Douglas M. Worndl

On January 8, 2020, Ukraine International Airlines flight PS752 was shot down by Iranian air defence missiles shortly after takeoff from Tehran, killing all 176 persons aboard.

The trial judge found that UIA breached the standard of care by failing to conduct a proper security risk assessment in accordance with ICAO 10084 (Risk Assessment Manual for Civil Aircraft Operations Over or Near Conflict Zones).

Specifically, UIA failed to access necessary and available information, failed to conduct a hazard identification and safety assessment, and failed to communicate with the flight commander before departure.

As a result, UIA's liability under the Montreal Convention was unlimited rather than capped at approximately $235,000 per passenger.

The appellate court dismissed UIA's appeal, finding no palpable and overriding error in the trial judge's findings of fact or mixed fact and law.

The Court of Appeal for Ontario dismissed Shantanu Shirodkar’s appeal seeking to certify a class action against Coinbase Global, Inc. and its subsidiaries for alleged violations of securities laws.

The court upheld the motion judge’s findings that Ontario courts lacked jurisdiction over the non-Canadian Coinbase entities and that Ireland was the preferable forum for the claims, staying the action against Coinbase Canada as well.

The decision addresses the interpretation of forum selection clauses, the application of the “real and substantial connection” test, and the doctrine of forum non conveniens in the context of cross-border crypto-asset trading.

The court approved a $30 million settlement in a class action brought by shareholders of Aphria Inc. against the company and two of its officers, alleging misrepresentations in public disclosures about major business acquisitions.

The settlement was reached on the eve of trial after extensive discovery and negotiation, with the court finding the terms fair and reasonable given the risks of trial and potential insolvency proceedings.

The court also approved class counsel fees, disbursements, a levy to the Class Proceedings Fund, and an honorarium for the representative plaintiff.

This decision resolves a carriage motion between three proposed class actions seeking damages for investors in The Toronto-Dominion Bank, arising from alleged misrepresentations and failures to disclose anti-money laundering (AML) deficiencies.

The court concludes that the Parkin action is best suited to advance the class members’ claims efficiently and cost-effectively, considering the statutory criteria under the Class Proceedings Act, 1992.

The decision addresses the impact of late registration of a class proceeding, the legal framework for carriage motions, the comparative strengths and weaknesses of each action, and issues of funding and counsel experience.

The court approved a Notice Plan for a proposed settlement in a certified class action between Vecchio Longo Consulting Services Inc. and Aphria Inc. et al.

The Notice Plan, developed by class counsel and to be administered by RicePoint Administration Inc., was found to be fair, reasonable, and effective in providing adequate notice to class members regarding the settlement approval hearing and related matters.

The court confirmed that the plan met the requirements of the Class Proceedings Act, 1992, and ordered that the Notice Plan proceed as proposed.

The plaintiffs brought actions against Ukraine International Airlines (UIA) under the Montreal Convention following the shoot-down of Flight PS752 by Iranian military surface-to-air missiles shortly after takeoff from Tehran.

UIA admitted the shoot-down was an 'accident' under the Convention, making it strictly liable, but sought to limit its liability by proving it was not negligent in allowing the flight to depart.

The Superior Court of Justice found that UIA failed to meet the standard of care for a reasonable airline operating in or near a conflict zone, as it did not conduct a proper security threat risk assessment or any safety risk assessment, and failed to gather available intelligence or brief the flight commander.

The court held that UIA failed to prove its negligence did not cause the passengers' deaths or that the harm was too remote, resulting in unlimited liability for the airline.

The defendants, Coinbase Global, Inc., Coinbase, Inc., Coinbase Europe Limited, and Coinbase Canada Inc., brought a motion to dismiss a putative class action for want of jurisdiction and, alternatively, to permanently stay the action on the basis of forum non conveniens.

The plaintiff alleged that the defendants violated Ontario securities legislation by distributing crypto assets without complying with prospectus requirements.

The court found presence-based jurisdiction only over Coinbase Canada Inc. due to its business activities in Ontario.

However, the court found no presence-based, consent-based, or assumed jurisdiction over Coinbase Europe, Coinbase Inc., or Coinbase Global.

Consequently, the action against Coinbase Europe, Coinbase Inc., and Coinbase Global was dismissed.

The court then considered forum non conveniens for Coinbase Canada Inc., concluding that Ireland was a clearly more appropriate forum given that the plaintiff's claims arose from transactions with Coinbase Europe, which was domiciled in Ireland, and the lack of a class action framework in Ireland was not a decisive juridical disadvantage.

The action against Coinbase Canada Inc. was permanently stayed.

The plaintiff in a securities class action brought a refusals motion seeking production of a Special Committee report, three due diligence legal opinions, and answers to questions about missing marijuana inventory.

The court dismissed the motion, finding that the Special Committee report and the legal opinions were protected by solicitor-client and litigation privilege, and that the privilege had not been waived.

The court also held that the questions regarding the missing marijuana were irrelevant and disproportionate.

The plaintiff in a securities class action brought a motion to discontinue the action against the underwriter defendants and to unconditionally certify the primary market misrepresentation claim against the remaining corporate and individual defendants.

The action had been stalled due to an appeal regarding the disclosure of prospectus purchasers needed to find a representative plaintiff against the underwriters.

