Jonathan Joseph Jennings Foreman

In a second appeal arising from insurance class proceedings concerning participating account transactions implemented in a 1997 life insurance acquisition, the appellants challenged the trial judge’s interpretation of the remedial formula previously crafted by the Court of Appeal.

The court held that the objective of the remedy was to unwind the transactions as of the effective date by restoring the participating accounts and shareholder accounts to the positions they would have occupied had the transactions not occurred, without conferring a windfall.

It concluded that amortization charges could not reduce the merger expense savings deduction, that the 6.91 percent return under paragraph 200(e) had to be calculated on an after-tax basis, and that paragraph 200(e) formed part of the deduction rather than an addition to the amount payable.

The appeal was allowed, the effective date remained December 31, 2011, and the amount repayable to the participating accounts was fixed at $51.6 million subject to updating.

In a proposed national class proceeding alleging a price‑fixing conspiracy in the market for DRAM semiconductor devices, the representative plaintiffs sought approval of four additional settlement agreements with certain defendants and approval of class counsel fees.

The court assessed whether the negotiated settlements were fair, reasonable, and in the best interests of the class under the Class Proceedings Act, 1992.

Although no finalized distribution protocol for settlement funds had yet been developed, the court concluded the settlements—totaling $23.325 million and including cooperation provisions—were reasonable given litigation risk and the benefit of cooperation against non‑settling defendants.

The court also scrutinized class counsel’s request for a 30% contingency fee of approximately $7.13 million.

Finding that percentage excessive at this stage of the proceedings, the court reduced the fee award to 20% of total settlements achieved to date and approved an interim fee of $4,180,345.59.

Following a prior trial and a partial appeal, the court conducted a rehearing to determine the appropriate remedy in a certified class proceeding concerning participating account transactions and an unlawful pre‑paid expense asset used by life insurance companies.

The Court of Appeal had upheld the finding of illegality but directed the trial judge to determine the monetary amounts required to unwind the transactions and restore funds to participating policyholder accounts.

The central disputes concerned the calculation of merger synergy deductions, whether historical amortization charges should be deducted when determining the benefit received by participating accounts, the interpretation of a 6.91% return provision, and the appropriate “effective date” for unwinding the transactions.

The court concluded that amortization expenses since 1997 must be deducted to reflect the “no contribution/no benefit” principle and interpreted the Court of Appeal formula as adding, not subtracting, the 6.91% return to the participating accounts.

The court fixed December 31, 2011 as the effective date and ordered that $284,675,000 be paid to the participating accounts, with cancellation of the pre‑paid expense asset and related amortization charges.

The plaintiffs brought a motion to certify two actions as class proceedings for settlement purposes under the Class Proceedings Act, 1992 in relation to alleged price-fixing of DRAM (dynamic random access memory) devices.

The actions alleged breach of Part IV of the Competition Act, civil conspiracy, and tortious interference with economic interests against numerous international semiconductor manufacturers.

Following earlier settlement with one defendant, additional settlements were reached with several defendants totaling substantial monetary payments and cooperation commitments.

The court held that the criteria for certification under s. 5(1) of the Class Proceedings Act, 1992 were satisfied and approved certification for settlement purposes.

The court further determined that no additional opt‑out period was required because class members had already been provided a valid opportunity to opt out during the earlier settlement process.

Following dismissal of a defendant law firm’s summary judgment motion in a securities class proceeding, the court addressed costs of the motion.

The plaintiff sought $150,000 in partial indemnity costs, asserting extensive preparation and the importance of the motion.

Applying Rule 57 of the Rules of Civil Procedure and s. 31(1) of the Class Proceedings Act, 1992, the court considered indemnity principles, proportionality, complexity, and the parties’ reasonable expectations.

Because the motion raised novel issues that would ultimately be determined at trial and did not resolve the merits, the court fixed costs but ordered them payable in the cause.

Costs were set at $100,000 all-inclusive on a partial indemnity basis.

The plaintiffs, representing a class of Barbados participating policyholders, brought an action against Manulife following the transfer of their policies to Life of Barbados (LOB) in 1996 and Manulife's subsequent demutualization in 1999.

The plaintiffs claimed that Manulife owed them a duty of care and a fiduciary duty to protect their rights to participate in the demutualization.

