Ottawa, lawyers reach $55M deal on First Nations child welfare legal fees

Class action lawyers have shaved $25 million off their request for $80 million in legal fees related to a multi-billion dollar settlement on First Nations child welfare.

Class action lawyers have shaved $25 million off their request for $80 million in legal fees related to a multi-billion dollar settlement on First Nations child welfare.

Five legal firms have agreed to settle the issue with Ottawa if the federal government pays $50 million for fees up to Oct. 31, 2023, and up to an additional $5 million for ongoing work required to implement the settlement.

Ottawa also would be required to pay disbursements and applicable taxes to lawyers.

"We believe that this fee, which is $25 million lower than the request fee, is reasonable," said Jennifer Cooper, a spokesperson for Indigenous Services Canada.

"It is also in line with the fees paid for previous class actions, even though this class action is the biggest in our history and required significant work."