Vets worry settlement in clawback case could be chewed up by legal fees

OTTAWA – There’s growing concern among veterans that a big chunk of a multi-million settlement over the clawback of their military pensions will be gobbled up by legal fees.

The federal government announced in June it would not appeal a Federal Court of Canada ruling that rejected clawbacks from the pensions of disabled veterans; Defence Minister Peter MacKay ordered a stop to the practice on July 1.

A class action lawsuit was filed in March 2007 on behalf of Dennis Manuge and 4,500 other disabled veterans whose long-term disability benefits were reduced by the amount of the monthly Veterans Affairs disability pension they receive.

He argued it was unfair and unjust to treat pain and suffering awards as income.

The federal government recently appointed University of British Columbia president Stephen Toope to lead the discussions with Manuge’s legal team to arrive at a settlement, including retroactive payments.

But Louise Gagnon, one of the veterans taking part in the court fight, says information from Veterans Affairs Canada suggests legal fees could be included in whatever final agreement is made — something she deems is totally unacceptable.