Wednesday, September 22, 2004

YFS files multi-million dollar suit (abstract)

The York Federation of Students (YFS) has filed a statement of claim against the Canadian Federation of Students, the National Students Health Network and two private health and insurance companies, alleging that while York students were enrolled in the CFS-operated National Students Health Network, the CFS and its affiliates allegedly cost York students hundreds of thousands of dollars.
The lawsuit asks for damages of $1.4 million from the CFS "for breach of contract, breach of fiduciary duty, negligence, negligent misrepresentation, improperly holding itself out as an insurance broker and return of commission payments."
The statement alleges that during the years between 1995 and 1999, when the YFS was using the CFS's health plan, the CFS and the companies which it worked with, misused a health plan surplus, inflated commissions, and were negligent in their fiduciary responsibilities. The claim further alleges as a result of the York students paid premiums that were higher than need be.
The statement of claim, as procured from the Ontario Superior Court of Justice, is dated August 23, 2004, and states that notice of action was issued on July 23, 2004.
However, CFS national chairperson George Soule claims that CFS was never contacted about the lawsuit and has not been served with any claim.
First published September 22, 2004. Excalibur only received a copy of the claim as we were going to print and could not investigate fully. Further details about the lawsuit will be printed in subsequent issues.


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