The Bre-X Action has been stalled for the last 18 months because Judge Folsom in Texas has not made a decision on whether or not to approve the Bresea Settlement Agreement. Bresea is required to pay $9 million under the Bresea Settlement Agreement.

As of July 30, 2003, Judge Folsom of Texas has still not decided whether to approve the Bresea Settlement Agreement which has been before him since June 6, 2002.

After approving the Bresea Settlement Agreement in June 2002, Mr. Justice Winkler concluded that it would not be fair to the parties in the Bre-X action to proceed with examinations for discovery until it is determined whether Bresea remains a defendant in the action.

Unfortunately, because of Judge Folsom’s delay, the date for closing of the Bresea Settlement Agreement passed. Bresea has refused to extend the Settlement Agreement and now asserts that it has no obligation under the Bresea Settlement Agreement. Plaintiffs’ counsel believe that Bresea is obliged to extend the Settlement Agreement because of an undertaking it made to the Alberta Court. Therefore, an application to the Alberta Court will be necessary to determine whether Bresea is obliged to extend the Settlement Agreement.

If the Alberta Court requires Bresea to extend the Settlement Agreement, the parties will still need the decision of Judge Folsom in order to proceed with the prosecution of the action.

If the Alberta Court concludes that Bresea is not required to extend the Settlement Agreement, the Bresea Settlement Agreement will have expired because of Judge Folsom’s delay. Bresea, therefore, will be a defendant in the action and plaintiffs’ counsel will proceed to schedule examinations for discovery.

Plaintiffs’ counsel will report on this website once the application to the Alberta Court is heard, which is expected before the end of September.

Bre X Class Action