Hotel X Class Action
On March 16, 2022, a Class Action was filed against twelve Peter and Paul locations (“P&P”), and Princes Gate Hotel Limited Partnership and Princes Gate GP Inc. (“Hotel X”). We filed the class action on behalf of former employees for damages for what was alleged was their unlawful termination from employment in July 2020. A copy of the Statement of Claim can be viewed HERE.
On July 20, 2020, P&P filed a separate Claim in court against Hotel X, alleging that Hotel X’s actions caused P&P losses. One loss P&P claimed was a loss of over $2 million in monies owed to former P&P and/or Hotel X employees.
P&P was successful after trial. Among other things, the Superior Court ordered that Hotel X pay damages of $2,063,000 to P&P to pay the employees through a separate process.
Update and Next Steps
A distribution plan for those monies was approved by the court and is now being administered by a third-party trustee. A copy of the Court’s formal Claims Procedure Order can be viewed HERE.
On January 5, 2024, the trustee sent out notices to eligible employees, advising them of the calculation of their termination pay and instructions on how to proceed.
On March 15, 2024, the trustee, KSV, advised that it had notified Employment and Social Development Canada (ESDC) of the funds to be distributed. KSV has an obligation to notify ESDC of these funds. After a period of review, ESDC determined that KSV could not distribute any funds to Former Employees until it reviewed each individual distribution KSV intended to make to determine if a portion of the distribution must be remitted to ESDC as a repayment of Employment Insurance benefits.
Without clearance from ESDC, the trustee cannot distribute any funds to the Former Employees. This clearance is required whether or not a Former Employee received Employment Insurance benefits. KSV is working diligently with ESDC to conduct the review as quickly as possible. Both KSV and Cavalluzzo LLP, as counsel to the Former Employees, have conveyed the urgency of this matter to ESDC.
Unfortunately, at this time, we do not have an estimated timeline for how long the review process will take. We will continue to update our website as we receive more information from KSV and ESDC about the review.
If you have changed your mailing address since receiving a Claim Notice from KSV, we kindly ask that you notify KSV of this change by emailing ctheriault@ksvadvisory.com. This will help ensure that the distribution can occur as quickly as possible once ESDC’s review is complete.