CITATION: VoutOUfV. Pfizer Canada Inc.

, 2011 ONSC 7118

COURT FILE NO.: 05-CV-287488CP
DATE: November 30,2011
BETWEEN:
ONTARIO
SUPERIOR COURT OF JUSTICE
Jesse Voutour, Eiko Voutour, P()rtia Waheed and Pardo Antonio PeNJtta
Plaintiffs
-and-
PflZer Canada Inc. and Pfizer Inc.

Proceeding under thc Class Proceedings Act. 1992
COUNSEL:
B.C. McPhadden, J. Rochon, 1. Erez, and A. Thorsen fOf the Plaintiffs
G. Zakaib and E. Larose for the Defendants
HEARING DATE: November 29,2011
PERELL,J.
REASONS FOR DECISION
A. lNTROD{JCTION
[1] In a consolidated class action against Pfizer Canada Inc. and Pfizer Inc., the
Plaintiffs, Jesse Voutour, Eiko V()utour, Portia Waheed, and Pardo Antonio PelTotta,
bring a motion for: settlement approval, cOllnsel fce approval, and incidental relief
under the Class Proceedings Act, 1992, S.O. 1992, c. C.6.
[2) The parties' Settlement Agreement seeks to resolve all Canadian litigation
related to Bextra and Celebrex, which are drugs manufactured and distributed by the

[3] For the Reasons for Decision that follow and notwithstanding the objec.,1:ions of a
few Members, including Timothy Moorlcy and Mrs. Rodriques-Trasvina, 1
approve the Settlement Agreem.ent, approve the counsel fee, and grant the ancillary
relief:
2
B. FACTUALBACKGROUND
1. The Prologue to Claims against Pfizer Inc. and Pfizer Ca.nada
[4] Pfizer Inc. and Pfizer Canada Inc. manufactured and marketed the drugs Bextra
and Celebrex, which are prescription, non-steroidal, anti-inflammatory drugs
("NSAIDs"), a class of drugs used for the treatment of inflammation and associated
pain. They are known as selective COX-2 inhibitors.
[5] On April 14, 1999, Celebrex was approved for the treatment of rheumatoid
arthritis and osteoarthritis, and on May 28, 2002, it was approved for usc in the
treatment of familial adenomatous polyposis, a disease of the large intestin.e. On
September 8, 2004, Celebrex was approved for the short term management of moderate
to severe acute pain in adults.
[6] On December 11, 2002, Bextra was approved t(')r the treatment of acute and
chronic adult rheumatoid arthritis and osteoarthritis and tor pain relief related to primary
dysmenorrhea.
[7] On September 30,2004, another pharmaceutical company's Cox-2 drug, Vioxx,
was withdrawn from the worldwide market because of evidence of its cardiovascular
risk, and on December 17, 2004, the U.S. National Cancer Institute announced the
premature cessation of a trial of Celebrex due to an inereased risk of cardiovascular
events.
[8] After the withdrawal ofVioxx and the cessation of the Celebrex studies, expert
advisory panels were struck in both the U.S. and in Canada. On April 7,2005, Health
Canada asked Pfb:er Canada to suspend sales of Bextra and to impose llew restrictions
on the use of Cclcbrex.
[9] Health Canada's request was stated to be in response to "potentially life-
threatening skin reactions" in the case of Bextra and an ''increased risk of heart attack
and stroke" in the ease of Celebrex. It is to bc noted that the reasons tor the suspension
of Bextra was not the same as the reason for imposing restrictions on the uses for
Celebrex.
[10] In. Apri12005, Health Canada also alerted the public and prescribing physicians
to concerns about the cardiovascular safety of Celebrex and recommended its limited
prescription. These concerns were incorporated into significant labelling changes for
Celebrex and the concerns were also disclosed in a "Dear Doctor" letter in September,
2005 providing infonnation about the drug's use .
. - [11] In Canada; HealtnCanadaauVlsedtne'puolicthlifBcxtra-
would not return to the market.
[12] Celebrex continues to be sold in the U.S., Canada, and elsewhere, although with
the strongest form of black box warnings regarding its use.
