Frequently Asked Questions
- What is the Sun Life class action about?
The plaintiffs allege that Sun Life has collected, and is collecting, excessive amounts from policyholders for “cost of insurance” charges and administrative fees on “Universal Flexiplus” and “Optimet” policies, which it now administers. Those Flexiplus and Optimet policies were originally sold to policyholders by Metropolitan Life Insurance of Canada (MetLife) between 1992-1998 and during 1998 respectively. Sun Life (or its predecessor companies) took over policy administration in 1998.
The plaintiffs also alleges that Universal Plus, Flexiplus, and Optimet policies had “Maximum Premium” limits that may have been exceeded by Sun Life when administering the policies. Universal Plus policies were originally sold to policyholders by Metropolitan Life Insurance of Canada (MetLife) between 1987-1998. Sun Life (or its predecessor companies) took over policy administration in 1998.
The class action originally asserted that the MetLife policies had been sold by MetLife pursuant to a pattern and repeated practice of misrepresentations. The courts, however, have ruled that those misrepresentation claims cannot be pursued in a class action (covering issues that are common for all purchasers) because each purchase involved too many “idiosyncratic” issues. Those misrepresentation claims now can only be pursued individually (not within the class action) by each policyholder (see further information below).
- Who started the class action?
Purchasers of universal life insurance policies sold by MetLife of Canada between 1987 and 1998 (Angela Watters, Elden Fehr, Gaetan Laurier, Leslie Michael Lucas, Rebecca Jean Clark, Lloyd Shaun Clark, and James Patrick O’Hara) started the class action against Sun Life in 2010.
- Who is Class Counsel?
Kim Spencer McPhee Barristers P.C. (“KSM”) serves as court-appointed Class Counsel in this action. KSM is a recognized leader in the national class actions space, and its practice focuses exclusively on complex, high value litigation, including insurance, securities, medical and pharmaceutical product liability, consumer protection, and government liability actions. To find out more about the firm, please visit www.complexlaw.ca.
- What is the status of the SunLife class action and where can I find any updates?
On March 26, 2019, the Ontario Court of Appeal ordered that the Sun Life class action be certified as a class action. Subsequently, the Ontario Superior Court of Justice issued an order on November 24, 2020 certifying the Sun Life class action.
Class Counsel are currently dealing with further litigation issues including working on discovery as well as summary judgment motions. Check here for updates on the case.
Description of the Class Action
- Who is a class member?
In general, anyone who owned or owns a Universal Plus, Flexiplus, or Optimet policy from MetLife sold between 1987-1998 is a Class Member. Specifically:
- The “Universal Plus Class” is defined as persons who owned or own a Universal Plus policy sold by MetLife in Canada during the period 1987 though 1998, including any successor owners of the policy.
- The “Flexiplus Class” is defined as persons who owned or own a Flexiplus policy sold by MetLife in Canada during the period 1987 through 1998, including any successor owners of the policy whose monthly costs of insurance and or monthly administration fee was increased in one or more of 2001, 2005, or 2015 or the ninth year of the policy; and
- The “Optimet Class” is defined as persons who owned or own an Optimet policy sold by MetLife in Canada during the period 1987 through 1998, including any successor owners of the policy where an increased cost of insurance rate was charged and paid commencing in year nine of the policy.
- What do I have to do to participate?
You do not have to do anything. If you are a Class Member as described above, you are automatically included as a Class Member unless you send a written “opt out” notice to CA2 Inc. (address below) by September 17, 2021.
- Does this lawsuit cover potential claimants in any and all provinces in Canada?
Yes. This class action has been certified to include Class Members in all provinces in Canada.
- What do I do if I think I have a claim but I’m not within the class definition?
If you think you may have a claim with respect to these policies but you do not meet the definition of a Class Member, then you may wish to:
- speak with you own lawyer to discuss any potential claim; or
- contact Class Counsel using the link provided in the Contact section of this website.
- What do I do if I don’t want to be a class member?
If you meet the above definition of a Class Member, but you are interested in taking action on your own or you otherwise do not want to be a Class Member, you must “opt-out” of the class action. If you wish to opt out, you must submit the following information in writing by September 17, 2021:
- Identify the name of this case (“Sun Life class action”);
- Provide the name, mailing address, email address, and phone number of the person opting out;
- Provide the insurance policy name and policy number; and
- Include a statement signed by any/all policyholders that “I/we hereby request to be excluded from the Sun Life class action”.
Any opt-out notices must be mailed to:
Notice Administrator
Opt-out notices are due by September 17, 2021.
c/o CA2 Inc.
9 Prince Arthur Ave.
Toronto ON M5R 1B2No person may opt out a mentally incapable person without permission of the Court after notice to the Public Guardian and Trustee for Ontario Class Members or equivalent bodies in other provinces and territories for those Class Members who live in those other provinces and territories.
