Kitec Class Action Lawsuit Settlement Payout Delayed

Canadians are frustrated about the delays in the Kitec class action lawsuit settlement payout. It has been nearly nine years since Canadian and U.S. courts approved the $125-million Kitec class action settlement, but some people are still waiting for their reimbursements. The claims period closed in January of this year. 

The Kitec class action settlement went into effect on Jan. 10, 2012, and although there are millions of dollars at stake, less than $3 million had reportedly been paid out to claimants as of January 2019. 

Kitec Class Action Lawsuit Settlement Eligibility

Canadian homeowners with Kitec plumbing who experienced costly leaks or floods as a result of faulty plumbing were eligible to file a claim in this class action lawsuit settlement. 

An reported estimate has projected that 292,000 North Americans have Kitec plumbing installed, but the exact number of homes in Canada equipped with the Kitec pipes is unknown.

Kitec is known as an inexpensive and easy to install substitute for copper pipes. The plumbing was mostly installed in hot water baseboard or in-floor heating and may be labelled with another brand name PlumbBetter, IPEX AQUA, or WarmRite. Kitec plumbing was popularly used in the late 1990s and early 2000s. 

Partial Compensation Has Been Deliberate 

Homeowners started off getting 50% of their compensation in the Kitec class action settlement.

Since 2012, 4,412 homeowners in North America have filed a claim and received partial compensation for their failed Kitec plumbing caused leaks or flooding.

485 Canadians have reportedly been paid $688,022.68, as of 2019. Most claimants received compensation in the hundreds or low thousands, but one claimant received $149,803.92.

Therefore, only a small portion of the $97.7 million has been paid out since May 2018.

According to lawyer David Robins, the compensation payments have deliberately been “very modest because they’re only intended to provide some partial compensation on an interim basis until we had a sense of the class size and the number of people who were seeking compensation,” as reported by CBC News.

Reasons for Kitec Class Action Settlement Payout Delay

Lawyer for the Kitec class action lawsuit settlement, David Robins said that claims that were filed before the deadline have been processed, but some claimants’ information has yet to be turned in, slowing some claims down. 

Mr. Robins also suspects that Canadians just do not know about the settlement, so merely a fraction of eligible homeowners filed a claim. 

Class action lawyer and Dalhousie University professor Mike Dull explains that many people are confused or unsure about how class actions work.

He explains, “And so class members, folks who are entitled to compensation under a settled class action, are often then subjected to a land of confusion,” reported CBC News.

According to Dull, many people do not know they are a part of a class action lawsuit because only a few people need to start one, but everyone who has dealt with the same problem is included without having to take action. 

The individual claimants must take action and file a claim when the class action settlement is approved in court. Class action settlement money cannot be paid out until each claimant has filed, so the process can take a while. 

In regards to the Kitec class action settlement, Dull said, “Then the claims administrator is obligated to distribute the funds among the number of applicants, prorated to the degree that each claim is valued,” according to CBC News.

However, he added that the eight-year-long Kitec class action lawsuit settlement is an exceptionally long time, but also happens rarely.

One Claimant Reportedly Says It’s Too Much Paperwork

Claimant Jack Patriquin of Sutherland Lake, N.S., has Kitec plumbing installed in his home and has not filed a claim for compensation because it was a hassle.

Jack requested a claim and said he was given “reams of paper” to fill out and complete, so he decided that filing a claim was not worth his time, CBC News reported.

Although he had to repair many Kitec leaks, he said hiring a lawyer to help with the paperwork would not be worth it.

David Robins agreed that many potential claimants feel that the paperwork is daunting, but more compensation could be coming now that the claims period has closed. The courts will decide how much more money claimants will get.

Top Class Actions will post updates on this Kitec class action settlement as they become available. Click on the “Follow Article” at the top of this page to get the latest updates about the Kitec class action settlement by using your free Top Class Actions account. For the latest updates, keep checking ca.TopClassActions.com or sign up for our free newsletter.

This isn’t the only class action lawsuit settlement payout facing delays. Sixties Scoop survivors’ settlement checks have also been delayed due to obstacles created by COVID-19.

What do you think about the Kitec class action lawsuit settlement being delayed? Have you experienced delays in a payout you are owed? Tell us your story in the comment section below!

The Class Members are represented by David Robins of Strosberg Sasso Sutts LLP.

Read More Lawsuit & Settlement News:

Aviva Insurance Denied Coverage Amid COVID-19 Sparks Class Action Lawsuits

Long Term Disability Lawyer | Insurance Claim Denial Help

Former Canadian Armed Forces Class Action Lawsuit Filed Over Retirement Benefit Program

Pandemic Business Interruption Insurance Canada Potential Lawsuit