Canadian Michelin Pension Plaintiff to Pay Legal Costs

The Canadian man who unsuccessfully took Michelin to court over pension fund allegations has been ordered to personally pay half of Michelin’s legal fees. Everett Smith instigated the pension lawsuit on behalf of the Concerned Pension Group, accusing the tyre major of using pension fund surpluses to pay for annual contributions into the fund, but in October 2007 the Nova Scotia Supreme Court ruled that Michelin had fully met its contribution obligations.

Justice Suzanne Hood has now awarded Michelin a reimbursement of costs and disbursements to the sum of $599,377.95, and Justice Hood ruled that Everett Smith must personally pay 50 per cent of these costs – $299,688.97. Michelin states that it will “make every effort to collect these funds from Mr. Smith in accordance with the court’s decision.”

“We are pleased that Justice Hood awarded costs in favour of Michelin,” said Janet Kennedy, director of personnel group services for Michelin North America (Canada) Inc. “We have always complied with the Pension Benefits Act and any changes we proposed over the years, including many plan improvements, had been reviewed and approved by the appropriate regulatory authorities.”

In fact, Michelin sought a ruling that legal costs to the amount of $1.2 million be paid by Mr. Smith, who in turn unsuccessfully requested these costs and his own legal costs, totalling $940,000, to be paid using funds from the Michelin Pension Plan.