Haventree Mortage Renewal Settlement

Q

Haventree Mortgage Renewal Settlement

Frequently asked questions (FAQs)

1. What is this class action about?

The individual who filed this lawsuit is referred to as the “Representative Plaintiff,” and the company she sued, Haventree Bank, also known as Banque Haventree, (“Haventree”) is called the “Defendant” (the Representative Plaintiff and the Defendant are, together, the “Parties”).

The Representative Plaintiff alleges that the Defendant breached the terms of its contracts with Settlement Class Members in connection with the involuntary and/or automatic renewal of certain mortgages without the Settlement Class Members’ consent, resulting in additional interest, costs and fees.

The Defendant denies all of the allegations against it. None of the allegations against the Defendant have been proven and the Defendant has not been found liable for any of the claims raised in this lawsuit. The Parties have instead agreed to settle the lawsuit. The terms of the Settlement are summarized in the Notice of Settlement Approval. To view the Settlement Agreement, please click here.

2. Why is there a Settlement?

The Parties have agreed to the Settlement to avoid the cost and risks of further litigation, including potential trials, and to provide Settlement Class Members with reasonable Settlement benefits without the delay and uncertainty of trial. The Settlement does not mean that the Defendant broke any laws or did anything wrong, and the Court did not decide which side was right. The Defendant denies all allegations made in the lawsuit.

The Parties entered into a Settlement Agreement. The Representative Plaintiff and the lawyers representing her (called “Class Counsel”) believe that the Settlement is fair, reasonable, and in the best interests of the Settlement Class, and the Court has agreed.

The Settlement Agreement, including its schedules, describes in greater detail the rights and obligations of all the Parties and is available here. If there is any conflict between this FAQ Section and the Settlement Agreement, the Settlement Agreement governs.

3. What happened at the Settlement Approval Hearing?

On June 28, 2024, the Court held a hearing to decide whether to approve the Settlement, the Class Counsel Fees request, and the Honourarium.

On July 2, 2024, the Court approved the Settlement as being fair, reasonable and in the best interests of the Settlement Class. The Court also approved the Class Counsel Fees request. The Court did not approve the requested Honourarium.

To view the Settlement Approval Order and/or other Settlement material, please click here.

4. How do I know if I am part of the Settlement?

You are a Settlement Class Member if you are a person in Canada (including his/her/their heirs, estates, executors, trustees or personal representatives):

whose mortgage held by the Defendant was involuntarily and/or automatically renewed, and
who paid any amount of interest, costs and fees as a result.

Not all Settlement Class Members are eligible to receive Settlement benefits. Some exceptions apply (see question 5 below).

5. Who is excluded from the Settlement?

Only Settlement Class Members who meet certain criteria are eligible to submit a Claim in the Settlement. You are excluded from making a Claim in the Settlement if you previously settled claims against the Defendant and executed a release in favour of the Defendant in relation to matters that are the subject of this Action.

6. What should I do if I’m still unsure if I’m included?

If you are not sure whether you are included in the Settlement Class, you can ask for free help by emailing the Claims Administrator at info@haventreemortgagerenewalsettlement.ca for more information.

7. Why did I receive the Notice of Settlement Approval?

The purpose of the Notice of Settlement Approval is to inform you that the Ontario Superior Court of Justice has approved the nationwide Settlement reached in a class action lawsuit against Haventree. The lawsuit alleges, and Haventree denies, that Haventree breached certain legislation and/or the terms of its contracts with Settlement Class Members in connection with the involuntary and/or automatic renewal of certain mortgages, resulting in additional interest, costs and fees. Haventree denies any liability whatsoever and has not been found liable for any of the claims advanced in the lawsuit. The Parties have instead reached a voluntary Settlement.

The Notice was sent to anyone listed in the Defendant’s and Class Counsel’s records as a potential Settlement Class Member. You may be eligible to receive a cash payment if you submit a valid and timely Claim to the Claims Administrator.

To view the Notice of Settlement Approval, please click here.