[13J Neither Health Canada nor the United States Food and Drug Administration
have requested the withdrawal of Cc1cbrcx.
[14] It is alleged that many users of Bextra and Ce1ebrcx suffered serious, medical
problems as a consequence of their use of these drugs.
[15J It is to be noted that given the state of scientific and medical knowledge, the
Representative Plaintiffs confronted substan.tial problems proving the connection, if
any, with the use of Bextra and Celebrex with any particular adverse medical condition,
many of which could be explained be pre-existing conditions or other factors. Proof of
causation would also be problematic because there was some evidence known to Class
Counsel that suggested that any harmful effects from the drug would not occur if use of
the drug stopped. These difficulties of connecting the drug use to various medical
conditions are reflected in the Settlement Agreement and in the objections to it.
2. The United States Multi-District Litigation against Pfizer Inc.
[16J In the United States, in multi-district litigation, Pfizer Inc. was sued for damages
with respect to injuries allegedly suffered as a consequence of the use of Bextra and
Celebrex.
[17] In the United States litigation, the U.S. court made a finding that available
scientific evidence did not support the conclusion that daily doses of 200 mg of
Celebrcx caused harm to patients. The court, however, was not prepared to make a
similar finding with respect to daily doses of 400 mg of Celebrex. In any event, Pfizer
lnc. and Pfizer Canada deny that Celebrex causes the hanD. as alleged by"the Plaintiffs.
[18] In the fall of2008, Pfizer Inc. began settlement negotiations to settle the Bextra
and Celebrex litigation in the United States.
[19] A settlement was reached in the United States. Under that settlement, Pfizer Inc.
reserved $745 million to settle all known personal injury cases, which were settled on
an individual basis.
[20] In the United States in excess of 7,000 individually filed claims were resolved.
The average value of the settlements was $106,428 per claimant or $69,178 per
claimant after the deduction of attorney's contingency fees.
3. The Canadian Class Actions against Pfizer Inc. and ptizer Canada
[21] Between 2004 and 2008, class actions with respect to Bcxtra and Celebrex were
initiated across Canada; more particularly: ..
In Quebec, Ontario, Manitoba, Saskatchewan, Alberta, and British Columbia,
between October 12, 2004 and December 19, 2005, various plaintiffs
commenced class actions against Pfizer Inc. and Ptlzer Canada and others with
respect to Bcxtra or Celebrex. The Merchant Law Group was the lawyer of
record in thesc various proposed class actions.
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In Ontario, on December 21,2004, Portia Waheed commenced an action against
Pfizer Inc. and Pfh:er Can.ada Inc. with respect to Celebrex. The fmn now
known as McFadden, Samac, Touvi was the lawyer of record.
Tn Ontario, on January 14, 2005, Pardo Antonio Perrotta commenced an action
against Pfizer Inc. and Pfizer Canada with respect to Celebrcx. The firm
Rochon Genova LLP was the lawyer of record.
Tn British Columbia, on January 24, 2005, Timothy Moorlcy commenced an
action against Pfizer Inc. and Pfizer Canada. The firm of Poyner Baxter was the
lawyer of record. That finn subsequently removed itself as lawyer of record,
and Mr. MoorIey is now a self-represented plaintiff and the proposed
representative plaintiff in the British Columbia action. He has not taken steps to
have his action certified, and in the case at bar, he is a Class Member and an
objector to the settlement approval.
In Alberta, on April 8, 2005, Eugene Laverty commenced an action against
Pfizer Inc. and Pfizer Canada with respect to Bextra. The firm of McNally,
Cuming Raymaker was the lawyer of record. There is agreement that this action
will be discontinued on consent.
Tn Ontario, on Apri111, 2005, Jesse and Eiko Voutour commenced an action
against Pfizer Inc. and Pfizer Canada with respect to Bextra. The fInn now
known as McFadden, Samac, Touvi was the lawyer of record.
In Quebec, on October 27, 2008, Union des Consommatcurs, Diane Guay, and
Michelinc Labrie commenced an action against Pfizer Canada with respect to
Celebrex. The law finn of Lauzon Belanger Inc. was the lawyer of record.
