David F. O’Connor

This was a certification motion in a proposed national employment class action alleging that commission-only mortgage specialists were not paid vacation and holiday pay on their full variable compensation contrary to the Canada Labour Code and related contractual and equitable duties.

The court held that the pleaded claims for breach of contract, negligence, breach of fiduciary duty, unjust enrichment, breach of trust, and breach of duty of good faith were not plainly doomed to fail, and that there was some basis in fact for common liability issues and aggregate damages.

The court also held that the common issues predominated for preferable procedure purposes despite disputes about limitation periods and varying employment documents.

Certification was granted except for punitive damages, for which the record did not provide some basis in fact.

The appellant sought to certify a class action against the municipality for property damage caused by pinhole leaks in copper plumbing, allegedly resulting from the addition of sodium hydroxide to the municipal water supply.

The motion judge certified the negligence claim but struck the nuisance claim, finding it barred by s. 449 of the Municipal Act, 2001, which precludes nuisance claims related to the escape of water from water works.

The Court of Appeal upheld the decision, agreeing that the nuisance claim was plainly and obviously barred by the ordinary meaning of the statute.

The Court also dismissed the appellant's argument that a breach of contract claim should have been certified, as it was not argued before the motion judge.

The plaintiff sought to certify a class action alleging breach of fiduciary duty, knowing assistance, and knowing receipt against investment advisors and their associated companies.

The claims arose from the defendants' recommendation of investments in Invoice Payment System Corporation (IPS), a company in which the advisors had a significant undisclosed ownership stake and from which they received commissions.

While the Court of Appeal had previously found the pleadings disclosed a cause of action for a class-wide fiduciary duty, this court dismissed the certification motion.

The court found that the proposed common issues regarding the existence, nature, and breach of a class-wide fiduciary duty could not be determined in common across the class, as individual inquiries into each client's specific circumstances, level of trust, reliance, and understanding of disclosures were necessary.

Consequently, the claims for knowing receipt, knowing assistance, and remedies also failed the certification test.

The plaintiff sought certification of a class action against Volkswagen and Audi entities regarding diesel vehicles fitted with a defeat device to subvert emissions testing.

The Divisional Court had previously remitted the certification motion back to the Superior Court to rehear the balance of the certification motion, apart from the questions of harm and methodology for measuring damages.

The court certified the class action, finding that the pleadings disclosed causes of action for misrepresentation, breach of the Competition Act, breach of the Canadian Environmental Protection Act, and breach of certain provincial consumer protection statutes.

Claims for breach of warranty and unjust enrichment were struck.

The court certified several common issues but declined to certify issues requiring proof of individual reliance or disgorgement.

This appeal concerned the quantum of class counsel fees and a representative plaintiff honorarium following a $153 million class action settlement for unpaid overtime.

The motion judge had awarded $25 million in fees and denied a $30,000 honorarium.

The appellants sought an increase in fees to $44 million and the honorarium.

The Court of Appeal dismissed the appeal, upholding the motion judge's discretionary decision on both fees and honorarium, finding no palpable and overriding error or misdirection on law.

The plaintiff in a certified class action regarding unpaid statutory vacation and holiday pay moved to settle the Notice Plan and Notice of Certification.

The parties disagreed on the opt-out deadline, the contents of the opt-out affidavit, and the text of the Notice of Certification.

The court held that the opt-out deadline should be 60 days after the last notice is published and that the opt-out affidavit must identify the individuals who opted out.

However, the court rejected the defendants' proposed revisions to the Notice of Certification, finding them to be unnecessary, unfair, and potentially intimidating to class members.

The Notice of Certification was approved substantially in the form drafted by class counsel.

This is an appeal from the Divisional Court, which upheld a certification judge's decision that a class action claim for breach of fiduciary duty against investment advisors did not disclose a cause of action.

The Court of Appeal for Ontario examined whether the claim adequately pleaded an ad hoc fiduciary relationship, considering factors beyond just professional rules.

The Court found that the lower courts erred by narrowly interpreting the pleading, and that the claim, taken as a whole, sufficiently pleaded vulnerability, trust, reliance, and discretion, in addition to breaches of professional standards.

The appeal was allowed, declaring that the claim did disclose a cause of action for breach of a class-wide fiduciary duty, and the matter was remitted for redetermination of other certification criteria.

The plaintiff sought approval of a $7 million settlement and class counsel fees in a class proceeding against an insurance company regarding the performance of an investment fund.

The action, which spanned 20 years, involved claims of breach of contract and negligent misrepresentation.

The court found the settlement to be fair, reasonable, and in the best interests of the class, given the significant litigation risks.

The court also approved class counsel's 30% contingency fee, noting the high risks undertaken and the good result achieved for the class.

The defendants brought a motion for leave to appeal the order of Belobaba J. dated December 29, 2022.

The Divisional Court dismissed the motion for leave to appeal.

As the responding party did not provide costs submissions, the court made no order as to costs.

Following the death of the judge who certified this national class action regarding vacation and public holiday pay, the parties could not agree on the terms of the certification order.

The plaintiff brought a motion to settle the order under rule 59.04(14).

The court settled the class definition start dates by applying the ultimate limitation periods for provinces that have them, and the basic limitation periods (adjusted for Covid-19 suspensions) for provinces that do not.

The court also compendiously restated the liability common issue to include unjust enrichment.

