Lawsuit settlements cost federal government more than $575M in 2015
Despite a legion of taxpayer-funded lawyers, federal documents show the government shelled out more than $575 million as a result of lawsuits brought against it in the last fiscal year.
The payments, which included damages awarded by the courts as well as out-of-court settlements, were for everything from accidents involving government vehicles to abuse claims from indigenous Canadians to the use of excessive force by the RCMP and Correctional Services officers.
There were also numerous disputes between the federal government and private companies, and between the government and its own employees.
Meanwhile, the government had a mixed record when using the courts to recover millions of dollars lost to tax evaders, fraud and smuggling. The government estimated more than $121 million was lost through such crimes in 2014-15.
The figures are contained in the most recent Public Accounts, an annual report tabled in the House of Commons that gives a comprehensive breakdown of all federal government revenues and expenditures in the last fiscal year.
All told, the federal government paid more than $547 million in out-of-court settlements last year and only $32 million in actual court-awarded damages.
By far the largest group of payments was $377 million to settle more than 3,600 abuse claims filed by aboriginals. These were part of the $1.9 billion in compensation set aside by the previous government for those who were forced to attend a residential school.
Among the other notable out-of-court settlements were:
- Nearly $73 million to settle a class-action lawsuit for more than 1,000 disabled RCMP veterans whose disability benefits were clawed back;
- Almost $50 million to settle a class-action lawsuit for an estimated 14,000 disabled military veterans whose disability benefits were clawed back;
- More than $11 million to a B.C. developer, K & L Land Partnership, which sued after buying some land near Vernon from National Defence that turned out to still contain Second World War-era explosives;
- More than $5.2 million for dozens of motor vehicles crashes involving the RCMP that caused bodily injuries;
- More than $2.5 million for more than 20 cases in which RCMP were alleged to have caused personal injury, used excessive force, or falsely arrested someone;
- More than $3 million to two companies that specialized in equipping and guiding hunters in Alberta and B.C. that sued Parks Canada;
- And $1.7 million to Benamar Benatta, an Algerian refugee who was turned over the U.S. after the 9/11 terrorist attacks on suspicion of being a terrorist. Benatta is now a Canadian citizen.
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