The court approved the discontinuance under section 29 of the Class Proceedings Act, 1992, finding it was in the best interests of the class to avoid further delay and proceed against the remaining defendants, who were jointly and severally liable and financially capable of satisfying a judgment.

The moving parties (defendants) brought a motion to stay a production order issued by Perell J. pending the disposition of their appeal.

The Divisional Court granted the motion and ordered the stay.

The plaintiffs brought a motion to approve a $125 million settlement in a class action against a major bank for secondary market misrepresentation related to subprime mortgage investments.

The plaintiffs also sought approval of class counsel fees of $37.5 million, representing a 30% contingency fee.

The court found the settlement to be fair and reasonable, noting the significant litigation risks the plaintiffs faced, including a due diligence defence and challenges to damages calculations.

The court also approved the requested counsel fees, emphasizing the substantial risk undertaken by class counsel over 14 years of litigation and the excellent result achieved for the class.

The plaintiffs sought early production of an investigation report from the defendants to determine whether there was an evidentiary basis to serve two John Doe defendants located in Mexico.

The defendants opposed the request, arguing that the normal discovery process under the Rules of Civil Procedure should be followed.

The court agreed with the defendants, holding that the plaintiffs could not compel early production to avoid the ordinary costs risks of litigation.

The plaintiffs were ordered to serve the remaining defendants within 60 days.

The moving parties sought an interlocutory stay of an order requiring them to disclose identifying information of primary market investors, pending their motion for leave to appeal that order.

The Divisional Court granted the stay on an interim basis, finding that the motion for leave to appeal had some prospect of success, the moving parties would suffer irreparable harm if the disclosure was made before the leave motion was decided, and the balance of convenience favoured a brief delay.

The court emphasized that interim stays pending leave to appeal should be addressed expeditiously to minimize prejudice.

The plaintiff brought a proposed class action against Aphria Inc., its directors/officers, and several underwriters, alleging misrepresentations in both the primary and secondary markets regarding two corporate acquisitions.

The plaintiff sought leave to discontinue certain claims, leave to assert secondary market claims under the Securities Act, and certification of the class action.

The court granted the discontinuances and leave for the secondary market claims, certifying them on consent.

For the primary market claims against the underwriters, the court held that the 'Ragoonanan Principle' still applies in Ontario, meaning a representative plaintiff must have a direct cause of action against each defendant.

Since the plaintiff only purchased shares in the secondary market, it could not represent primary market purchasers.

However, the court conditionally certified the primary market claims, giving class counsel 100 days to recruit an eligible representative plaintiff who purchased shares in the prospectus offering.

The Quebec Plaintiffs and the Defendants brought motions for leave to appeal an order of Belobaba J. dated November 21, 2019.

The Divisional Court dismissed both motions for leave to appeal.

Costs of $2,500 were ordered payable by each of the moving parties to the responding Ontario Plaintiffs.

Case management endorsement scheduling a motion to determine whether a motion for leave to appeal a carriage decision in a proposed securities class action is stayed by an initial order under the Companies' Creditors Arrangement Act.

The court directed the responding party to bring a motion to stay the leave application, to be heard by a single judge of the Divisional Court.

The Ontario Plaintiff moved to quash the Quebec Plaintiff's appeal of an order dismissing a motion to stay the Ontario class action.

The Court of Appeal held that the refusal to stay the Ontario Action is an interlocutory order, not a final order, because it does not determine any substantive right to relief or substantive defence.

As the order is interlocutory, the appeal lies to the Divisional Court with leave, not to the Court of Appeal.

The appeal was quashed for lack of jurisdiction.

Two competing teams of legal counsel sought carriage of a proposed securities class action against CannTrust Holdings Inc. and other defendants for alleged misrepresentations regarding unlicensed cannabis production.

The court granted carriage to the Consortium team, finding that the competing TGF/RG team had a disqualifying conflict of interest because they excluded RBC Dominion Securities Inc., a current client of one of the firms, as a defendant.

The court held that excluding a necessary defendant to prefer a client's interests prejudiced the proposed class members by reducing potential recovery.

The plaintiffs in a Quebec class action and the defendants brought motions to stay a parallel Ontario class action alleging securities misrepresentations.

The moving parties argued the Ontario action was duplicative and an abuse of process.

The court dismissed the motions, finding that the Ontario action was more comprehensive and not duplicative of the Quebec action when it was filed.

The court held that issues of preferability between parallel multi-jurisdictional class actions are better addressed at the certification stage rather than through a pre-certification stay motion for abuse of process.

This decision addresses a carriage motion between two proposed class actions against Aphria Inc. and other defendants, both alleging misrepresentations in the secondary market and oppression remedy claims.

The "Mirzoian-Rogers Action" (LATAM Theory) proposed a narrower class based primarily on the LATAM Transaction, while the "Vecchio Action" (Nuuvera+LATAM Theory) proposed a broader class period and additional causes of action encompassing both the Nuuvera and LATAM Transactions.

The court granted carriage to the Vecchio Action, finding its broader case theory to be in the best interests of the class by providing greater access to justice for a larger group of claimants, despite criticisms regarding the pleading of partial corrective disclosures for the Nuuvera Transaction.

The court emphasized that a carriage motion is not the appropriate forum to definitively resolve complex legal issues like the full effect of corrective disclosures.