[22] McFadden, Samac, Touvi, Rochon Genova LLP, and the Merchant Law Fhm
agreed to co-operate and fbnned a consortium to prosecute various class actions,
principally by advancing claims in Ontario and Quebcc. In October 2009, Lauzon
Belanger Inc. joined the consortium.
[23J In the class actions of the consortium of law firms, the Plaintiffs allege that the
Defendants were negligent in the manufacture and distribution of Bextra and Celebrex
and that the proposed class members suffered damages. The Plaintiffs also advance a
claim for waiver of tort and for punitive damages.
[24] In the case at bar, the Plaintifis allege that the drugs caused serious and life-
threatening adverse reactions and that the Defendants knew or ought to have known of
these risks and failed to warn Canadian consumers sufficiently or at all and fooled to
take appropriate steps Telatedtothe risks:-
[25] The Defendants vigorously deny that they committed any wrongdoing. They
have not delivered statements of dcfence in the Ontario actions, and there have not been
any examinations for discovery in the Ontario actions.
[26] On August 25, 2011, the Ontario actions were consolidated and certified as a
class action for settlement purposes.
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[27] It was a term of the Court's certification order that Collectiva Class Action
Services Inc. ("Collectiva") be pr.ovisionally appointed Claims Administrator for opt-
outs, coordination of the notice plan, and administratiol1 of objections. This appointment
would continue as a matter of the incidental relief being requested on this settlement
approval motion.
(28] On August 30, 2011, the Quebec action was authorized as a class proceeding for
settlement purposes.
[29J Pursuant to the Ontario Court's certification order of August 25, 2011, Deloitte
and Touche LLP gave notice of the certification. As part of the notice program, it
distributed 2,000 notices of certification for settlement approval. The notice program
cost $394,906.75. Class Members were provided with the opportunity to complete claim
forms.
[30J The deadline for opting out was November 1, 2011. Fifteen persons opted out,
but the Defendants elected not to exercise their tip-over rights under the Settlement
Agreement. Subject to court approval, there is a binding settlement agreement. Should
approval not be granted, the certification will be set aside and the proposed class action
would resume with certification to be determined on a contested basis.
[31 J As at November 11, 2011, Collectiva had sent out 44 Claim Packages, received
32 Claim Packages, received 145 telephone inquiries, received 9 email inquiries, and
noted that 369 people had signed up for updates regarding the Settlement Agreement via
the settlement website.
[32J As noted above, Deloitte delivered direct notices to 2,000 potential Class
Members. For the purposes of this settlement approval motion, it should be noted that
this group included anyone who had contacted Class Counsel relative to the two drugs
in question for any reason, with the result that some of those notified were not Class
Members.
[33J It should also be noted that some of those notified did l10t sufft-"! injuries during
the class period. Others did not suffer Compensable Injuries as defined by the
Settlement Agreement. Still others possibly had injuries caused by factors other than the
two drugs that are the subject of the class action. Taking these factors into
consideration, Class Counsel anticipates that there will be in the range of 90
compensable claims with an aggregate value of between $3.0 million and $4.0 million
under the tenns of the Settlement Agreement, which arc discussed below.
4. The Settlement Negotiations
[34J In November of 2008, settlement negotiations began in Canada. . The
negotiations included two sessions of a Court-supervised mediation in the summer and
early fall of 2010. Justice Lacoursiere of the Quebec Superior Court acted a..r.; judicial
mediator. I know Justice Lacoursiere to be a talented and highly regarded jurist, and an
experienced class action judge.
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[35] After prolonged negotiations, the parties reached an agreement in principle. It
took another year for a fonnal agreement to be reached. The Canadian BextralCc1ebrex
Settlement Agreement is dated August 23,2011.
[36] The Plaintiffs submit that a variety offaetors associated with litigation risk were
influential in the settlement negotiations al1d in structuring the scheme of the settlement.
Class Counsel submits that while they were confident in the strcngth of the case against
Pfizer Inc. and Pfizer Canada, significant liability risks were incorporated into the
eligibility criteria and the compensation values under the Settlement Agreement. The
litigation risk factors included:
The evidence and the finding in the United States litigation indicated that
causation of hann would be particularly difficult to prove for daily dosages of
under 400mg.
