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A trio of judges refused to approve a $30 million class action settlement that would end claims that the Canadian Hockey League failed to pay junior hockey players fairly.
CBC News reports that the judges noted the wording of the agreement was too expansive and could result in Class Members unknowingly releasing the defendants from future claims.
“Class members may be foreclosed from suing the defendants in other class actions for compensation for significant injuries,” stated the order. “A release of the claims in those other actions makes the settlement in the immediate case an improvident settlement and one that is not fair and reasonable, nor in the best interests of the class members.”
The three judges objecting to the settlement are reportedly from Alberta, Ontario, and Quebec.
Class Action Lawsuit Says Players Paid Pittance
Plaintiffs accused the American Hockey League, ECHL, Hockey Canada, NHL, Ontario Hockey League, Quebec Major Junior Hockey League, and WHL hockey leagues of failing to properly classify junior hockey players as employees. According to the class action lawsuit, Class Members were not paid a minimum wage or provided other employment benefits.
According to some players, they were paid as little as $35 a week; however, they were expected to work between 35 and 65 hours each week. They said the unfair treatment was applied to junior hockey players – those between 18 and 20 who played in major junior leagues. The junior hockey league class action lawsuit pointed to European and Russian leagues where young players are considered employees and entitled to pay and other benefits, as well as the ability to sign professional contracts before the age of 20.
CBC News reports that the junior hockey league class action lawsuit was first filed in 2014 and demanded $175 million in damages.
$30 Million Junior Hockey Class Action Settlement
In August of 2020, the parties agreed to a $30 million settlement. Under the terms of the settlement, Class Members were expected to receive approximately $8,400 each. Reportedly, the plaintiffs’ lawyers were set to make $9 million under the terms of the deal.
Class Members included individuals who participated in various junior league hockey teams owned or operated by a defendant in the class action lawsuit.
“We launched these class actions to fight for the rights of the players and to make a positive change,” the lead plaintiffs said in a statement at the time. “We’re proud of what these lawsuits and this settlement have achieved.”
Class Action Settlement Runs into Roadblock
The junior hockey league class action settlement is in jeopardy now, however, as three judges object to its terms. The Star reports that the main objection is because Class Members could inadvertently disqualify themselves from bringing claims for sexual assault, harassment, injuries due to concussions, and anti-competitive claims.
“The class members cannot be unwittingly releasing the defendants from other claims beyond the one being settled,” noted one of the judges.
Lead Plaintiffs Objected to Terms
Two of the lead plaintiffs raised objections to the final release, noting that the wording would release the defendants from any related future claims, reports the Ottawa Citizen.
“To be blunt about it, in the immediate case, in my opinion, once the 11th-hour objection arrived, class counsel should have withdrawn their motion for settlement approval until the matter of the prejudicial scope of the release was resolved,” stated one of the judges who blocked the settlement agreement. “What is required is a renegotiation of the release provisions of the settlement agreement.”
Indeed, North American hockey leagues face legal action over allegations that young players have been physically abused while playing in junior hockey leagues. A former National Hockey League player who came up through the Canadian junior leagues says he and other players were subjected to physical and sexual abuse in a separate class action lawsuit filed in June against the CHL.
Are you a Class Member in the Junior Hockey class action settlement? What do you think of the judges’ ruling? Tell us in the comment section below!
Class Members are represented by Ted Charney of Charney Lawyers PC; James McDonald, Steven Barrett, Jody Brown and Joshua Mandryk of Goldblatt Partners LLP; and by Michel Savonitto of Savonitto & Ass. Inc.
The Canadian Hockey League Minimum Wage Class Action Lawsuits are Samuel Berg v. Canadian Hockey League, et al., in the Ontario Superior Court of Justice, Canada Travis McEvoy, et al. v. Canadian Hockey League, et al., in the Alberta Court of Queen’s Bench, Canada and Lukas Walter, et al. v. Canadian Hockey League, et al., in the Quebec Superior Court of Justice, Canada.
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