The court found that while it was reasonably foreseeable that Manulife would demutualize, no duty of care or fiduciary duty was owed to the plaintiffs because their rights as policyholders were lawfully extinguished by the transfer agreement, which was approved by regulators in Barbados and Canada.

The action was dismissed.

In a certified class proceeding alleging a price-fixing conspiracy in the market for DRAM (dynamic random access memory) devices contrary to Part IV of the Competition Act and related torts, the representative plaintiffs sought court approval of a negotiated settlement with one defendant.

The settlement required the settling defendant to pay $5.75 million for the benefit of class members in Ontario, British Columbia, and Québec and to provide extensive cooperation in the ongoing litigation against non-settling defendants.

The agreement also included a bar order preventing contribution and indemnity claims against the settling defendant while permitting discovery cooperation and proportional liability determinations at trial.

Applying established class action settlement approval principles, the court concluded the settlement was fair, reasonable, and in the best interests of the class.

The settlement approval order was granted.

In a certified securities class action arising from a take‑over bid, the defendant law firm moved for summary judgment dismissing negligence and statutory misrepresentation claims.

The plaintiff alleged that a partner of the firm, who acted as counsel to the bidder and sat on its board, participated in preparing a take‑over circular containing misrepresentations contrary to s. 131 of the Securities Act.

The court held that there were genuine issues requiring a trial regarding whether the law firm owed a duty of care to shareholders who received and relied on the circular.

The court further held that the question of whether a law partnership could be vicariously liable under the Partnerships Act for a partner’s statutory liability as a corporate director should also proceed to trial.

Summary judgment was refused because the issues were novel and required a full factual record.

In a proposed class action alleging a conspiracy among DRAM manufacturers to fix prices, the plaintiffs brought a motion to certify the action for settlement purposes against one defendant following a settlement agreement.

The settlement required the defendant to pay $5.75 million for the benefit of class members in Ontario, British Columbia, and Québec.

The court considered the certification requirements under s. 5(1) of the Class Proceedings Act, 1992 and determined that the criteria for certification were satisfied.

The court also approved the proposed notice and notice plan, which aligned with a similar approval in British Columbia.

The motion was unopposed and the orders were granted as requested.

Following an appeal where the appellants achieved substantial but not total success, the Court of Appeal for Ontario issued a costs endorsement.

The appellants did not seek costs, and the court determined the respondents were not entitled to costs.

Consequently, the court made no order as to costs.

The appellants, life insurance companies, appealed a trial judgment finding that transactions involving their participating accounts to finance a corporate acquisition breached the Insurance Companies Act.

The Court of Appeal upheld the trial judge's findings that the transactions breached the Act by failing to comply with generally accepted accounting principles, improperly allocating expenses, and constituting prohibited transfers.

However, the Court allowed the appeal in part regarding the remedy, finding that the trial judge's order to return $390 million to the participating accounts via litigation trusts was overly broad and akin to an oppression remedy not available under the Act.

Instead, the Court ordered the transactions unwound as of the present, with adjustments for expense savings already received.

The appellants appealed a decision certifying two actions as class proceedings on behalf of participating life insurance policyholders.

The appellants argued the motions judge erred in finding a class proceeding was the preferable procedure under s. 5(1)(d) of the Class Proceedings Act, asserting that the Insurance Companies Act provided adequate alternative remedies for stakeholders.

The Divisional Court dismissed the appeal, holding that the motions judge made no error in principle and reasonably concluded that a class proceeding offered juridical advantages, including case management, access to justice through contingency fees, and judicial supervision of remedies.

Following the dismissal of the appellants' appeal of a refusal to certify a class proceeding regarding pension plan amendments, the respondents sought costs.

The appellants argued that no costs should be awarded, relying on the public interest and novel point of law provisions under the Class Proceedings Act, 1992.

The Divisional Court found no special circumstances to depart from the general rule that costs follow the event.

Applying the overriding principle of reasonableness, the court awarded costs to the respondents, including disbursements for a responding report on a fresh evidence motion.

The appellants appealed the decision of the motion judge refusing to certify their proposed class proceedings against the Ontario Northland Transportation Commission regarding amendments to its pension plan.

The appellants alleged the pension plan was an irrevocable trust and the amendments constituted a breach of trust.

The Divisional Court dismissed the appeals, finding that the motion judge made no errors of law, no palpable and overriding errors of fact, and that her conclusions on mixed fact and law regarding common issues, preferable procedure, and representative plaintiffs were reasonable and entitled to deference.