Bextra was withdrawn from thc market on the basis of its association with
adverse skin reactions, not cardiovascular risks.
The' withdrawal of Bextra from the market in April of 2005 and the
announcements by Health Canada about cardiovascular risks associated with
Celebrex reduced the Defendants' exposure to liability for a failure to warn and
for injuries suffered after April 2005. The effective date for claims, however,
was stretched to the end of2005.
The Defendants have vigorously contested liability, and among other things,
they would rely on limitation period defences and the difficulti.es of proving
causation. With respect to causation, there is the complication of commonly
experienced co-morbidities that could be the explanation for the Class Members'
injuries.
Absent a settlement, the litigation would be protracted and difficult. There
would be a certitIcation hearing, an extensive discovery phase, and a
lengthy common issues trial that would not be dctcnninative in the sense that
individual issue trials would still follow.
Assuming success at a common issues trial, each Class Member would still need
to prove that he or she consumed Bextra or Cc1ebrex and consequentially
suffered an injury and that that injury occurred before he or she ought to have
been aware of the likelihood of risk.
Each class member would also have to individually prove the quantum of
damages.
5. The Settlement Agreement
[37] The essential terms of the settlement agreement are as follows:
Pfizer Inc. and Pfizer Canada pay $12 million to ereate a $12 million settlement
fund. The settlement fund is to be used to pay:
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o Compensation for Compensable Injuries and losses. (Compensable
Injuries are defincd, as described below, to particular types of injuries.)
o The claims of public health insurers.
o Class Counsels' fees, disbursements, and taxes, for which (as described
below) $4 m.jJ1ion is being sought plus disbursements of $212,068.87
plus applicable taxes.
o Costs for the notice plan, not to exceed $400,000. (As noted above, the
actual cost was $394,906.75.)
o Costs for administering the settlement, not to exceed $250,000.
o Costs of the claims adjudicators.
The distribution of payments to Class Members will 110t commence until after all
claims have been detennined or adjudicated.
Class Members will submit claims packages to Collectiva within 180 days of the
effective date of the settlement approval to be processed as follows:
o The Class Members will provide documentation to show use of the drug
and a contemporanel)US compensable injury. Notably, there is no
causation analysis linking the use of the drug to the contempor'dneous
lllJUry.
o Collectiva will contact Class Members about incomplete claims and then
submit the complete claims to one of two Canadian physicians appointed
by the Court (onc of whom will be French-speaking), who will make a
determination of eligibility within 30 days.
o Collectiva will advise the Class Member of the adjudicator's decision.
o Class Members will have 30 days to challenge and engage a process of
documentary review by the Court, which review will be binding.
Eligible class members receive compensation for Compensable Injuries, Income
, Loss Claims, Consumer Claims, and Derivative Claims, as follows:
o The payments for Compensable Injuries range from $5,000 to $100,000
depending on the Class Member providing documentary proof that he or
shc was prescribed Bextra and/or Celebrex and contemporaneously with
the use of the drug, he or she suffered from one of a list of Compensable
Injuries.
o To -become entitled to recovery from theset.t1emcnt fulldS, -Class
Members will, in most cases, need to present only documentary evidence
in the fonn (,)f pharmacy records evidencing the dispensing, purchase, or
prescription of Bextra and or Celebrex and medical records
contemporaneous with the Class Member's usc of Bextra and/or
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Celebrex that reflect the injury allegedly suffered from the use of the
drug.
o Claims t<)r fatal or non-fatal myocardial infractions or ischemic strokes
are valued at $100,000 for use before January 1, 2006 of Bextra or for
usc betorc January 1, 2006 of 400 mg or greater daily doses of Ce1ebrex.
o Claims for fatal or nonfatal myocardial intrdctions or for ischemic
strokes are initially valued at $25,000 for use bet'bre January 1, 2006 of
daily doses of Celebre x ofless than 400 gIn.
o Claims tor severe cutaneous adverse reactions are valued at $50,000 tor
use ofBextra.
o Claims for other cardiac, renal, or vascular events are valued at $10,000
where there was drug use before January 1, 2006 ofBextra or use of 400
mg per day or morc of Cclcbrcx.
o As Derivative Claims, Family Class Members receive 10% of the value
of the associated Class Member's Compensable Injury to a maximum of
$10,000 for a single Class Member.
o The tor loss of income are detennined based on the difference
between the Class Member' 5 average net income in the three years
betore the Compensable Injury and the Class Member's average net
income following the injury.
o The payment for the Consumer Claim of up to $300 as partial'
reimbursement for the cost of Bextra andlor Celebrex purchases is based
upon submission of a Claim. Package and the applicable product
identification documentation.
