Lauri A. Reesor

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 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.

This decision addresses cross-motions for summary judgment on damages issues in a class action for unpaid overtime.

The court previously found the defendant bank liable for breaching federal labour law regarding overtime.

In this stage, the court considered common issues related to unjust enrichment, remedies, and punitive damages, and crucially, whether to add aggregate damages as a common issue.

The court found that while the defendant was enriched, restitutionary relief was not available due to the breach of contract claim.

Punitive damages were denied as the bank's conduct, though careless, did not meet the "malicious, oppressive and high-handed" standard.

Most significantly, the court certified aggregate damages as a new common issue, finding a "reasonable possibility" that the plaintiff's proposed methodology, based on time-stamped computer data, could determine damages without individual proof, despite previous appellate court reservations about sampling.

The determination of the final aggregate damages quantum was adjourned pending expert reports and data access.

Employees sought certification of a class action alleging that a bank misclassified analysts, investment advisors, and associate investment advisors as ineligible for overtime pay contrary to the Canada Labour Code and the Employment Standards Act, 2000.

The proposed class relied on job titles and levels to establish commonality, arguing that eligibility for overtime could be determined collectively or through statistical sampling.

The court held that determining whether an employee exercised managerial or supervisory functions required a fact‑specific assessment of the actual duties performed by each employee.

Evidence showed wide variation in responsibilities even among employees sharing identical job titles, defeating the proposed common issues and rendering statistical sampling inappropriate for determining liability.

As the central issues of overtime eligibility and breach required individualized inquiries, a class proceeding was not a preferable procedure and the certification motion was dismissed.