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Refusal to certify a class action claim for lacking a cause of action creates res judicata.
The representative plaintiffs in a class action alleging a price-fixing conspiracy for packaged bread sought to amend their pleadings and the Certification Order to add Maple Leaf Foods Inc. as a certified defendant.
The original Certification Order had refused certification against Maple Leaf on the basis that the pleadings disclosed no cause of action against it, and this decision was not appealed.
The Court of Appeal upheld the motion judge's dismissal of the motion, finding that the original refusal to certify was a final order that gave rise to res judicata.
The court held that the Class Proceedings Act does not permit relitigation of matters finally decided, and the motion judge did not err in refusing to exercise his limited discretion to bypass res judicata.
Material change under the Ontario Securities Act must be interpreted flexibly, and the leave test under s. 138.8(1) requires a plausible application of the legislation to the facts rather than a plausible statutory interpretation.
A Canadian mining company detected pit wall instability and a subsequent rockslide at its premier mine in Chile.
The company did not immediately disclose these events to investors, disclosing them about a month later as part of regular updates, after which its share price dropped 16 percent.
An investor sought leave under s. 138.8(1) of the Ontario Securities Act to commence a class action for failure to make timely disclosure of a material change.
The Supreme Court of Canada, dismissing the appeal, held that the motion judge erred in interpreting 'material change' too restrictively.
The undefined terms 'change', 'business', 'operations', and 'capital' should not be constrained by dictionary definitions but applied flexibly and contextually.
The leave test requires a plausible application of the legislative provisions to the facts, not merely a plausible statutory interpretation.
On the uncontested evidence that the events impacted the company's operations, there was a reasonable possibility the action could succeed at trial.
The court approved a $500 million settlement and $75 million in class counsel fees in a national class action regarding a packaged bread price-fixing conspiracy.
The court approved a $500 million settlement in a national class action concerning a price-fixing conspiracy in the packaged bread market, resolving claims against Loblaw Companies Limited and related entities.
The settlement includes a substantial damages payment, a distribution protocol for class members, and a cooperation agreement by Loblaw to assist in ongoing litigation against non-settling defendants.
The court also approved class counsel fees and the payout to a third-party funder, finding the settlement fair, reasonable, and in the best interests of the class.
Pre-approval order granted for notice plan and amended certification in $500M packaged bread price-fixing settlement.
The plaintiffs brought a motion for a pre-approval order regarding a $500 million settlement in principle with the Loblaw defendants in a national class action alleging a price-fixing conspiracy for packaged bread.
The court granted the order, amending the certification of the Ontario action for settlement purposes only, appointing the settlement administrator, and approving the notice plan and pre-approval notices to inform class members of the settlement and their opt-out or objection rights.
The court dismissed a motion to reconsider a final certification order, finding the proposed new evidence failed the Sagaz test and striking the amended claims.
The Plaintiffs brought a motion to reconsider a previous certification ruling that dismissed the action against Maple Leaf Foods Inc. (MLF) in a class action alleging price-fixing.
The Plaintiffs sought to certify the action against MLF, presenting new evidence including a Second Information to Obtain (ITO), MLF's annual reports, Canada Bread's Agreed Statement of Facts (ASF) from a criminal proceeding, and emails from Canada Bread's files.
MLF opposed the motion and brought cross-motions to exclude the new evidence and strike the Plaintiffs' amended claims.
The court dismissed the Plaintiffs' motion, finding that the 'new evidence' was either not new, inadmissible hearsay, or did not substantively alter the lack of a viable cause of action against MLF.
The court emphasized the principle of finality in litigation, stating that a certification dismissal for lack of cause of action is a final order and cannot be revisited without meeting a strict test for new evidence (Sagaz test), which was not met here.
The court also granted MLF's motion to exclude the evidence and strike the amended statements of claim against MLF.
The court granted carriage of a securities class action to the plaintiff whose counsel had invested more resources in developing the case.
This decision addresses a carriage motion in proposed securities class actions stemming from a mine landslide.
Two plaintiff groups, represented by Strosberg Sasso Sutts LLP (SSS) and Berger Montague (Canada) PC (BMC), sought carriage.
The court applied the criteria under section 13.1(4) of the Class Proceedings Act, 1992.
It found both firms equally capable in terms of funding and expertise, and the core statutory claims had similar prospects of success.
However, the action led by SSS (Liang action) was significantly more developed, having invested more resources in evidence gathering and expert retention.
