A judge has given the green light to one of the largest class-action settlements in Nova Scotia’s history, with the potential for the province to pay out $32 million to around 2,600 disabled residents. This settlement aims to provide compensation to individuals with mental and physical disabilities who were wrongly denied social assistance benefits under the province’s disabilities assistance program.
Nova Scotia Supreme Court Justice Darlene Jamieson deemed the settlement, which may increase to $34 million, as “fair, reasonable, and in the best interests” of the affected parties. The litigation stemmed from a statement of claim filed in October 2022 by lawyers representing Isai Estey, a 25-year-old plaintiff, who argued that the province’s actions violated the Charter rights of disabled individuals by being “cruel and inhumane.”
The claim highlighted that since 1998, the province had a legal obligation to provide social assistance to those in need but neglected this duty for people with disabilities. Funds allocated for disability assistance benefits were restricted by a cap and treated as discretionary, leading to many applicants being placed on wait-lists. Consequently, numerous individuals had no option but to endure unsuitable living conditions far from their families.
Anne MacRae, Estey’s mother and litigation guardian, supported the settlement, acknowledging that while no amount of money could fully compensate those discriminated against due to their disabilities, the achievement was significant. The Disability Rights Coalition’s successful legal challenge in 2021 exposed systemic discrimination against disabled individuals seeking housing and support in the community, prompting calls for reforms to address the province’s deficiencies.
In the Charter challenge, it was argued that the province had violated sections 7 and 15 of the Charter concerning the right to life, liberty, security of the person, and equality before the law. The Nova Scotia government agreed to the terms of the class action in August 2025, with nearly 500 individuals expressing interest in participating in the proceeding. After accounting for administrative costs and legal fees, approximately $18 million will be available for class members, with the claims process expected to take about two years to finalize.