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July 5, 2004
City of Toronto consents to certification of class proceeding with former Metro Toronto management employees
Last year, certain retired former Metro management employees commenced a
lawsuit against the City of Toronto regarding the level of prescription drug
coverage and out-of-province medical coverage available to retirees over the
age of 65. Following discussions with the plaintiffs, John Markle and Jack
Horsley, the City of Toronto has agreed that the lawsuit should proceed as a
class proceeding under the Class Proceedings Act.

Today, lawyers for the City and the plaintiffs appeared before Mr. Justice
Nordheimer in court and the class of former Metro management employees was
formally certified on consent pursuant to the class proceedings legislation.
The certification order is not a decision about the merits of the case. The
matter will now proceed as a civil action.

The City and the plaintiffs both believe that the class action is a fair and
expedient process to resolve this dispute.

In the plaintiffs' action they claim that a by-law passed by the Council of the
former Municipality of Metropolitan Toronto created a benefit plan for retirees
post age-65 that included drug coverage costs not covered by the Ontario Drug
Benefit Plan and health coverage outside of Canada.

The City of Toronto states that these benefits are not now and never have been
covered under the post age 65 retiree benefits plan.

All affected retirees will receive a detailed notice telling them about the
class action and how it may affect them. All individuals will be bound by the
ultimate decision of the Court on the merits of the case except those who opt
out between now and October 31, 2004.

Media contacts:
Ivana Zanardo, Director, Pension, Payroll & Employee Benefits,
Cindy Bromley, Manager, Finance Communications, 416-392-4993



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