The health plan lawsuit between the Carleton University Students’ Association (CUSA) and the Graduate Students’ Association (GSA) has progressed slowly since CUSA filed their statement of defence in January.
“It’s fairly straightforward,” said GSA president Kelly Black, in regards to upcoming legal proceedings. “The next steps are either mediation or discovery.”
Mediation is an opportunity for both parties to discuss a solution in the presence of a mediator, either agreed to by both parties or court appointed. Discovery is the process by which these parties will provide each other with all relevant evidence against the other.
Black said the GSA is eager to continue to work to resolve the dispute.
“Up until this point it has been CUSA who’s been delaying, and the GSA would love to see a speedy resolution for the students,” Black said.
CUSA’s vice-president (finance) Michael De Luca said the savings from switching to a new health plan clearly outweigh the costs of any legal action with the GSA.
He said that in an analysis CUSA did of the situation, they calculated they would still save money even in the event the GSA won their case.
“It’s a claim under the simplified rules of procedure,” De Luca said.
“The maximum [the GSA] can claim is $100,000.”
Since the claim has been filed under the simplified rules of procedure, legal costs are also set to remain relatively low. De Luca estimates the legal costs to be between $50,000 and $65,000.
Total savings from changing health plan providers is about $1 million, so after the GSA’s claim, CUSA saves approximately $800,000, according to De Luca’s estimates.
“Worst-case scenario, the benefit would still exceed the cost,” he said. “So to us, when the service is better and the coverage is the same, when you look at the cost, and the cost-benefit analysis . . . it’s a clear decision.” θ
—with files from Adella Khan