The net funds available to Class Members arc notionally allocatcd: 70% tor
Compensable Injuries; 18% for lncome Loss Claims; 7% for any addi.tional
notice costs and adjudication ex.penses; and 5% for Consumer Claims.
If there are insufficient net funds for distribution to Class Members, then the
amounts will be distributed pro rata within each notional allocation.
If there is a surplus funds tor distribution to Class Members, claims related to
Cclcbrex at a daily dosage of less than 400 mg. will be inercascd pro rata up to
their maximum value.
, Payment of $5,000 as an honorarium to the proposed representative plaintiffs in
the Ontario and Quebec actions.
The costs associated with the Notice, all administration and adjudication costs,
payments to public health insurers, as well as lawyers' fees and expenses are to
be paid out of the fund.
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Any undistributed balance of the settlement fund is to be distributed cy-pres.
The funds will be divided between the Ontari.o and Quebec actions based on the
final compensation values tor each jurisdiction. In Ontario, a cy-press wi II be
made 45% to The Arthritis Society, 45% to Women's College Hospital
Foundation and 5% to the Walrus Foundation.
6. Endorsement of the Settlement Agreement
[38] All the Class Counsel involved in the class action endorse the Settlement
Agreement, and they recommend that it be approved by the Court as fair, reasonable
and in the best interests of the Class Members.
[39] The Representative Plaintiffs believe that the Settlement Agreement is fair,
reasonable and in the best interests of Class Members.
7. Opposition to the Settlement
[40] Four Class Members filed written objections to the Settlement Agreement with
Colleetiva before the November 1, 2011 deadline to do so including an objection from
Mr. Moorley. Two additional objections were :filed after the deadline on November 16
and 17, 2011 that replicate Mr. Moorley's objection. The other objectors with timely
objections were Serge Brochu, Gerard St-Germain, and Yanick Lavallee.
[41] Mr. Jamie Trasvina attended the settlement approval hearing to make an
objection on behalf of his mother who had used Bextra in 2004 and 2005 and suffered a
heart attack and stroke in March 2006. It would seem that she will not be eligible for
compensation under the proposed settlement.
[42] With the exception of Mr. B r o u c h u ~ the objectors who objected before
November 1, 2011 have chosen ~ o remain as Class Members rather than opt out of the
class action.
[43] Serge Brochu and Gerard St-Germain object to the Jan'uary 1,2006 endpoint for
the class period, which they suggest should be extended.
[44] Mr. Lavallee's objects to the list of Compensable Injuries as being too narrow
and as excluding his injuries.
[45] The Trasvina objection was that the amount of compensation was insuffIcient
and the exclusion of certain types of injuries; Le. the restrictions on what was a
Compensable Injury was unfair and unreasonable.
8. Mr. Moorelev's Objection
[46] Mr. Mooreley's objection is the most detailed and extensive and includes an
account of his life experience after using Celebrex. His story is distressing and sad. Tn
2003, Mr. Moorely was a semi-professional boxer and in excellent health. He was
prescribed Celebrex to alle'\liate minor cramping in his feet. What followed after 2003
------------------------------------------------------------
10
was the amputation of a part of his right foot, the discovery of a complete occlusion of
his femoral artery, and the discovery of a hole in his heart, which Class Counsel
suggested may be a pre-existing congenital condition.
[47] Mr. Moorely says that he was negligently served by various doctors and
hospitals and the misadventures included tIle alleged loss of his medical test records. He
retained a British Columbia law finn to prosecute a class action, but his experience with
the legal establislunent appears to have been equally unfortunate, and he and his lawyers
have parted company. They removed themselves from the record, and in his written
objection, he is frank to say that he does not know the status of hi.s action in British
Columbia.
