Federal Court gives green light to $887-million veterans disability deal

OTTAWA – The Federal Court has rubber-stamped an $887-million settlement of a class-action lawsuit involving thousands of disabled veterans.

The case involved a three-decade-long federal government practice of clawing back the military pensions of injured soldiers by the amount of disability payments they received.

Halifax resident and former army sergeant Dennis Manuge, was the lead plaintiff in the case, which dragged its way through the courts for nearly five years, including a reference to the Supreme Court of Canada on a technicality.

The deal includes $424.3 million in retroactive payments to veterans dating back to 1976.

More than $82 million has been set aside to cover interest, while the rest of the settlement is an estimate of the amount the veterans will be owed in future.

The law firm that fought the case is in line for $35 million in fees associated with the case.