Known as the largest class action lawsuit in Canada, the Indian Residential Schools Settlement Agreement (IRSSA) aimed to bring justice and support to its survivors and their families. This agreement marked a turning point for survivors and the nation, not to mention its major impact on the law of class actions in Canada. In this article, we will discuss class actions and the legal impact of IRSSA as one of the largest settlements in Canadian history.
What is a class action?
The IRSSA is the result of a class action. It began as individual lawsuits filed by former students at residential schools. A class action is a case filed on behalf of many people, or a group of persons (the plaintiffs), claiming to have been harmed by a similar entity or person (the respondent).
These lawsuits are recognized in Canada as a way for plaintiffs to recover damages and other relief against the respondent. The cause of action can be based on the plaintiff’s rights or the respondent’s responsibility or negligence that caused harm.
What is the largest class action lawsuit in Canada?
There are many large class action settlements across Canada’s history, based on the size of the settlement and the social impact they had after the award. Historically, the case of the IRSSA is one of the largest class action lawsuits in Canada.
It is the largest class action settlement in Canada, considering the:
- number of the individual plaintiffs or claimants in the case
- amount reached by the settlement, which is relatively large at that time
- effect on the relationship between the government and Indigenous Peoples
Here’s a video that shortly explains what Indian residential schools are:
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Historical background of the IRSSA
The IRSSA has deep roots in Canada’s history and for the Indigenous Peoples. In 1828, residential schools were opened across Canada. They were funded by the Canadian government but dominantly run by Christian churches.
The main objective of this system of “boarding schools” is the cultural assimilation of Indigenous Peoples – the First Nations, the Métis, and the Inuit peoples – into modern Canadian society. Under the Indian Act, families of Indigenous Peoples were “legally forced” to send their children to these residential schools. Around 150,000 Indigenous children were housed in these schools, until the last one was eventually closed in 1996.
Numerous abuses were recorded based on the accounts of the former Indigenous students at these residential schools. The list of abuses included physical, mental, and sexual abuse and harassment of children, mainly committed by the school’s administrators and teachers. These are in addition to the sufferings by the Indigenous children due to the poor living conditions in these schools and by the fact that they were separated by the government from their families and their culture.
While it started as separate individual lawsuits, survivors of these residential schools later on filed a class action lawsuit against the federal government. In 2006, an agreement was reached for the IRSSA compensation package between the plaintiff-survivors and their representatives, the Canadian federal government, and the Christian churches involved.
How much was the settlement of the largest class action lawsuit in Canada?
To compensate the former students at these Indian residential schools, the designated amount under the IRSSA was at $1.9 billion (called the Common Experience Payment). This was the largest settlement at that time, considering that although it was approved in May 2006, its implementation only began in September 2007.
Not only did IRSSA settle the amount of payment to the former students, but it also has other components aimed at healing and reconciliation for the survivors and their families. Each component has separate allotted budgets, which are largely provided by the Canadian government, with contributions from the Christian churches involved in residential schools.
The components of IRSSA are the following:
- Common Experience Payment (CEP): $1.9 billion budget for the blanket compensation for former eligible students
- Independent Assessment Process (IAP): $960 million budget for the compensation of students who were survivors of abuses and other wrongful acts
- Truth and Reconciliation Commission (TRC): $60 million budget to document and preserve the stories and accounts of survivors through the TRC
- Aboriginal Healing Foundation (AHF): $125 million allocated grant for the establishment of the AHF
- Commemoration Fund: $20 million budget for national and community commemorative projects
While the CEP is the main agreement of the IRSSA, including the other components would result in a total amount of around $3.6 billion for the whole IRSSA. This makes IRSSA the largest class action lawsuit in Canada. It has already spanned several decades from filing, negotiations, and compensation roll-out.
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Common Experience Payment (CEP)
The CEP and the IAP are two financial compensation components of the IRSSA. Under the CEP, eligible former students from the 139 recognized Indian Residential Schools, who were still alive on May 30, 2005, received a lump-sum payment as compensation. The average CEP payment per eligible former student was $20,457.
Personal credits were also given to the CEP recipients. These credits could be used for educational programs and services. They may also be transferred to the recipient’s family members.
Independent Assessment Process (IAP)
The goal of the IAP was to settle the claims of former students for the sexual abuses, serious physical abuses, and other wrongful acts they suffered in residential schools.
While the $960 million was the IAP’s initial budget, applications and approved claims increased, spanning several years of claims and reconciliation processes. Here are the numbers according to a 2021 report of IAP’s Oversight Committee:
- 38,276 claims filed
- 25,707 hearings held
- $3.233 billion in awarded compensation
For each eligible former student, the average IAP payment was $111,265.
Truth and Reconciliation Commission (TRC)
Although the IRSSA was financially the largest class action settlement in Canada, other non-financial conditions were also present in the agreement. One was the establishment of the TRC, whose goals were to:
- manage the commemoration activities, along with the former Aboriginal Affairs and Northern Development Canada (AANDC)
- receive and review proposals for commemoration that they met the program objectives under the IRSSA
The Canadian government set aside $20 million to fund 144 commemoration projects. The amount was already allocated by March 2014. On the same month, TRC’s final national event was held in Edmonton, Alberta.
Aboriginal Healing Foundation (AHF)
Founded in 1998 as mandated by the IRSSA, the AHF aimed to support the healing of former students through several programs. This Indigenous-led non-profit organized and funded community healing programs throughout the country and researched the long-term community and health impacts of residential schools.
Some of its activities included:
- organized and funded community healing programs throughout the country
- researched the long-term community and health impacts of residential schools
The AHF ceased operations, along with its funding, on September 30, 2014.
Resolution Health Support Program
Another part of IRSSA’s healing aspect was the creation of the Resolution Health Support Program. The program provided several support services to those who participate in the different components of the IRSSA.
Commemoration Fund
Commemorative projects were funded by the $20 million budget under the IRSSA, with the TRC reviewing and recommending proposals, and AANDC allocating the funds. Although funding has ended, commemorative work continues through government initiatives and private efforts.
National Commemorative Marker Project
One example of a commemoration project funded by the IRSSA was the National Commemorative Marker Project. This joint initiative by the Assembly of First Nations and the Aboriginal Healing Foundation received $1.6 million in funding and placed commemorative markers at IRSSA-recognized residential schools throughout Canada.
National Day for Truth and Reconciliation
In relation to the commemoration of the victims of residential schools and the recognition of their experiences, the National Day for Truth and Reconciliation is held every September 30. Also called Orange Shirt Day, it became a statutory holiday in 2021.
Largest class action lawsuit in Canada: Lessons from the past
The largest class action lawsuit in Canada left a mark that goes beyond courtrooms and payments. It helped create new programs for healing, education, and commemoration. These efforts continue to support survivors and their families today.
The IRSSA also sparked a national conversation about truth, justice, and respect for Indigenous communities. While challenges remain, the agreement’s legacy is a reminder that facing hard truths can lead to real change for everyone.
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