This distinction proved determinative, leading the court to grant carriage to the Liang action and stay the competing Jones action.
The Court of Appeal awarded $50,000 in costs to the respondents and $10,000 to the Law Foundation following dismissed appeals.
This is a costs endorsement following a judgment by the Court of Appeal for Ontario, which had previously dismissed both the appellant's appeal and the respondents' cross-appeal.
The Court determined the costs payable, awarding the primary respondents $50,000 from the appellant, despite the respondents seeking over $71,000 and the appellant proposing $40,000.
The Court was not persuaded by the appellant's public interest argument or the relevance of costs awarded in a comparable case that were based on party agreement.
Additionally, the Law Foundation of Ontario, which responded to the cross-appeal, was awarded $10,000 in costs from the primary respondents.
The Court of Appeal affirmed that a prosecutor's refusal to invite a corporation to negotiate a remediation agreement was not a material change requiring immediate disclosure.
The appellant, John Peters, appealed the dismissal of his motion for leave to bring a statutory cause of action under the Securities Act for alleged failure to disclose a material change, and for class action certification.
The alleged material change was a September 4, 2018, telephone call where the PPSC advised SNC-Lavalin that it would not be invited to negotiate a remediation agreement.
The motion judge found no reasonable possibility that the call constituted a "change" in SNC's business, operations, or capital.
SNC-Lavalin cross-appealed the costs order, which reduced their costs due to the case's legal novelty and public interest.
The Court of Appeal dismissed both the appeal, affirming the motion judge's interpretation of "material change" and application of the leave test, and the cross-appeal, upholding the discretionary costs decision.
Leave to appeal granted regarding the exclusion of certain purchasers from the certified class.
The plaintiffs brought a motion for leave to appeal an order excluding from the class for certification persons who claim damages for purchases of packaged bread directly or indirectly sold by a defendant producer without being resold by a defendant retailer.
The Divisional Court granted the motion for leave to appeal on this issue and reserved costs to the panel hearing the appeal.
Motion for leave to appeal dismissed with costs of $15,000 awarded to the plaintiffs.
The defendants brought a motion for leave to appeal an order of Morgan J. dated December 31, 2021.
The Divisional Court dismissed the motion for leave to appeal.
Costs were awarded in favour of the plaintiffs in the amount of $15,000 all inclusive, payable jointly and severally by the defendants.
The court awarded partial indemnity costs of $693,805.39 to the successful defendants following a dismissed securities class action certification motion.
This decision concerns the costs arising from the dismissal of the plaintiff's motion for leave to commence a secondary market securities class action and to certify the action.
The defendants sought substantial indemnity costs, while the plaintiff argued for partial indemnity and a discount due to the alleged novel and public interest nature of the litigation.
The court awarded partial indemnity costs of $693,805.39, finding no basis for substantial indemnity as there was no reprehensible conduct or unproven fraud allegations.
The court also rejected the argument for a discount under s. 31(1) of the Class Proceedings Act, concluding that the issues were not novel or of broad public interest, particularly as they had been previously litigated.
A minor deduction was made for online research disbursements.
Leave for securities class action denied as mining rock slide was not a material change.
The plaintiff sought leave to bring a statutory secondary market misrepresentation claim under the Securities Act and to certify a class action for both statutory and common law negligent misrepresentation claims.
The claims arose from the defendant mining company's alleged failure to immediately disclose a pit wall instability and subsequent rock slide at its Chilean copper mine.
The court dismissed the motion for leave, finding no reasonable possibility of success that the events constituted a 'change' to the company's business, operations, or capital, as they were inherent mining risks managed in the ordinary course.
The court also dismissed the certification motion for the common law claim, holding that individual issues of reliance made a class proceeding unmanageable and not the preferable procedure.
Class action for packaged bread price-fixing certified against producers and retailers, but umbrella claims and claims against parent companies dismissed.
The plaintiffs brought a motion to certify a class action against major producers and retailers of packaged bread, as well as their parent companies, alleging a 16-year price-fixing conspiracy.
The court certified the action against the producer and retailer defendants on behalf of direct and indirect purchasers of packaged bread.
However, the court refused to certify the claims against the parent companies, finding no material facts pleaded to support their involvement.
The court also refused to certify claims on behalf of 'umbrella purchasers' (those who bought fresh bread or packaged bread from non-defendants), finding no plausible methodology to prove that the price-fixing of packaged bread caused an actionable increase in the prices of those non-competing or diverse products.