8. What does the Settlement provide?

Under the Settlement, the Defendant and its insurer will pay an all-inclusive amount of $1,500,000 to pay the successful Claims of Settlement Class Members; Administration Expenses; Class Counsel Fees in the amount of $450,000 plus HST of $58,500 and disbursements of $50,000; interest; and all applicable taxes. After deduction of the approved Class Counsel Fees, the estimated Settlement Amount remaining to pay the successful Claims of Settlement Class Members, Administration Expenses, interest, and all applicable taxes is $941,500.

Under the Settlement, Settlement Class Members may be eligible for a Settlement Payment, provided that they submit a valid and timely Claim. The quantum of the payments to Settlement Class Members with Approved Claims will not exceed $5,000 per mortgage, but could be less than that amount per mortgage. This amount will be divided evenly between any Settlement Class Members with Approved Claims related to the same mortgage.

After satisfying all Approved Claims, any excess or remaining amount of the Settlement Amount will be donated to a cy-près recipient – a charitable organization – to be jointly agreed to by the Parties and approved by the Court.

9. What is a cy-près recipient?

When a class action settles, it is possible that some of the money will be unclaimed by class members and remain in the settlement fund. This happens when, for example, some class members do not cash their settlement cheques or are unreachable. Donating unclaimed and/or leftover money to a cy-près recipient – a charitable organization – is a way for this extra money to be put to good use.

After satisfying all Approved Claims, any excess or remaining amount of the Settlement Amount will be donated to a cy-près recipient – a charitable organization – to be jointly agreed to by the Parties and approved by the Court.

10. Can I opt out of (exclude myself from) this class action?

The deadline to opt out of this matter was June 4, 2024. As this deadline has passed, any Settlement Class Member who did not opt out is bound by the terms of the Settlement.

11. Who represents the Settlement Class Members?

The law firms representing the Settlement Class are listed below.

Landy Marr Kats LLP

2 Sheppard Ave E, Suite 900

Toronto, ON M2N 5Y7

Tel: 416-221-9343 ext. 250

Email: haventreebankclassaction@lmklawyers.com

McKenzie Lake Lawyers LLP

140 Fullarton Street, Suite 1800

London, ON N6A 5P2

Tel: 1-844-672-5666

Email: christina.noble@mckenzielake.com

You will not be charged for contacting these lawyers about this case. If you want to be represented by your own lawyer, you may hire one at your own cost.

12. How will the lawyers representing the Settlement Class Members be paid?

Class Counsel worked on a contingency-fee basis, meaning that no fees were charged at any stage of the lawsuit until after the Settlement Agreement was approved. After the Court approved the Settlement Agreement, the Court approved Class Counsel Fees in the amount of $450,000 plus HST of $58,500 and disbursements of $50,000. The Court determined that this amount is fair and reasonable. It will be paid out of the $1,500,000 Settlement Amount.

13. What if I don’t want to participate in the Settlement?

The opt-out deadline (June 4, 2024) has passed, and Settlement Class Members are no longer able to opt out (exclude themselves) from the Settlement. If you do not want to participate in the Settlement, you are not required to submit a Claim.

Settlement Class Members who did not opt out gave up the right to sue the Defendant about any of the claims resolved by this Settlement. If you have a pending lawsuit against the Defendant about these claims, speak to your lawyer immediately.

14. How do I make a Claim?

The period for submitting a Claim begins on August 16, 2024 and runs until May 16, 2025. During that period, you may make a Claim by filling out the Claim Form and submitting it to the Claims Administrator, by mail or email, on or before May 16, 2025.

To request a copy of the Claim Form, you can contact the Claims Administrator by email (info@haventreemortgagerenewalsettlement.ca), visit this website, or contact Class Counsel using the contact information on this page.

Please keep a copy of your completed Claim for your own records. Your completed Claim Form, and any other documents you submit with it, will not be returned to you.

If you fail to submit a Claim Form on or before May 16, 2025, you will not be eligible for any distribution from the Settlement. Sending in a Claim Form late will be the same as doing nothing.

15. What happens if I do nothing at all?

If you do nothing at all, you will not receive any Settlement Payment from the Settlement. In order to receive a Settlement Payment, you must submit a valid and timely Claim Form to the Claims Administrator by May 16, 2025. Unless you excluded yourself (opted out), you will not be able to start a lawsuit, continue a lawsuit, or be part of any other lawsuit against the Defendant, or other related entities or individuals, about the legal issues in this case.

