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.
A distribution plan for those monies was approved by the court and is now being administered by a third-party Proposal Trustee, KSV Advisory. A copy of the Court’s formal Claims Procedure Order can be viewed HERE.
On January 5, 2024, the Proposal Trustee sent out Claim Notes to the 277 Former Employees with entitlements to the claim, advising them of the calculation of their termination pay and instructions on how to proceed.
On March 15, 2024, the Proposal Trustee advised that it had notified Employment and Social Development Canada (ESDC) of the funds to be distributed, as required by legislation. ESDC advised that the Proposal Trustee could not distribute any funds to Former Employees until it reviewed each of the 277 individual distribution the trustee intended to make to determine if a portion of the distribution must be remitted to ESDC as a repayment of Employment Insurance benefits.
December 2024 Update and Next Steps
In November 2024, the ESDC announced that it had completed its review of each individual distribution KSV intended to make. The Proposal Trustee has now obtained clearance from ESDC to issue payments to Former Employees and is prepared to distribute these funds. Each Former Employee's settlement amount is an individualized calculation of the employee's entitlements, subject to applicable statutory deductions.
Former Employees can collect their settlement funds cheque in-person with their government-issued photo ID from Proposal Trustee's office in Toronto as specified:
Monday December 9, 2024 - Thursday December 12, 2024, and
Monday December 16, 2024 – Tuesday December 17, 2024
9 am – 4:30 pm only
KSV Advisory Inc.
220 Bay Street - Suite 1300
Toronto, ON M5J 2W4
If Former Employees are not able to collect their cheques from KSV’s Toronto offices within the above specific times, they can contact Catherine Theriault of the Proposal Trustee’s office (ctheriault@ksvadvisory.com; or 416-932-6018) to make alternate arrangements.