$15 million class action settlement regarding youth segregation in Ontario facilities approved.
The plaintiff moved for approval of a $15 million settlement in a class action against Ontario concerning the practice of youth segregation in provincial youth justice facilities.
Class counsel also sought approval of a $4.05 million fee and a $15,000 honorarium for the representative plaintiff.
The court found the settlement to be fair, reasonable, and in the best interests of the class, noting the significant litigation risks regarding whether youth segregation amounted to unconstitutional solitary confinement.
The court approved the settlement, the counsel fees, and the honorarium.
Costs of $285,000 awarded to successful defendants, reduced due to the novelty and public interest of the proposed class action.
Following the dismissal of the plaintiff's motions for leave to assert a statutory cause of action under the Securities Act and for certification of a class proceeding, the successful defendants sought costs of $363,184 on a partial indemnity basis.
The plaintiff argued for a reduced award of $250,000, citing the novelty and public interest of the case under s. 31(1) of the Class Proceedings Act, 1992.
The court agreed that the case raised a novel point of law and involved a matter of public interest, justifying a reduction in the costs award.
Costs were fixed at $285,000 all-inclusive.
Leave for securities class action denied as failure to obtain remediation agreement was not a material change.
The plaintiff sought leave to assert a statutory cause of action for secondary market misrepresentation under the Securities Act and to certify a class action against SNC-Lavalin and its directors.
The plaintiff alleged that SNC failed to timely disclose a material change when it was informed by the Public Prosecution Service of Canada that it would not be invited to negotiate a remediation agreement regarding criminal charges.
The court dismissed the motions, finding that the communication was not a 'change' in the business, operations, or capital of SNC, and therefore not a 'material change' requiring immediate disclosure.
The court also declined to certify the common law negligent misrepresentation claim, as reliance would be an individual issue and the statutory claim was not viable.
The court approved a $37 million class action settlement regarding a tax shelter scheme, along with class counsel fees and representative plaintiff honorariums.
The plaintiffs in a class action sought court approval for a settlement agreement with certain defendants, class counsel fees and disbursements, and honorariums for the representative plaintiffs.
The settlement amount was $37 million.
The court approved the settlement, finding it fair and reasonable given the litigation risks, including dissolved corporate entities and limitations issues.
The court also approved the 30% contingency fee for class counsel and $50,000 honorariums for each representative plaintiff, recognizing their exceptional involvement and exposure to costs.
The court dismissed a motion for an interlocutory injunction to halt a medical clinic's sale, finding weak evidence of a right of first refusal and no irreparable harm.
The plaintiffs sought an interlocutory injunction to prevent the sale of a medical clinic, asserting a right of first refusal (ROFR).
The court found the plaintiffs' case for an ROFR to be very weak, noting that the condition precedent for the ROFR (plaintiff acting as Medical Director and Quality Advisor without compensation) was never fulfilled.
Furthermore, the court found no irreparable harm, as the third-party purchaser offered to continue the plaintiff's association agreement, and the plaintiff's claims of uniqueness for the clinic were speculative.
The balance of convenience also favored dismissing the injunction, as granting it would cause significant harm to the defendants and potentially the clinic's operations.
The interim injunction was terminated, and the request to continue it was denied.
Third-party litigation funding agreement approved in packaged bread price-fixing class action.
The plaintiffs in a proposed class action alleging a price-fixing conspiracy regarding packaged bread sought court approval of a third-party litigation funding agreement with Bentham.
The defendants largely did not object, except regarding a clause allowing Bentham to satisfy any security for costs order via an undertaking rather than paying into court.
The court found the funding agreement necessary for access to justice, fair and reasonable to the class, and approved the agreement, including the provision allowing an undertaking for security for costs.
The court approved a $1 million securities class action settlement and cy-près distribution.
The plaintiffs brought a motion for certification of a class action, approval of a $1 million settlement agreement, and approval of class counsel's fees and disbursements.
The action alleged misrepresentations in WesternOne Inc.'s public documents regarding a construction project.
The court granted the motion, certifying the action, approving the settlement as fair and reasonable given the litigation risks, and fixing class counsel's fees and disbursements.
The net settlement fund, after deductions, was directed to the Access to Justice Fund via a cy-près payment due to the impracticality and uneconomical nature of direct distribution to individual class members.