A judge in Nova Scotia has given the green light to a significant class-action settlement, potentially leading to a payout of $32 million for about 2,600 disabled residents. The settlement aims to provide compensation to individuals with mental and physical disabilities who were unjustly denied social assistance benefits under the province’s disabilities assistance program for an extended period.
Justice Darlene Jamieson of the Nova Scotia Supreme Court endorsed the settlement, which may escalate to $34 million, deeming it as equitable, rational, and in the best interests of the affected parties. The legal action, initiated in October 2022 by lawyers representing Isai Estey, a 25-year-old plaintiff, alleged that the province violated the Charter rights of disabled individuals through its “cruel and inhumane” treatment.
The claim highlighted that since 1998, Nova Scotia had a legal obligation to offer social assistance to residents in need, particularly those with disabilities, which was disregarded. The allocation of public funds for disability benefits was capped arbitrarily and considered discretionary, resulting in numerous applicants being placed on waiting lists.
As a consequence, many applicants were compelled to stay in inappropriate living conditions with relatives or in distant facilities like nursing homes, hospitals, or small-options homes due to the lack of financial aid. Some individuals residing in hospitals or nursing homes had no medical conditions or were not elderly.
The statement of claim emphasized that these situations often persisted for years, leading to a loss of dignity, liberty, and personal security for people with disabilities. Anne MacRae, Estey’s mother and legal guardian, expressed satisfaction with the settlement, acknowledging that while no amount of money can fully compensate for discrimination, the resolution marked a significant milestone.
In a separate development, the Disability Rights Coalition secured a court ruling in 2021 that exposed systemic discrimination against disabled individuals seeking housing and community support. This decision prompted a human rights inquiry to outline necessary reforms to address the province’s deficiencies.
Following the Charter challenge, which alleged violations under sections 7 and 15, the Nova Scotia government agreed to the terms of the class action in August 2025. Nearly 500 individuals have expressed interest in joining the class action, but after accounting for administrative expenses and legal fees, approximately $18 million will be available for class members.
The compensation received by class members will not be considered income, and the claims process is expected to take around two years to finalize.