The plaintiff brought a motion to certify a class action against the City of Thunder Bay for negligence and private nuisance, alleging that the City's addition of sodium hydroxide to the municipal water supply caused pinhole leaks in copper plumbing pipes, resulting in property damage.

The City brought a cross-motion to strike the nuisance claim, arguing it was barred by s. 449 of the Municipal Act, 2001, which provides immunity for nuisance claims connected to the escape of water from water works.

The court granted the City's motion to strike the nuisance claim, finding it was plainly and obviously barred by the statute.

The court granted the plaintiff's motion to certify the negligence claim, finding it met all the criteria under the Class Proceedings Act, 1992.

Class counsel sought approval of a $44 million contingency fee following a $153 million settlement in an unpaid overtime class action against CIBC.

The court found the requested fee, representing 30% of the settlement, to be excessive and potentially champertous given the megafund nature of the settlement.

The court approved a reduced fee of $25 million (17% of the settlement), finding it provided fair compensation for the risks undertaken while protecting the integrity of the profession.

The court also denied the representative plaintiff's request for a $30,000 honorarium, finding her involvement was not extraordinary enough to justify the award.

The appellant appealed the dismissal of a motion to certify a class action on behalf of purchasers of Volkswagen and Audi diesel vehicles who sold their vehicles prior to the disclosure of the emissions defeat device.

The motion judge had found no plausible methodology to calculate damages on a class-wide basis.

The Divisional Court allowed the appeal, finding that the motion judge erred by requiring a tangible demonstration of the proposed methodology rather than merely assessing whether it met the low 'some basis in fact' threshold of plausibility.

The matter was remitted to a new judge to rehear the balance of the certification issues.

The moving parties (defendants) brought a motion for leave to appeal the orders of Belobaba J. dated January 6, 2022.

The Divisional Court dismissed the motion for leave to appeal, with costs fixed at $5,000 payable to the Foodland plaintiffs.

The appellant appealed a decision refusing to certify her class proceeding for breach of fiduciary duty against her investment advisors.

The appellant argued that the advisors' professional rules and codes of ethics established a fiduciary relationship on a class-wide basis.

The Divisional Court dismissed the appeal, holding that an ad hoc fiduciary duty between a financial advisor and a client requires a multi-factor, case-by-case analysis, and cannot be established solely based on professional rules and ethical codes.

The Canadian Imperial Bank of Commerce appealed three lower court decisions in a class action initiated by Dara Fresco on behalf of 31,000 customer service employees.

The class action alleged that the Bank's overtime policies and record-keeping practices led to uncompensated overtime, contrary to the Canada Labour Code.

The Court of Appeal for Ontario dismissed all three appeals.

It upheld the motion judge's interpretation of "permitted" overtime under s. 174 of the Code, affirming that the Bank's policies and record-keeping were "institutional impediments" to proper compensation.

The Court also confirmed the certification of aggregate damages, ruling that the Supreme Court's Pro-Sys decision allowed the trial judge to reconsider this issue despite a previous refusal at certification.

Finally, the Court upheld the motion judge's decision to defer a class-wide limitations order and a constitutional question regarding the extra-territorial application of the Class Proceedings Act, deeming them premature.

The plaintiff sought to certify a class action on behalf of pre-disclosure owners and lessees of Volkswagen and Audi diesel vehicles containing 'defeat devices'.

The plaintiff alleged they paid a premium for a 'clean diesel' feature they did not receive.

The court dismissed the motion for certification, finding that the plaintiff failed to provide any evidence of a compensable loss or a plausible methodology to measure the alleged loss on a class-wide basis, as required under section 5(1) of the Class Proceedings Act.

This was a costs decision following the plaintiff's unsuccessful motion to certify a proposed class proceeding alleging breach of fiduciary duty, knowing assistance, knowing receipt, breach of contract, and oppression.

The court reviewed the general costs principles under s. 131 of the Courts of Justice Act, rule 57.01(1) of the Rules of Civil Procedure, and the specific principles governing class proceedings costs, emphasizing fairness, reasonableness, and access to justice.

Although the successful defendants sought substantial indemnity costs based on serious unproven allegations and the continued pursuit of non-certifiable claims, the court held the action was not frivolous or vexatious and declined punitive costs.

Partial indemnity costs were awarded in the amounts claimed by the successful defendants.

The plaintiff brought a motion to certify a class action against her investment advisors and related corporations, alleging breach of fiduciary duty, knowing assistance, knowing receipt, breach of contract, and oppression in relation to the sale of promissory notes.

The court dismissed the certification motion, finding that the claims did not satisfy the cause of action, common issues, and preferable procedure criteria under the Class Proceedings Act, 1992.

The court held that the existence of a fiduciary duty and any breach thereof would require individualized assessments, and that the secondary claims for knowing assistance and knowing receipt were similarly flawed and lacked a basis in fact.

Dara Fresco, the representative plaintiff in a class action, moved to quash two aspects of the Canadian Imperial Bank of Commerce's appeals from a judgment on common issues.

Fresco argued that the issues concerning limitation periods and aggregate damages were only appealable to the Divisional Court with leave, not the Court of Appeal.

The Court of Appeal dismissed the motions to quash, holding that it had jurisdiction over all aspects of the appeals under s. 30(3) of the Class Proceedings Act, 1992, as the determinations on limitations and aggregate damages were part of the judgment on common issues.