[48] Mr. Moorely, who did not attend the settlement approval hearing, objects to the
proposed settlement. He submits that the Defendants would not be successful at a trial.
He characterizes the Defendants as notoriously negligent, as shown by Pfizer Inc.
having been criminally prosecuted in the United States and having .settled similar clai.ms
about dangerous drugs. He says that the Defendants have shown no remorse, and he
submits that they should pay punitive damages for the harm they allegedly have caused.
[49] Mr. Moorely submits that the settlement is deficient and will not achieve the
aims of the tort system. He says that the amount of the settlement fund will be
inadequate to pay the claims of Class Members. He notes that the claim as pleaded was
for $1 billion pI us punitive damages of $500 million.
9. Factual Background to Counsel Fee Application
[50] The Representative Plaintiffs signed retainer agreements. The agreements all
involve contingency fees, but the agreements differ.
[51] The retainer with Portia Waheed provides for compensation on the basis of a
percentage of 30% of the amounts recovered or on the basis of a 3 times multiplier,
whichever is hj.gher. The retainer with Pardo Antonio Perrotta provides tor
compensation on the basis of a percentage of 25% of the amounts rec(,wered or on the
basis of a 3 times multiplier,wbiehever is higher. The rctainers with Jesse al1d Eiko
Voutour each provide for compensation on the basis of a percentage of the amounts
recovered, namely, 25%.
[52J To date, the consortium of Class Counsel have expended approximately 7,700
hours in prosecuting the cla..;;s actions. A considerable amount of time was expended
with respect to the variety of factors associated with litigation risks that arc noted above.
[53] In this last regard, Tam satisfied- that the decisions about litigation risk are_
infonned and well-researched decisions notwithstanding that there has not been
examin.ati.ons for discovery in the class action.
[54] The combined value of this unbilled time is $3,458,020.81 plus $307,221.92 in
applicable taxes.
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s;. SETTLEMENT APPROVAL
[55] Under s. 29 (2) of the Class Proceedings Act, 1992, a settlement of a class
proceeding must be approved by the court to be binding on the parties.
[56] To approve a settlement of a class proceeding, the court must find that in all the
circumstances the settlement is fair, reasonable, and in the best interests of those
affected by it: Dabbs v. Sun Life Assurance, [1998] 0.1. No. 1598 (Gen. Div.) at para. 9;
Parsons v. Canadian Red Cross Society, [1999] OJ. No. 3572 (S.C.J.) at paras. 68-73.
[57] In detennining whether to approve a settlement, the court, without making
findings offacts on the merits of the litigation, examines the fairness and reasonableness
of the proposed settlement and whether it is in the best interests of the class as a whole
having regard to the claims and defences in the litigation and any objections raised to
the settlement: Baxter v. Canada (Attorney General) (2006), 83 O.R. (3d) 481 (S.C.J.)
at para. 10.
[58] When considering the approval of negotiated settlements, the court may
consider, among other things: (a) likelihood of recovery or likelihood of success; (b)
amount and nature of discovery, evidence or investigation; (c) settlement terms and
conditions; (d) recommendation and experience of counsel; (e) future expenses and
likely duration of litigation and risk; (t) recommendation of neutral parties, (g) if any;
number of objectors and nature of objections; (h) the presence of good faith, arms-
length bargaining and the absence of collusion; (i) the degree and nature of
communications by counsel and the representative parties w.ith class members during
the litigation; and (i) information conveying to the court the dynamics of and the
positions taken by the parties during the negotiation: Dabbs v. Sun Life Assurance
Company of Canada (1998), 40 O.R. (3d) 429 (Gen. Div.) at pp. 440-44, affd (1998),
41 O.R. (3d) 97 (C.A.), leave to appeal to S.C.C., [1998] S.C.C.A. No. 372; Parsons v.
The Canadian Red Cross Society, [1999] 0.1. No. 3572 (S.C.l.) at paras. 71-72;
Frohlinger v. Nonel Networks Corp., [2007] O.J. No. 148 (S.C.!.) at para. 8; Kelman v.
