands of class members.
Tom Wallis, CIBC spokesperson, emphatically stated that the settlement will avoid further legal costs and allow the bank to put the matter behind it.
The settlement agreement must be endorsed by the Ontario Superior Court before it will become binding.
By this settlement, CIBC will pay a total of $153 million as compensation for approximately 30,000 class members (current and former front-line retail staff) for unpaid overtime, and also used to pay for legal fees and for the cost of distributing the settlement funds.
However, the settlement must be approved by the Ontario Superior Court before it will become binding. A motion will be filed for approval of the settlement, including modalities to distribute the settlement funds and payment of legal fees.
The settlement was reached after more than a decade of litigation, and months of negotiation, which followed decisions on liability by the Ontario Superior Court and Court of Appeal.
The Court had left the calculation of compensation and CIBC’s related defences to a subsequent hearing. However, by this settlement, that is no longer necessary.
Dara Fresco, the former CIBC Bank teller, stated that she was pleased with the settlement. “It is good news for the class to have this case finally resolved”, said Ms. Fresco. “I am very happy that the case is settling. This settlement is a fair compromise that will bring meaningful compensation to thousands of my fellow class members.”
Class Counsel stressed that the settlement will provide a simple and easy payment method for class members. “A big advantage of this settlement is that class members will not have to prove their claims, a task that could be challenging in cases where some claims may go back nearly 30 years.” “We believe that this settlement will put more money into more class members’ hands, a lot sooner, than would happen if the case continued to be fought.”
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