Alan W. D’Silva

In a securities misrepresentation class action, the defendants brought a motion to strike the plaintiffs' reply expert report, delivered by Andrew M. Mintzer, in its entirety.

The report, initially intended to address causation, expanded to cover liability, contravening the agreed timetable and the rule against case-splitting.

The court granted the defendants' motion, striking the report but allowing the plaintiffs leave to file a new affidavit from Mr. Mintzer strictly confined to the issue of causation, as originally agreed.

The court emphasized the importance of adhering to timetables and the rule against case-splitting, particularly in leave motions under the Ontario Securities Act, which serve a gatekeeper function.

The defendants, having successfully obtained a temporary stay of two securities misrepresentation actions (a class action and an individual action), sought costs on a partial indemnity scale.

The plaintiffs objected, arguing the costs were excessive, success was divided, and the defendants should adhere to the Costs Grid.

The court awarded the Palladium Defendants $25,000 and KPMG LLP $20,000, all inclusive, finding these amounts reflected the fair and reasonable expectations of the unsuccessful litigants, considering the complexity and importance of the underlying motion, while acknowledging the plaintiffs' partial success in reducing the requested amounts.

The defendants moved to temporarily stay two related securities misrepresentation actions: an individual action (Vaeth Action) and a proposed class action (Johnson Class Action).

The court granted the temporary stay, finding irreconcilable conflicts of interest for the shared counsel (Morganti Legal) representing both the individual plaintiffs (who intended to opt-out of the class action) and the representative plaintiff of the class action.

The court also found independent reasons to stay the individual action to avoid multiplicity of proceedings and ensure judicial economy, pending the certification and leave motions in the class action.