Evatt Merchant

The plaintiffs, representing a class of small to medium-sized businesses, sought coverage under their business interruption insurance policies for losses sustained due to the COVID-19 pandemic and related civil authority orders.

The court held a common issues trial to determine whether the presence of the SARS-CoV-2 virus or government lockdown orders could cause 'physical loss or damage to property' within the meaning of the policies.

The court concluded that the virus does not physically alter or damage inanimate surfaces, and that the loss of use of the premises due to government orders does not constitute physical loss or damage.

Consequently, the court answered the certified common issues in the negative, finding no coverage under the business interruption provisions.

Following the dismissal of the plaintiff's motion for certification of a proposed class action, the successful defendant sought costs.

The plaintiff argued that costs should not be awarded because the litigation was in the public interest.

The court rejected this argument, finding no reason to depart from the usual rule that costs follow the event.

The court awarded the defendant partial indemnity costs fixed at $182,000, inclusive of fees, disbursements, and HST, noting that online legal research charges are not a proper disbursement.

The plaintiff sought to certify a class proceeding against the City of Ottawa arising from a deadly bus accident at Westboro Station.

The proposed action was structured to plead systemic negligence in transit design and operation while avoiding claims against the city as the owner of the vehicle and employer of the driver.

The court dismissed the certification motion, finding that the proposed class proceeding was not the preferable procedure, as it ignored readily available compensation under the motor vehicle insurance regime and numerous individual actions had already been commenced.

The plaintiff brought a motion to certify a class action against the defendants, who operated an endoscopy clinic where an infection control lapse occurred.

The proposed class included patients who underwent procedures between 2002 and 2011.

Despite extensive public notification by public health authorities, the plaintiff could only identify one other potential class member, whose medical issues lacked expert evidence linking them to the clinic.

The court dismissed the certification motion, finding that the plaintiff failed to establish some basis in fact for the existence of an identifiable class of two or more persons.

Her Majesty the Queen in right of Ontario sought to lift a stay on its $330 billion health care cost recovery action against three tobacco companies (JTI-Macdonald Corp., Imperial Tobacco, Rothmans, Benson & Hedges Inc.) and eleven co-defendants, which was imposed under CCAA proceedings.

Ontario proposed to temporarily stay the effects of any judgment.

The court dismissed the motion, emphasizing the need to preserve the status quo in CCAA proceedings to facilitate a global resolution of significant claims.

Allowing Ontario's action to proceed would alter the level playing field, distract from restructuring efforts, and impose significant costs, prejudicing other stakeholders.

The applicants, JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc., sought protection under the Companies' Creditors Arrangement Act (CCAA) following a $13.5 billion judgment from the Quebec Court of Appeal and other ongoing litigation.

JTI-Macdonald Corp. and Rothmans, Benson & Hedges Inc. moved for orders to file Supreme Court of Canada (SCC) leave applications but suspend further proceedings.

Imperial Tobacco Canada Limited and Imperial Tobacco Company Limited sought a blanket stay of all proceedings and limitation periods.

The Quebec class action plaintiffs opposed the motions and sought to partially lift the stay.

The court affirmed its broad jurisdiction under CCAA s. 11 to stay all actions, including appellate proceedings and limitation periods.

The court dismissed the motion by JTI-Macdonald Corp. and Rothmans, Benson & Hedges Inc., and granted Imperial Tobacco's motion, finding that a blanket stay best preserved the status quo and facilitated a global resolution for all stakeholders.