Yellowknife (Nov 17/04) - The Yellowknife Community Foundation recently received an unexpected cash windfall from an unusual source: a share of the settlement from a class-action lawsuit.

Tom Hall

The suit was launched in Ontario in September 2001, after allegations were made that eight manufacturers of monosodium glutamate (MSG) and nucleotide had been involved in price fixing.

The products are used as flavour enhancers in food.

The allegations covered price fixing between 1990 and 1999. Compensation was ordered to the tune of $963,000.

So what does all this have to do with the Yellowknife Community Foundation?

As president Tom Hall explained it, because the companies' collusion forced customers to pay higher prices, it was determined that some of the money should return to consumers' pockets.

But, said Hall, "(because) there is no way of tracking the consumers affected by this lawsuit... community foundations like ours were asked to step in and allocate this settlement in a way that benefits Canadians."

Community foundations were asked to distribute their share of the settlement -- about $300,000 in total -- to food-related charities in their area. Yellowknife's share of the money, said Hall, is a little over $1,200.

"It is a bit unusual," said Hall. "This is the first time this sort of thing has happened (to the YCF)."

Hall said, while $1,200 isn't a huge sum, "for the foundation that amount would be a sizeable award."

The YCF operates by investing donations and distributing the interest. From its $300,000 capital fund, it has donated nearly $10,000 this year.

Hall said decisions about the distribution of the money are currently under review by the grant-making committee, which should report to the board soon.

"I would expect it would be no more than a month at the outside (before the money is distributed)," he said.

He expects the money will be split up, not given to just one charity.