The representative plaintiffs and 229 other investors purchased debentures in Western Canadian Shopping Centres Inc. under the federal Business Immigration Program.
After the investment failed, the plaintiffs commenced a class action alleging breach of fiduciary duty by the defendants.
The defendants applied to strike the representative claim under Rule 42 of the Alberta Rules of Court.
The Supreme Court of Canada dismissed the defendants' appeal, holding that the class action should be allowed to proceed as the class was capable of clear definition, there were common issues of law and fact, success for one meant success for all, and the representatives adequately represented the class.
The Court allowed the plaintiffs' cross-appeal, finding that individualized discovery of all class members was premature.
