The company that privately operates the Highway 407 ETR through the Greater Toronto Area will pay $8 million to settle a class action lawsuit.
The agreement, signed Thursday, ends a legal battle that Global News first reported in April, 2012.
The legal action alleged that the toll highway consortium illegally made use of provincial legislation to prevent drivers who were bankrupt or insolvent from renewing their vehicle licence plates.
407 ETR denies it did anything wrong and does not admit liability in accepting the out-of-court settlement, which is still subject to court approval. A hearing for that purpose is scheduled for November 15 in Toronto.
Plaintiffs Michael Dow, Gwendolyn Miron and Peter Teolis brought the action on behalf of persons who incurred tolls or additional charges to 407 ETR who subsequently became insolvent and whose plate renewals were denied.
The $8-million settlement will be applied to the plaintiffs’ legal fees and the balance paid out to consumers who registered as part of the class action.
Initially, eligible class members will receive $200 each. They may apply for a higher reimbursement and will receive more money depending on the length of time their plates were denied as a result of the actions of 407 ETR.
If it receives approval by a judge, eligible class members will receive a notice by mail.
Lawyers for the class action are from the firm Scarfone Hawkins LLP based in Hamilton.
By Sean O’Shea, Global News