A St. John's lawyer representing hundreds of breast cancer patients says he has already begun work on an out-of-court settlement he expects will involve millions of dollars.

Lawyer Ches Crosbie: 'It's fair to say that each side in this wants to see a negotiated resolution.'
(CBC)

Ches Crosbie, who in 2006 filed the claim that led to a class action lawsuit against Eastern Health, was responding to a provocative comment earlier this week from Newfoundland and Labrador Premier Danny Williams, who said he believed Eastern Health has some liability in the suit.

Crosbie said the insurer for Eastern Health came to the table around the same time witnesses began their testimony last month at a judicial inquiry examining what went wrong at a pathology lab that produced hundreds of wrong results on hormone receptor testing over an eight-year period.

"It's fair to say that each side in this wants to see a negotiated resolution," Crosbie said.

"And it's also probably fair to say that it's possible to do this, with a will by the end of this year."

Patients have testified about how testing mistakes affected their cancer treatment, and the inquiry has been presented with exhibits showing how Eastern Health officials were worried about negative publicity and litigation.

"The fact that there's a commission of inquiry which is doing the job of discovery must have had a role," said Crosbie.

Issues complex, insurer's lawyer says

St. John's lawyer Daniel Boone, who is representing Healthcare Insurance Reciprocal of Canada, a non-profit insurer managed by Canadian hospitals and health-care institutions, confirmed talks have been under way "for some time" on a negotiated settlement.

Newfoundland Supreme Court certified a class action lawsuit against Eastern Health in 2007.
(CBC)

But in a statement released Tuesday, Boone cautioned that the issues involved are complex.

"The difficult questions raised in this case relate to identifying which patients and former patients of Eastern Health were adversely affected and to what extent," Boone said.

"Eastern Health and HIROC would prefer to resolve the various claims with minimal engagement of the court processes which would be in the best interests of the patients," he said. "However, considerable work remains to be done."

Crosbie said he has a financial settlement figure in mind, and while he is not prepared to reveal it, he said it will be in the millions of dollars.

Cancer patient Minnie Hoyles, who has sat through lengthy testimony at the Cameron inquiry, said she was encouraged to hear about behind-the-scenes negotiations.

"I really, myself, do not want to go to court," she told CBC News.

Minnie Hoyles says she and other cancer patients do not want to have to go to court.
(CBC)

"I think it's the proper thing for them to do," she said. "You're talking about patients that are sick, and I really don't think they want to go to a court where people are going to be walking in with their head scarves on and their wigs and they'll know that people died."

The issue has been raised in the house of assembly, where Opposition politicians have called on Williams to put money where his mouth is.

Opposition house leader Kelvin Parsons said if Williams is going to raise the hopes of an out-of-court settlement, then he should help ensure it actually happens.

Premier asked to help pay for settlement

"Are you prepared to put on your premier's hat, because we know what your opinion is as a lawyer, and bring the resources of government to bear, talk to Eastern Health, so that we can get to a settlement phase?" Parsons asked in the legislature.

Williams reiterated that he made his comments on Monday as a lawyer, and not as the head of the provincial government.

That said, he said, "I have told Eastern Health and I have told the insurance companies and I have told the 500,000-plus people in this province through every possible media that was available to me [Monday] that this matter should be settled," Williams told the house.

"I cannot do much more than that."

The provincial government is not named in Crosbie's class action lawsuit, which was certified last year in Newfoundland Supreme Court. Eastern Health operates at arm's length from government.

Speaking to reporters later, Williams said he is not sure whether he has the right to force Eastern Health's insurance company to settle the suit.

"You have to be careful that we didn't step in or jeopardize their right to defend if they had to defend," Williams said.

However, Williams said the government is prepared to help cover the costs of any settlement, and that if Eastern Health doesn't have enough insurance to cover the claims, the government will pay out the difference.