However, even if you take no action, you will keep any right to sue the Defendant for any other claims not resolved by the Settlement, subject to any applicable limitation periods.

16. How will the Settlement benefits be distributed?

For details about the process for evaluating Claims and distributing Settlement benefits, please view the Distribution Protocol.

17. If my Claim is successful, when will I receive my Settlement Payment?

The Claims Administrator will mail individual Settlement Payment cheques to successful Claimants at the mailing addresses indicated in the Claim Forms.

The Claims Administrator cannot mail the individual Settlement Payment cheques until (i) all timely Claim Forms have been processed; (ii) the time to request a reconsideration has expired; (iii) all requests for reconsideration have concluded; (iv) the Claims Administrator has reviewed its determinations and has allocated amounts to successful Claimants; and (v) the Claims Administrator has prepared a Successful Claims Report advising the Defendant and Class Counsel of the Approved Claims and the Settlement Payment amount to be paid to each successful Claimant. The Claims Administrator will mail the individual Settlement Payment cheques within sixty (60) days of completion of the Successful Claims Report. This process will take some time, and your patience is appreciated.

When the cheques have been mailed, an announcement will be posted on the websites of Class Counsel (https://thetorontolawyers.ca/classactions/haventree-bank/ and https://www.mckenzielake.com/haventree-automatic-mortgage-agreement-renewals/) and the Claims Administrator (www.haventreemortgagerenewalsettlement.ca).

18. How will approved Claims be paid?

Approved Claims will be paid by cheque to the mailing address indicated on the Claim Form. For this reason, it is very important that you contact the Claims Administrator if your contact information changes. Please email the Claims Administrator to provide your change of information details to info@haventreemortgagerenewalsettlement.ca.

19. What if my Claim is found to be incomplete?

The Claims Administrator will review each Claim Form for completeness. If your Claim Form is found to be incomplete, the Claims Administrator will let you know within twenty (20) business days of receiving your Claim Form. You will then have an opportunity to complete the Claim Form within the later of:

thirty (30) days from the date that the Claims Administrator advises you that your Claim Form is incomplete; or
the Claims Deadline, which is May 16, 2025.

20. If my Claim is disallowed (not approved), what options are available to me?

All decisions of the Claims Administrator are final, except decisions to disallow a Claim in its entirety under paragraph 14 of the Distribution Protocol, or a determination of ineligibility under paragraph 8 of the Distribution Protocol. In these circumstances, the Claimant can submit a request for reconsideration with any relevant evidence, documents, or materials within 21 days of the date of the notice advising the Claimant of the disallowance or determination of ineligibility.

All other decisions of the Claims Administrator are final and cannot be appealed or reviewed.

For more details, please review the Distribution Protocol by clicking here.

21. Who will review my Claim?

Epiq Class Action Services Canada, Inc. (the “Claims Administrator”) has been appointed by the Court to administer the Settlement and the claims process. Once you submit a Claim Form, it will be reviewed by the Claims Administrator and if the Claim is valid, the Claims Administrator will send you your Settlement Payment cheque directly.

22. What amount will I receive if my Claim is approved?

Settlement Payments to Claimants with Approved Claims will not exceed CAD $5,000 per mortgage, but could be less than that amount per mortgage. This amount will be divided evenly between any Settlement Class Members with Approved Claims related to the same mortgage. For more details about how the Settlement will be distributed, please view the Distribution Protocol by clicking here.

23. How do I get more information?

The Notice of Settlement Approval and this FAQ Section summarize the Settlement. More details are in the Settlement Agreement and its schedules, which can be viewed here.

Neither the Parties nor their counsel make any representation regarding the tax effects, if any, of receiving any benefits under the Settlement. Consult your tax advisor for any tax questions you may have.

The court offices will be unable to answer any questions about the matters in this FAQ Section. Please do not contact them. If you have any questions regarding the Settlement or the class action lawsuit in general, please contact the Claims Administrator or Class Counsel directly using the information below.

CLASS COUNSEL