Goodyear Tire and Rubber Co., [2005] O.J. No. 175 (S.C.J.) a t p a r a ~ . 12-13; Vitapharm
Canada Ltd. v. 'F. Hoffmann-La Roche Ltd. (2005), 74 O.R. (3d) 758 (S.C.I.) at para.
117; Sutherland v. Boots Pharmaceutical pic, [2002] OJ. No. 1361 (S.CJ.) at para. 10.
[59] A reasonable and fair settlement is inherently a compromise and a reasonable
and fair settlement will not be and need not be perfect from tht: pe;rrspective of the
aspirations of the parties. That some class members are disappointed or unsatisfied will
not disqualify a settlement because the measure of a reasonable and fair settlement is
not unanimity or perfection. Sec: Baxter v. Canada (Attorney General), [2006] 0.1. No.
4968 (S.CJ.) at para. 21; Dabbs v. Sun Life Assurance Company oJ Canada (l998),-40
O.R. (3d) 429 (Gen. Div.) at p. 440, affd (1998),41 O.R. (3d) 97 (C.A.), leave to appeal
to S.C.C., [1998] S.C.C.A. No. 372.
[60] In my opinion, having regard to the claims and defences in the litigation and the
objections raised to the Settlement Agreemellt in the case at bar, the settlement proposed
is fair and reason,able and should be approved.
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[61] The proposed settlement is within the range of reasonableness. Class Counsel,
with their medical and science experts, have done considerable work and appear to have
come to a fully-informed assessment of the likelihood of success and of the risks of
failure in the litigation.
[62] The Representative Plaintiffs confront Defendants that are a fonnidable foe and
the litigation and the settlement negotiations, which had the benefit of an <;:x;perienced
class action judge, have been contentious and hard fought and the settlement agreement
appears to reflect these difficult negotiations. There is nothing to suggest any collusion
Or that Class Counsel were less than resolute in seeking a settlement that they perceived
as rational and fair and in the best interests of the Class Members.
[63] The settlement has the benefits of settlements generally. It provides certainty of
some recovery and it avoids the delays and uncertainties of pursuing a common issues
trial to be followed by individual issues trials. For some Class Memhers, the settlement
will achieve an immediate success that would have been at least delayed and might
never have corne, unless they had the resoluteness to prove causation at individual
issues trials that would be several years away.
[64] The allocation of damage awards for the Compensable Injuries, the definition of
what are Compensable Injuries, and thtl temporal requirement cOllnecting the drug to the
injury are within the range of reasonableness and reflects the genuine difficulties the
Class Members would confront if they were pressed by contested proceedings to prove
a connection between particular ailments or conditions and the usage of the drugs.
[65] Although as Mr. Moorely notes, it is a $12 million settlement of a $1.5 billion
dollar claim as pleaded. The pleaded claim - as all too typically is the case - bears no
rational relationship to the Defendants' genuine exposure to liability, and the pleaded
claim does not account for the genuine risks of proving liability, including the
difficulties of proving a breach of a duty of care and of proving causation of harm.
[66] In the United States litigation, Pfizer Inc. settled claims on an individual basis,
and the net return to an. individual claimant was $69,178. In contrast, in the case at bar,
eligible claimants will receive $5,000, $25,000, or $100,000 depending on the class
member providing documentary proof that he or shtl was prescribed Bextra and/or
Cc1ebrex and contemporaneously with the prescription of the drug he or she suffered
from one of a list of Compensable Injuries. Thus, under the Canadian settlement, it
appears that the most serious claims would receive compensation comparable to that
achieved in the United States. Using the United. States litigation as some measure of
what is fair and reasonable, the contrast suggests that the Canadian settlement is
reas;onable. and fair. The proposed settlement has the advantage that for the
Compensable Injuries, causation of harm is nota factor: - - .
[67] Based on Class Counsel's estimates, the settlement fWld should be adequate to
pay the eligible claimants without any reduction.
[68J I appreciate that the proposed settlement docs not provide compensation for all
injuries that occurred to users of Bextra and Celebrex. However, the identification of
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compensable injuries is rational and reflects the considerable litigation risks that other
types of injury could not be proven to have a link to Bextra or Ce1ebrex usage.