If you remain in the case, you will be eligible to qualify for any benefits to class members that may result. If you opt out, you will not be able to share in any benefits or compensation from the class action. Please note that if you remain in the class action, you are not liable for any costs or expenses.
General
- What is a class action?
A class action is a lawsuit that allows for a large group (“class”) of people with common or comparable claims to participate in the lawsuit asserting the common claims against another party (defendant). Class actions are an efficient and cost-effective way for groups of people with common legal issues to gain access to the legal system and seek justice.
The idea of a class action is that everyone who has been injured by the same act or conduct are deemed to join together to bring a lawsuit without each plaintiff putting up the expense of hiring a lawyer or risking the stress of a trial. Rather, a “representative plaintiff” acts to represent those people injured by the same conduct.
The Class Proceedings Act, 1992 (“CPA”) governs class actions in Ontario and sets out certain procedures that must be followed during the course of a class action. The CPA contains many safeguards to protect class members. For example, the CPA provides that the court will oversee many of the steps in the class action including the determination of whether a case should proceed as a class action (certification) and the approval of any settlement that is reached on behalf of the class. This class action also includes claimants throughout Canada.
- What does certification mean?
Certification means that the court has given approval for the action to proceed as a class action. The court does not determine the merits of the action in a certification hearing. This case has been certified as a class action.
- What is a representative plaintiff?
A representative plaintiff (often there are several) brings a lawsuit on behalf of the members of a defined class. If the class is “certified”, the representative (“named”) plaintiff prosecutes the case on behalf of other class members who are similarly situated. They are represented by “class counsel” approved by the court. Usually, class counsel protect representative plaintiffs from being liable for the costs or the lawsuit.
Individual class members can also seek to appear in the case. Typically, however, only the named plaintiffs and class counsel appear with respect to the common issues. At later stages, individual plaintiffs may need to present evidence specific to their own situations.
The representative plaintiffs for this class action are Elden Fehr, Gaetan Laurier, Leslie Michael Lewis, Rebecca Jean Clark, Lloyd Shaun Clark, and James Patrick O’Hara.
- Do I have to pay any legal fees?
Class members who are not representative plaintiffs are not liable to pay any legal fees or costs even if the class action is unsuccessful.
If the class action is successful on the common issues, class members usually are entitled to share in any award or settlement. Each class member’s entitlement may be determined in an individual determination. At that point, each class member can decide whether or how to present his or her claim which may involve some individual costs. Many cases settle before this stage is reached.
- How much money will I receive through the class action?
There has been no determination of liability or damages in this case yet. Class counsel cannot advise about the likely outcome. Many factors will determine the outcome of this case. For future developments, please continue monitoring the status of the case here.
- How much will the lawyers be paid?
If the class action is successful (provides benefits for the class), class counsel may qualify to receive legal fees, based on agreements between counsel and the representative plaintiffs and subject to court approval of any award of fees and reimbursement of expenses. The fees are contingent, meaning they will be paid if and only if a benefit for the class has been achieved.
- Has the class action settled? What are the chances of settlement?
No settlement has been reached. In complex cases such as this one, it is difficult or impossible to predict whether the case will settle, and, if so, at what level.
- I think I have a claim that the MetLife sales agent who sold the policy engaged in misrepresentations during the sale process. Can I pursue that claim?
After extensive litigation, the courts have ruled that sales misrepresentation claims involve too many “idiosyncratic” issues for inclusion in this class action. If you wish to pursue an individual sales misrepresentation claim, you should seek your own legal advice without delay to determine how to proceed.
- Our policy was one of those within this class action, but we gave up or lost the policy some time ago. Do we have any claim in the class action?
Yes. If your policy is one of those within the class definition, but you gave it up or it lapsed because the overcharges made it too expensive to maintain, you likely have a claim. You should keep informed about the class action by continuing to monitor the status of the case here. If you have questions about your particular situation, please contact class counsel through the website or by email.
- I know I was the beneficiary on one of these policies, but the policyholder gave it up some time ago. Do I have any claim in the class action?
Possibly, you or the former policyholder may have a claim if the policyholder gave up the policy or it lapsed because overcharges made the policy too expensive to maintain. Please contact class counsel through the website or by email if you are in this situation.
- On one of these policies, the person whose life was insured died some time ago and the beneficiary received the death benefit. Do we have any claim in the class action?
The (former) policyholder may have a claim to recover overcharges. But if the policy remained in force and the death benefit was eventually paid out, the class action probably covers only the claim for overcharges paid by the policyholder.
- When the policy premiums and charges got more expensive, I contacted Sun Life and arranged with them to receive a replacement policy with terms I could afford. As part of that arrangement, I signed a release form. Do I have any claim in the class action?
This issue, including the effect of any release, was not certified in the class action. Please contact Class Counsel through the website or by email if you are in this situation and for more information.