Nova Scotia judge approves $32M settlement for people with disabilities

A judge has approved one of the largest class-action settlements in Nova Scotia's history, saying the agreement could see the province paying $32 million to as many as 2,600 disabled residents.

The award is meant to compensate people with mental and physical disabilities who for years were wrongly denied social assistance benefits under the province's disabilities assistance program.

Nova Scotia Supreme Court Justice Darlene Jamieson said the settlement, which could rise to $34 million, was "fair, reasonable and in the best interests" of those involved.

In a statement of claim filed in October 2022, lawyers for 25-year-old plaintiff Isai Estey argued that the disabled man's Charter rights had been violated by the province's "cruel and inhumane" actions.

The claim states that since 1998, the province has had a statutory obligation to provide social assistance to residents in need, but that obligation was largely ignored for people with disabilities.

Public funds set aside for disability assistance benefits were limited by an arbitrary cap and were treated as discretionary, which resulted in many applicants being placed on wait-lists.

Without that financial support, many of these applicants had no choice but to remain in what may have been unsuitable living arrangements with relatives, or in institutional facilities, nursing homes, hospitals or small-options homes far from their families. Some of those forced to live in hospitals and nursing homes did not have any medical conditions and were not elderly.

"In many cases, these arrangements continue for years, often decades," the statement of claim says.

"Denying people with a mental or physical disability or both the assistance to which they are entitled in this arbitrary way is cruel and inhumane. It is discriminatory. It strips them of their dignity and interferes with their liberty and the security of their person."

Anne MacRae, Estey's mother and litigation guardian, submitted an affidavit to the court saying the settlement was in the best interests of all class members.

"While there is no amount of money that can fully compensate a person who has been discriminated against on the basis of their disability when it comes to social assistance, I am gratified by this significant achievement," MacRae said.

"Isai and I are proud of the role Isai has played in this achievement."

In 2021, the Disability Rights Coalition won a Nova Scotia Court of Appeal decision that identified systemic discrimination against people with disabilities seeking housing and supports in the community.

That ruling provided compensation to those directly involved in the case, but there was nothing for others affected by the same discrimination.