Canada-BSE Class Action to proceed.

CANADA-BSE CASE TO PROCEED.

The January 22 decision by Madam Justice Janet

Wilson of the Ontario Divisional Court denying leave to the federal government

to appeal the certification of a national BSE class action has cleared the way

for a trial.


"We are waiting for the Department of Justice to file a defence," said

Cameron Pallett, lead counsel in the law suit, today. "I am confident the

government will be prompt, now that the appeals process is exhausted."

Mr. Pallett noted that in her decision Justice Wilson wrote that, "There

has already been a delay of three years due to procedural challenges. It is in


the interests of justice that this case proceed."

The action, which seeks compensation for the up to 135,000 farm families

hit hard by international border closings to Canadian cattle and beef after

the first case of BSE was reported in Alberta in May, 2003, was certified in

Ontario on September 3, 2008 by Madam Justice Joan Lax of the Ontario Superior

Court of Justice.

Statements of claim were filed in Ontario, Quebec, Saskatchewan and

Alberta in April 2005. Certification by the Ontario court creates a national

class action in the common law provinces of Canada. A coordinated action on

behalf of the cattle farmers of Québec was authorized as a class action in

June of 2007.

The action names as defendants the federal department of agriculture,

unnamed officials of the department, and a cattle-feed manufacturer, Ridley

Inc. On January 30, Ridley finalized a settlement agreement by paying C$ 6

million dollars into the BSE Class Action Fund to be used to fund the ongoing

litigation. Ridley is still a defendant, but its liability is capped.

On January 26, an allegation of misfeasance in public office by a public

servant in the department of agriculture was added to the statement of claim.

"It will be our contention at trial that the individuals involved were

grossly negligent in their responsibilities; Canadian beef and dairy cattle

producers trusted and relied on them, and they failed the producers."

Mr. Pallett declined to speculate on the amount that damages would be, if

the law suit is successful. "What is immediately important is a process to

move things along in a timely manner; the plaintiffs prefer the government to

engage in settlement negotiations, rather than force a lengthy trial process,"

he said.

"This action is about the families whose lives were blighted by the

crisis - a crisis we allege occurred because the Department of Agriculture did

certain things, and neglected to do other things, knowing at the time that if

it had adopted a different course of action, this crisis would never have

occurred."

"Experts are now reporting that beef and dairy operations continue to be

affected; many families will never recover. The harm caused by the BSE crisis

is measured in farms lost, careers destroyed and opportunities pre-empted,"

said Mr. Pallett. "Failure to do the right thing at the right time caused the

BSE crisis. It is time for the government to take a good hard look at how they

can help Canadian cattle farmers."