Nova Scotia judge approves $32-million settlement for people with disabilities

HALIFAX – A judge has approved one of the largest class-action settlements in Nova Scotia’s history, saying the agreement could see the province paying $32 million to as many as 2,600 disabled residents.

The award is aimed at compensating people with mental and physical disabilities who for years were wrongly denied social assistance benefits under the province’s disabilities assistance program.

Nova Scotia Supreme Court Justice Darlene Jamieson said the settlement, which could rise to $34 million, was “fair, reasonable and in the best interests” of those involved. 

In a statement of claim filed in October 2022, lawyers for 25-year-old plaintiff Isai Estey argued that the disabled man’s Charter rights had been violated by the province’s “cruel and inhumane” actions.

The claim says that since 1998, the province has had a statutory obligation to provide social assistance to residents in need, but they argued that obligation was largely ignored for people with disabilities.

Public funds set aside for disability assistance benefits were limited by an arbitrary cap and were treated as discretionary, which resulted in many applicants being placed on wait-lists.

Without that financial support, many of these applicants had no choice but to remain in what may have been unsuitable living arrangements with relatives, or inside institutional facilities, nursing homes, hospitals or small-options homes far from their families. Some of those forced to live in hospitals and nursing homes did not have any medical conditions and were not elderly.

“In many cases, these arrangements continue for years, often decades,” the statement of claim says.

“Denying people with a mental or physical disability or both the assistance to which they are entitled in this arbitrary way is cruel and inhumane. It is discriminatory. It strips them of their dignity and interferes with their liberty and the security of their person.” 

Anne MacRae, Estey’s mother and litigation guardian, submitted an affidavit to the court saying the settlement was in the best interests of all class members.

“While there is no amount of money that can fully compensate a person who has been discriminated against on the basis of their disability when it comes to social assistance, I am gratified by this significant achievement,” MacRae said. 

“Isai and I are proud of the role Isai has played in this achievement.”

In 2021, the Disability Rights Coalition won a Nova Scotia Court of Appeal decision that identified systemic discrimination against people with disabilities seeking housing and supports in the community. 

That ruling provided compensation to those directly involved in the case, but there was nothing for others affected by the same discrimination.

The case, however, prompted a human rights board of inquiry to draft a list of reforms required to address the province’s shortcomings. 

In August of this year, an independent monitor said the province had notable delays in delivering new programs and services, two years into the legally mandated program to move people with disabilities out of institutions and off wait-lists.

The Disability Rights Coalition followed up by urging Nova Scotia Premier Tim Houston to create a five-year plan to get the job done.

In the Charter challenge case, the statement of claim says the province had violated the Charter under sections 7 and 15. Section 7 deals with the right to life, liberty and security of the person. Section 15 guarantees the right to equality before law.

The Nova Scotia government agreed to the terms of the class action in August 2025. As of Friday, almost 500 people had indicated their interest in being part of the class proceeding, court heard.

Despite the large sum of money involved, court heard that once administrative costs and legal fees are factored in, the amount left for class members will be about $18 million. 

Any reward that class members get will not be counted as income, and the claims process for the bulk of the money will likely take about two years to complete.

This report by The Canadian Press was first published Nov. 7, 2025.