Low-cost carrier WestJet has proposed a multimillion-dollar settlement in a class action regarding its baggage fees.

Evolink Law Group published a notice of the proposed $12.5 million settlement on Wednesday. The proposal does not mean WestJet is admitting liability.

The case was initially brought to the Supreme Court of British Columbia.

The plaintiff, whose allegation has not been proven in court, claims that the airline charged them a fee for their first checked bag "contrary to a provision included in its tariff" during the class period.

WestJet class action: who is eligible?

This class action includes people in Canada and anywhere else in the world who paid a fee for their first checked bag on flights booked directly with WestJet for travel, and whose itineraries were booked pursuant to a tariff that included the free baggage fee stipulation.

The affected dates were between October 29, 2014, and July 29, 2017, (for Canadian domestic flights) or between January 6, 2016, and February 27, 2019 (for international flights).

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What to do next

You don't have to do anything for now if you meet the eligibility requirements. A settlement has to be approved by the court first.

An approval hearing is slated for 10 a.m. PT on October 11, 2024 at the Vancouver Law Courts at 800 Smithe Street in Vancouver, B.C.

Class members who want to observe or participate remotely will be able to do so through a Microsoft Teams link, which will be made available before the hearing.

A Microsoft Teams link will allow class members to observe and/or participate remotely.

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How much money can class members get?

If and once the settlement is approved, class counsel fees, admin costs, reasonable disbursements and an honorarium for the plaintiff will be deducted from the $12.5 million.

"WestJet will pay in the form of cash class counsel fees (one-third of the settlement), disbursements, and the plaintiff's honorarium (up to $3,000)," reads the release.

The remaining amount after deductions will be distributed pro rata as a credit to the WestJet Travel Bank accounts of class members who file a claim within the 90-day opt-out period, following the court-approved claims protocol.

"The protocol provides for a different distribution formula for those that are before or after July 6, 2017, due to potential limitation periods," noted litigators working on the case.

They added that the WestJet Travel Bank credits may be redeemed towards WestJet flights within 24 months without any blackout periods.

"The credits will expire after 24 months if they are not redeemed in time," they warned. "The WestJet Travel Bank credits are non-transferable but can be used to book for another guest."

The pro rata amounts will depend on how many eligible claims are submitted by class members. Class counsel has estimated that each member will get between $10 and $20, assuming an estimated claims rate of five per cent.

Note that this is only an estimate, not a guarantee. If approved, money will only be deposited in the WestJet Travel Bank accounts of people who submitted a claim.

"The settlement provides that distribution for each approved claim will not exceed $45 for class members on or after July 6, 2017, and $18 for class members before July 5, 2017," the release further reads. "These are maximum figures and not the pro rata amount that each member would receive. The pro rata amount would depend on the number of claims."

Any remaining amounts will be distributed to non-profits approved by the court.

Recently, class members of a LifeLabs privacy lawsuit were sorely disappointed after too many claims came in, lowering the amount of money each eligible member could receive. So it would be best to manage your expectations.

If you do not want to participate in the settlement, you can fill out and submit the opt-out form. Those wishing to object to the terms of this proposal settlement can write to the Class Counsel by September 27, 2024.