Similarly, the effective date of inj uries occurring before thc end of 2005 is rational and
retlective of a genuine and serious litigation risk.
[69] For the above reasons, T approve the settlement in accordance with the Class
Proceedings 1992 and T grant the ancillary relief requested in the notiee of motion.
!! FEE APPROVAL
[70] The fairness and reasonableness of the fee awarded in respect of class
proceedings is to be dctennined in light of the risk undertaken by the lawyer in
conducting the litigation and the degree of success or result achieved: Maxwell v. MLG
Ventures Ltd. (1996), 30 O.R. (3d) 304 (Gen. Div.); Windisman v. Toronto College
Park Ltd., [1996] OJ. No. 2897 (Gen. Div.); Serwaczek v. Medical Engineering Corp.,
[1996] O.J. No. 3038 (Gen. Div.); Parsons v. Canadian Red Cross Society (2000), 49
O.R. (3d) 281 (S.C.J.).
[71] Where the fee arrangements are a part of the settlement, the court must decide
whether the tee arrangements are fair and reasonable, and this means that counsel are
entitled to a fair fee which may include a premium for the risk undertaken and the result
aChieved, but the fees must not bring about a settlement that is in the interests of the
lawyers, but not in the best interests of the class members as a whole: Sparvier v.
Canada (Attorney General), [2006] S.J. No. 752 (Q.B.) at para. 43, att"d [2007] SJ. No.
145 (C.A.).
[72] Fair and reasonable compensation must be sufficient to provide a Teal economic
incentive to lawyers to take on a class proceeding and to do it well: Gagne v. Silcorp
Ltd. (1998), 41 O.R. (3d) 417 (C.A.); Parsons v. Canadian Red Cross SOCiety (2000),
49 O.R. (3d) 281 (S.C.J.); Vitapharm Canada Ltd. v. F. Hoffmann-I.,a Roche Ltd.,
[2005] OJ. No. 1117 (S.C.J.) at paras. 59-61.
[73] Factors relevant in assessing the reasonableness of the fees of Class Counsel
include: (a) the factual and legal complexities of the matters dealt with; (b) the risk
undertaken, including the risk that the matter might not be certified; (c) the degree of
responsibility assumed by Class Counsel; (d) thc monetary value of the matters in issue;
(c) !he importance of the matter to the class; (f) thc degree of skill and compctence
demonstrated by Class Counsel; (g) the results achieved; (h) the abi.lity of the class to
pay; (i) the expectations of the class as to the amount of the fees; G) the opportunity cost
to Class Counsel in the expenditure of time in pursuit of the lit.igation and settlement:
. VitapharmCanada Ltd.v. F.Hoffmann-La Roche Ltd., [2005J 0.1. No. 1117 (S.C.J.) at
para. 67; Endean v. Canadian Red Cross Society. [2000J B.C.J. No. 1254 (S.C.);
Wamboldt v. Northstar Aerospace (Canada) [2009] 0.1. No. 2583 (S.C.J.) at para. 33.
[74] In my opini{m, in the case at bar, the fees by the consortium of law
finns are fair and reasonable. Put shortly, Class Counsel have earned their fees
including what amounts to a quite modest premium above their hours and hourly rates
14
tor what was difficult and high-risk products liability litigation against a formidable foe
that has not admitted liability.
E. CONCLUS10N
[75] For the above Reasons, 1 approve the Settlement Agreement, approve the
counsel fee, and grant the ancillary relief: The f"tmnal order may be settled at a case
conference.
Perell, J.
Released: November 30, 2011
Released: November 30, 2011
CITATION: Voutour v. Pfizer Canada Inc., 2011 ONSC 7118
COURT FILE NO.: OS-CV-287488CP
DATE: November 30,2011
ONTARIO
SUPERIOR COURT OF JUSTICE
BETWEEN:
Jesse Voutour, Eiko Voutour, Portia Waheed
and Pardo Antonio Perotta
Plaintiffs
- and-
Pfizer Canada Inc. and PfIZer IInc.
Dc:fcndants
REASONS FOR DECISION
Perell, J.
TOTAL P.016