Settlement reached in proposed lawsuit in deadly COVID care home outbreak

Update: On May 29, 2023, a settlement was approved in a proposed class action lawsuit against a northern Alberta long-term care facility accused of failing to protect residents from a deadly outbreak of COVID-19.

As approved in the Court of King's Bench, the operator will pay a settlement of about $974,000, in addition to administrative costs off about $315,000.

Integrated Life Care Inc denies the allegations. The settlement states the operator admits no legal liability in the claims

Gene Zinyk, president of Integrated Life Care Inc, said the decision to settle was made by the company's insurance company for "risk management" reasons. 

"I am not agreement with it but it was not my decision," he said in an interview Monday. "I would have fought it and proved that we were not gross negligent."

A proposed settlement of nearly $1 million has been reached in a proposed class action lawsuit against a northern Alberta long-term care facility accused of failing to protect residents from a deadly outbreak of COVID-19.

The lawsuit alleged that negligent care provided by Integrated Life Care Inc., the operator of Manoir du Lac Continuing Care Centre in McLennan, Alta., exposed residents to the novel coronavirus. Claimants had been seeking a total of $20 million.

A statement of claim details how the outbreak spread, largely unchecked, among staff and residents of the facility, leading to 40 confirmed cases and 11 deaths.

As cases at Manoir du Lac reached their peak in April 2020, Alberta Health Services temporarily removed the facility's director and took over day-to-day operations.

When announcing the extraordinary measure, Dr. Deena Hinshaw's — then Alberta's chief medical officer of health — described staffing levels and infection control measures at the facility as inadequate. An outbreak was officially declared the following month.

The statement of claim was filed in July 2020 in what is now Edmonton Court of King's Bench. None of the allegations have been proven in court.

A proposed $947,000 settlement, offering compensation to infected residents and their families, is awaiting court approval.

An application filed in February will be heard at a notice of certification and settlement hearing in Edmonton on May 29.

If approved, there would be a 30 day waiting period to allow for possible appeals. After that passes, compensation will be paid out to claimants.

Setting a precedent

The proposed settlement would pay out claims from residents of the facility who tested positive for COVID-19 between March  20, 2020, and April 22, 2020, and either became ill or died. Spouses, partners and children of residents who were infected during the same time period are also included in the class. 

Clint Docken, a lawyer for the plaintiffs, said his clients are relieved and hopeful the settlement will clear the way for other claims seeking damages for similar outbreaks in long-term care homes across the country.

"COVID in care homes was a significant problem throughout Alberta as well as the balance of Canada," Docken said in an interview.

"There are many COVID care home claims working their way through the courts, so we are hopeful that this might very well set some precedent." 

The statement of claim details how operators at Manoir du Lac failed to protect vulnerable clients from COVID-19. The alleged negligence included poor testing, inadequate staffing and weak isolation protocols.

The lawsuit also alleged the operator failed to warn families and provincial health officials about the escalating health crisis as infection continued to spread among staff and vulnerable residents.

The operator has denied the allegations and liability in the case. 

"The settlement was based on a decision by the insurer as 'risk management' and not an admission of guilt," Gene Zinyk, president of Integrated Life Care Inc said in an emailed response to CBC on May 16. 

Docken said that while the settlement remains subject to court approval, both sides are eager to see the claim resolved. He expects claims will begin to be paid out by summer.

Chartered accounting firm MNP Ltd. has been appointed by the court to oversee the claims process. 

"This may the first COVID-related care home claim that has settled in Canada so we're pleased that the matter has come together as quickly as it has with the co-operation of defence counsel," Docken said. 

Cheri McPhillamey is the suit's representative plaintiff. Her father, Francois Brochu, was one of the 11 Manoir du Lac residents who died.

The 86-year-old former rancher tested positive for the coronavirus on April 15, 2020. His family wasn't notified of his condition until April 19, when McPhillamey got a phone call from the facility late in the afternoon.  

Just a few hours after McPhillamey received the call, her father died of COVID-19 complications. 

McPhillamey told CBC the tragedy at Manoir du Lac, and at so many other seniors' residences across the country should serve as a wake-up call about the poor care Canada provides to its oldest citizens.

In a statement, AHS said four separate COVID-19 outbreaks have been declared at Manoir du Lac, leading to a total of 157 cases.

The future of the facility remains uncertain. Last November, the courts granted a receivership order over Integrated Life Care-McLennan's assets, including the Manoir du Lac facility, AHS said.

Ernst and Young is the receiver and is looking for an operator to maintain the operation. AHS said its staff is working to support a future transition of services at Manoir du Lac. 

Audits continue to confirm proper care and standards are in place that ensure residents are receiving quality, safe care, AHS said.

COVID-19 took a particular toll on long-term care facilities and revealed dangerous weaknesses in the system. The early phase of the pandemic was marked by high death tolls in long-term care homes.

A report released in February by Alberta's auditor general investigated the worker burnout and inadequate care in long-term care facilities during the early waves of COVID.

In his report, Doug Wylie said the outbreak at Manoir du Lac was a rare instance where the escalation of resident safety concerns ultimately resulted in the health minister intervening and placing AHS in charge of facilities — one of two such interventions in the province during the pandemic.

Wylie said drastic short-staffing, buildings that don't meet modern standards and delays in getting lab test all contributed to the crisis.

His report looked at the public health response in Alberta's 355 publicly funded continuing-care facilities between March and December 2020. In that time frame, more than 8,300 residents and staff members in continuing care tested positive for COVID-19 and 1,042 of them, including five staff, died.