The plaintiffs in two proposed class actions regarding consumer loans for HVAC and home improvements brought a motion to stay hundreds of individual enforcement actions (Related Proceedings) commenced by the defendants against potential class members.
The court found that the plaintiffs had standing to bring the motion and that the test under s. 13 of the Class Proceedings Act applied, rather than the RJR-MacDonald injunction test.
However, the court dismissed the motion, finding that the plaintiffs could not demonstrate a substantial overlap of issues across all unidentified Related Proceedings, and that a blanket stay would cause significant injustice to the defendants' lending businesses.
The court ordered the defendants to disclose the existence of the proposed class actions to consumers involved in the Related Proceedings.
